pull vs. push production

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Production System is a collection of people, equipment and procedures organized to perform the manufacturing operation of the company or organization. Two Type Of Production System: ○Push Production System ○Pull Production System

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Presented & Prepared By: Ramsha Arif Zara Tariq

MIS (Management Information System)

:

Time fora short break

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Presented & Prepared By: Ramsha Arif Zara Tariq

MIS (Management Information System)

CONTENTS

I. Basics of Production System--------------------------- 3II. MRP (Manufacturing resource planning) ----------------- 26III. JIT (Just-In-Time) ------------------------------------------ 37IV. Push Production System ------------------------------ 46V. Pull Production System ------------------------------- 54VI. MRP in PUSH --------------------------------------------- 61VII. JIT in PULL ------------------------------------------------ 85VIII. Example Of PUSH ---------------------------------------- 115IX. Example Of PULL ---------------------------------------- 164X. PUSH Vs. PULL -------------------------------------------- 180

2

Basics of

Production System

Production System:• It is a collection of people, equipment and procedures

organized to perform the manufacturing operation of the company or organization.

• Two Type Of Production System:1. Push Production System2. Pull Production System

Production Strategy:• Product Strategy is perhaps the most important function

of a company. It must take in account the capabilities in terms

of engineering, production, distribution (sales) existing in the company or of time to acquire them (by hiring or by mergers). It must evaluate the customers expectations at the time of delivery.

4

Process Of Production

5

6

MRP (Materials Requirements

Planning)

MRP (Materials Requirements Planning)

• Material requirements planning (MRP) is a production planning and inventory control system used to manage manufacturing processes. Most MRP systems are software based

7

8

JIT (Just-In-Time)

JIT (Just-In-Time)

• Just-in-time manufacturing is a strategy used in the manufacturing industry to reduce costs by reducing the in-process inventory level. It is driven by a series of signals that tell the product line to make the next piece for the product and when it is needed.

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PUSH Production

PUSH Production

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Schedule work releases based on demand.inherently due-date driven control release rate.

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PULL Production

PULL Production

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Authorize work releases based on system status. It is a process that works on customer’s demand in order to reduce wasting and stocks all along logistics chain..

14

MRP in

PUSH Production

MRP in PUSH Production

• MRP is the classic push system. The MRP system computes production schedules for all levels based on forecasts of sales of end items. Once produced, subassemblies are pushed to next level whether needed or not.

• Allows Managers to manage – that is, plan and Control things

• Can lead to economies of scale in purchasing and production

15

16

JIT in

PULL Production

JIT in PULL Production

• JIT is the classic pull system. The basic mechanism is that production at one level only happens when initiated by a request at the higher level. That is, units are pulled through the system by request.

• Limited and known Final Inventory• Worker only consume their time & Raw Materials on

what is actually needed• Quality MUST be High – each piece has a definite

place to go – else immediate feedback is given

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Advantages & Disadvantages of Pull in JIT

Advantages Disadvantages

JIT PULL

Limited and known Final Inventory Every job is a ‘High Stress’ Rush order

Worker only consume their time & Raw Materials on what is actually needed

Balanced systems MUST be in place

Quality MUST be High – each piece has a definite place to go – else immediate feedback is given

Setup times will greatly impact throughout

Any problem will lead to unhappy customers (either internal or external)

Advantages & Disadvantages of Push in MRP

Advantages Disadvantages

MRP PUSH

Allows Managers to manage – that is, plan and control things

Can lead to large inventories

Requires intricate knowledge of Production Times & Product Flow

Can generate large quantities of scrap before errors are discovered

Can lead to economies of scale in purchasing and production

Requires diligence to maintain effective product flow

Allows for the planning and completion of complex assemblies

Requires maintenance of large and complex databases

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Example - Custom Taco Production Line

Cooking Assembly Packaging Sales

Pull

Push/Pull Interface

Push

Refrigerator

Customer

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Example - Quick Taco Production Line

Cooking Assembly Packaging Sales

PullPush/Pull Interface

Push

Refrigerator

WarmingTable

Customer

Push vs. Pull System

Push system

• In a Push, production and distribution decisions are based on long term forecasts

• Effective in dealing with fluctuating demand.

• Also known as the "producer-centric" approach

• Goods are manufactured in anticipation of customer orders.

Pull system

• In a Pull, production and distribution are demand drive

• Effective in dealing with Stable demand.

• Also known as "customer-centric" system

• Goods are manufactured in anticipation of customer needs.

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Push and Pull Examples

• Are the following systems essentially push or essentially pull?– “Pure” MRP system:

– Soda vending machine:

– Photocopy shop:

– Supermarket (goods on shelves):

– Order entry server at Amazon.com:

– Doctor’s office:

PUSH

PULL

PUSH

PUSH – into office, PULL – into exam room

PULL

PUSH

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T h e E n dThanks! For Your Valuable Attent ion . .

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