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Push vs.

Pull Process Control

Derived from the original Japanese Kanban system developed at Toyota.  .Basic Definitions  MRP (Materials Requirements Planning). JIT Just-in-Time. JIT seeks to deliver the right amount of product at the right time. The goal is to reduce WIP (work-in-process) inventories to an absolute minimum. MRP is the basic process of translating a production schedule for an end product (MPS or Master Production Schedule) to a set of time based requirements for all of the subassemblies and parts needed to make that set of finished goods.

JIT is the classic pull system. That is. The MRP system computes production schedules for all levels based on forecasts of sales of end items. units are pulled through the system by request. Once produced. The basic mechanism is that production at one level only happens when initiated by a request at the higher level.Why Push and Pull?  MRP is the classic push system. subassemblies are pushed to next level whether needed or not.  .

MRP has a substantial advantage. but neither seems to be sufficient on its own. there are substantial side benefits. In addition to saving direct inventory carrying costs.   . Main Advantage of JIT over MRP: JIT reduces inventories to a minimum. suggesting that both methods could be useful in the same organization. Both have advantages and disadvantages. Each has advantages over the other. Main Advantage of MRP over JIT: MRP takes forecasts for end product demand into account. In an environment in which substantial variation of sales are anticipated (and can be forecasted accurately). such as improvement in quality and plant efficiency.Comparison  These methods offer two completely different approaches to basic production planning in a manufacturing environment.

) Advantages Disadvantages JIT | PULL Limited and known Final Inventory Worker only consume their time & Raw Materials on what is actually needed Every job is a µHigh Stress¶ Rush order Balanced systems MUST be in place Setup times will greatly impact Quality MUST be High ± each piece throughput has a definite place to go ± else Any problem will lead to unhappy immediate feedback is given customers (either internal or external) .Comparisons (cont.

) Advantages Disadvantages MRP | PUSH Allows Managers to manage ± that is.Comparisons (cont. plan and control things Requires intricate knowledge of Production Times & Product Flow Can lead to economies of scale in purchasing and production Allows for the planning and completion of complex assemblies as sub-components are delivered only by scheduled need Can lead to large inventories Can generate large quantities of scrap before errors are discovered Requires diligence to maintain effective product flow Requires maintenance of large and complex databases .

The Kanban system is a manual information system that relies on various types of inventory control cards.) ± is to empower the workers to make decisions and eliminate waste wherever it is found . It¶s development is closely tied to the development of SMED: Single Minute Exchange of Dies.Focusing on JIT      JIT (Just In Time) is an outgrowth of the Kanban system developed by Toyota. S. that allowed model changeovers to take place in minutes rather than hours. Kanban refers to the posting board (and the inventory control cards posted there) where the evolution of the manufacturing process would be recorded. The Fundamental Idea of JIT ± and Lean Manufacturing Systems in General (an Americanization of the Toyota P.

The Tenets of JIT/Lean  Empower the workers:    Workers are our intelligent resources ± allow them to exhibit this strength Workers ultimately control quality lets them do their job correctly (Poka-Yoke) Don¶t pit workers against each other ± eliminate ³piecework´ disconnected from quality and allow workers to cooperate in teams to design jobs and expectations .

The Tenets of JIT/Lean  Eliminate Waste ± Waste is anything that takes away from the operations GOAL (to make a profit and stay in business!)       Reduce inventory to only what is absolutely needed Improve Quality ± scrap and rework are costly and disrupt flow Only make what is ordered Make setups and changes quickly and efficiently Employ only the workers needed Eliminate Clutter ± it wastes time .

Features of JIT Systems Small Work-in-Process Inventories. Decreases Inventory Costs 2. Reveals quality problems (see Figure 7-10) Disadvantages: 1. May result in decreased throughput rate . May result in increased worker idle time 2. Advantages: 1. Improves Efficiency 3.

River/Inventory Analogy Illustrating the Advantages of Just-in-Time Revealing fundamental µproblems¶ is the noted competitive advantages of JIT/Lean .

Efficient tracking of lots 2. Inexpensive implementation of JIT 3. Slow to react to changes in demand 2.Features of JIT Systems (continued) Kanban Information Flow System Advantages 1. Ignores predicted demand patterns (beyond 2 months or so) . Achieves desired level of WIP ± based on Number of Kanbans in the system Disadvantages 1.