ENM 540: Lean Production Systems

IET 409: Lean Management

Pull Production
Bibin | Bob | Omar | Sahaana
 Schedule

1. Introduction
2. History and Background
3. Defining and comparing push and pull production systems
4. Implementing pull production
5. Define Kanban
6. Explain various types of Kanban cards
7. When does pull not work?
8. Future scope
 Introduction

● Pull Production is a lean technique for

reducing waste
● Authorizes new work only when there is
customer demand for it
● Allows for the reduction of overhead and
optimizes storage costs
Figure 1: represents the concept of Pull Production System

(Nicholas 2018)
 History and Background

● Developed by Taiichi Ohno as a way to

reduce inventory.
● Modeled after American supermarkets.
● In this type of system customers “pull”
material through the system based on
their demand. Figure 2: Mr Taiicchi Ohna, Figure 3: American Supermarket
Father of Lean Manufacturing

(Nicholas, 2018)
 Pull Production

● Also called Just in Time production (JIT) because

it seeks to produce and deliver materials in the
exact quantities at the exact times requested
● Seeks to reduce (almost eliminate) WIP
● Pull production works best when demand is fairly
uniform
● Limited in ability to adjust to large, short-term
demand fluctuations, which requires some
inventory
● Improves flow efficiency and productivity, and
Figure 4: TPS House Schematic
reduces lead times and inventory

(Nicholas, 2018), (What is a pull system? n.d.)

 Pull Production

Video 1: Example of Pull Production

 Types of Pull Production

● Continuous flow
○ One piece flow
○ Least amount of WIP
● Sequential Pull
○ Buffers in between workstations to account
for variance
○ Sequence of product is defined
○ Buffer has defined maximum to limit WIP
● Replenishment Pull (supermarket)
○ Don’t know what product will be pulled next
○ Used in higher variance situations
○ Usually results in more/larger kanbans
Figures 5 & 6: Replenishment & Sequential Pull System
Schematics
(Pull connections, 2015)
 Rules of Pull Production

• Downstream operations withdraw only the quantity of items they need from upstream
operations. This quantity is controlled by the number of cards.
• Each operation produces items in the quantity and sequence indicated by the cards.
• A card must always be attached to a container. No withdrawal or production is permitted
without a kanban.
• Only non defective items are sent downstream. Defective items are withheld, and the process
is stopped until the source of defectives is remedied.
• The production process is smoothed to achieve level production. Small demand variations are
accommodated in the system by adjusting the number of cards.
• Gradually the number of cards is reduced to decrease buffer size and expose areas that are
wasteful and in need of improvement.

Note: The term “card” assumes cards are used in conjunction with containers; in cases where cards are not
used, the rules apply to containers or the items themselves.

(Nicholas, 2018)
 Push Production

● Schedules are created by a central staff.

● Expediting (changing a job’s priority to high) disrupts schedules for other jobs
which will likely have to be expedited later
● Workers tend to ignore schedules anyway
● Continues to produce products even if there is no demand, causing high inventories

Figure 7: Visual representation of a push production system

(Nicholas, 2018)
 Comparison of Push vs Pull System

Push System Pull System

Strategy Make-to-Stock Make-to-Order

Driving Mode Forecasted demand Actual demand

Scale & Flexibility Mass production, Low cost Customization Production

Inventory Higher Inventory Level Low Inventory Level

Order Completion Time Lower response time A certain delay

Equipment Utilization Higher capacity utilization Customer order related

(Nicholas, 2018), (Spearman & Zazanis, 1992)

 Comparison of Push vs Pull

Video 2: Visual representation of Pull vs Push

 Implementing Pull Production

Seeks to answer the following questions:

• When and how should authorization signals for replenishment of
buffers be sent upstream?

• What size should the buffers be?

• How should operators keep track of what they are supposed to do

(when they produce multiple items or cannot see the buffers they are
supposed to replenish)?

(Nicholas, 2018)
 Kanban

● Japanese word for signal.

● Tells the operation directly upstream to start

producing material to replace what is being
used.

