This document discusses leveling production in a just-in-time (JIT) system. Leveling aims to satisfy customer demand by providing what customers want, when they want it, in the desired quantities. It has three components: volume, variety, and time. Leveling production involves grouping products into families and setting batch sizes as small as possible to balance the production schedule daily or weekly. The benefits of leveling include stable production, flexibility to respond to changes, and improved productivity and supply chain management.

1. PRIVATE/PROPRIETARYT-TM-007-C1.0-Leveling – Page 1 of 17
APS Training Module
JIT – Leveling
Autoliv
14-April-2006
JIT–TM-007-C1.0

2. PRIVATE/PROPRIETARYT-TM-007-C1.0 -Leveling– Page 2 of 17
Autoliv
Quality assurance
Quality methods
Six Sigma
Standards
Pull system
Safety & Ergonomy
Don’t judge, don’t blame !
Flexibility & Motivation
Discipline to standards
Continuous improvement
Process & Result
Customers
Company Employees
Society
Quality first
Profitability
Competitiveness
Satisfaction
Employee involvement
Team work 5S Muda elimination TPM
Just in time
Leveling & Capacity
Line concepts
Continuous flow
Takt time
Frequent deliveries
Leveling & Capacity

3. PRIVATE/PROPRIETARYT-TM-007-C1.0 -Leveling– Page 3 of 17
Why this training
During this training you will learn:
• What is the purpose of leveling?
• What are the three components of leveled production?
• How do we level production?
• What are the benefits of leveling?

4. PRIVATE/PROPRIETARYT-TM-007-C1.0 -Leveling– Page 4 of 17
Satisfy customer demand and create
stable production while continuously
improving standards
Give the customers:
Purpose of Leveling
• What they want
• When they want it
• In the quantity they want

5. PRIVATE/PROPRIETARYT-TM-007-C1.0 -Leveling– Page 5 of 17
Contract Leveling
Monthly activity Daily activity
Rail
Management
Hourly activity
Leveling

6. PRIVATE/PROPRIETARYT-TM-007-C1.0 -Leveling– Page 6 of 17
Leveling
Leveling has 3 components:
• Volume
• Variety
• Time
When demand is level, it gives you an opportunity to
effectively plan your Manpower, Material, and Machines.
Low Demand
Levelled
Production
Without leveling, your
capacity must equal the
Highest Demand Balanced Demand

7. PRIVATE/PROPRIETARYT-TM-007-C1.0-Leveling – Page 7 of 17
Monthly
Need
Ref A
100
boxes
Ref B
200
boxes
Ref C
300
boxes
Level
1
Level
1
20 pallets
40 pallets
60 pallets
Réf A
Réf B
Réf C
Month Once a month
each reference
Level
2
Level
2
10 pallets
20 pallets
30 pallets
10 pallets
20 pallets
30 pallets
Réf A
Réf B
Réf C
Month
More than once
a month of
each reference
Level
3
Level
3
1 palletRéf A
Réf B
Réf C
Day
2 pallets
3 pallets
Once a day
each reference
Level
4
Level
4
1 pallet
1 pallet
1 pallet 1 pallet
1 pallet 1 pallet
Réf A
Réf B
Réf C
Day All references at
least once a day
standard batch
(equal quantity)
Réf A
Réf B
Réf C
1 box
1 box 1 box
1 box 1 box 1 box
1 box
1 box 1 box
1 box 1 box 1 box
Day
Reduce size of
batch at the
minimum : box,
or even single
product...
Level
5
Level
5
What is Leveling?

8. PRIVATE/PROPRIETARYT-TM-007-C1.0 -Leveling– Page 8 of 17
Leveling
Production
every WEEK
Stock average
Delivering
every DAY
WHY Level 5 (small lot) is better than Level 1 (large lot)?

9. PRIVATE/PROPRIETARYT-TM-007-C1.0 -Leveling– Page 9 of 17
Leveling
Production
every 2 days
Delivering
every DAY
Stock average
Production
every WEEK
Stock averageDelivering
every DAY
WHY Level 5 (small lot) is better than Level 1 (large lot)?

