Smoothing of Total Production Quantity

Hi, everyone, I’m Tuyên Dương. Good to see you all. As you can see on the screen, I’m going
to talk about Smoothing of Total Production Quantity. So What is Smoothing of the total
production quantity?... is done to minimize the variance in total outputs between two sequential
periods.
The first, the goal of production smoothing is to produce the same amount of products every
period. For example, consider mass production of the Corolla. Initially, a per month quantitative
production schedule is made, based on the demand forecast. This figure is then simply divided
by the number of operating days in the month to get a daily production volume. In this manner, it
may be feasible to develop a plan that would enable daily production of the desired number of
cars. This is the smoothing of the total production quantity.
The second, it allow daily production volumes to remain constant despite demand varying (level
the total output in a month)
The third, have a per month quantitative production schedule based on demand forecast -->
divided by the number of operating days in the month to get a daily production volume.

After all, smoothing of the total production quantity is meant to level the daily amount of
products flowing as much as possible by anticipating peaks and valleys in demand. It is
necessary for avoiding overall waste in an entire production system.
There are two kinds of waste:
1. Waste from uneven periods of demand
During a period of short runs, the plant is likely to display waste in the forms of workforce and
inventories when compared with a peak period
2. Waste occurs between processes (especially final assembly lines)
--> final assembly line and all processes must produce products according to the cycle time.
This means balancing between processes will be completely realized if every preceding process
finishes at the same pace within the averaged cycle time for all specifications.

If the quantity of demand within a month is not constant?

The shorter the period of a master production plan, the better for executing smoothing of the
total production quantity
However, time span of the master production plan also cannot be too short, else smoothing of
the total production quantity will disappear

Example:
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Adapting:
- Use early attendance & overtime
Improvements within each process also produce extra time
 - Adapt operation according to monthly schedule for average daily production
- Most important goal: improve process to meet demands with a minimum number of
workers
--> have the required machine capacity for peak demand and hire additional workers
(temporary or seasonal) when needed so that effective production capacity can be easily
expanded

Example:
Load on machine ordinarily is set 90% of its full capacity, each multifunctional worker handle 10
machines
When demand increases, temporary workers are hired, each handles less than 10 machine,
utilizing 100% machine capacity

1. In parts manufacturing processes, the number of machines handled by each worker

increase
2. On the assembly line, cycle time will increase due to reduce demand quantity
3. Developing standardized work in advance for different takt scenarios
4. Let extra workers involve other activities than to produce unnecessary stock

The following are examples of activities that may be organized during a slack period:
• Transfer workers to other lines for which demand increased.
• Decrease overtime.
• Use a paid holiday.
• Conduct quality control circle meetings.
• Practice setup actions.
• Conduct maintenance and repair of machines.
• Manufacture improved tools and instruments.
• Conduct plant maintenance and upkeep.
• Manufacture parts previously purchased from suppliers.