Assembly Systems - ISEE 120

Make-to-Order

• (custom)

Assemble-to-Order

• (options)

Make-to-Stock

• (standardized)

Push Systems

• produces an item irrespective of actual demands; creates muda of overproduction

• Advantages: 

  • Simple to implement

  • Efficient for high-volume production of standard items

  • Easier capacity planning

• Disadvantages:

  • Overproduction/inventory waste

  • Lack of flexibility in changing demands

  • Increased lead times

Muda

• waste

Pull System

• produces an item when the customer asks for it

• Advantages:

  • Reduced inventory waste (less WIP)

  • Increased responsiveness to demand changes (lead time shorter)

  • Improved lead times 

  • Reduced production costs (only working on what’s needed)

• Disadvantages: 

  • Requires good forecasting and communication 

  • May not be suitable in high volume production

  • Increased complexity