Push and Pull Production

Systems

You say yes.

I say no.
You say stop.
and I say go, go, go!

– The Beatles

1
 The Key Difference Between Push and
Pull
Push Systems: schedule
work
releases based on demand.
inherently due-date driven
control release rate, observe
WIP level
Pull Systems: authorize
work
releases based on system
status.
inherently rate driven
control WIP level, observe
throughput
2
 Push vs. Pull Mechanics

PUS PUL
H L
(Exogenous)
Schedule
(Endogeno
us)
Status

Production Production
Process Process
Job Job

Push systems are Pull systems are

inherently inherently
make-to-order. make-to-stock.
3
 Push and Pull Examples

Are the following systems essentially push or

essentially pull?
Kinko’s copy shop:
Soda vending machine:
“Pure” MRP system:
Doctor’s office:
Supermarket (goods on shelves):
Tandem line with finite interstation buffers:
Runway at O’Hare during peak periods:

4
 Push and Pull Line Schematics
Pure Push
Stoc Stoc
k
(MRP) . . k
Poin
t
. Poin
t
Pure Pull
Stoc Stoc
k
(Kanban) .. k
Poin . Poin
t … t

CONWI
Stoc Stoc
k
P . . k
Poin
t
. Poin
t

Authorization Full
5
Signals Containers
 Pulling with Kanban
Outboun Outboun
Completed parts with
d cards enter outbound d
stockpoi stockpoint. stockpoi
nt nt

Producti When stock Production

on is removed, card
cards place authorizes
production start of
card in hold work.
box.

6
 Push/Pull Interface

Concept:
both push and pull can be used in same system
dividing point is called the push/pull interface

Benefit: eliminate entire portion of cycle time seen by

customers by building to stock.

Implementation:
kanban
late customization (postponement)

7
Example - Custom Taco Production Line

Push/Pull
PulInterface Pus
l h

Refrigerat Cooking Assembl Packagin Sales

or y g

Custom
er

8
 Example - Quick Taco Production Line

Push/Pull
Pul Interface Pus
l h

Refrigerat Cooking Assembl Packagin Sales

or y g

Warmi Custom
ng er
Table

Notes:
• Push/pull interface can differ by time of day (or
season).
• Push/pull interface can differ by product.
9
 Example – IBM Panel Plant

Original
Line Prepre Lamina Machini Circuiti Copper Sizing,
Treater g, Drilling Procoat
tion ng ze Plate Test
Copper

Push/Pull
Interface process that
gives
Revised boards
Line Prepre Lamina Machini Core
“personality”
Circuiti Copper
Treater g, Drilling Procoat
tion ng Blanks ze Plate
Copper

Push/Pull Sizing,
Interface Test
Notes:
• Moving push/pull interface closer to customer shortens
leadtime
seen by customer.
• Small number of core blanks presents opportunity to make
10
them to stock.
 Example – HP Deskjet Supply Chain
U.S. Custo
DC mer

Integrated Printed
Final Europ
Circuit Circuit Custo
Assembly ean
Manufacturi Assembly & mer
and Test DC
ng Test
Far
Custo
East
mer
DC
Push/Pull
Interface
Notes:
• Push/pull interface located in markets to
achieve quick
response to customers
• Delayed differentiation of products (power
supplies for
different countries) enables pooling of safety 11
stocks
 Push/Pull Interface Conclusions

Basic Tradeoff:
responsiveness vs. inventory (time vs. money)
moving PPI closer to customer increases
responsiveness and (usually) inventory

Optimal Position of Push/Pull Interface:

need for responsiveness
cost of carrying inventory ⇒ product diversification

Levers:
product design (postponement)
process design (quick response manufacturing)

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 Advantages of Pull Systems
Low Unit Cost:
low inventory
reduced space
little rework
High External Quality:
high internal quality
pressure for good quality
promotion of good quality (e.
g., defect detection)
Good Customer Service:
short cycle times
steady, predictable output
stream
Flexibility:
avoids committing jobs too
early
encourages floating capacity
13
 The Magic of Pull

Pulling Everywhere?

You don’t never make nothin’ and send it no place.

