LMS MOD 1

Push and Pull system: definitions, characteristics, and differences

Push System:

• Definition:
o It is a MRP (Material Requirements Planning) based production planning and inventory
control system.
o The Master Production Schedule (MPS) of end products is transferred into part requirements.
o Work orders are then launched to build (or purchase) the parts in large lots.
o The work order pushes material to the manufacturing floor to produce the required parts.
• Characteristics:
1. Large Lot Sizes and Long Lead Times: Lot sizes are normally large, resulting in long
production lead times.
2. Fixed MPS: The MPS is altered only at the beginning of the planning horizon, typically 1
week to 1 month.
3. Demerits:
▪ Variation in demand and non-availability of production processes lead to delays and
changes in schedule.
▪ Coordination is lost due to a lack of feedback on the status of previously released
material.
▪ Parts are pushed to successive stages as soon as the work is completed, causing
problems when some parts are not finished and required at the next process, leading to
shortages.
▪ Excessive inventory of some components can block the proceeding stage.
4. Single Flow Process: Both build schedule (information) and material flow in the same
direction from one stage to another.

Pull System:

• Definition:
o In a pull system, material and information move in opposite directions.
o Material moves in the same direction as in the push system, but the information regarding
processing of parts (build schedule) is given by a subsequent process and moves in the
opposite direction.
o Kanban system is used to trigger production at every stage.
• Characteristics:
1. Opposite Flow of Material and Information: Material moves in the same direction as the
push system, but build schedule information moves in the opposite direction.
2. Kanban System:
▪ A kanban system is used to communicate the schedule from one workstation to
another.
▪ A kanban is a card attached to a standard container that issues the production and
withdrawal of parts between the workstations.
▪ It is usually viewed as an information system that controls the production of parts.
3. Simplicity and Worker Decision-making: The major strength of a kanban system is its
simplicity, allowing workers to make decisions at the workstation level concerning the
production rate.
4. Flexibility and Communication: Any change in demand is communicated to the final
assembly level and then communicated through kanban to every workstation upstream at the
required time.
 5. Final Assembly Stage Scheduling: In a pull system, only the final assembly stage is
scheduled, while other stages are triggered by the kanban system.

Basic concept of lean manufacturing, Seven wastes, Historical development

Historical Development:

• Lean manufacturing has its origins in the Toyota Production System (TPS), which was developed by
Toyota in the 1950s.
• TPS aimed to eliminate waste, overburden, and inconsistency in production processes.
• Taiichi Ohno and Shigeo Shingo are considered pioneers of lean thinking, developing many of the
principles and practices that form the foundation of lean manufacturing.
• The concept gained widespread recognition in the 1990s
• Since then, lean principles have been adopted by numerous industries worldwide, leading to
significant improvements in efficiency, quality, and customer satisfaction.

Lean thinking continues to evolve, with ongoing efforts to refine methodologies and adapt them to diverse
organizational contexts and challenges

Basic Concept of Lean Manufacturing:

• Value: Defined as the capability provided to a customer at the right time and price, as determined by
the customer. It encompasses features of the product or service, availability, cost, and performance.
• Waste: Any activity that consumes resources but creates no value.

Lean Manufacturing:
 • Lean production focuses on eliminating waste in processes, such as the waste of work in progress
and finished good inventories.
• It's emphasized that lean production is not about eliminating people but about expanding capacity by
reducing costs and shortening cycle times between order and ship dates.
• Lean production revolves around understanding what is important to the customer and continuously
striving for perfection through continuous improvement.

Seven Wastes:

1. Overproduction: Producing more than what is needed or before it is needed.

2. Excess inventory: Keeping more inventory than necessary.
3. Defects: Errors or mistakes that require rework or disposal.
4. Non-value-added processing: Activities that do not add value to the product or service.
5. Waiting: Idle time or delays in processes.
6. Underutilized people: Not fully utilizing the skills and capabilities of employees.
7. Excess motion: Unnecessary movement of people or equipment.
8. Transportation: Unnecessary movement of materials or products.

Barriers to Lean:

• Implementing Lean is counterintuitive to traditional paradigms.

• Challenges include choosing multiple small machines over one large one, shutting down equipment
at maximum inventory levels, and embracing standards for continuous improvement.
• Lack of a clear step-by-step guide and variation in implementation methods across organizations are
additional hurdles.
• Company culture greatly influences the success of Lean implementation.

Implementing Lean:

• Key steps include gaining top management support, conducting a comprehensive company
assessment, and developing a strategic deployment plan.
• Customized Lean training, team building, and Kaizen events focusing on process improvement are
vital.
• An enterprise-wide approach is necessary to transform company culture and operations.

