Customer demand is lumpy. See what happens when you chase it day by day (overburden and idle time) versus levelling production to a steady pace, and why levelling needs a small buffer.
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Heijunka (pronounced hay-June-kah) is Japanese for levelling. It means smoothing production so the same amount, and the same variety, is made at a steady pace, instead of lurching to match every rise and fall in customer orders.
Chase means produce exactly what was ordered each day. It sounds efficient, but it forces overtime and overburden on busy days and idleness on slow days, and it needs a flexible workforce you rarely have.
Level means produce close to the average every day, and hold a small buffer of finished goods to absorb the swings. The workload becomes calm and predictable, staffing is stable, and quality steadies. The price is a modest amount of inventory, which is usually far cheaper than the chaos of chasing.
Mix levelling means more changeovers, so it depends on quick changeover. That is why Heijunka and SMED (single-minute exchange of die) are taught together: SMED makes the frequent changeovers cheap.
Sunrise makes three sauce lines, A, B and C. Last week distributors ordered 8, 30, 5, 40 and 17 cases from Monday to Friday, a total of 100 for the week, so the average is 20 a day. The line can make at most 25 in a day.
Chasing the orders means 8 on Monday (people idle), then 30 and 40 on Tuesday and Thursday. Both are above the ceiling of 25, so the line is overburdened on two days, ships late, and pays overtime, while Monday and Wednesday are slow. That is mura creating muri and muda at the same time.
Levelling to 20 a day removes every overburden day and steadies the crew. Sunrise starts the week with a small finished-goods buffer, builds a little stock on the light days and draws it down on the heavy days, and still serves every order. For the mix, instead of a Monday A-campaign it runs a daily pattern such as A B C A B A C A B A, so a distributor wanting sauce C on Wednesday no longer waits for the next C campaign.
The lesson executives take away: the demand did not change, but by levelling the response to it, Sunrise cut overtime, protected quality and improved delivery, at the cost of a small, deliberate buffer.