Small Lot-Size production (Lot-Size)

The production of small lots (ideally one piece) is an
important component of many Lean Manufacturing
strategies. The size of the lot has direct effect on the inventory, planning as well as on costs. Other effects are less obvious but equally important. Smaller lots
reduce the variability in the system and level the
production, improving quality.

The effects of small lots differ between Make to
Order (MTO) and Make to Stock (MTS), but they are
important in both situations. In MTO environments,
the ability to make smaller lots makes it economically
practical to accept smaller orders. This may open up
new market segments or eliminate the intermediaries
in the supply chain.

In an MTS environment, the small lots will translate
directly into smaller inventories. Transportation and
inventory costs are greatly reduced. The small plots
often allow the conversion from MTS to MTO.

    






The Kanban card of the empty container gets
inserted in the box of the different production lots.
When the production lot has all the Kanbans,
the production box is inserted into the production
queue.







The production queue highlights the amount of time to complete the required production.



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