● Kanban are used to control and limit the release

of parts into each production stage (Monden
2011)

● Limits inventory buildup. Figure 8: Represents Kanban Desk

(Nicholas, 2018)
 Kanban

Video 3: About Enterprise Resource Planning

 Making Kanban Work

● Necessary conditions
○ Frontline supervisors and worker teams must be given significant responsibility over local production
control
○ Production emphasis must be on producing to meet demand (not overproducing)
○ Equipment preventative maintenance efforts must be ongoing and geared to eliminate breakdowns
○ Quality assurance efforts must be aimed at preventing defects from happening
○ Setup times must be small
○ The plant layout must facilitate linking of all operations in the process
○ Training, job descriptions, and compensation of workers must be geared toward developing cooperative
work attitudes and teamwork since much of the control decision making is done by worker teams
○ The motivation everywhere must be to reduce in-process inventories and remove unnecessary stock

● One of the biggest challenges in implementing pull production is overcoming cultural barriers

(Nicholas, 2018)
 Reorder Point

● Reorder point (ROP) - the predetermined level of remaining inventory that

signals a replenishment order needs to be made .
● Based on the estimated amount of material used between the time when the
order is placed and when the replenishment is received
● ROP = D(LT) + SS
○ Where D = demand, LT = lead time = production + conveyance time &
SS = safety stock
● Two bin system - While one bin is being replenished upstream the other bin
is being used to continue production

(Nicholas, 2018), (Khojasteh & Sato, 2015)

 Number and Size of Bin

● Since standard sized bins or containers are used for all

processes, different parts may need multiple bins due to usage
rate and size
● Number of containers (K) = D(P + C)/Q
○ Where D = demand, P = production time, C = conveyance time &
Q = number of parts that fit in a standard container
○ Round up to nearest integer and K >=2
● Smaller bins help limit WIP and are easier to move
● Rule of thumb is that a container should have the capacity to
hold about 10% of daily demand for the material it holds
● If processes are not next to each other, which is common, may
need to use outbound and inbound buffers
Figure 9: Represents the Outbound and
Inbound Buffers

(Nicholas, 2018)
 Safety Factor

● Used in determining K to account for fluctuations in demand

○ Adds small amount of safety stock to the buffer
● More problems contributing to fluctuations in supply and demand between
workstations = larger X
● K = D(LT)(1+X)/Q
● As a general rule of thumb, X = 10%
● Often becomes a way to cover up problems
○ Want to have smallest safety factor possible to expose problems

(Nicholas, 2018)
 Conveyance Kanban

● Conveyance kanban - an authorization to

move a container from an upstream,
outbound buffer to a downstream, inbound
buffer
○ Step 1: When operators at station 2 first
access a full container, they take the C-
kanban from it and place it in a kanban
mailbox (where cards are kept or posted)
○ Step 2: A material handler reads the C-
kanban and takes it to the specified upstream
station
Figure 10: Single Card Kanban System using C-Kanban

(Nicholas, 2018)
 Conveyance Kanban Continued

● Step 3: The material handler affixes the C-

kanban to a full outbound buffer container
and takes it back to the downstream station
● Step 4: Whenever the downstream station
empties a container, the material handler
takes the container upstream and the process
repeats
● Number of C-kanbans: KC = D(C)/Q
○ Where C = time from when workers at the
inbound buffer remove a C-Kanban from a
full container to when they return to the Figure 10: Single Card Kanban System using C-Kanban
buffer area with the next full container

(Nicholas, 2018)
 Production Kanban

● Production or P-kanban - used to authorize

production parts or assemblies
● Step 1: When operators at station 2 access a full
container, they remove the C-kanban and place it in
the C-kanban mailbox. The C-kanban specifies the
material needed and the station upstream that
produces it
● Step 2: A material handler takes the C-kanban and an
empty container to the specified upstream location
● Step 3: The material handler removes the P-kanban
from a full container at station 1, puts it in the P-
kanban mailbox, then affixes the C-kanban to that
Figure 11: Two card kanban system
container

(Nicholas, 2018)
 Production Kanban Continued

● Step 4: The material handler leaves the empty

container at station 1 and takes the full container to
station 2
● Step 5: The P-kanban in the mailbox authorizes
Station 1 to produce enough material to fill the
empty container. An operator removes the P-kanban
from the mailbox and affixes it to an empty
container
● Step 6: Station 1 produces just enough material to
fill the empty container
● Number of P-kanbans: KP = D(P)/Q
○ Where P = production cycle time
Figure 11: Two card kanban system

(Nicholas, 2018)
 More Cards

● Supplier or S-kanbans - card system that

extends beyond the facility and is applied to
the entire supply chain
● Express cards - used when problems result in a
shortage of items or threaten to interrupt
production
● Temporary cards - issued whenever production
must temporarily deviate from the normal pull
pattern
Figure 12: Sample kanban card
● Odd-number cards - used to authorize
production of just enough to fill the container

(Nicholas, 2018)
 Card Colors

● Green = normal work

● Orange = rework
● Blue = temporary work
● Yellow = higher-than-normal
production
● Red = express

Figure 13: Representation of card colors on a sequence board.

