Pulling Product
Starting with a customer
order is like pulling on the noodle. We start with the sales order, and then
move along the rest of our process to follow the order and keep the noodle
straight. Starting with the sales order allows all the activities in the studio
to be based on actual demand, not forecasts. It lets you make product only if
there is a need for it, so less time and materials are wasted. Pulling materials
through your production system keeps everything neat and efficient.
Pushing Product
If you instead run your
system according to forecasts, pushing on the noodle, you keep piling in raw
material and storing it, making product without waiting for actual demand, and
storing it even if no one is buying it. You run out of some products because
they are more popular than you expected and you haven’t put time to make them
in your schedule. You keep making product because of the forecasted schedule,
and not because of what your customers are actually buying. Pushing on your
production system should be avoided whenever possible.
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