It is consistent with the well-recognized Toyota notion that production must be viewed as something that naturally and faithfully conforms to firm orders and reflects theToyotamind-set against speculative production and the idea that market fluctuations must create inventories. In sum, heijunka is a production planning method in which the sequence of items to be produced during a given day are determined, taking into account process loads and capacities, as well as external demand (Coleman & Vaghefi, 2006)”
As highlighted above one of the main characteristics of the Toyota Productions System is the flexibility it offers to the company. By employing the Toyota Productions System and changing the structure of the production line from being purely assembly line based to cluster cell based small lot manufacturing assembly line the company can make use of one production line to manufacture multiple different types of models and automotive vehicles. This considerably reduces the costs of operations, the fixed costs required for the running of extra production lines and the capital funds that are needed for the set up and establishment of the machinery as well as human resource needed to work on the separate production assembly lines. The operations of the company therefore become much more efficient in terms of the time required for manufacturing and the cost incurred in terms of producing one finished good
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