Abstract
In previous research, De Haan and Yamamoto (in press) found that Japanese production planning had specific characteristics such as being detailed and centralized. Nevertheless, Japanese firms succeed in meeting flexibility norms such as a high degree of customization as well as short delivery terms. In Western literature, Japan is associated with pull production whereas short delivery terms are associated with push production (planned, detailed and centralized) and customization is seen as a strength of pull production (planned, decentralized, within a broad overall framework). Therefore, this result was quite puzzling. In this paper, we study the Western literature on production systems and production planning strategies in more detail. The concept of ‘‘customer order decoupling point’’ appears to be of help in understanding the relationship between production systems, planning strategies and level of customization. Two patterns could be identified: (1) push production to stock and levelling (2) versus pull production to order and chasing. The Japanese practices do not fit into these patterns, as the case studies showed push production to stock but on the basis of a chase strategy. Specific characteristics of the Japanese production system, such as step-by-step planning, ringi/nemawashi decision-making and “kaizen”, nevertheless, made this pattern effective.
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