Push Pull PDF

Push and Pull Production Systems
Make-to-Order: You say yes. I say no. You say stop. and I say go, go, go! The Beatles
What Pull is Not!
MRP with firm orders on MPS is make-to-order. But it does not limit WIP and is therefore a push system.
Make-to-Stock:
Pull systems do replenish inventory voids. But jobs can be associated with customer orders.
Forecast Free:
Toyotas classic system made cars to forecasts. Use of takt times or production smoothing often involves production without firm orders (and hence forecasts).
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Wallace J. Hopp, Mark L. Spearman, 1996, 2000
http://www.factory -physics.com
The Key Difference Between Push and Pull

Push Systems:
schedule work releases based on demand. inherently due-date driven control release rate, observe WIP level
Push and Pull Examples

Are the following systems essentially push or essentially pull?
Kinkos copy shop: Soda vending machine: Pure MRP system: Doctors office: Supermarket (goods on shelves): Tandem line with finite interstation buffers: Runway at OHare during peak periods: Order entry server at Amazon.com:
Pull Systems:
authorize work releases based on system status. inherently rate driven control WIP level, observe throughput
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5
Push vs. Pull Mechanics

PUSH
(Exogenous) Schedule
Push and Pull Line Schematics

Pure Push (MRP)
PULL
Stock Point
...
Pure Pull (Kanban)
Stock Point
(Endogenous) Stock Void
Stock Point
...
Stock Point
Production Process
Production Process
Job
Job
CONWIP
Stock Point
...
Stock Point
Push systems do not limit WIP in the system.

Pull systems deliberately establish a limit on WIP.

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Authorization Signals
Full Containers
Pulling with Kanban

Outbound stockpoint
Completed parts with cards enter outbound stockpoint.
Example Quick Taco Production Line

Outbound stockpoint Make -to-Order I/O Interface Make -to-Stock
Refrigerator
Cooking
Assembly
Packaging
Sales
Production cards
Warming Table
Customer
When stock is removed, place production card in hold box.
Production card authorizes start of work.
Notes : I/O interface can differ by time of day (or season). I/O interface can differ by product.
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Inventory/Order Interface
Concept:
Make-to-stock and make-to-order can be used in same system. Dividing point is called the inventory/order interface. This is sometimes called the push/pull interface, but since WIP could be limited or unlimited in both segments, this is not a strictly accurate term.
Example IBM Panel Plant

Original Line
Treater Prepreg , Copper Lamination Machining Circuitize Drilling Copper Plate Procoat Sizing, Test
I/O Interface
Benefit: eliminate entire portion of cycle time seen by customers by building to stock. Implementation:
kanban late customization (postponement)
Revised Line
Treater Prepreg , Copper Lamination Machining
process that gives boards personality

Core Blanks Copper Plate
Circuitize
Drilling
Procoat
I/O Interface
Sizing,
Test Notes : Moving I/O interface closer to customer shortens leadtime seen by customer. Small number of core blanks presents opportunity to make them to stock. 8 11
Example Custom Taco Production Line
Example HP DeskjetSupply Chain

U.S. DC Customer
I/O Interface Make -to-Stock
Make -to-Order
Integrated Circuit Manufacturing
Printed Circuit Assembly & Test
Final Assembly and Test
European DC
Customer
Refrigerator
Cooking
Assembly
Packaging
Sales
Far East DC
Customer
I/O Interface
Customer
Notes : I/O interface located in markets to achieve quick response to customers Delayed differentiation of products (power supplies for different countries) enables pooling of safety stocks
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I/O Interface Conclusions

Basic Tradeoff:
responsiveness vs. inventory (time vs. money) moving PPI closer to customer increases responsiveness and (usually) inventory
Pull Benefits Achieved by WIP Cap

