Page 178 - The Toyota Way Fieldbook

154 THE TOYOTA WAY FIELDBOOK

The first pass of leveling will remove a layer of waste associated with
chasing the waves. This will provide additional capacity that was not available
before. Many companies discover that the initial leveling effort allows them to
“catch up” with orders, and that they are overproducing based on the initial
assumptions. It is possible to either reduce the resources or to increase sales if
possible.
Let’s look at a specific example. The data in Table 7-1 represents a simplified
version of a real situation, but the concepts can be applied to more complex situa-
tions as well. In our example we will level 10 parts, designated A through J, each
with varying demands. The “Other” items that are produced in the process had
low volume requirements, an average of 125, and will not be leveled by indi-
vidual part. The total daily volume for all products, including the “Other”
items, is leveled. In fact the “Other” items and the quantities will vary, and it is
possible to make adjustments by increasing or decreasing the total running time
if the actual requirement is more or less than planned. This adjustment does not
alter the leveling effect for items A through J.
Based on the volume requirements for the leveled items, a production pat-
tern is developed to minimize the negative effects of changeover (the process
has improved, but the time is still greater than desired—for now). Items A

Daily Average
Part
Demand
A 250
B 220
C 210
D 128
E 125
F 75

G 60
H 45
I 45
J 35
Other 125

Total 1,318

Table 7-1. Volume Requirements by Part