Push-Pull Manufacturing

"Push type" means Make to Stock in which the production is not based on actual demand. "Pull type" means
Make To Order in which the production is based on actual demand. In supply chain management, it is
important to carry out processes halfway between push type and pull type or by a combination of push type
and pull type.
Supply Chain Management (SCM) is to create a solution i.e. "supply" for a goal or issue, i.e. "demand". Supply
chain models of "Push type" and "Pull type" are opposite in terms of a demand and supply relationship. "Push
type" is represented by "Make to Stock" (MTS) in which the production is not based on actual demand and
"Pull type" is represented by "Make To Order" (MTO) in which the production is based on actual demand.
One of the major reasons why supply chain management currently receives so much attention is that
information technology enables the shifting of a production and sales business model from "Push type" to
"Pull type". Pull-type supply chain management is based on the demand side such as Just-in-Time (JIT) and CRP
(Continuous Replenishment Program) or actual demand assigned to later processes. Therefore, unlike the
Push-type method it is not Make to Stock, which is based on demand forecast. While inventory is kept to a
minimum, products can be supplied with short lead times and at high speed. At the point where "Pull type"
starts to supply operations triggered by actual demand, it is like an elevator. An elevator starts when a button
is pressed even if there is only one passenger. On the other hand, the "Push type" can be considered as an
escalator. An escalator continues to supply (push) regardless of whether there is actual demand (passenger). In
addition, "Push type" corresponds to a model for trains, buses, and airplanes for which supply (push) is based
on demand forecast by time period and route. There may be various forms between "Push type" and "Pull
type" depending on inventory forms of materials, work in progress (WIP), and finished items and how to deal
with the actual demand in supply chain management.
In the case of sushi, there are boxed sushi sold in a shop, sushi ordered at the counter in a sushi restaurant,
and sushi for which an order starts from purchasing live fishes. The place and form which fish for sushi are held
in varies from downstream to upstream in a supply chain. An extreme example of a pull-type supply chain
sushi restaurant that is unconcerned about lead times is the one that goes fishing when an order is received.

Just-in-time system :
A comprehensive production and inventory system that purchases or produces materials and parts only as
needed and just in time to be used at each stage of the production process.
Just-in-time (JIT) production (Also called lean production): Demand-pull manufacturing system in which each
component in a production line is produced as soon as and only when needed by the next step in the
production line..
Just-in-time (JIT) purchasing: The purchase of goods or materials so that they are delivered just as needed for
production.
Just-In-Time Inventory management systems are based on a manufacturing philosophy that combines
purchasing, production and Inventory control into one function.
Purpose
minimize the level of inventories because many-inventory-related activities are viewed as nonvalue-added.
meet customer demand in a timely manner, with high-quality products, and at the lowest possible
cost,Higher productivity, reduced order costs as well as carrying costs, faster and cheaper setups, shorter
manufacturing cycle times, better due date performance, improved quality, and more flexible processes are
objectives of JIT methods.
The ultimate objectives are increased competitiveness and higher profits
The major characteristics of a JIT environment are:
Production organized into manufacturing work cells
o Each work cell produces a product or product type. Each worker in each cell knows how to operate all the
machines in that cell and can perform supporting tasks within that cell. This reduces the downtime resulting
from breakdowns or employee absences.

 Multiskilled workers
o cross-functional training of workers so they can perform a variety of operations and tasks on an as-needed
basis to maintain smooth production flow.
Reduced setup times
o reduction of the time required to get tools, equipment, and materials ready for a production run.
Reduced manufacturing lead times
o reduction of the time from when an order is initiated to when a finished good is produced.
Reliable suppliers
o careful screening of suppliers to ensure on-time deliveries of high-quality goods for just-in-time use possibly
within a day or less. Suppliers dependability is crucial in JIT system because inventory levels are kept low in a
JIT system, the company must have a very close relationship with its suppliers to make certain that the
supplier makes frequent deliveries of smaller amounts of Inventory, thus long-term contracts are typically
negotiated to reduce order costs.
o Buyer-supplier relationships are further facilitated by electronic data interchange (EDI), a technology that
allows the supplier access to the buyer's online inventory management system. Thus, electronic messages
replace paper documents (purchase orders and sales invoices), and the production schedules and deliveries of
the parties can be more readily coordinate