What is The Defintion of Push/Pull Factory?
http://geography.about.com/od/geographyglossaryp/g/ggpushpull.htm
That Helps so much...ok if I need to find more words can i look on that website?
I don't know that you'll find them there. However, I found that site through Google.
The definition of a push/pull factory refers to a manufacturing strategy that determines how a product is produced based on customer demand. In such factories, two distinct processes are employed: the push system and the pull system.
1. Push System: In a push system, production is driven by forecasts and predictions of customer demand. The factory produces goods in advance, without specific customer orders. This often leads to an accumulation of inventory, as production is not directly linked to real-time demand. Companies using the push system typically focus on maximizing production efficiency and reducing costs.
2. Pull System: In contrast, a pull system relies on actual customer demand to initiate the production process. Products are manufactured based on actual orders received from customers. This approach minimizes the risk of excess inventory and allows better alignment with customer needs in terms of product variety, customization, and delivery time.
To understand the push/pull factory concept further, let's consider an example of a t-shirt manufacturer:
1. Push System: The manufacturer predicts that there will be high demand for t-shirts in the coming months, so they produce a large quantity of t-shirts in advance. However, it is possible that the actual demand does not match the initial forecast, resulting in excess inventory if the t-shirts are not selling as quickly as anticipated.
2. Pull System: The manufacturer receives specific orders from customers for t-shirts. Based on these orders, they initiate the production process and manufacture the exact number of t-shirts required. This ensures that there is no excess inventory, and the manufacturer can better respond to the actual customer demand.
Overall, the push/pull factory concept emphasizes the importance of aligning production with customer demand to optimize inventory levels, reduce waste, and improve customer satisfaction.