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Push and Pull Production Systems

You say yes.
I say no.
You say stop.
and I say go, go, go!
– The Beatles

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

1

http://factory-physics.com

The Key Difference Between Push and Pull
Push Systems: schedule work

Pull Systems: authorize work

releases based on demand.
• inherently due-date driven
• control release rate, observe WIP
level

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

releases based on system status.
• inherently rate driven
• control WIP level, observe
throughput

http://factory-physics.com

2

1
Push vs. Pull Mechanics
PUSH

PULL

(Exogenous)
Schedule

(Endogenous)
Status

Production Process

Job

Job

Push systems are inherently
make-to-order.
© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

Production Process

Pull systems are inherently
make-to-stock.
3

http://factory-physics.com

Pulling with Kanban
Outbound
stockpoint

Production
cards

Completed parts with cards
enter outbound stockpoint.

When stock is
removed, place
production card
in hold box.

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

http://factory-physics.com

Outbound
stockpoint

Production
card authorizes
start of work.

4

2
Push and Pull Line Schematics
Pure Push (MRP)

Stock
Point

Stock
Point

...

Pure Pull (Kanban)

Stock
Point

Stock
Point

...
…

Stock
Point

CONWIP

Authorization Signals
© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

Stock
Point

...

Full Containers

http://factory-physics.com

5

Push/Pull Interface
Eliminate: entire portion of cycle time by building to stock.
Requirements:
• Level demand.
• Relatively few distinct parts.
• Relatively constant product mix.

Implementation:
• kanban
• late customization (postponement)

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

http://factory-physics.com

6

3
Example - Custom Taco Production Line
Push/Pull Interface
Pull

Push

Refrigerator

Cooking

Assembly

Packaging

Sales

Customer

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

7

http://factory-physics.com

Example - Quick Taco Production Line

Pull

Refrigerator

Cooking

Push/Pull Interface

Assembly

Packaging

Warming
Table

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

http://factory-physics.com

Push

Sales

Customer

8

4
The Magic of Pull
Pulling Everywhere?
You don’t never make nothin’ and send it no place. Somebody has to
come get it.

– Hall 1983
No! It’s the WIP Cap:
•Kanban – WIP cannot exceed number of cards
•“WIP explosions” are impossible

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

WIP

http://factory-physics.com

9

Advantages of Pull Systems
Low Unit Cost:

Good Customer Service:

• high throughput
• low inventory
• little rework

• short cycle times
• steady, predictable output stream

Flexibility:
High External Quality:
• high internal quality
• pressure for good quality
• promotion of good quality (e.g.,
defect detection)

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

• avoids committing jobs too early
• tolerates mix changes (within
limits)
• encourages floating capacity

http://factory-physics.com

10

5
Pull Benefits Achieved by WIP Cap
Reduces Manufacturing Costs:

Improves Quality:

• prevents WIP explosions
• reduces average WIP
• reduces engineering changes

Reduces Variability:

• pressure for higher quality
• improved defect detection
• improved communication

Maintains Flexibility:

• reduces cycle time variability
• pressure to reduce sources of
process time variability (e.g., long
repair times)
• promotes improved customer
service

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

• accommodates engineering
changes
• less direct congestion
• less reliance on forecasts
• air traffic control analogy

11

http://factory-physics.com

CONWIP
Assumptions:
1. Single routing
2. WIP measured in units

...

Mechanics: allow next job to enter line each time a job leaves (i.e., maintain a
WIP level of m jobs in the line at all times).

Modeling:
• MRP looks like an open queueing network
• CONWIP looks like a closed queueing network
• Kanban looks like a closed queueing network with blocking

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

http://factory-physics.com

12

6
CONWIP Controller
Work Backlog
PN
–—
–—
–—
–—
–—
–—
–—
–—
–—
–—
–—
–—
–—

Indicator Lights

Quant
–––––
–––––
–––––
–––––
–––––
–––––
–––––
–––––
–––––
–––––
–––––
–––––
–––––

LAN

R G

PC

PC

...
Workstations
© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

http://factory-physics.com

13

CONWIP vs. Pure Push
Push/Pull Laws: A CONWIP system has the following advantages over an
equivalent pure push system:
1) Observability: WIP is observable; capacity is not.
2) Efficiency: A CONWIP system requires less WIP on average to attain a
given level of throughput.
3) Robustness: A profit function of the form
Profit = pTh - hWIP
is more sensitive to errors in TH than WIP.

