How can you use pull production to align your manufacturing with customer demand?

Pull production aligns manufacturing with customer demand by responding to actual orders instead of forecasts. Implement a Kanban system for visual scheduling and use Just-In-Time principles. Establish flexible production systems, determine takt time, and promote continuous improvement. Collaborate with suppliers for timely material delivery, cross-train employees, and implement quality control at each step. Utilize data analytics to monitor demand patterns and production performance for informed decision-making.

In a pull production system, suppliers or downstream operations communicate their needs to upstream processes, who subsequently manufacture and deliver the necessary goods. In this sense, real demand, not projections or plans, drives production. Eliminating surplus inventory can save expenses, free up space, and reveal quality issues. Pull manufacturing is one way to do this. Additionally, it lessens the possibility of creating undesirable or outdated items, which could lead to waste or losses.

In a pull system, work is created by the generation of a work, or sales order. While this system saves costs from not having to purchase excess raw materials, as well as takes up less space on your floor, it also suffers for being slower, and may actually cause you to lose orders if you cannot deliver fast enough. Most pull systems are custom manufacturers such as: - Signs - 3D printing The trick with pull systems is to execute as much of the standardized work as possible, such that you can apply the last portion of customized work in a shorter amount of time. While this doesn't always work, it has been shown to be successful for items such as watches, and shoes, where a base model is shipped to a DC ready for final customization

Determine the value stream, which is the flow of operations from raw materials to completed goods that add value for the client. The pull signals, or the triggers that start the manufacture or delivery of a certain item, must also be established. Pull signals can be electronic or tangible, such kanban cards or containers or point-of-sale data or internet orders.

Pull production is typically signaled by the generation of a work order. However, even in a pull system, you need to be aware of the potential demand, and have the required resources on-hand. For example, you would want to ensure that you have the raw materials in place before the work order is generated, so that you can minimize the cycle time to complete the order. Finally, if possible, you will also want to create standardized pieces that only need final customization so that you can shorten your cycle time even further. While this isn't possible in every industry, it is possible for things such as jewelry, business suits, and even signs with standardized messages that just need a logo added.

A pull production has multiple benefits such as: - Reduced storage space of raw materials. - Reduced storage space of inventory. - An increase in free cash due to a reduction in inventory. - The ability to reduce labor costs by matching labor to demand exactly. - A reduction in waste. Pull production systems are typically used for custom-built, or made-to-order industries such as: - Signs - Dining - Cabinetry, and carpentry - Embroidery - Silk screening Industries such as these are typically unable to mass produce products since every customer, and order is 100% unique. Furthermore, in these industries the provider tends to deal directly with customers rather than a distributor, or a middle-man.

Pull production can improve your manufacturing operations in a number of ways, including meeting customer expectations and increasing customer satisfaction; reducing inventory to free up cash flow and storage space; improving quality by removing errors and defects; increasing flexibility by meeting actual demand; and lowering costs by reducing waste and improving quality.

Pull production can be difficult, so it's critical to understand potential roadblocks and how to overcome them. For instance, untrustworthy suppliers may result in shortages or delays that affect customer service and manufacturing. It is challenging to balance production capacity and inventory levels when there is variable demand, which may necessitate regular modifications to pull signals. Sophisticated systems and techniques may be needed for complex processes in order to synchronize and coordinate production activities with pull signals.

While pull production has a lot of benefits, it also has some detractions as well. Some detractions of pull production can be: - Higher lead times. - Efficiency loss from constant setups, and teardowns. - Unbalanced (non-level loaded) plant operations. - The inability to forecast accurately. - Higher materials cost since you can't leverage quantities. - Higher labor costs from having a more knowledgeable workforce capable of executing any order, at any time. There are a few ways to address this: - Negotiate with your suppliers to have them store - some of your needed products at their site. - Pull historical sales data to look for market trends. - Vertically integrate into your supplier, or your customer (retailer).

There are several challenges in a pull production facility: - Work is not started until the work order is in the system. This increases the delivery time. - Since work is not started until the work order is in the system, you may not be able to purchase the raw materials needed to execute the order. If there are any hiccups with your supply chain, this could result in further delays. - Finally, the quoted delivery date may actually change if there was a significant delay between the quote, and the sales order, since other orders may have come in, and most companies honor a loose FIFO system for work orders. To overcome these obstacles, communicate frequently with operations, and customers, and do everything to pull orders in.