Abstract
The concept of heijunka—controlling the variability of the job arrival sequence to permit higher capacity utilization—plays an integral role in lean production theory. In situations where the customer defines the delivery sequence, however, scheduling production to maximize utilization becomes more challenging and requires a subsequent reordering. The cost of the extra work and space required by this reordering needs to be traded off against the value of the higher utilization. We present the results of a stylized simulation-based model of the two approaches inspired by a BMW engine plant.
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