Exam 8: Push and pull production systems

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For Panama.Inc., there have been having problems with deciding on the number of Kanban cards in the system.There were several material shortages during the last period.In order to prevent shortages while maintaining an efficient Kanban system, how many Kanban cards should be released in the system? The lead time is 2 day and the safety stock level is set to 15% of the average demand during the day.The container size is 10 units per container.The following is the demands over the last 10 days. Days 1 2 3 4 5 6 7 8 9 10 Daily demands 100 98 97 120 123 125 121 100 110 105

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List the 3 ways to distinguish a pull system from a push system.

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A pull system and a push system are two different approaches to managing the flow of resources, such as materials or information, within a production process or supply chain. Here are three ways to distinguish a pull system from a push system:

1. **Initiation of Production or Movement**:
- **Pull System**: In a pull system, the production or movement of goods is initiated by actual demand. This means that items are produced or moved only when there is a need from the downstream process or customer. This approach is demand-driven and often uses signals, such as Kanban cards in a Kanban system, to trigger the production or supply of goods.
- **Push System**: Conversely, a push system is schedule-driven, where production or movement is initiated based on forecasts or schedules. Goods are produced or moved in anticipation of future demand, and the items are pushed through the system to the next stage or to the customer, regardless of whether they are immediately needed.

2. **Inventory Levels**:
- **Pull System**: Pull systems tend to maintain lower levels of inventory because goods are produced only when there is a demand. This minimizes the amount of capital tied up in inventory and reduces the risk of overproduction and obsolescence. The system is designed to be responsive and flexible to actual consumption patterns.
- **Push System**: Push systems often result in higher levels of inventory throughout the supply chain because goods are produced in advance of actual demand. This can lead to excess inventory and higher storage costs. The system relies on accurate demand forecasting, and any errors in forecasting can lead to either stockouts or surplus inventory.

3. **Responsiveness and Efficiency**:
- **Pull System**: Pull systems are generally more responsive to changes in customer demand because they are designed to react quickly to actual consumption. This can lead to higher customer satisfaction due to better alignment with customer needs. However, the efficiency of a pull system can be challenged if there are significant fluctuations in demand that are not quickly communicated upstream.
- **Push System**: Push systems can be efficient in a stable environment with predictable demand because they allow for planning and optimization of production runs and resource utilization. However, they can be less responsive to sudden changes in demand, which can lead to either missed sales opportunities or increased costs due to markdowns on excess inventory.

In summary, pull systems are characterized by demand-driven production, lower inventory levels, and high responsiveness to customer demand, while push systems are characterized by forecast-driven production, higher inventory levels, and efficiency in stable environments with predictable demand.

Among the following relative disadvantage claims for a pull manufacturing, which one is most likely to be true?

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Which of the following descriptions are not correct for a push system? 1)There is no clear visibility between processes 2)The workers on shop floor lack the autonomy to stop the manufacturing on their own initiative 3)Production is only initiated when the down- stream process initiates its own activity 4)The WIP inventory levels are high at most locations

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Susan is tasked with purchasing some new containers to use in the company's Kanban system.While she has most of the Kanban system configuration information, she cannot find the container size information.Find the container size using the Kanban system configuration information. The average daily demand is 2050 units and lead time is 3 days.The safety stock level is set to 200 units.There are currently 10 Kanban cards in the system.Find the closest size.

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Which of the following statements are the disadvantages of the push system? 1)Increases the work load at the management level 2)Performance is dependent of forecasting ability 3)Increases work-in-process inventory 4)Require less managerial resources at a shop floor level

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Among the following relative advantage claims for a pull manufacturing, which ones are likely to be true? 1)The system operates with almost no WIP inventory 2)Less maintenance is required 3)There is not much need to forecast demands 4)Only when it is needed, value is added to incomplete product

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Mom &Pop Inc.uses 6 kanban cards for a system with a container size of 500 units.Using the demand information bellow, find the safety stock level.The estimated lead time is 1 day. Daily 1 2 3 4 5 6 Demand 1,000 500 3,000 4,000 3,000 500

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Describe in one paragraph, what a Hybrid production System is.

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Explain what the following sentence means."Control is transferred from the beginning of the line to the end with the pull system."

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Which of the following statements do not correctly describe push manufacturing? 1)The serial operations are independently optimized 2)Compared to pull, push manufacturing is a relatively new concept 3)Forecasts of demands is a significant factor in deciding on material flow 4)It focuses on maximizing inventory investment

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Misa is tasked with purchasing some new containers to use in the company's kanban system.While she has most of the kanban system configuration information, she cannot find the container size information.Find the container size using the kanban system configuration information. The average daily demand is 550 units and lead time is 2 days.The safety stock level is set to 30 units.There are currently 6 kanban cards in the system.Find the closest size.

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With a push system, it is more likely that defects will pass through to the next process without being detected.Choose among the following, the likely consequences of this situation. 1)Increase in rework costs 2)Increase in customer returns 3)Increase in asset utilization 4)Increase in overall throughput

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The push system measures the performance of each work station separately based on measures such as machine utilization.If all the work stations are operating at the peak of their current possible machine utilization, is this enough to say that this push manufacturing process is at an optimal state? Is there areas that could go wrong?

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Which of the following dual-card Kanban rules are not correct? 1)One Kanban per container 2)The more Kanban cards are in the system, the more smoothly manufacturing operates 3)Standardized Containers and loads 4)In some cases, parts can be made without a production Kanban

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Describe the concept of a pull system in one sentence.

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Which of the following statements regarding the manufacturing systems are correct? 1)For a MRP system, customer demand forecast is essential for material control 2)For a pull system, larger lot sizes and shorter lead times are required 3)For a pull system, a JIT philosophy needs to be solidified within the organization 4)For a Kanban system, each work station need to respond independently from other work stations

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Choose the correct statement regarding a Kanban system.

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The dual Kanban system uses more than one type of Kanban cards.Choose the correct type of Kanban cards for a dual Kanban system 1)Withdrawal Kanban 2)Inventory Kanban 3)Supermarket deposit Kanban 4)Transportation Kanban

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How is the Kanban system similar to fixed-order inventory systems?

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