Production planning in Japan: Rediscovering lost experiences or new insights?

In previous research, De Haan and Yamamoto (International Journal of Produc tion Economics 59 (1999) 65-75) found that Japanese production planning had specific characteristics such as being detailed and centralized. Neverthel ess, Japanese firms succeed in meeting flexibility norms such as a high deg ree of customization as well as short delivery terms. In Western literature , Japan is associated with pull production whereas short delivery terms are associated with push production (planned, detailed and centralized) and cu stomization is seen as a strength of pull production (planned, decentralize d, within a broad overall framework). Therefore, this result was quite puzz ling. In this paper, we study the Western literature on production systems and production planning strategies in more detail. The concept of "customer order decoupling point" appears to be of help in understanding the relatio nship between production systems, planning strategies and level of customiz ation. Two patterns could be identified: (1) push production to stock and l evelling (2) versus pull production to order and chasing. The Japanese prac tices do not tit into these patterns, as the case studies showed push produ ction to stock but on the basis of a chase strategy. Specific characteristi cs of the Japanese production system, such as step-by-step planning, ringi/ nemawashi decision-making and "kaizen", nevertheless, made this pattern eff ective. (C) 2001 Elsevier Science B.V. All rights reserved.