(Nicholas, 2018)
 Other Signals and Containers

Signals Figure 14 (right): Represents

● Empty containers golf ball signal system

● Empty lanes or spaces taped

off on the floor
● Colored golf balls
● Electronic kanbans
● Clothespin clips
Figure 16 (below): Golf balls
Containers indicating portion of inventory

● Pallets or skids
● Wheeled carts

Figure 15 (above): Represents empty

lanes or spaces taped off on the floor

(Nicholas, 2018)
 Sequence Board

● Organization method for kanbans

when a backlog piles up to ensure
jobs are done in the order they were
received to prevent item shortages
downstream.

Figure 17: Represents a Sequence Board

(Nicholas, 2018)
 Continuous Improvement

● Slowly reducing the number of kanbans

● Linking a chain of interdependent supply

system decisions.

● Unless continuous improvement is pursued,

inventory will continue to mask problems

● Pull production is characterized by small

WIP(buffers) (Ahmadi & Matsuo, 2000)
Figure 18: Represents The Continuous Improvement
Cycle

(Nicholas, 2018) (Ahmadi & Matsuo, 2000)

 When Pull Does Not Work ?

● Assembly of the final product cannot be executed in a level-enough fashion to provide stead
demand for upstream operations
● Some operations require special, length, or difficult setups that cannot be simplified or
significantly shortened, and must be scheduled in advance
● The product is made in so many options, and demand for each option is so small or unstable
that it is impractical to carry buffer stocks for all parts everywhere in the process
● The high defect rate causes too many interruptions to permit continuous flow, and technology
is such that the defect level cannot be reduced significantly
● Products must be produced as integrated batches throughout the process for reasons of quality
control or certification
● MRP can solve some of these problems

(Nicholas, 2018) (Ahmadi & Matsuo, 2000)

 Visual Examples of Pull Production

Figure 19: Push and Pull Production Example (Gomes da Figure 20: Push and Pull Production in Manufacturing
Silva, Gomes Pereira, & Barbosa de Alencar, 2019) Sector (Fshbowlinventory.com, 2015)

(Gomes da Silva, Gomes Pereira, & Barbosa de Alencar, 2019) (Fshbowlinventory.com, 2015)
 Visual Examples of Pull Production

Figure 21: Represents Pull System Mechanics

 Future Scope

● Consider a larger problem set including a multi-stage production system along

with a downstream distribution system into account (Selçuk, 2013).

● Simulation pull production system analytical findings pertain to deterministic

modelling of production systems and further research is needed to relate them
more to the random environments (Khojasteh & Sato, 2015).

(Selçuk, 2013) (Khojasteh & Sato, 2015)

 Sources

[1] Ahmadi, R., & Matsuo, H. (2000). A mini-line approach for pull production. European Journal Of Operational Research, 125(2), 340-358. doi: 10.1016/s0377-2217(99)00390-2

[2] Fishbowl: The #1 manufacturing and warehouse management solution for QuickBooks. (2021). Retrieved 27 March 2021, from https://www.fishbowlinventory.com/videos/push-or-pull

[3] Gomes da Silva, J. ., Gomes Pereira, D., & Barbosa de Alencar, D. (2019). Testing an Internal Supply System in a PIM`s company. International Journal for Innovation Education and Research,
7(11), 1468–1482. https://doi.org/10.31686/ijier.vol7.iss11.1995

[4] Khojasteh, Y., & Sato, R. (2015). Selection of a pull production control system in multi-stage production processes. International Journal of Production Research, 53(14), 4363–4379.
https://doi-org.libproxy.udayton.edu/10.1080/00207543.2014.1001530.

[5] Mark L. Spearman, & Michael A. Zazanis. (1992). Push and Pull Production Systems: Issues and Comparisons. Operations Research, 40(3), 521–532.

[6] Monden, Y. 2011. Toyota Production System: An Integrated Approach to Just-in-time. 4th ed. Boca Raton, FL: CRC Press. Muckstadt, J. A., and S. R. Tayur. 1995. “A Comparison of Alternative
Kanban Control Mechanisms. I. Background and Structural Results.” IIE Transactions 27 (2): 140–150.

[7] Nicholas, J. (2018). Lean Production for Competitive Advantage. Taylor & Francis Group.

[8] Pull connections - the 3 strategies. (2015, May 29). Retrieved March 28, 2021, from https://www.mudamasters.com/en/lean-toolbox-lean-production-lean-transformations/pull-connections-3-
strategies

[9]Selçuk, B. (2013). Adaptive lead time quotation in a pull production system with lead time responsive demand. Journal of Manufacturing Systems, 32(1), 138–146.
https://doi-org.libproxy.udayton.edu/10.1016/j.jmsy.2012.07.017.

[10] What is a pull system? Details and benefits. (n.d.). Retrieved March 25, 2021, from https://kanbanize.com/lean-management/pull/what-is-pull-system