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 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 Experiment 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 Reduce Lot Sizes Q1 When average order size = 200 average inventory is 100 Inventory 200 – Q2 When average order size = 100 average inventory is 50 100 – Time 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