a b s t r a c tBalancing of production systems is one of the main lean manufacturing principles as it reduces in-process storage and related forms of waste. A dynamic systems approach is proposed to investigate challenges of implementing production leveling and associated costs. A lean cell producing at takt time is modeled using system dynamics. The model captures various lean tools influencing production leveling and their implications. Comparative cost analysis between various leveling implementation policies for stochastic demand with multiple products is conducted. Results showed that determining the most feasible leveling policy is highly dictated by both the cost and limitations of capacity scalability. In addition, delivery sequence plans of different products/parts needed to achieve mix leveling and lot sizes affect the feasible production leveling policy while implementing lean principles. The developed model and insights gained from the results can help lean manufacturing practitioners to better decide when and how to implement production leveling as well as determine both production lots sizes and sequence. They also emphasize the importance of cost analysis as assisting decision support tool in the trade-off required between the benefits of different levels of lean policies and their associated cost. .eg (A.M. Deif). sooner or faster than is required by the next process [1]. Overproduction causes additional handling, inspecting, counting and storing costs of those not yet needed products. In addition, with over-production, defects remain hidden in the inventory queues until the downstream process finally uses the parts and quality issues are discovered. Heijunka is the Japanese term for load or production leveling which is the lean manufacturing strategy employed to eliminate over-production. Leveled production attains capacity balance and synchronization of all production operations over time in a manner that precisely and flexibly matches customer demand for the system's products. Ideally, this means producing every product in every shift in quantities equal to demand after smoothing out high frequency random components. Manufacturing processes should be operated at the takt time to achieve level production. The takt time is the target production frequency, based on the rate of sales, to meet customer requirements. Takt time synchronizes the pace of production with the pace of sales. Producing at takt time is achieved through means such as rapid machine setups/changeover, just in time flow and scalable capacity strategies.In the current dynamic business context, leanness assessment has undergone, and is still undergoing, a process of continuous and never-ending evolution [2]. The assessment of leanness impact was usually related to performance metrics that focus on system productivity, cycle and/or lead times and quality improvements. Although previous metrics have direct and indirect impact on the