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Understanding Pull Systems in Production

The document describes pull and push systems for production. A pull system produces items only when there is customer demand, which reduces excess inventory. A push system produces items in advance based on demand forecasts, which can result in excess or shortage of inventory. The document also explains how to successfully implement and manage a pull system.

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0% found this document useful (0 votes)
14 views6 pages

Understanding Pull Systems in Production

The document describes pull and push systems for production. A pull system produces items only when there is customer demand, which reduces excess inventory. A push system produces items in advance based on demand forecasts, which can result in excess or shortage of inventory. The document also explains how to successfully implement and manage a pull system.

Translated by

ScribdTranslations
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PULL SYSTEM:

To maintain competitiveness in the manufacturing-assembly lines, the use of


appropriate control systems that ensure their proper functioning. The
models built and simulated in this work aim to replicate different situations and
complexities that companies frequently encounter in their lines of
production. Especially those related to the control mechanisms of the
production, here referred to as systems of
control.
Imagine, you are on your way to a station of
metro and you try to pass the access barrier and
notes that your travel card is empty. What
What are you doing?
Sure, you will go to the vending machine of
tickets and you will charge the card. By doing this, you are already
part of a pull-based system on a
certain signal.
In other words, a pull system allows you to consume only when you have a demand,
at the right moment.
A pull system is a Lean technique to reduce waste in any process.
production. The application of a pull system allows you to begin a new job only when
there is a demand from customers. This gives you the opportunity to reduce and optimize costs
of storage.

Why is 'Pulling' better than 'Pushing'?


Pull systems are part of the Lean manufacturing principles, which originated in the late
from the 1940s. A Lean pull system aims to create a workflow and
work is "pulled" only if there is a demand. Essentially, the purpose of implementing a
pull system is to build products based on actual demand and not on forecasts. By doing so,
your company can focus on eliminating waste activities from the process of
production. As a result, you will be able to optimize your resources and reduce the likelihood of excess
in stock. Additionally, applying a pull system will allow you to deliver the work just in time. "Just-in-
"time" is a production model where deliverables are produced to meet the needs of the
real demands and avoid excess stock and 'push' strategies. When a
push strategy or 'push' strategy, the production of a company is based on anticipated demand,
that may not correspond with actual demand. Such an imbalance can create gaps
unexpected financials.

In knowledge work, the concept of "just-in-time" can be applied in the same way.
such a way that in manufacturing – a work task will be in process only if there is a
demand for this. This is the opposite of 'Just in Case', where companies of some
They try to protect themselves through overproduction in case there is more.
demands in the future. Apple is one of the brightest examples of how a pull system
It can be successful. Have you ever seen the long lines of waiting at Apple stores during the
latest iPhone launch? Apple always creates anticipation around its new products
and consumers are always ready to buy - they want to take the product out of the stores.
Apple does not have excess stock in its stores or in the stores of its retail partners. They are waiting for
see if there is a demand and if it increases, then they produce more. In this way, the company
optimizes its resources and achieves high cost efficiency.

How to Manage a Pull System?


Nowadays, the concept of pull system is widely found in various industries.
professionals use it not only in manufacturing, but also in development of
software, customer service and others.
In the context of workflow management, a pull system allows workers to pull
your next task only if you have the ability to start working on it. This can help you to
better prioritize tasks and avoid overloading the teams. By doing so, your team can
focus on executing, just in time, the most important work.
For higher levels of productivity and efficiency in the workflow through the use of a
pull system, you must:
Apply pull signals
First of all, you should establish pull signals. The best way to do this is by creating a flow of
visual work, where all valuable information can be recorded and tracked. This first
This step will help you have an overview of your work process and capture all the signals.
important.
Control the system
After creating a visual pull system, you need to know how to control it. One of the ways most
common to effectively manage your pull system islimiting work in progress(WIP for
its initials in English). This is one of the main practices ofKanban method, which is a
widely used pull system.
For example, in aKanban board, your workflow is divided into different stages, such as Ready
to start, In process, Awaiting review, Ready for delivery, etc. By limiting the work
what can be in process at each stage, you will be able to create a smooth workflow and
identify problematic parts in this.
The above might make you think that your team will not use its full capacity when creating a model.
of monotasking. Contrary to the common belief that we must multitask to
finish more work, limiting your WIP will allow your team members to focus on
individual tasks until completion.
By being focused, your team will be able toachieving excellence through flowand deliver work
much faster.
However, limiting work in progress will not be enough to create a pull system.
sustainable. You should also limit the time a task stays in your system.
This limit may vary depending on the size of the task and will serve as a requirement. If you forget
doing it, some tasks may remain in process for a long time and reduce efficiency.
flow.