Reduces Costs :
prevents WIP explosions reduces average WIP reduces engineering changes
Improves Customer Service:

reduces cycle time variability pressure to reduce sources of process variability promotes shorter lead times and better on-time performance
Optimal Position of I/O Interface:

need for responsiveness cost of carrying inventory product diversification
Improves Quality:
Levers:
product design (postponement) process design (quick response manufacturing)
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pressure for higher quality improved defect detection Maintains Flexibility: avoids early release (like air improved communication traffic control) less direct congestion less reliance on forecasts promotes floating capacity
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Advantages of Pull Systems

Low Unit Cost:
low inventory reduced space little rework
CONWIP
Assumptions:
1. Single routing 2. WIP measured in units
Good Customer Service:

short cycle times steady, predictable output stream
...
High External Quality:

high internal quality pressure for good quality promotion of good quality (e.g., defect detection)
Flexibility:
avoids committing jobs too early encourages floating capacity
Mechanics: allow next job to enter line each time a job leaves (i.e., maintain a WIP level of m jobs in the line at all times). Modeling:
MRP looks like an open queueing network CONWIP looks like a closed queueing network Kanban looks like a closed queueing network with blocking
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The Magic of Pull

Pulling Everywhere?
You dont never make nothin and send it no place. Somebody has to come get it.
CONWIP Controller
Work Backlog
PN Quant
Indicator Lights
R G
LAN
Hall 1983 No! Its the WIP Cap:

Kanban WIP cannot exceed number of cards WIP explosions are impossible
PC
PC
WIP
...
Workstations
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CONWIP vs. Pure Push

Push/Pull Laws: A CONWIP system has the following advantages over an equivalent pure push system:
1) Observability: WIP is observable; capacity is not. 2) Efficiency : A CONWIP system requires less WIP on average to attain a given level of throughput. 3) Robustness: A profit function of the form Profit = pTh - hWIP is more sensitive to errors in TH than WIP.
CONWIP Robustness Example

Profit Function: Profit = pTH hw
w CONWIP: Profit(w) = p hw w + 4 5 TH Push: Profit(TH)= pTH h 1 TH
need to find optimal WIP level need to find optimal TH level (i.e., release rate)
Key Question: what happens when we dont choose optimum values (as we never will)?
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CONWIP Efficiency Example

Equipment Data:
5 machines in tandem, all with capacity of one part/hr (u=THte=TH ) exponential (moderate variability) process times
CONWIP vs. Pure Push Comparisons

70 60 50 40
CONWIP
Optimum
Efficiency Robustness
PWC formula
Profit
CONWIP System: TH ( w) =
w w rb = w +W0 1 w+ 4
30 20 10
Push
u TH Pure Push System: w (TH ) = 5 =5 1 u 1 TH
5 M/M/1 queues
0 0.00% -10 -20 20.00% 40.00% 60.00% 80.00% 100.00% 120.00% 140.00%
Control as Percent of Optimal

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CONWIP Efficiency Example (cont.)

How much WIP is required for push to match TH attained by CONWIP system with WIP=w?
5w w 5 (w /( w + 4)) w = = 4 w + 4 1 (w /( w + 4 ))
Implementing Pull
Pull is Rigid: replenishing stocks quickly (just in time) requires level mix, volume, sequence. JIT Practices: Support Rigidity:
production smoothing/mix stabilization
Mitigate Rigidity in Production System

capacity buffers setup reduction flexible labor facility layout product design (postponement, etc.)
In this example, WIP is always 25% higher for same TH in push than in CONWIP In general, the increase wont always be 25%, but it will alwa ys take more WIP to get same TH under push than under pull.
this is the genius of pull!
Mitigate Rigidity in Organization