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

http://factory-physics.com

14

7
CONWIP Efficiency Example
Equipment Data:
• 5 machines in tandem, all with capacity of one part/hr (u=TH·te=TH)
• exponential (moderate variability) process times

CONWIP System: looks like PWC, so
TH ( w) =

w
w
rb =
w + W0 − 1
w+ 4

Pure Push System: looks like series of M/M/1 queues, so
w(TH ) = 5

u
TH
=5
1− u
1 − TH

Comparison: WIP needed in CONWIP to match push throughput
w(
© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

w
5( w /( w + 4))
5w
)=
=
w + 4 1 − ( w /( w + 4))
4
http://factory-physics.com

in this example, WIP
is always 25% higher
for same TH in push
than in CONWIP 15

CONWIP Robustness Example
Profit Function:

Profit = pTH − hw

 − hw
CONWIP: Profit(w) = p 
 w + 4

need to find “optimal”
WIP level

( )

need to find “optimal”
TH level (i.e., release
rate)

w

Push:

Profit(TH) = pTH − h

5 TH

1 − TH

Key Question: what happens when we don’t choose optimum
values (as we never will)?
© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

http://factory-physics.com

16

8
CONWIP vs. Pure Push Comparisons
70

Optimum

CONWIP

60

Efficiency

50

Robustness

Profit

40
30

Push

20
10
0
0.00%
-10

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

-20

Control as Percent of Opti mal
© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

http://factory-physics.com

17

Modeling CONWIP with Mean-Value Analysis
Notation:
u j (w) = utilization of station j in CONWIP line with WIP level w
CT j (w) = cycle time at station j in CONWIP line with WIP level w
CT (w) =

n
j =1

CT j ( w) = cycle time of CONWIP line with WIP level w

TH (w) = throughput of CONWIP line with WIP level w
WIPj (w) = average WIP level at station j in CONWIP line with WIP level w

Basic Approach: Compute performance measures for increasing w
assuming job arriving to line “sees” other jobs distributed according
to average behavior with w-1 jobs.
© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

http://factory-physics.com

18

9
Mean-Value Analysis Formulas
Starting with WIPj(0)=0 and TH(0)=0, compute for w=1,2,…
CT j ( w) =
CT ( w) =

t e2 ( j ) 2
[c e ( j ) − 1]TH ( w − 1) + [WIPj ( w − 1) + 1]t e ( j )
2
n

CT j ( w)
j =1

w
CT ( w)
WIPj ( w) = TH ( w)CT j ( w)
TH ( w) =

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

19

http://factory-physics.com

Computing Inputs for MVA
MEASURE:
Natural Process Time (hr)

STATION:
t0

1
0.090

2
0.090

3
0.094

4
0.090

5
0.090

Natural Process CV
Number of Machines
MTTF (hr)

2

c0
m
mf

0.500
1
200

0.500
1
200

0.500
1
200

0.500
1
200

0.500
1
200

MTTR (hr)
Availability
Effective Process Time (failures only)

mr
A
t e'

2
0.990
0.091

2
0.990
0.091

8
0.962
0.098

4
0.980
0.092

4
0.980
0.092

Eff Process CV (failures only)

ce '

2

0.936

0.936

6.795

2.209

2.209

Jobs Between Setups

Ns

100.000

100.000

100.000

100.000

100.000

Setup Time (hr)

ts

0.500

0.500

0.500

0.500

0.500

Setup Time CV

cs

1.000

1.000

1.000

1.000

1.000

Eff Process Time (failures+setups)

te

0.096

0.096

0.103

0.097

0.097

Eff Station Rate

re

10.428

10.428

9.731

10.331

10.331

Eff Process Time Var (failures+setups)

σe

2

0.013

0.013

0.070

0.024

0.024

2

1.382

1.382

6.621

2.517

2.517

Eff Process CV (failures+setups)

