Pull System

Private & Confidential Asia OD – IE - HH

Objectives
This training session will cover
• Definition of Pull System
• Pull vs Push System
• Types of Pull System
• Benefits of Pull System
• Applying Pull System

Private & Confidential Asia OD – IE - HH

Definition
Pull System
~ is a production method that synchronizes a
manufacturing process with customer requirements.
The system replenish product as it is consumed by a
subsequent processing step or eventually the customer.
~ a pull system seeks to produce only the exact products
needed in the exact quantity needed in the shortest lead
time possible
~ in short, the pull system ensures that the right parts are
produced and conveyed to the right place at the right
time, in the shortest possible lead time

Private & Confidential Asia OD – IE - HH

Basic Concept Distributor: I need 10 more

Philips: Hey Jabil, please send

2 sets CD player 123 from
Philips
me 10 sets of CD player 123 to
meet my distributor needs

3
Retailer: wow, I just sold
out 10 sets of the Philips
CD player 123, got to pull
in 10 more sets from the
4 JBL BUM : Operation folks, please
distributor

assemble 10 sets of CD player 123

to be delivered To Philips 1

Private & Confidential Asia OD – IE - HH

Pull vs Push System
Push System
~ based on weekly or monthly demand forecast
~ products are forced downstream
~ functional process improvement may work against system
~ assumption are made about the system and its losses in
order to try to match the final output with the customer
requirement
~ typical assumptions are: fixed demand, consistent quality,
fixed lead times, accurate stock levels, stable process
~ as these assumption fail, the system must be overridden to
satisfy the customer

Private & Confidential Asia OD – IE - HH

Pull vs Push System
Pull System
~ based on daily demand
~ products are pulled from downstream
~ cannot build unless downstream triggers
~ it relies on the customer order pulling materials through
the production system only when required
~ connected process linked with system improvement
~ the system can be thought of as a chain reaction, initiated
by the customer withdrawing parts

Private & Confidential Asia OD – IE - HH

Pull vs Push System
Push System
BOM

MPS MRP Inventory

W/O W/O W/O

Supplier

Material Process 1 Process 2 Process 3 Customer

Private & Confidential Asia OD – IE - HH

Pull vs Push System
Pull System

Manufacturing

Material Process 1 Process 2 Process 3 Customer

Private & Confidential Asia OD – IE - HH

Types of Pull System
 Fill Up Pull System
~ used in high volume low mixed environment

 Sequential Pull System

~ used in high mixed low volume environment

 Mixed Pull System

~ used in environment where majority of the volume
accounts for a few derivatives and many derivatives
account for a very small proportion of the total volume

Private & Confidential Asia OD – IE - HH

Fill Up Pull System

~ Production Instruction (PI) and Parts Withdrawal (PW) trigger or

authorize the replenishment and control the sequence of build
~ the rate of production is controlled through the leveling board
~ stock/kanban should be located next to the point of manufacture
~ all parts/products are available in the system

Private & Confidential Asia OD – IE - HH

Sequential Pull System

~ Production Instruction (PI) is sent to the start of the process via a

sequence list
~ Tablet kanban (T) is used to authorize the production or withdrawal –
but not specify the product
~ the rate of production is controlled through the leveling
~ FIFO principles must be used to ensure the sequence is maintained
~ all parts are built to order

Private & Confidential Asia OD – IE - HH

Mixed Fill Up and Sequential Pull System
80% high frequency items are stocked

20% low frequency items are built to order

Private & Confidential Asia OD – IE - HH

Which Pull System To Be Used
Fill Up Sequential Mix ed
Market ~ low-m edium m arket ~ m edium -high m arket ~ low-m edium -high m arket
change change change
~ high response tim e ~ custom er L/T > m fg L/T
Product ~ low WIP cost ~ m edium -high WIP cost ~ high & low dem and products
~ low custom ization ~ m edium -high custom ization ~ pull sy stem strategy depends
~ high usage frequency ~ low usage frequency on business needs to respond
Process ~ m edium process ~ low process fluctuation ~ fluctuation in 1 ty pe of
fluctuation ~ low tolerance before WIP sy stem m ay bleed waste into
~ m edium tolerance for build up other sy stem
short periods
Potential~ obsolescence risk ~ slower custom er response tim e ~ m ix ed pull sy stem m ay
Issues ~ high inv entory ~ sy stem has sensitiv ity to create initial com plex ity
~ stores can be ex cuse production fluctuation ~ difficult to balance work
for increasing stock ~ difficult to catch up once load
a unit is m issed

