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Warning: Creating default object from empty value in /home4/cpc38/public_html/components/com_k2/models/item.php on line 494

Push vs Pull system

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The key concept in manufacturing planning is to establish the boundaries between the two following triggers:

  • Make-To-Order, e.g. pull the flow
  • Make-To-Forecast, e.g. push the flow

 

We’ll see that the push and pull system can live well together in a manufacturing line, assuming there is no mix in the process.

Now let’s try to establish the key criteria between push and pull flow:

Between push and pull, there is always a need for a stock - the decoupling factor we already discussed about:




Production cycle time upstream are different from the consumption cycle time downstream, so a buffer stock is mandatory between any push and pull step.

A « Make-to-forecast » is thus often referred to as « make-to-stock », as we refer to a target stock level when forecasting.

Let’s now classify all the possible planning levels, from make to stock to design to order:


Where to put the push/pull border

The traditional push/pull border for most companies was at the retail level:



But now the goal is to move upstream the limit as following:



But in general, this limit is linked to the order-to-delivery lead-time and to the firm order horizon. Most of companies have a mix of firm orders and forecasts that is why upstream planning is critical so as to assemble or produce the parts on time to deliver without any delays.
This fundamental logistic theorem is stated this way: “Order variability increases upstream”


Last modified on Wednesday, 29 August 2012 15:03
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