2

ce

rb
T0

0.488

W0
© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

9.731
4.750

http://factory-physics.com

20

10
Output of MVA
TH

CT

w

Actual

Actual

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

2.049
2.928
3.644
4.185
4.629
5.000
5.317
5.592
5.834
6.049
6.241
6.414
6.572
6.715
6.846

0.488
0.683
0.823
0.956
1.080
1.200
1.317
1.431
1.543
1.653
1.763
1.871
1.978
2.085
2.191

CT1(w)

CT2(w)

0.096
0.118
0.134
0.149
0.163
0.176
0.189
0.202
0.214
0.226
0.237
0.249
0.260
0.271
0.283

0.096
0.118
0.134
0.149
0.163
0.176
0.189
0.202
0.214
0.226
0.237
0.249
0.260
0.271
0.283

CT3(w)
0.103
0.185
0.245
0.303
0.357
0.410
0.462
0.513
0.563
0.614
0.664
0.714
0.763
0.813
0.863

CT4(w)
0.097
0.131
0.155
0.177
0.198
0.219
0.238
0.257
0.276
0.294
0.312
0.330
0.347
0.364
0.381

CT5(w)
0.097
0.131
0.155
0.177
0.198
0.219
0.238
0.257
0.276
0.294
0.312
0.330
0.347
0.364
0.381
21

http://factory-physics.com

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

Using MVA to Evaluate Line Performance
12.000

10.000

8.000
Actual
Bes t Case

6.000

Wors t Case
PW C

4.000

2.000

0.000
0

5

10

15

20

25

30

35

WIP

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

http://factory-physics.com

22

11
Implementing Pull
Pull is Rigid:
• replenish stocks quickly (just in time)
• level mix, volume, sequence

JIT Practices
•
•
•
•

capacity buffers
setup reduction
flexible labor
facility layout

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

http://factory-physics.com

23

Capacity Buffers
Motivation: facilitate rapid replenishments with minimal WIP
Benefits:
• Protection against quota shortfalls
• Regular flow allows matching against customer demands
• Can be more economical in long run than WIP buffers in push systems

Techniques:
• Planned underutilization (e.g., use u = 75% in aggregate planning)
• Two shifting: 4 – 8 – 4 – 8
• Schedule dummy jobs to allow quick response to hot jobs

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

http://factory-physics.com

24

12
Setup Reduction
Motivation: Small lot sequences not feasible with large setups.
Internal vs. External Setups:
• External – performed while machine is still running
• Internal – performed while machine is down

Approach:
1. Separate the internal setup from the external setup
2. Convert as much as possible of the internal setup to the external setup
3. Eliminate the adjustment process
4. Abolish the setup itself (e.g., uniform product design, combined
production, parallel machines)

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

25

http://factory-physics.com

Flexible Labor
Cross-Trained Workers:
• float where needed
• appreciate line-wide perspective
• provide more heads per problem area

Shared Tasks:
• can be done by adjacent stations
• reduces variability in tasks, and hence line stoppages/quality problems
work can float to
workers, or workers
can float to work…

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

http://factory-physics.com

26

13
Cellular Layout
Advantages:
• Better flow control
• Improved material handling (smaller transfer batches)
• Ease of communication (e.g., for floating labor)

Challenges:
• May require duplicate equipment
• Product to cell assignment
Inbound Stock

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

Outbound Stock

27

http://factory-physics.com

Focused Factories
Pareto Analysis:
• Small percentage of sku’s represent large percentage of volume
• Large percentage of sku’s represent little volume but much complexity

Dedicated Lines:
Drill

Drill

Paint

Mill

Drill

Paint

Weld

Grind

Lathe

Assembly

Mill

Mill

Grind

Drill

Grind

Paint

Lathe

Assembly

Stores

Saw

Warehouse

Job Shop Environment:
• for low runners
• many setups
• poorer performance, but only
on smaller portion of business
• may need to use push

Lathe

Saw

Warehouse

Saw

Stores

• for families of high runners
• few setups
• can use pull effectively

Mill
Drill

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

http://factory-physics.com

28

14
Push/Pull Takeaways
Magic of Pull: the WIP cap
Logistical Benefits of Pull:
• observability
• efficiency
• robustness (this is the key one)