Private & Confidential Asia OD – IE - HH

Benefits of Pull System
~ using pull is simply the downstream customer signaling
the upstream processes
~ the frequency and quantity of material pulled with respect
to Takt time creates the dynamic environment to foster
just in time production
~ these leads to
reduction in inventory
increased in productivity
increased in problem exposure
simplification of information flow

Private & Confidential Asia OD – IE - HH

Benefits of Pull System
1. Reducing Inventory Through Pull and Small Lot
Production
Traditional Small lot size
large lot w/ low Meet demand of 270,000 units per month w/ leveled
build frequency production

Vol 90,000 units per lot

~ downstream customer forced to

take very large lot size at very large interval
A B C

0 10 20 30 Day

Private & Confidential Asia OD – IE - HH

Benefits of Pull System
Vol 30,000 units per lot

~ downstream customer forced to

A B C take large lot size at more frequent interval

0 10 20 30 Day

Vol 3,000 units per lot

C
~ downstream customer able to pull at a
B
smaller quantity in a very short interval

0 10 20 30 Day

Private & Confidential Asia OD – IE - HH

Benefits of Pull System
Vol 1,000 units per lot

C
B
A ~ customer is now able to pull the exact
C
B
quantity needed, when it is needed and a
A Very short interval or manufacturing lead time
C
B
A
0 10 20 30 Day

Private & Confidential Asia OD – IE - HH

Benefits of Pull System
2. Increased in Productivity
2.1 Consistent movement of materials
~ decreased in fluctuation in materials usage allows for standard
cycles in materials movement
~ smaller quantities of materials allow for higher mixed load to
increased supplying efficiency

Private & Confidential Asia OD – IE - HH

Benefits of Pull System
2. Increased in Productivity
2.2 Better communication
~ frequent customer-supplier interaction lead to better
communication
~ quality problems can be caught and addressed sooner to reduce
scrap and potential rework
2.3 Less downtime due to materials shortages
~ materials just used or pulled are replenished in determined
time period
~ less emergency runs since materials will be delivered in fixed
cycle

Private & Confidential Asia OD – IE - HH

Benefits of Pull System
3. Improved Problem Exposure
3.1 Process Level
~ forces upstream processes to take ownership
~ processes no longer operate as isolated operations
~ uncovers process cycle time variations
~ links to the Takt time demand
~ highlights defects and process capability

Private & Confidential Asia OD – IE - HH

Benefits of Pull System
3. Improved Problem Exposure
3.2 System Level
~ requires process-impact understanding across the
system
~ materials conveyance as integral part of system
~ exposes organization and training issues to
respond to manufacturing sensitivity
~ highlights importance of building in quality

Private & Confidential Asia OD – IE - HH

Road Map To Implementing Pull System
1. Design flow & pull system in pilot area
~ define optimum process flow
~ determine pull system type
~ determine packaging, transportation & signal method
~ design flow, staging & positioning
~ determine range of flexibility

2. Layout process flow

~ simulate system off-line to test & training

3. Address material
~ locate “kanban” area, quantify buffer & kanban stock
~ FIFO
~ add visual management

Private & Confidential Asia OD – IE - HH

Road Map To Implementing Pull System
4. Develop Kanban card & cycle
~ implement information loops for withdrawal & cycles
~ determine number of kanban required
~ create pull signal method

5. Implement
~ start with lean system
~ perform audit on kanban cycle, FIFO & material quantity
~ standardize material movement

Private & Confidential Asia OD – IE - HH