TQM vendor management, etc.
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Capacity Buffers
Motivation: facilitate rapid replenishments with minimal WIP Benefits:
Protection against quota shortfalls Regular flow allows matching against customer demands Can be more economical in long run than WIP buffers in push systems
Cellular Layout
Advantages:
Better flow control Improved material handling (smaller transfer batches) Ease of communication (e.g., for floating labor)
Techniques:
Planned underutilization (e.g., use u = 75% in aggregate planning) Two shifting: 4 8 4 8 Schedule dummy jobs to allow quick response to hot jobs
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Challenges:
May require duplicate equipment Product to cell assignment
Inbound Stock Outbound Stock
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Setup Reduction
Motivation: Small lot sequences not feasible with large setups. Internal vs. External Setups:
External performed while machine is still running Internal performed while machine is down
Focused Factories
Pareto Analysis:
Small percentage of skus represent large percentage of volume Large percentage of skus represent little volume but much complexity
Dedicated Lines:
Stores
Saw Grind Weld
Mill Mill Grind
Drill Drill Lathe
Paint Paint Drill
Approach:
1. Separate the internal setup from the external setup. 2. Convert as much internal setup as possible to external setup. 3. Eliminate the adjustment process. 4. Abolish the setup itself (e.g., uniform product design, combined production, parallel machines).
Job Shop Environment:

for low runners many setups poorer performance, but only on smaller portion of business may need to use push
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Saw
Grind
Paint Warehouse Assembly
Stores
Lathe Mill Drill
29 http://www.factory -physics.com
Flexible Labor
Cross-Trained Workers:
float where needed appreciate line -wide perspective provide more heads per problem area
Push/Pull Takeaways
Magic of Pull: the WIP cap MTS/MTO Hybrids: locating the I/O interface Logistical Benefits of Pull:
observability efficiency robustness (this is the key one)
Shared Tasks:
can be done by adjacent stations reduces variability in tasks, and hence line stoppages/quality work can float to problems
Overcoming Rigidity of Pull:

capacity buffers setup reduction flexible labor facility layout, etc.
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workers, or workers can float to work
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Warehouse
for families of high runners few setups can use pull effectively
Saw
Lathe
Mill
Drill
Assembly

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Push and Pull Production Systems

What Pull is Not!

Wallace J. Hopp, Mark L. Spearman, 1996, 2000

The Key Difference Between Push and Pull

Push and Pull Examples

Push vs. Pull Mechanics

Push and Pull Line Schematics

(Endogenous) Stock Void

Push systems do not limit WIP in the system.

Pull systems deliberately establish a limit on WIP.

Pulling with Kanban

Example Quick Taco Production Line

When stock is removed, place production card in hold box.

Production card authorizes start of work.

Wallace J. Hopp, Mark L. Spearman, 1996, 2000

Example IBM Panel Plant

process that gives boards personality

Wallace J. Hopp, Mark L. Spearman, 1996, 2000

Example Custom Taco Production Line

Example HP DeskjetSupply Chain

I/O Interface Make -to-Stock

Integrated Circuit Manufacturing

Printed Circuit Assembly & Test

Final Assembly and Test

Wallace J. Hopp, Mark L. Spearman, 1996, 2000

I/O Interface Conclusions

Pull Benefits Achieved by WIP Cap

Improves Customer Service:

Optimal Position of I/O Interface:

Advantages of Pull Systems

Good Customer Service:

High External Quality:

Wallace J. Hopp, Mark L. Spearman, 1996, 2000

The Magic of Pull

Hall 1983 No! Its the WIP Cap:

Wallace J. Hopp, Mark L. Spearman, 1996, 2000

CONWIP vs. Pure Push

CONWIP Robustness Example

w CONWIP: Profit(w) = p hw w + 4 5 TH Push: Profit(TH)= pTH h 1 TH

Wallace J. Hopp, Mark L. Spearman, 1996, 2000

CONWIP Efficiency Example

CONWIP vs. Pure Push Comparisons

u TH Pure Push System: w (TH ) = 5 =5 1 u 1 TH

Control as Percent of Optimal

CONWIP Efficiency Example (cont.)

Mitigate Rigidity in Production System

this is the genius of pull!

Mitigate Rigidity in Organization

Wallace J. Hopp, Mark L. Spearman, 1996, 2000

Saw Grind Weld

Mill Mill Grind

Drill Drill Lathe

Paint Paint Drill

Job Shop Environment:

Paint Warehouse Assembly

Lathe Mill Drill

Wallace J. Hopp, Mark L. Spearman, 1996, 2000

Overcoming Rigidity of Pull:

workers, or workers can float to work

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