The original meaning of push and pull, as used in operations management, logistics and supply chain management. In the pull system production orders begin upon inventory reaching a certain level, while on the push system production begins based on demand that is forecast or actual demand.
Pull, Push in the dictionary means pull, thrust. If talking about Lean Manufacturing and Just in Time (JIT), it seems like these two words are very closely related.
Compared to the Push System, Pull the System the more the center of attention in the implementation of JIT. The pull is the operation process starting from the stage of the purchase. To deliver the customer is currently consider to be modern and could follow the market direction. While the term only, i.e. the Push system, represents a traditional operating system and conservative, with identical activities. That have no add value or the term "waste". To avoid stock outs, management determines. The level of volume purchase of material and level of inventory, not base on a decline in Purchase order (PO) customer. As a reference that is forecasting or sales level forecasting.
A simple explanation of a pull system could be describing as:
Pull:
“The company must almost be sure about the customer demand orders before they take any action of production.”
Companies that operate a pull system they will begin with a customer’s order. They only make enough products which is needed and they will be quite sure about the customer’s orders before the production. An advantage of this system is reducing of cost of carrying and storing goods.
However, a disadvantage of this system is to run into ordering dilemmas; for example, if the suppliers cannot deliver on time that finally is followed to the customer dissatisfaction. Japanese model of JIT delivery is a good example of pull inventory control system. By using JIT system the inventory levels will be kept to a minimum by only having enough inventory, not more or even less, to meet customer demand.
Push:
“The company does focus more on the key performance indicators of the past based on the historical information. They will produce a certain numbers of products and bring it to the market.”
The push system of inventory control involves forecasting inventory needs to meet customer demand. The company must know which products in which quantity are needed to be purchased.
Disadvantages of the push inventory control system are that forecasts are often inaccurate as sales can be unpredictable and vary from one year to the next. Another problem would be when there are products left at the inventory because of the wrong forecasting which increase the company costs for storing those goods.
A Materials Requirements Planning (MRP) does make an important sense for a push system organized company. MRP combines the calculations for financial, operations and logistics planning. It is a computer-based information system which controls scheduling and ordering. The purpose is to make sure raw goods and materials needed for production are available when they are needed. The more accurate of working with MRP , the less risks of wrong forecasting and making costs.
In manufacturing, the Pull System more or less has a meaning as follows:
- a) Stated on the push system, a machine doing the production process without having to wait for a request from a machine that would do the next process. Otherwise on the pull system, a machine doing the production process only if there is a request from a machine that would do the next process.
b) The push and pull system associated with the flow of information. They define the push as the action to anticipate needs, whereas action to serve as a pull request.
c) Describe the connection of the push system with process management in an attempt to reduce the risk of stock-outs, while the pull system as a production process that flows with inventory expectations as little as possible.
Pure Push and pull System
How to Pull and Push the System from the point of view of JIT?
Just in time production systems (Just in Time) is the production system or the modern manufacturing management system developed by Japan companies. The basic principle, the only company producing the kinds of goods that prompted a number of required and needed by consumers. Just In Time (JIT) is a whole philosophy of operations management where all our resources, including raw materials and spare parts, personnel, and facilities used as needed. The aim is to raise productivity and reduce waste (waste). Just In Time based on the current concept of sustainable production and requires any part of the production process working with other components.
Just in Time
The basic concept of JIT implanted well on the Toyota production system, this system successfully adapts to changes due to the disturbances and changes in demand, with how to make all the process can produce the necessary products, at the time required and in amounts to suit your needs.
In the usual production control systems (conventional), the above terms are met by issuing various production schedule on all processes, be it in manufacturing spare parts or on a raft of line end. Manufacturing process produces spare parts spare parts according to the schedule, using the thrust system, meaning that the previous process of supplying spare parts on the next process. (push system)
The Pull system is action to serve the request. the pull system as a production process that flows with inventory expectations as little as possible.
The Push system is the action to anticipate needs, push system with process management in an attempt to reduce the risk of stock-outs. The difference in the pull and push system system that requires the availability of push manufacturing system inventory to support the smooth running of the production process, whereas the manufacturing system pull requires the absence of inventory because it is seen as a load fee.
