00:01
Hello students, in this question we are asked to describe what is push production versus pull production systems.
00:20
These are both in supply chain management systems.
00:23
So in supply chain management there are two systems like push production and pull production.
00:30
So in push production what happens is that you this is driven by like you have a product line let's say a smartphone and you create the model and you produce and manufacture and assemble the units based upon forecast.
00:49
So it is clearly based upon forecast of demand.
00:54
So it's all predetermined.
01:02
Okay the system operates based on anticipation of demand.
01:06
The goods are produced in advance and pushed through the supply chain towards the end customer.
01:13
So this approach relies on a central planning that determines how much to produce.
01:27
So this will result in over production of the equipment so that it meets the demand.
01:35
Push systems ensure that readily available availability of the product line.
01:52
So they can lead to meet the anticipated requirement and it will make sure that whenever there is a demand of the product it is met completely.
02:06
These are the positive aspects of that.
02:10
Now this is the example is you have you're a smartphone company and you start manufacturing at least two lakhs or two hundred thousand units of each equipment so that you will have an assured advantage over your competitors where you can supply volume even when the demand is high.
02:34
Okay that is the push production.
02:36
These are the positives.
02:37
Now the pull production is closely associated with the lean manufacturing principle.
02:50
So the goal is to meet the actual demand.
02:58
So whenever there is a demand of a particular product it produces right the response to that market is given and that whenever there is a request there is production.
03:16
So instead of relying on forecast the pull system responds to real time customer demand...