Production System is a collection of people, equipment and procedures organized to perform the manufacturing operation of the company or organization. Two Type Of Production System: ○Push Production System ○Pull Production System

1. Presented & Prepared By:
 Ramsha Arif
 Zara Tariq
:
Time for
a short break
010123456789
Presented & Prepared By:
 Ramsha Arif
 Zara Tariq

2. CONTENTS
I. Basics of Production System--------------------------- 3
II. MRP (Manufacturing resource planning) ----------------- 26
III. JIT (Just-In-Time) ------------------------------------------ 37
IV. Push Production System ------------------------------ 46
V. Pull Production System ------------------------------- 54
VI. MRP in PUSH --------------------------------------------- 61
VII. JIT in PULL ------------------------------------------------ 85
VIII. Example Of PUSH ---------------------------------------- 115
IX. Example Of PULL ---------------------------------------- 164
X. PUSH Vs. PULL -------------------------------------------- 180
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3. Basics
of
Production System

4. Production Strategy:
• Product Strategy is perhaps the most important function of
a company. It must take in account the capabilities in terms
of engineering, production, distribution (sales) existing in the
company or of time to acquire them (by hiring or by mergers).
It must evaluate the customers expectations at the time of
delivery.
Production System:
• It is a collection of people, equipment and procedures
organized to perform the manufacturing operation of the
company or organization.
• Two Type Of Production System:
1. Push Production System
2. Pull Production System
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5. Process Of Production
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MRP
(Materials Requirements
Planning)

7. MRP (Materials Requirements Planning)
• Material requirements planning (MRP) is a
production planning and inventory control system
used to manage manufacturing processes. Most MRP
systems are software based
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8. 8
JIT
(Just-In-Time)

9. JIT (Just-In-Time)
• Just-in-time manufacturing is a strategy used in the
manufacturing industry to reduce costs by reducing
the in-process inventory level. It is driven by a series of
signals that tell the product line to make the next
piece for the product and when it is needed.
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PUSH
Production

11. PUSH Production
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Schedule work releases based on demand.
inherently due-date driven control release rate.

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PULL
Production

13. PULL Production
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Authorize work releases based on system
status. It is a process that works on customer’s
demand in order to reduce wasting and
stocks all along logistics chain..

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MRP
in
PUSH Production

15. MRP in PUSH Production
• MRP is the classic push system. The MRP system
computes production schedules for all levels based on
forecasts of sales of end items. Once produced,
subassemblies are pushed to next level whether
needed or not.
• Allows Managers to manage – that is, plan and Control
things
• Can lead to economies of scale in purchasing and
production
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16. 16
JIT
in
PULL Production

17. JIT in PULL Production
• JIT is the classic pull system. The basic mechanism is
that production at one level only happens when
initiated by a request at the higher level. That is,
units are pulled through the system by request.
• Limited and known Final Inventory
• Worker only consume their time & Raw Materials on
what is actually needed
• Quality MUST be High – each piece has a definite
place to go – else immediate feedback is given
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18. Advantages & Disadvantages of Pull
in JIT
Advantages Disadvantages
JIT  PULL
Limited and known Final Inventory Every job is a ‘High Stress’ Rush order
Worker only consume their time &
Raw Materials on what is actually
needed
Balanced systems MUST be in place
Quality MUST be High – each piece
has a definite place to go – else
immediate feedback is given
Setup times will greatly impact
throughout
Any problem will lead to unhappy
customers (either internal or external)

19. Advantages & Disadvantages of Push
in MRP
Advantages Disadvantages
MRP  PUSH
Allows Managers to manage – that is,
plan and control things
Can lead to large inventories
Requires intricate knowledge of
Production Times & Product Flow
Can generate large quantities of scrap
before errors are discovered
Can lead to economies of scale in
purchasing and production
Requires diligence to maintain
effective product flow
Allows for the planning and completion
of complex assemblies
Requires maintenance of large and
complex databases

20. Example - Custom Taco Production
20
Line
Push/Pull Interface
Cooking Assembly Packaging Sales
Pull
Push
Refrigerator
Customer

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Example - Quick Taco Production
Line
Pull
Push/Pull Interface
Push
Cooking Assembly Packaging Sales
Refrigerator
Warming
Table
Customer

22. Push vs. Pull System
Push system
• In a Push, production and
distribution decisions are
based on long term forecasts
• Effective in dealing with
fluctuating demand.
• Also known as the "producer-centric"
approach
• Goods are manufactured in
anticipation of customer
orders.
Pull system
• In a Pull, production and
distribution are demand drive
• Effective in dealing with Stable
demand.
• Also known as "customer-centric"
system
• Goods are manufactured in
anticipation of customer
needs.
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Push and Pull Examples
• Are the following systems essentially push or
essentially pull?
– “Pure” MRP system:
– Soda vending machine:
– Photocopy shop:
– Supermarket (goods on shelves):
PULL
– Order entry server at Amazon.com:
– Doctor’s office:
PUSH
PULL
PUSH
PUSH
PUSH – into office, PULL – into exam room

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