Overcoming Rigidity of Pull:
•
•
•
•
•

capacity buffers
setup reduction
flexible labor
facility layout
many others (postponement, push/pull hybrids, etc.… )

© Wallace J. Hopp, Mark L. Spearman, 1996, 2000

http://factory-physics.com

29

15

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Push and pull production system

  • 1. Push and Pull Production Systems You say yes. I say no. You say stop. and I say go, go, go! – The Beatles © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 1 http://factory-physics.com The Key Difference Between Push and Pull Push Systems: schedule work Pull Systems: authorize work releases based on demand. • inherently due-date driven • control release rate, observe WIP level © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 releases based on system status. • inherently rate driven • control WIP level, observe throughput http://factory-physics.com 2 1
  • 2. Push vs. Pull Mechanics PUSH PULL (Exogenous) Schedule (Endogenous) Status Production Process Job Job Push systems are inherently make-to-order. © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 Production Process Pull systems are inherently make-to-stock. 3 http://factory-physics.com Pulling with Kanban Outbound stockpoint Production cards Completed parts with cards enter outbound stockpoint. When stock is removed, place production card in hold box. © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com Outbound stockpoint Production card authorizes start of work. 4 2
  • 3. Push and Pull Line Schematics Pure Push (MRP) Stock Point Stock Point ... Pure Pull (Kanban) Stock Point Stock Point ... … Stock Point CONWIP Authorization Signals © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 Stock Point ... Full Containers http://factory-physics.com 5 Push/Pull Interface Eliminate: entire portion of cycle time by building to stock. Requirements: • Level demand. • Relatively few distinct parts. • Relatively constant product mix. Implementation: • kanban • late customization (postponement) © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com 6 3
  • 4. Example - Custom Taco Production Line Push/Pull Interface Pull Push Refrigerator Cooking Assembly Packaging Sales Customer © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 7 http://factory-physics.com Example - Quick Taco Production Line Pull Refrigerator Cooking Push/Pull Interface Assembly Packaging Warming Table © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com Push Sales Customer 8 4
  • 5. The Magic of Pull Pulling Everywhere? You don’t never make nothin’ and send it no place. Somebody has to come get it. – Hall 1983 No! It’s the WIP Cap: •Kanban – WIP cannot exceed number of cards •“WIP explosions” are impossible © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 WIP http://factory-physics.com 9 Advantages of Pull Systems Low Unit Cost: Good Customer Service: • high throughput • low inventory • little rework • short cycle times • steady, predictable output stream Flexibility: High External Quality: • high internal quality • pressure for good quality • promotion of good quality (e.g., defect detection) © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 • avoids committing jobs too early • tolerates mix changes (within limits) • encourages floating capacity http://factory-physics.com 10 5
  • 6. Pull Benefits Achieved by WIP Cap Reduces Manufacturing Costs: Improves Quality: • prevents WIP explosions • reduces average WIP • reduces engineering changes Reduces Variability: • pressure for higher quality • improved defect detection • improved communication Maintains Flexibility: • reduces cycle time variability • pressure to reduce sources of process time variability (e.g., long repair times) • promotes improved customer service © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 • accommodates engineering changes • less direct congestion • less reliance on forecasts • air traffic control analogy 11 http://factory-physics.com CONWIP Assumptions: 1. Single routing 2. WIP measured in units ... Mechanics: allow next job to enter line each time a job leaves (i.e., maintain a WIP level of m jobs in the line at all times). Modeling: • MRP looks like an open queueing network • CONWIP looks like a closed queueing network • Kanban looks like a closed queueing network with blocking © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com 12 6