10. PRIVATE/PROPRIETARYT-TM-007-C1.0 -Leveling– Page 10 of 17
500 A
30 B
260 C
400 A
30 B
360 C
390 A
80 B
320 C
210 pieces lost !
Breakdown !
BA C
500 400100
A C A C A B A C A C
100 100 100 100 100 100 100 100 100 100
ACABACACAACABACACAACABACACAACABACACAACABACACAACABACACAACABACACAACABACAC
Batch of 10
500 A
100 B
400 C
500 A
100 B
400 C
500 A
100 B
400 C
500 A
30 B
260 C
400 A
30 B
360 C
390 A
80 B
320 C
100%
30%
65%
80%
30%
90%
78%
80%
80%
- Qty is not good
+ Every customer has
80% of need
WHY Level 5 (small lot) is better than
Level 1 (large lot)?
Leveling

11. PRIVATE/PROPRIETARYT-TM-007-C1.0 -Leveling– Page 11 of 17
BA C
500 400100
A C A B A C A C A C
100 100 100 100 100 100 100 100 100 100
ACABACACAACABACACAACABACACAACABACACAACABACACAACABACACAACABACACAACABACAC
Batch of 10
=> Planning can
easily be changed
for productıon10:00 am
Customer
Emergency
C CCCCCCC
=> Planning can
not easily be
changed for
productıon
C
WHY Level 5 (small lot) is better than
Level 1 (large lot)?
Leveling

12. PRIVATE/PROPRIETARYT-TM-007-C1.0 -Leveling– Page 12 of 17
HOW : ( OUTPUT )
AMO : Logistic
AMO : Production
AMO : Production Engineering
AMO
- daily quantity agreement per family
and flexibility inside each family
- non chaotic supplier demand
- daily quantity agreement per day
- Stable number of operators needed
every day for the whole month
- TAKT TIME for each production line
- Line availability for technical
improvement
- Non chaotic activity
- Monthly action plan
- Team Building
Leveling

13. PRIVATE/PROPRIETARYT-TM-007-C1.0 -Leveling– Page 13 of 17
HOW to define the right level ?
• What is your criteria for batches ?
→ Change over time ?
→ Criteria with direct labor impact ?
→ Replenishment criteria ?
→ Quality concerns ?
→ Packaging size
Production line must run according to
Takt time, with the best efficiency to
meet customer satisfaction in Quality,
Cost and On Time Delivery
Leveling

14. PRIVATE/PROPRIETARYT-TM-007-C1.0 -Leveling– Page 14 of 17
HOW ?
• Define a matrix with reference and criteria
Leather Foam with switch without switch
Ref A x x
Ref B x x
Ref C x x
Ref D x x
Ref E x x
Ref F x x
Ref G x x
Ref H x x
Ref I x x
Ref J x x
NISSAN X31B
Family 1
Family 2
Family 3
Family 4
Logistic Criteria Production Criteria
Supply chain Impact :
- Levelling of material
incoming ==> reduce the
line stoppage due to lack
of material
Productivity Impact :
- production under control
- stable
number of operators
Leveling

15. PRIVATE/PROPRIETARYT-TM-007-C1.0 -Leveling– Page 15 of 17
HOW ?
• Define the batch size
(as small as possible)
batch size
Number
of
batch/day 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4
Ref A
Ref B
Ref C
Ref D Levelling
Ref E
Ref F
Ref G
Ref H
Ref I
Family 4 Ref J 320 3 J J J J J J
D DC
FF
504
270
48
Family 1
Family 2
Family 3
100
5
3
1
BD D B C
F F E
G
Contract
Qty/day
G
E
A A
• Change over are forecasted, production is becoming predictable
• Logistic can put any reference related to a family within a family batch
• Level batches in the
Heijunka board
Total 12 batches 1 2 3 4 5 6 7 8 9 10 11 12
Leveling

16. PRIVATE/PROPRIETARYT-TM-007-C1.0 -Leveling– Page 16 of 17
• Production under control
• Change over under control
• Planning flexibility within a family
Leveling Benefits

17. PRIVATE/PROPRIETARYT-TM-007-C1.0 -Leveling– Page 17 of 17
Why this training
Can you answer these questions:
• What is the purpose of leveling?
• What are the three components of leveled production?
• How do we level production?
• What are the benefits of leveling?