Progress Toward Lean:

• Progress indicators include smaller lot sizes, increased capacity, higher inventory turnover,
optimized floor space, improved organization, enhanced quality, reduced inventories and lead times,
and boosted employee morale and participation.

Just-in-time system: Kanban and CON-WIP

. Just-in-Time (JIT) System:

• Definition and Origin:

o Japanese manufacturing philosophy optimizing manufacturing system performance by
producing the right product, at the right time, and in the right quantity.
o Originated from the work of Taichi Ohno at Toyota Motors Company post-World War II.
o Japan's smaller market and scarce investment capital led to the development of JIT to
maximize efficiency with smaller production volumes per part.
• JIT Production Process:
o Minimizes lead time from material entry to product completion.
o All processes produce necessary products at the required time and quantity with minimal
inventory.
 o Adapts internal processes to sudden changes in demand patterns.
o Manages external activities such as purchasing and distribution to minimize raw material and
work in progress.
• Pull Production System:
o Flow on the factory floor is driven by demand from downstream processes.
o Material is processed only when there's a need (signal) from downstream.
o Customer orders create demand for finished goods, driving production.
• Kanban System:
o Key element of JIT production for managing and controlling pull-type production.
o Shipment in small, frequent lots managed by kanban, which could be an empty bin, a card, or
an electronic display.
• Benefits of JIT:
1. Increased productivity
2. Improved quality
3. Reduced lead time and setup time
4. Less scrap, rework, and requirements for raw materials, personnel, power, and machine
capacity
5. Less work-in-progress (WIP) and better workspace utilization
6. Increased work motivation and team efficiency
• Key Pillars of JIT:
o Kanban-based pull production
o Waste elimination as a guiding philosophy
o Faith in the value and importance of quality
o Continuous improvement as a day-to-day operating strategy
o Belief in the value and utilization of human resources
o Emphasis on reducing machine setup time and integrating suppliers and material acquisition
into corporate planning.
• Barriers of JIT:
o Frequent changes in production planning
o Inaccurate forecasting procedures
o Equipment failure and capacity problems
o Employee turnover and absenteeism
• Industries Best Suited for JIT:
o Repetitive manufacturing, e.g., Automotive
o Assemble-to-order products
o Companies using Group Technology
o Job Shops
• Reasons JIT is Not Universally Used:
o Lack of determination and commitment at the top level
o Misconceptions and excuses regarding JIT's applicability and benefits, such as equating it
with kanban or regarding it solely as an inventory reduction program.

Kanban System :

• Definition and Origin:

o "Kanban" means visual records in Japanese.
o Toyota developed the kanban system as part of its Toyota Production System (TPS).
o It is a pull-based material replenishment system using visual signals to trigger production
processes.
• Function and Components:
o Kanban is a communication tool for pull-based production, utilizing visual signals like cards,
bins, or electronic displays.
o It controls the flow of materials, work in progress (WIP), production, and inventory.
o Common types include withdrawal kanban and production kanban.
• Withdrawal Process:
 o Withdrawal kanban authorizes the movement of parts between work centers.
o It specifies the quantity to be pulled from the preceding process.
o After parts are consumed, the withdrawal kanban returns to fetch more parts, creating a cycle.
o Information on the kanban includes part number, lot size, process routing, and location
details.
• Production Kanban:
o Releases orders to the preceding stage to build parts as per specified lot size.
o Contains information on materials required at the preceding process.
• Triangular Kanban:
o Used for specifying lot production in stages with longer changeover times, such as die-
casting or forging processes.
• Rules for Kanban Operation:
1. No withdrawal of parts without a kanban.
2. Subsequent processes withdraw parts only when needed, following the quantity specified by
the kanban.
3. Defective parts should not be sent to subsequent processes.
4. Processes produce only the quantity specified by the production kanban, strictly following the
sequence of kanban reception.
5. Emphasizes smoothing production and fine-tuning using kanban

Just-in-Time System: CON-WIP

• Definition: Continuous Work in Process (CON-WIP) is a component of the Just-in-Time (JIT)

system focused on maintaining a steady flow of work throughout production.
Continuous work in process (WIP) refers to an ongoing, uninterrupted flow of tasks or projects within a system or
production process. It indicates that work is constantly in progress without significant delays or bottlenecks, contributing
to efficient and smooth operations. This concept is often associated with manufacturing, project management, or any
workflow where tasks move seamlessly from one stage to the next.
Characteristics of CON-WIP:

• Continuous flow of work throughout production.

• Prevention of bottlenecks and disruptions.
• Maintains a steady progression of work across stages.

Benefits of CON-WIP:

• Efficient utilization of resources.

• Reduction of overproduction and inventory.
• Improved overall efficiency.
• Identification of production bottlenecks.
• Promotion of lean manufacturing principles.