  • 7. CONWIP Controller Work Backlog PN –— –— –— –— –— –— –— –— –— –— –— –— –— Indicator Lights Quant ––––– ––––– ––––– ––––– ––––– ––––– ––––– ––––– ––––– ––––– ––––– ––––– ––––– LAN R G PC PC ... Workstations © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com 13 CONWIP vs. Pure Push Push/Pull Laws: A CONWIP system has the following advantages over an equivalent pure push system: 1) Observability: WIP is observable; capacity is not. 2) Efficiency: A CONWIP system requires less WIP on average to attain a given level of throughput. 3) Robustness: A profit function of the form Profit = pTh - hWIP is more sensitive to errors in TH than WIP. © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com 14 7
  • 8. CONWIP Efficiency Example Equipment Data: • 5 machines in tandem, all with capacity of one part/hr (u=TH·te=TH) • exponential (moderate variability) process times CONWIP System: looks like PWC, so TH ( w) = w w rb = w + W0 − 1 w+ 4 Pure Push System: looks like series of M/M/1 queues, so w(TH ) = 5 u TH =5 1− u 1 − TH Comparison: WIP needed in CONWIP to match push throughput w( © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 w 5( w /( w + 4)) 5w )= = w + 4 1 − ( w /( w + 4)) 4 http://factory-physics.com in this example, WIP is always 25% higher for same TH in push than in CONWIP 15 CONWIP Robustness Example Profit Function: Profit = pTH − hw  − hw CONWIP: Profit(w) = p   w + 4 need to find “optimal” WIP level ( ) need to find “optimal” TH level (i.e., release rate) w Push: Profit(TH) = pTH − h 5 TH 1 − TH Key Question: what happens when we don’t choose optimum values (as we never will)? © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com 16 8
  • 9. CONWIP vs. Pure Push Comparisons 70 Optimum CONWIP 60 Efficiency 50 Robustness Profit 40 30 Push 20 10 0 0.00% -10 20.00% 40.00% 60.00% 80.00% 100.00% 120.00% 140.00% -20 Control as Percent of Opti mal © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com 17 Modeling CONWIP with Mean-Value Analysis Notation: u j (w) = utilization of station j in CONWIP line with WIP level w CT j (w) = cycle time at station j in CONWIP line with WIP level w CT (w) = n j =1 CT j ( w) = cycle time of CONWIP line with WIP level w TH (w) = throughput of CONWIP line with WIP level w WIPj (w) = average WIP level at station j in CONWIP line with WIP level w Basic Approach: Compute performance measures for increasing w assuming job arriving to line “sees” other jobs distributed according to average behavior with w-1 jobs. © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com 18 9
  • 10. Mean-Value Analysis Formulas Starting with WIPj(0)=0 and TH(0)=0, compute for w=1,2,… CT j ( w) = CT ( w) = t e2 ( j ) 2 [c e ( j ) − 1]TH ( w − 1) + [WIPj ( w − 1) + 1]t e ( j ) 2 n CT j ( w) j =1 w CT ( w) WIPj ( w) = TH ( w)CT j ( w) TH ( w) = © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 19 http://factory-physics.com Computing Inputs for MVA MEASURE: Natural Process Time (hr) STATION: t0 1 0.090 2 0.090 3 0.094 4 0.090 5 0.090 Natural Process CV Number of Machines MTTF (hr) 2 c0 m mf 0.500 1 200 0.500 1 200 0.500 1 200 0.500 1 200 0.500 1 200 MTTR (hr) Availability Effective Process Time (failures only) mr A t e' 2 0.990 0.091 2 0.990 0.091 8 0.962 0.098 4 0.980 0.092 4 0.980 0.092 Eff Process CV (failures only) ce ' 2 0.936 0.936 6.795 2.209 2.209 Jobs Between Setups Ns 100.000 100.000 100.000 100.000 100.000 Setup Time (hr) ts 0.500 0.500 0.500 0.500 0.500 Setup Time CV cs 1.000 1.000 1.000 1.000 1.000 Eff Process Time (failures+setups) te 0.096 0.096 0.103 0.097 0.097 Eff Station Rate re 10.428 10.428 9.731 10.331 10.331 Eff Process Time Var (failures+setups) σe 2 0.013 0.013 0.070 0.024 0.024 2 1.382 1.382 6.621 2.517 2.517 Eff Process CV (failures+setups) 2 ce rb T0 0.488 W0 © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 9.731 4.750 http://factory-physics.com 20 10
