Step 6 is focused on the orderly control of incoming parts and materials, people and information based on the outgoing finished products or services.
A typical company uses production forecasting to determine their work schedule. This is called a “Push System” because is drives orders through the production processes. It can create an excessive amount of inventory, which is one of the eight wastes. It adds cost to the product because forecasting is not an effective method.
A lean company tries to activate their production processes based on customer demand. As a customer consumes products, it initiates the manufacturing process to replenish the items. A lean business will try to hold enough finished products to meet customer demand, therefore eliminating any excess inventory.
There are several benefits for a company that implements a Pull System:
A Pull System using kanban can help a business to transition from a batch and queue process towards becoming a single piece or continuous flow process. A Pull System will control the amount of inventory throughout the production system, which helps to focus on building what the customer wants, when they need it. As a result of better inventory control, all production resources are focused effectively, this will speed up the process and reduce lead times.
In this short video, Chris Turner - Lean Mfg Coach gives a brief explanation about implementing a pull system.
I have an individual training module for Implement a Pull System available to purchase. It is from my advanced level training course which is Level 3 - Lean Expert in Manufacturing. For more information click the link below:
Categories: 10-Step Model