--- title: Levelized Production description: Levelized production is a lean concept that encourages producing the same amount of product each day. Read more here about its many benefits. image: https://www.teamacuity.biz/hubfs/Images/quality__efficiency_up_cost_down.jpg --- Learn more about how to choose the right ERP with our ERP Evaluations Series. [Learn More.](https://www.teamacuity.biz/blog) [![logo-top](https://www.teamacuity.biz/hs-fs/hub/420229/file-1511926966.png?width=166&height=89&name=file-1511926966.png "logo-top")](https://www.teamacuity.biz) - [Home](https://www.teamacuity.biz/) - Software - [SAP Business One](https://www.teamacuity.biz/sap-business-one) - [SAP Business One and AWS](https://www.teamacuity.biz/sap-business-one-and-aws) - [Wisys Supply Chain Management](https://www.teamacuity.biz/wisys) - Services - [Success Methodology](https://www.teamacuity.biz/success-methodology) - [Consulting](https://www.teamacuity.biz/consulting) - [On-Going Support](https://www.teamacuity.biz/ongoing-support) - About - [About Acuity](https://www.teamacuity.biz/about-acuity) - [Careers](https://www.teamacuity.biz/careers) - [Resources](https://www.teamacuity.biz/resources-section) - [Resources](https://www.teamacuity.biz/resources-section) - [Blog](https://www.teamacuity.biz/blog) - [Contact](https://www.teamacuity.biz/contact-us) [![logo-top](https://www.teamacuity.biz/hs-fs/hub/420229/file-1511926966.png?width=166&height=89&name=file-1511926966.png "logo-top")](https://www.teamacuity.biz) [![logo-top](https://www.teamacuity.biz/hs-fs/hub/420229/file-1511926966.png?width=166&height=89&name=file-1511926966.png "logo-top")](https://www.teamacuity.biz) - [Home](https://www.teamacuity.biz/) - Software - [SAP Business One](https://www.teamacuity.biz/sap-business-one) - [SAP Business One and AWS](https://www.teamacuity.biz/sap-business-one-and-aws) - [Wisys Supply Chain Management](https://www.teamacuity.biz/wisys) - Services - [Success Methodology](https://www.teamacuity.biz/success-methodology) - [Consulting](https://www.teamacuity.biz/consulting) - [On-Going Support](https://www.teamacuity.biz/ongoing-support) - About - [About Acuity](https://www.teamacuity.biz/about-acuity) - [Careers](https://www.teamacuity.biz/careers) - [Resources](https://www.teamacuity.biz/resources-section) - [Resources](https://www.teamacuity.biz/resources-section) - [Blog](https://www.teamacuity.biz/blog) - [Contact](https://www.teamacuity.biz/contact-us) [![logo-top](https://www.teamacuity.biz/hs-fs/hub/420229/file-1511926966.png?width=166&height=89&name=file-1511926966.png "logo-top")](https://www.teamacuity.biz) [lean manufacturing](https://www.teamacuity.biz/blog/topic/lean-manufacturing) [lean](https://www.teamacuity.biz/blog/topic/lean) # Levelized Production By [Joseph Timmins](https://www.teamacuity.biz/blog/author/joseph-timmins) September 30, 2016 1 Minute Read Many manufacturing companies react and build to customer orders. However, there is a fine line between waiting too long to begin fulfilling orders (resulting in unhappy customers) and overproducing (creating an unwanted surplus). ***Levelized production*** is a [lean concept](https://www.teamacuity.biz/blog/what-is-lean-manufacturing) that encourages producing the same amount of product each day. This works in manufacturing environments that are reasonably predictable – recognizing that pure MTS (make-to-stock) manufacturing is less common than MTO (make-to-order) nowadays. To accomplish levelized production, history and forecasting numbers based on your [ERP system](https://www.teamacuity.biz/blog/choosing-your-ideal-erp-solution) are mandatory. Understanding this information will create balance and eliminate over/under production. For example, let’s say a company receives orders for 60 widgets in a particular week: 30 orders on Monday, 10 on Wednesday, and 20 on Friday. Had this scenario been reasonably anticipated through order history and forecast (thanks to ERP), the manufacturer may have built 12 widgets per day for a week, or longer if the pattern is expected to continue. The production process is level and in sync with demand. This may appear to be an oversimplification, but proper ERP tools – lead times, scrap factors, bills of material, inventory positions, etc. – can help companies understand realistic numbers, establish sound “levels,” and manage their business better. **Here are just a few benefits of levelized production:** ## Reduced Labor Costs – Simpler