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    Session 2 Push-Pull Concepts

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    Prajval Somani
    The document discusses key concepts in operations management including push and pull supply chains. A push supply chain uses a make-to-stock approach with standardized, high volume products and predictable demand. It aims to be efficient through economies of scale and low cost manufacturing. A pull supply chain uses a make-to-order approach with customized, low volume products and unpredictable demand. It aims to be responsive through flexible production and short lead times. The customer order decoupling point separates the push and pull portions of a supply chain.

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    Session 2 Push-Pull Concepts

    Uploaded by

    Prajval Somani
    31 views19 pages
    The document discusses key concepts in operations management including push and pull supply chains. A push supply chain uses a make-to-stock approach with standardized, high volume products and predictable demand. It aims to be efficient through economies of scale and low cost manufacturing. A pull supply chain uses a make-to-order approach with customized, low volume products and unpredictable demand. It aims to be responsive through flexible production and short lead times. The customer order decoupling point separates the push and pull portions of a supply chain.

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    Marketing Concepts

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    The document discusses key concepts in operations management including push and pull supply chains. A push supply chain uses a make-to-stock approach with standardized, high volume products and predictable demand. It aims to be efficient through economies of scale and low cost manufacturing. A pull supply chain uses a make-to-order approach with customized, low volume products and unpredictable demand. It aims to be responsive through flexible production and short lead times. The customer order decoupling point separates the push and pull portions of a supply chain.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    31 views19 pages

    Session 2 Push-Pull Concepts

    Uploaded by

    Prajval Somani
    The document discusses key concepts in operations management including push and pull supply chains. A push supply chain uses a make-to-stock approach with standardized, high volume products and predictable demand. It aims to be efficient through economies of scale and low cost manufacturing. A pull supply chain uses a make-to-order approach with customized, low volume products and unpredictable demand. It aims to be responsive through flexible production and short lead times. The customer order decoupling point separates the push and pull portions of a supply chain.

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    Basic OM terminology

    &
    Concepts
    Key Terms
    • Cycle time
    • Setup time
    • Run time per unit
    • Batch/Order Size
    • Throughput Time
    • Bottleneck
    • Capacity
    • Utilization
    Job Shop/Process Layout
    Functional Process Layout
    • Job shop layout
    • Why is it chosen?
    • What are the implications of the layout?
    • Video
    Product Layout
    Products & Services
    • Make-to-order
    – Made to customer specifications after order
    received
    • Make-to-stock
    – Made in anticipation of demand
    • Assemble-to-order
    – Add options according to customer
    specification
    Customer Order Decoupling Point

    Decoupling Point:

    the point that indicates how deeply the


    customer order penetrates into the goods
    flow
    Positions of CODP
    Push-Pull Supply Chains

    Suppliers

    PUSH STRATEGY PULL STRATEGY

    Low Uncertainty High Uncertainty


    Push-Pull Boundary
    Distinguishing Design Features
    Features Push Pull
    Product Characteristics
    Distinguishing Design Features
    Features Push Pull
    Product Characteristics Standard Component, High Customized, high variety,
    Volume, Predictable Wide Range, Unpredictable
    Demand, long shelf life Demand
    Process Characteristics
    Distinguishing Design Features
    Features Push Pull
    Product Characteristics Standard Component, High Customized, high variety,
    Volume, Predictable Wide Range, Unpredictable
    Demand, long shelf life Demand
    Process Characteristics High economies of scale Low economies of scale
    Order Winners/Basis of
    Competition
    Distinguishing Design Features
    Features Push Pull
    Product Characteristics Standard Component, High Customized, high variety,
    Volume, Predictable Wide Range, Unpredictable
    Demand, long shelf life Demand
    Process Characteristics High economies of scale Low economies of scale
    Order Winners/Basis of Price Variety
    Competition
    Qualifiers Quality/Delivery Reliability Quality/Delivery Reliability
    Distinguishing Design Features
    Features Push Pull
    Product Characteristics Standard Component, High Customized, high variety,
    Volume, Predictable Wide Range, Unpredictable
    Demand, long shelf life Demand
    Process Characteristics High economies of scale Low economies of scale
    Order Winners/Basis of Price Variety
    Competition
    Qualifiers Quality/Delivery Reliability Quality/Delivery Reliability

    Supply Chain Design


    Distinguishing Design Features
    Features Push Pull
    Product Characteristics Standard Component, High Customized, high variety,
    Volume, Predictable Wide Range, Unpredictable
    Demand, long shelf life Demand
    Process Characteristics High economies of scale Low economies of scale
    Order Winners/Basis of Price Variety
    Competition
    Qualifiers Quality/Delivery Reliability Quality/Delivery Reliability

    Supply Chain Design Efficient Responsive


    Manufacturing Challenge
    Distinguishing Design Features
    Features Push Pull
    Product Characteristics Standard Component, High Customized, high variety,
    Volume, Predictable Wide Range, Unpredictable
    Demand, long shelf life Demand
    Process Characteristics High economies of scale Low economies of scale
    Order Winners/Basis of Price Variety
    Competition
    Qualifiers Quality/Delivery Reliability Quality/Delivery Reliability

    Supply Chain Design Efficient Responsive


    Manufacturing Challenge Low cost manufacturing, Manufacture to customer
    maintaining high stock specs, achieve short and
    availability at CODP reliable lead time
    KPIs
    Distinguishing Design Features
    Features Push Pull
    Product Characteristics Standard Component, High Customized, high variety,
    Volume, Predictable Wide Range, Unpredictable
    Demand, long shelf life Demand
    Process Characteristics High economies of scale Low economies of scale
    Order Winners/Basis of Price Variety
    Competition
    Qualifiers Quality/Delivery Reliability Quality/Delivery Reliability

    Supply Chain Design Efficient Responsive


    Manufacturing Challenge Low cost manufacturing, Manufacture to customer
    maintaining high stock specs, achieve short and
    availability at CODP reliable lead time
    KPIs Efficient production, cost Flexibility, setup time/cost,
    per unit number of changeovers
    Improvement Priorities
    Features Push Pull
    Product Characteristics Standard Component, High Customized, high variety,
    Volume, Predictable Wide Range, Unpredictable
    Demand, long shelf life Demand

    Process Characteristics High economies of scale Low economies of scale

    Order Winners/Basis of Price Variety


    Competition

    Qualifiers Quality/Delivery Reliability Quality/Delivery Reliability

    Supply Chain Design Efficient Responsive


    Manufacturing Challenge Low cost manufacturing, Manufacture to customer
    maintaining high stock specs, achieve short and
    availability at CODP reliable lead time

    KPIs Efficient production, cost Flexibility, setup time/cost,


    per unit number of changeovers

    Improvement Priorities Cost Reduction Lead Time


    Reduction/Service level

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