Flevy Management Insights Q&A
What role does Heijunka play in the adoption of circular economy principles in manufacturing?
     Joseph Robinson    |    Heijunka


This article provides a detailed response to: What role does Heijunka play in the adoption of circular economy principles in manufacturing? For a comprehensive understanding of Heijunka, we also include relevant case studies for further reading and links to Heijunka best practice resources.

TLDR Heijunka, a Lean Manufacturing principle, is pivotal in adopting Circular Economy principles by leveling production to minimize waste and improve efficiency, supporting sustainable manufacturing.

Reading time: 5 minutes

Before we begin, let's review some important management concepts, as they related to this question.

What does Heijunka mean?
What does Circular Economy Principles mean?
What does Operational Efficiency mean?
What does Supply Chain Collaboration mean?


Heijunka, a key principle in Lean Manufacturing, plays a crucial role in the adoption of circular economy principles in manufacturing. By leveling out the production schedule, Heijunka enables organizations to minimize waste and improve efficiency, which are critical components of the circular economy. This principle not only ensures a steady production flow but also facilitates the reduction of overproduction and excess inventory, leading to a more sustainable manufacturing process.

Understanding Heijunka and Its Impact on Circular Economy

Heijunka, or production leveling, is a technique used to reduce the peaks and valleys in production demand, thereby smoothing out the manufacturing process. This approach is particularly effective in addressing one of the central challenges of the circular economy: reducing waste and optimizing resource use. By evenly distributing production over a certain period, organizations can avoid the pitfalls of overproduction, which often leads to excess inventory and increased waste. This is crucial for the circular economy, which emphasizes the need to minimize waste and make the most efficient use of resources.

In the context of the circular economy, Heijunka supports the principle of "designing out waste and pollution," as outlined by the Ellen MacArthur Foundation, a leading organization in circular economy thought leadership. By enabling a more predictable and steady flow of production, Heijunka allows organizations to better plan for and use materials, thereby reducing the amount of waste generated. This not only has environmental benefits but also contributes to operational efficiency and cost savings.

Moreover, Heijunka's emphasis on flexibility and adaptability in production scheduling aligns with the circular economy's focus on resilience and the ability to respond to changing market demands. This flexibility is essential for organizations looking to innovate in their production processes and products, making it easier to incorporate recycled materials and remanufactured components into new products.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Real-World Examples of Heijunka in Circular Economy Practices

Several leading manufacturers have successfully integrated Heijunka into their circular economy initiatives. For instance, Toyota, the pioneer of the Lean Manufacturing system, has long used Heijunka to level production and reduce waste. This principle has been instrumental in Toyota's efforts to minimize the environmental impact of its manufacturing processes, enabling the company to efficiently recycle materials and reduce the need for new raw materials. Toyota's approach demonstrates how Heijunka can facilitate a transition towards more sustainable manufacturing practices.

Another example is the electronics industry, where companies like Dell have implemented Heijunka to improve the sustainability of their production processes. By leveling production demand, Dell has been able to reduce excess inventory and minimize waste, making it easier to incorporate recycled materials into their products. This not only supports the circular economy but also enhances Dell's supply chain efficiency and reduces costs.

These examples underscore the versatility of Heijunka in supporting circular economy principles across different industries. By focusing on leveling production, organizations can reduce waste, improve resource efficiency, and foster innovation in product design and manufacturing processes.

Strategic Implications for Organizations

For organizations looking to adopt circular economy principles, integrating Heijunka into their manufacturing strategy offers several benefits. First, it enables them to reduce waste and improve resource efficiency, which are critical for environmental sustainability and operational cost savings. By smoothing out production demand, organizations can minimize the risk of overproduction and excess inventory, which are significant sources of waste in manufacturing.

Second, Heijunka supports the circular economy's emphasis on resilience and adaptability. By making production processes more flexible, organizations can more easily adjust to changes in market demand and incorporate recycled and remanufactured materials into their products. This not only enhances their sustainability efforts but also positions them to better meet customer demands for environmentally friendly products.

Finally, adopting Heijunka can facilitate collaboration across the supply chain. By leveling production, organizations can work more closely with suppliers and customers to optimize material use and reduce waste. This collaborative approach is essential for the circular economy, as it requires a systemic shift in how products are designed, produced, and recycled.

In conclusion, Heijunka plays a pivotal role in the adoption of circular economy principles in manufacturing. By enabling organizations to level production and reduce waste, Heijunka supports the transition towards more sustainable and efficient manufacturing processes. As organizations continue to seek ways to minimize their environmental impact and improve operational efficiency, integrating Heijunka into their manufacturing strategy will be crucial for success in the circular economy.

Best Practices in Heijunka

Here are best practices relevant to Heijunka from the Flevy Marketplace. View all our Heijunka materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: Heijunka

Heijunka Case Studies

For a practical understanding of Heijunka, take a look at these case studies.

Heijunka Process Advancement in Pharmaceutical Manufacturing

Scenario: The organization is a mid-sized pharmaceutical manufacturer specializing in generic drugs, facing challenges with production leveling (Heijunka).

Read Full Case Study

Heijunka Process Redesign for Agritech Firm in Sustainable Farming

Scenario: The organization is a leader in sustainable agritech with a focus on delivering high-quality organic produce.

Read Full Case Study

Luxury Brand Heijunka Enhancement Initiative

Scenario: A luxury fashion house, renowned for its exclusivity and high-end products, is facing challenges in balancing its production flow with fluctuating demand.

Read Full Case Study

Heijunka Product Flow Enhancement in Electronics

Scenario: An electronics firm specializing in high-volume consumer devices is grappling with uneven production schedules and inventory levels that do not align with market demand.

Read Full Case Study

Heijunka Process Optimization for Agritech Firm in Competitive Market

Scenario: An Agritech company specializing in sustainable farming solutions is facing challenges in balancing its production flow due to fluctuating demand and unpredictable market conditions.

Read Full Case Study

Heijunka Process Enhancement in Electronics Manufacturing

Scenario: The organization is a mid-sized electronics manufacturer specializing in consumer devices, facing challenges in maintaining production flow due to demand variability.

Read Full Case Study




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

  •  
    "I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact "

    – Roberto Pelliccia, Senior Executive in International Hospitality
  •  
    "One of the great discoveries that I have made for my business is the Flevy library of training materials.

    As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy "

    – Ed Kemmerling, Senior Lean Transformation Expert at PMG
  •  
    "My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me "

    – Bill Branson, Founder at Strategic Business Architects
  •  
    "I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

    – Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
  •  
    "The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

    – Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
  •  
    "I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

    – Moritz Bernhoerster, Global Sourcing Director at Fortune 500
  •  
    "[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it give me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

    – Royston Knowles, Executive with 50+ Years of Board Level Experience
  •  
    "Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

    – Chris McCann, Founder at Resilient.World



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.