Production Levelling

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Certified Inventory Optimization Professional (CIOP) is an end-to-end supply chain certification program. The certification consists of 30 modules focusing both on traditional and futuristic topics. The traditional topics are introduction to supply chain management, all about inventory, strategic business planning, forecasting, demand management, capacity management, sales and operations planning (S&OP), master scheduling (MPS), materials requirements planning (MRP) and production activity control (PAC). It also includes topics on procurement, warehousing, transportation, distribution, and packaging. The topic on the future trends such as Blockchain, Internet of Things (IoT), Robotic Process Automation (RPA), Machine Learning (M/L) and Artificial Intelligence (AI). There is a significant focus on supporting technologies such as forecasting and process mapping tools such as Microsoft Visio. In addition to the above indicated topics the participants need to master over 3000 terminologies in supply chain management.

Production levelling, also referred to as inventory smoothing or production leveling by its traditional Japanese title -- heijunkai -- is a production process for reducing the average muda that in turn reduces waste. It was essential to the growth of lean manufacturing and increased production efficiency at Toyota Production System. It started as early as Production Code 7 in 1948 and continued to be implemented until Production Code 9 in 1960. Production Control and Elimination of wastes which in turn led to greater production efficiency were introduced to the Toyota Production System. The six processes are:

Full Document Review - This involves first determining the entire manufacturing process including all the steps to produce each unit and then giving a description of each factory section, unit by unit and product by product. Each production step is then assigned a value which is called the factory cost. The next step is then the determination of the total factor costs (TCS) which includes the expenses for raw materials, labor cost, overhead cost and other special charges. These TCS are usually the major causes of variations in costs at individual plants.

In order to attain full supply chain and proper cost structures, production levelling helps in reducing costs and improving quality. It is the process industry standard that has been accepted internationally as well as in the United States and European Union. This process allows factories to build their capacity to meet growing demand. This in return leads to an increase in productivity and efficiency and ultimately helps to reduce costs and improve quality. It is a continuous effort by Toyota to keep their capabilities constant as they face new challenges every now and then.


The process of accounts payable collection begins with a notice of default by one or more suppliers to the enterprise. The enterprise must investigate the account before attempting to collect the outstanding balances from the vendors. The enterprise must establish both a practical and potential claim to the goods or services owed by the vendors and must be able to estimate a reasonable estimate of the loss, if any, to the enterprise due to the non-payment of accounts payable by the vendors. Once the claim has been made in good faith, the vendor will then be required to make payment in terms of cash, with funds being available for a recovery action to be filed by the supplier or manufacturers in the event of refusal to pay.

Accounts Payable collection can be used by manufacturers, suppliers, distributors, or retailers to meet their short-term debt requirements. Accounts payable collections are generally less costly to large businesses since it only involves a small amount of money to create the payment process between the supplier and the receiver of the goods, with a lesser amount of money to pay the suppliers as well. This process can be established for short-term periods, such as one month to four months, or can be extended indefinitely with a contract that allows the company to set up a revolving account that collects amounts from suppliers over time. This provides an opportunity for the business to establish a sound supply chain with its suppliers and to gain a solid credit history with its suppliers and creditors. As more companies take advantage of Accounts Payable to satisfy their supplier needs and avoid additional expense to themselves, this method of collecting overdue invoices will become increasingly popular and beneficial to all parties involved.

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Certified Inventory Optimization Professional 

CIOP is an end-to-end supply chain certification that contains 30 modules such as Introduction to Supply Chain Management, All About Inventory, Production Planning System, Strategic Business Planning, Sales & Operations Planning, Master Scheduling, Material Requirements Planning, Demand Management, Capacity Management, Forecasting, Production Activity Control, Procurement, Order Quantities, Independent Demand Ordering Systems, Warehouse Management, Transportation Management, Supplier Relationship Management (SRM), Customer Relationship Management (CRM), Introduction to Quality, Introduction to Packaging, Introduction to Process, Lean, Six Sigma, Total Quality Management, Theory of Constraints, Supply Chain Technologies, Supply Chain Techniques, Industry 4.0, International Standards and Supply Chain Risk, Safety and Security. 

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