  • 11. Output of MVA TH CT w Actual Actual 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 2.049 2.928 3.644 4.185 4.629 5.000 5.317 5.592 5.834 6.049 6.241 6.414 6.572 6.715 6.846 0.488 0.683 0.823 0.956 1.080 1.200 1.317 1.431 1.543 1.653 1.763 1.871 1.978 2.085 2.191 CT1(w) CT2(w) 0.096 0.118 0.134 0.149 0.163 0.176 0.189 0.202 0.214 0.226 0.237 0.249 0.260 0.271 0.283 0.096 0.118 0.134 0.149 0.163 0.176 0.189 0.202 0.214 0.226 0.237 0.249 0.260 0.271 0.283 CT3(w) 0.103 0.185 0.245 0.303 0.357 0.410 0.462 0.513 0.563 0.614 0.664 0.714 0.763 0.813 0.863 CT4(w) 0.097 0.131 0.155 0.177 0.198 0.219 0.238 0.257 0.276 0.294 0.312 0.330 0.347 0.364 0.381 CT5(w) 0.097 0.131 0.155 0.177 0.198 0.219 0.238 0.257 0.276 0.294 0.312 0.330 0.347 0.364 0.381 21 http://factory-physics.com © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 Using MVA to Evaluate Line Performance 12.000 10.000 8.000 Actual Bes t Case 6.000 Wors t Case PW C 4.000 2.000 0.000 0 5 10 15 20 25 30 35 WIP © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com 22 11
  • 12. Implementing Pull Pull is Rigid: • replenish stocks quickly (just in time) • level mix, volume, sequence JIT Practices • • • • capacity buffers setup reduction flexible labor facility layout © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com 23 Capacity Buffers Motivation: facilitate rapid replenishments with minimal WIP Benefits: • Protection against quota shortfalls • Regular flow allows matching against customer demands • Can be more economical in long run than WIP buffers in push systems Techniques: • Planned underutilization (e.g., use u = 75% in aggregate planning) • Two shifting: 4 – 8 – 4 – 8 • Schedule dummy jobs to allow quick response to hot jobs © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com 24 12
  • 13. Setup Reduction Motivation: Small lot sequences not feasible with large setups. Internal vs. External Setups: • External – performed while machine is still running • Internal – performed while machine is down Approach: 1. Separate the internal setup from the external setup 2. Convert as much as possible of the internal setup to the external setup 3. Eliminate the adjustment process 4. Abolish the setup itself (e.g., uniform product design, combined production, parallel machines) © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 25 http://factory-physics.com Flexible Labor Cross-Trained Workers: • float where needed • appreciate line-wide perspective • provide more heads per problem area Shared Tasks: • can be done by adjacent stations • reduces variability in tasks, and hence line stoppages/quality problems work can float to workers, or workers can float to work… © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com 26 13
  • 14. Cellular Layout Advantages: • Better flow control • Improved material handling (smaller transfer batches) • Ease of communication (e.g., for floating labor) Challenges: • May require duplicate equipment • Product to cell assignment Inbound Stock © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 Outbound Stock 27 http://factory-physics.com Focused Factories Pareto Analysis: • Small percentage of sku’s represent large percentage of volume • Large percentage of sku’s represent little volume but much complexity Dedicated Lines: Drill Drill Paint Mill Drill Paint Weld Grind Lathe Assembly Mill Mill Grind Drill Grind Paint Lathe Assembly Stores Saw Warehouse Job Shop Environment: • for low runners • many setups • poorer performance, but only on smaller portion of business • may need to use push Lathe Saw Warehouse Saw Stores • for families of high runners • few setups • can use pull effectively Mill Drill © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com 28 14
  • 15. Push/Pull Takeaways Magic of Pull: the WIP cap Logistical Benefits of Pull: • observability • efficiency • robustness (this is the key one) Overcoming Rigidity of Pull: • • • • • capacity buffers setup reduction flexible labor facility layout many others (postponement, push/pull hybrids, etc.… ) © Wallace J. Hopp, Mark L. Spearman, 1996, 2000 http://factory-physics.com 29 15