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ISEN 315 Spring 2011 Dr. Gary Gaukler. Push and Pull Production Control. “Push” system: Determines when and how much to produce based on forecasts of future demands “Pull” system: Initiates production of an item only when the item is requested. Enabling JIT: Pull System.
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Push and Pull Production Control “Push” system: Determines when and how much to produce based on forecasts of future demands “Pull” system: Initiates production of an item only when the item is requested
Enabling JIT: Pull System • A pull system uses signals to request production and delivery from upstream stations • Upstream stations only produce when signaled • System is used within the immediate production process and with suppliers
JIT Approach – Toyota Production System • Philosophy: • 0 defects • 0 setup time • 0 inventory • 0 breakdowns • 0 leadtime • Lot size of 1 Toyota production video
Techniques for JIT Implementations • Five areas of concern: • Quality • Resources • Design • Production Mix • Manufacturing
Quality-related Techniques • Total Quality Management • Autonomation • Poka Yoke
Quality • JIT cuts the cost of obtaining good quality because JIT exposes poor quality • Better quality means fewer buffers and allows simpler JIT systems to be used
Resource-related Techniques • Flexible labor • Flexible equipment
Design-related Techniques • Design for automation • Design for simplification • Modularity
Production Mix -related Techniques • Mixed model production • Small lot sizes
Manufacturing-related Techniques • Kanbans • Setup time reduction • U-shaped layouts
Reduce Setup Costs • High setup costs encourage large lot sizes • Reducing setup costs reduces lot size and reduces average inventory • Setup time can be reduced through preparation prior to shutdown and changeover
200 – 100 – Q1 When average order size = 200 average inventory is 100 Inventory Q2 When average order size = 100 average inventory is 50 Time Reduce Lot Sizes
Implications for Manufacturing Reduced space and inventory • With reduced space, inventory must be in very small lots • Units are always moving because there is no storage
Pull vs Push Systems • By pulling material in small lots, inventory cushions are removed, exposing problems and emphasizing continual improvement • Manufacturing cycle time is reduced • Push systems dump orders on the downstream stations regardless of the need