Dynamic modelling of impact of lean policies on production levelling feasibility

A dynamic systems approach is proposed to investigate challenges of implementing production levelling and associated costs. A model of a lean cell is developed using system dynamics. The model captures various lean tools influencing production levelling. Comparative cost analysis between various levelling implementation policies for stochastic demand with multiple products is conducted. Results showed that determining the most feasible levelling policy is highly dictated by both capacity scalability cost and limitations. The developed model and revealed insights can help lean practitioners to better decide on when and how to implement production levelling as well as determine production lots sizes.