06:33
Faizan
It is a widely acknowledged fact that Lean management processes such as Heijunka have a great role to play in increasing profitability of a manufacturing unit. First developed by Toyota Motor Corp with great results, the purpose of this technique is to create a properly balanced workflow by levelling production.
Heijunka aims to smooth out production levels in terms of volume and product mix. Companies base their production schedule on overall volume of orders for a particular period of long duration and not on the specific orders which originate sporadically. It goes without saying that this works best if the company is able to correctly anticipate the orders it will receive for that period, for instance one quarter or even a whole year.
The advantages of leveling out the production schedule include:
- Reduced manpower costs: Companies will be able to produce goods with their existing manpower without needing to pay overtime or hire more employees. At the same time there will be no need to send employees home because there is no work for them.
- Reduced raw material procurement costs: Since the production line works at a steady pace throughout the year irrespective of order levels, there is no need to pay for raw materials at higher rates from time to time.
- Improved quality: If work is done at a steady rate then it is very easy to keep track of mistakes in the production line. Workers will also be able to do their work well without any errors since they will not be rushed at any point in time. This reduces the number of products that have to be rejected.
- Reduced equipment breakdown: Production equipment will work best if they are operated at a steady pace throughout the year. As a result, equipment replacement and repair costs can also be kept to the absolute minimum.
- Increased employee satisfaction: Employees will enjoy their work more if they can work at a steady pace all year. If production takes place in fits and starts then they will certainly have a lot of discontent.
Heijunka aims to smooth out production levels in terms of volume and product mix. Companies base their production schedule on overall volume of orders for a particular period of long duration and not on the specific orders which originate sporadically. It goes without saying that this works best if the company is able to correctly anticipate the orders it will receive for that period, for instance one quarter or even a whole year.
The advantages of leveling out the production schedule include:
- Reduced manpower costs: Companies will be able to produce goods with their existing manpower without needing to pay overtime or hire more employees. At the same time there will be no need to send employees home because there is no work for them.
- Reduced raw material procurement costs: Since the production line works at a steady pace throughout the year irrespective of order levels, there is no need to pay for raw materials at higher rates from time to time.
- Improved quality: If work is done at a steady rate then it is very easy to keep track of mistakes in the production line. Workers will also be able to do their work well without any errors since they will not be rushed at any point in time. This reduces the number of products that have to be rejected.
- Reduced equipment breakdown: Production equipment will work best if they are operated at a steady pace throughout the year. As a result, equipment replacement and repair costs can also be kept to the absolute minimum.
- Increased employee satisfaction: Employees will enjoy their work more if they can work at a steady pace all year. If production takes place in fits and starts then they will certainly have a lot of discontent.
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