An example of a pull and a push system is on the pull, a machine doing the production process only if there is a request from a machine that would do the next process. Otherwise on a push system, a machine doing the production process without having to wait for the request.
Push and Pull System in reality
I analyze the definitions – definitions above, generally Pull system is the implementation of the Just In Time that aims to control waste, waste, young, and many other terms that are essentially "vanity". The way is by looking at the flow of processes ranging from material purchasing phase to finish good storage there is nothing stuck, inventory is considered waste. System Push more conventional/traditional considered opposite this concept. Control Inventory ranging from materials, Work In Process, and Finished Good, that's the key word.
Parts, could all use the Pull System?
How about the reality of the situation? as far as my observation, not (probably) there are companies that could apply the system Pull or Push. You will say, what about Toyota? My answer like this, as a true process of Assembling Toyota doing the process based on the level of the order. Then what about the production of spare parts? stockyard buffer determination isn't based on forecast? Then how about company’s pens play parts, e.g. tire company, cable, Bolt, Nut, Upholstery foam, oil filter, spark plugs, glass tempering, and sticker.
I'm very sure this pens play companies (and of course I think of as the Toyota automotive industry chain) must have a stock of materials such as natural rubber, carbon black, Synthetic Rubber, iron, aluminum, glass etc. Why must have stock? the answer is simple:
1) Associate with relatively far between manufacturers and factories,
2) Has some material price fluctuating,
3) Optimize the purchase cost. Then, is it still worth it says Toyota implements the Pull System pure (Pure Pull)?
I am sure, the answer is no. Releasing position of supplier parts as a shareholder in the automotive industry is not very logical ...
Push and Pull system within the supply chain
A supply chain strategy determines when a product should be:
- produced;
- delivered to the distribution centers;
- available in the retail channel and followed by providing them to the end customers.
Actual customer demand drives the process when the supply chain is design as a pull supply chain. The company prefer to know how is the customer demand and base on it the products. It will be produce while push strategies are drives by long-term projections of customer demand. Which is more anticipate. Push system makes the companies do focus more on the long-term KPI’s of the last period of time and base on that they will produce a number of products a weekly, monthly production. Which is depending on the production strategy of the company. They will push it then into the market after the production.
Lean inventory strategy:
A combination of PULL and PUSH system which is also called the push-pull inventory control system is a design of strategy that some companies have been came up with. This system will demand a more accurate forecast of sales and adjusts inventory levels based upon actual sales.
These kind of companies would like to keep any customers for them self as much as possible. By performing the lean inventory control system. They try to stablemate their supply chain and the reduction of product shortages which can cause customers to go elsewhere to make their purchases. The planners would be aware of short – and long-term production needs very well to make this true.
Instant Examples
There is no industry that applying one of them separately. There are other more extreme examples, the shoe Industry has a contract to produce. Such as Nike shoes, Adidas, Reebok, Mizuno, Fila, New Balance, and brands shoes is another form of industries. That apply the concept of Make to order (MTO) perfectly. These companies will not produce shoes that have not been book. Due to the production of shoes depends greatly with season (season), Gender (man, woman), age (baby, child, mature), couple with the requisite Size (size). Other unique specifications that it seem difficult for them to deliberately make the stock finish good.
Companies are implementing a Pull System as a pure?
The answer is no! Because it turns out that some material should be disorder based these characteristics, but what about the material of the rubber or plastic molding process for ore or injection made out of leather, PU sole, Synthetic, Solvent & Chemical, Textile, thread, DLL. Once again, some material must have stock inventory within the optimum to guarantee a smooth supply when the production process.
What about push pure (pure push)?
If the company is monopolizing the market (such as Bulldog, salt, etc.). The application of pure push is complete, because his focus was more on production volume. No matter how the quantity the market could still absorb. However, in a situation of competition, claiming the product has "uniqueness" feature, adding value. More "customize", it would be very difficult to survive if it adopted the Push System.
The concept of Pure Pull or Push will have diverse definitions if the system inventory/supplies entered therein. It would be more instructive. If the Pull/Push his definition starts from the production process up to delivery at the customer. Production process that implements the pull system will give a significant impact of efforts to increase productivity and decrease waste. In it we will find many methods a very interesting process, e.g. Kanban system between the line of the process.
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