Somebody has to come get it.
– Hall 1983

No! It’s the WIP Cap:

• Kanban – WIP cannot exceed number
of cards WI
• “WIP explosions” are impossible P

14
 Pull Benefits Achieved by WIP Cap

Reduces Costs : Improves Customer Service:

prevents WIP explosions reduces cycle time variability
reduces average WIP pressure to reduce sources of
reduces engineering changes process variability
Improves Quality: promotes shorter lead times and
pressure for higher quality better on-time performance
improved defect detection
improved communication
Maintains Flexibility:
avoids early release (like air
traffic control)
less direct congestion
less reliance on forecasts
promotes floating capacity
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 CONWIP

Assumptions:
1. Single routing
..
2. WIP measured in units .

Mechanics: allow next job to enter line each time a job

leaves (i.e., maintain a WIP level of m jobs in the line
at all times).

Modeling:
MRP looks like an open queueing network
CONWIP looks like a closed queueing network
Kanban looks like a closed queueing network with
blocking
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 CONWIP Controller
Work
PN
Backlog
Quant
–—
–— –––––
–––––
–—
–— –––––
–––––
–—
–— –––––
–––––
–— –––––
Indicator
–—
–—
–—
–––––
–––––
–––––
LAN
–—
–— –––––
Lights R G
–— –––––
–––––

P P
C C

...
Workstatio
ns
17
 CONWIP vs. Pure Push

Push/Pull Laws: A CONWIP system has the following

advantages over an equivalent pure push system:

1) Observability: WIP is observable; capacity is not.

2) Efficiency: A CONWIP system requires less WIP on

average to attain a given level of throughput.

3) Variability: A CONWIP system will have less CT

variability.

4) Robustness: A profit function of the form

Profit = pTh - hWIP

is more sensitive to errors in TH than WIP. 18

 CONWIP Efficiency Example

Equipment Data:
5 machines in tandem, all with capacity of one part/hr
(u=TH·te=TH)
exponential (moderate variability) process times

PWC
CONWIP System: formula

5 M/M/1
Pure Push System: queues

19
 CONWIP Efficiency Example (cont.)

How much WIP is required for push to match TH

attained by CONWIP system with WIP=w?

20
 CONWIP Robustness Example

Profit Function:

CONWIP: need to find

“optimal”
WIP level
Push: need to find
“optimal”
TH level (i.e.,
release
Key Question: what happens when we don’t choose
rate)
optimum values (as we never will)?

21
CONWIP vs. Pure Push Comparisons
Optimu
CONWI
m Efficien
P
Robustn cy
ess

Pus
h

22
 CONWIP vs. Kanban

A CONWIP system has the following advantages over

an equivalent pure kanban system:

1) Card count issues: A kanban system requires setting

more parameters (part specific versus line specific).

2) Prorduct mix issues: A CONWIP system balances

itself more easily than a kanban system does.

3) People issues: A CONWIP system will have less

pressured pacing than a kanban system.

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 Modeling CONWIP with Mean-Value
Analysis
Notation:

Basic Approach: Compute performance measures for

increasing w assuming job arriving to line “sees”
other jobs distributed according to average behavior
with w-1 jobs.
24
 Mean-Value Analysis Formulas

Starting with WIP j(0)=0 and TH(0)=0, compute for

w=1,2,…

25
Computing Inputs for MVA

26
Output of MVA

27
Using MVA to Evaluate Line Performance

28
 Implementing Pull
Pull is Rigid: replenishing stocks quickly (just in time)
requires level mix, volume, sequence.
JIT Practices:
Support Rigidity:
– production smoothing/mix stabilization
Mitigate Rigidity in Production System
– capacity buffers
– setup reduction this is
– flexible labor the
– facility layout
“genius”
– product design (postponement, etc.)
of pull!
Mitigate Rigidity in Organization
– TQM
– vendor management, etc.
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 Push/Pull Takeaways

Magic of Pull: the WIP cap

Push/Pull Hybrids: locating the push/pull interface
Logistical Benefits of Pull:
observability
efficiency
robustness (this is the key one)

Overcoming Rigidity of Pull:

capacity buffers
setup reduction
flexible labor
facility layout, etc.
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