Advantages of the pull system

The main benefits of the pull system are the elimination of overproduction and the
decrease in storage costs. In addition, the strong dependence between is minimized.
manufacturing andpredictive analysis, which seek to anticipate changes in consumption habits.
The vast majority of companies that choose the pull model adopt the [Link]-in-time (JIT), that
Optimize the costs derived from management and is closely related to [Link]
logisticswhose main objective is to reduce logistics costs by eliminating processes that do not add value
real value.
Another strong point of the pull strategy of production on demand is the capability
to personalize a product to the customer's liking, which becomes an advantage
competitive.

Likewise, the strategy is usually implemented when opting for more sustainable logistics practices.
in order to minimize the environmental impact in the manufacturing and storage of products.

The most notable disadvantage of the pull system is that, in general, it requires more production time.
which forces companies to warn their customers that the delivery of the product will not be immediate.
In addition, the manufacturing cost per unit increases: the product is not mass-produced and,
therefore, economies of scale are not exploited.

Quickly adapt to changes that may occur in the work process.


Scale the optimal capacity of the team
Deliver parts of the work much faster
Reduce resource waste
Increase productivity
Improve the flow efficiency
Pull systems allow you to collect historical data about your workflow and average time.
of the task cycle. Use this data in combination with different forecasting techniques,
like theMonte Carlo simulationit will give you a likely forecast of how much work can
to be processed within a predefined period of time.

PUSH SYSTEM:
In the push system
product is manufactured in advance. For the
so, this model is directly
related to demand forecasting,
since it is essential to know beforehand and
with maximum precision what products
clients will require, when and in what
amount.

Advantages of the push system

The most notable advantage of the system is


that production costs per unit of product are reduced to a minimum because it can be
to produce in large quantities. This is known as economies of scale: the supplier
it reduces its costs by increasing its production volume. To adapt to possible
Variations in demand mean that the production system must be fast and flexible.
In this way, the company will be able to carry out asupply chain logisticsefficient,
satisfying the demand and minimizing operational and storage costs by having a
greater planning of the activity.

The main disadvantage of this strategy relates to the risks associated with possible errors in
thedemand planning, like the danger of suffering astock break(the demand
surpasses forecasts) or the threat ofabout stockThe production significantly exceeds the
estimated demand.

Adapt logistics to the push-pull strategy

At the logistical level, the choice of the push-pull production strategy coincides in different
characteristics and operations of the warehouse:

Storage capacity: if a push system is chosen, it will be necessary to have a


greater storage space, since all the stock that is produced to anticipate the
demand will be stored in the warehouse. Drive-in racks are ideal foroptimize the
storage space.

Order preparation: it must be agile and efficient when implemented.


pull strategy, to supply the production lines with the necessary goods in the
precise moment.

Flow of movements: use storage systems and handling equipment


automatic, likecarriers for palletsoelectro ways, allows communication with
smooth the warehouse with the production plant, a key factor in all pull models.

Inventory management: regardless of the implemented strategy, it is


primordial to keep a record of the warehouse movements and, at the same time, evaluate
the quantity of products in stock. For this, it is highly recommended to implement
awarehouse management system, in addition to aERPand aMRPMaterial Requirements
Planning.

The logistics of any productive company is directly related to the strategy of


adopted production. For that reason, it is essential to adjust this strategy so that the
make the supply chain as efficient as possible.

Examples of push-pull systems

The choice of production system is basically conditioned by the type of product.


manufactured and its demand.

Generally, the push model is applied in industries or companies where it is easier to predict.
demand, like those linked to products with strong seasonality.
An exampleSchaal Chocolatierleader in the production of high-end chocolate that relies on
of the push production system to anticipate increases in demand in
certain periods of the year, especially at Easter and Christmas. To have a chain
for efficient supply, Schaal Chocolatier has a technologically advanced and modernwarehouse
automated for palletsdeveloped by Mecalux.

The method is highly advisable for companies that market products with a
high production cost, which makes it unfeasible to keep them in stock, waiting for
that a sale occurs. This strategy is also used in products that offer a high
degree of customization aimed at adjusting as closely as possible to the client's demands. This is the
furniture manufacturer's caseForm 5All its logistics is just-in-time, meaning the plant of
production is connected through the Easy WMS warehouse management software
Mecalux, with the 35 warehouses of its suppliers, in order to receive the products.
semi-finished products needed at the right time.

Likewise, there are sectors that employ a combined push-pull management strategy.
in the automotive industry, for example, vehicles are manufactured with standard features, that is,
basic (push system), but also others on demand, with customized features
(systempull). The car manufacturerZbeda GroupIsrael has aautomatic warehouse for
boxes(designed and installed by Mecalux) that supplies the production lines, both at the time
to produce vehicles on demand like when cars are manufactured on a production line.

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