Goals![quality__efficiency_up_cost_down.jpg](https://www.teamacuity.biz/hs-fs/hubfs/Images/quality__efficiency_up_cost_down.jpg?width=335&name=quality__efficiency_up_cost_down.jpg) Spikes in production demand may require additional work shifts, overtime expenses, or the employment of contract workers to help fulfill orders. In contrast, levelized production maintains steadier labor costs and simplifies expectations of production workers, schedulers, and supervisors. ## Clearer Inventory Position Understanding and predicting how much inventory is, or will be, on hand not only clarifies requirements of your production personnel, it does the same for financial expectations as the cost of carrying inventory is understood and minimized. ## Improved Quality Control In the event of a quality problem, with levelized production you immediately know the impact on units affected. Consider, in contrast, a large batch that is built and stored for a long period of time before a quality problem is found – not only is it much more costly, it’s also harder to get at the root cause. [![30 minute challenge CTA](https://no-cache.hubspot.com/cta/default/420229/9c5e79cd-aae6-4c96-9733-f5cf13a85460.png)](https://cta-redirect.hubspot.com/cta/redirect/420229/9c5e79cd-aae6-4c96-9733-f5cf13a85460) ## Improved Customer Service Levelized production prevents capacity from being fully booked and/or overbooked, increasing your responsiveness to special requests or to fulfill large orders on time. This results in better informed customer service personnel and happier customers. Would you be interested in using ERP systems to feed a levelized production approach for your operation? If so, the experts at Acuity would love to hear more about your production planning processes and help you implement a strategy tailored to your business! [Contact us](https://www.teamacuity.biz/contact) today for more information. #### Joseph Timmins Author ## Recommended For You [![](https://www.teamacuity.biz/hubfs/Canva%20images/Canva%20Design%20DAFxiez3Q04.png)](https://www.teamacuity.biz/blog/conducting-levelized-production-in-a-lean-environment) [lean manufacturing](https://www.teamacuity.biz/blog/topic/lean-manufacturing) [lean](https://www.teamacuity.biz/blog/topic/lean) 2 Min Read ### [Conducting Levelized Production in a Lean Environment](https://www.teamacuity.biz/blog/conducting-levelized-production-in-a-lean-environment) [Joseph Timmins March 2, 2017](https://www.teamacuity.biz/blog/author/joseph-timmins) [![plan_develop_implement_maintain.jpg](https://www.teamacuity.biz/hubfs/Images/plan_develop_implement_maintain.jpg)](https://www.teamacuity.biz/blog/total-preventative-maintenance) [lean manufacturing](https://www.teamacuity.biz/blog/topic/lean-manufacturing) 1 Min Read ### [Total Preventative Maintenance](https://www.teamacuity.biz/blog/total-preventative-maintenance) [Joseph Timmins September 13, 2016](https://www.teamacuity.biz/blog/author/joseph-timmins) [![Manufacturing](https://www.teamacuity.biz/hubfs/Canva%20images/Canva%20Design%20DAGPuWXr4Qs.png)](https://www.teamacuity.biz/blog/understanding-the-differences-mps-mrp-and-mes-in-manufacturing) 2 Min Read ### [Understanding the Differences: MPS, MRP, and MES in Manufacturing](https://www.teamacuity.biz/blog/understanding-the-differences-mps-mrp-and-mes-in-manufacturing) [Joseph Timmins September 3, 2024](https://www.teamacuity.biz/blog/author/joseph-timmins) ![logo-top](https://www.teamacuity.biz/hs-fs/hub/420229/file-1511926966.png) 125 Whipple Street Providence, Rhode Island 02908 [401.243.8480](tel:401-243-8480) 877.361.6534 [Follow us on Facebook](https://www.facebook.com) [Follow us on LinkedIn](https://www.linkedin.com) [Follow us on Twitter](https://www.twitter.com) [Follow us on Instagram](https://www.instagram.com) - [Home](https://www.teamacuity.biz/) - Software - [SAP Business One](https://www.teamacuity.biz/sap-business-one) - [SAP Business One and AWS](https://www.teamacuity.biz/sap-business-one-and-aws) - [Wisys Supply Chain Management](https://www.teamacuity.biz/wisys) - Services - [Success Methodology](https://www.teamacuity.biz/success-methodology) - [Consulting](https://www.teamacuity.biz/consulting) - [On-Going Support](https://www.teamacuity.biz/ongoing-support) - About - [About Acuity](https://www.teamacuity.biz/about-acuity) - [Careers](https://www.teamacuity.biz/careers) - [Resources](https://www.teamacuity.biz/resources-section) - [Resources](https://www.teamacuity.biz/resources-section) - [Blog](https://www.teamacuity.biz/blog) - [Contact](https://www.teamacuity.biz/contact-us)