PUSH AND PULL Systems - apuntes en ingles PDF

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PUSH AND PULL SYSTEMS

1. Push systems in the Global Supply Chain - Push production systems: are based on forecasts of demand. The centralized planning department plans the customer needs and production produces based on the forecast. - To cover eventualities the company will attempt to keep more stock. The stock is likely to increase costs for space and working capital financing. - Quality problems or damage to facilities are often hidden. They tend to be solved by increasing the installed capacity generating higher safety stocks. Inventories hide all the problems of the factories. 2. Operations and Supply Chain Management flow - Push Supply chain management: management of the flow of information, products, and services across a network of customers, enterprises, and supply chain partners.

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Pull Supply chain management: management of the flow of information, products, and services across a network of customers, enterprises, and supply chain partners.

3. Pull systems What are Pull Systems? Pull Systems control the flow of resources in a production process by replacing only what has been consumed. They are customer order-driven production, schedules based on actual demand and consumption rather than forecasting. Implementing Pull Systems can help eliminate waste in handling, storing, and getting your product to the customer. Benefits -

Reduce overall inventory. Reduce work in process (WIP). Reduce order turnaround time. Increase customer satisfaction. Improve cash flow.

Planning is essential to anticipate demand

4. Pull system and Lean Logic in the Global Supply Chain Pull Production Systems: are those which control the flow of materials by replacing only the materials used, so eliminating inventory costs and overproduction: Lean Production system: -

Lean is based on the logic that nothing will be produced until it is needed. A sale pulls a replacement from the last position in the system. This triggers an order to the factory production line. Each upstream station then pulls from the next station downstream. Anything over the minimum is waste....