In a “pull system,” a pile of inventory in front of a workstation indicates problems at that workstation. True False
The correct answer and explanation is :
Correct Answer: True
Explanation:
A pull system is a production strategy that focuses on producing goods only in response to actual demand, rather than producing in anticipation of future demand. This system is fundamental to Lean Manufacturing and methodologies such as Just-in-Time (JIT) and Kanban.
In a pull system, work-in-progress (WIP) inventory is minimized, and production is tightly synchronized with customer or downstream process demand. The presence of a pile of inventory in front of a workstation indicates a problem because it suggests that the workstation is unable to process work efficiently, leading to bottlenecks and waste.
Why Inventory Piles Up in a Pull System:
- Workstation Inefficiency: If a workstation is slow, it cannot process incoming materials quickly, leading to a backlog of inventory.
- Machine Downtime: Equipment failures or maintenance issues can halt production, causing inventory to accumulate upstream.
- Quality Issues: If defects are detected at the workstation, processing slows down while workers address quality concerns.
- Unbalanced Workloads: If one workstation operates faster than the next, WIP builds up in front of the slower workstation.
- Lack of Standardized Workflows: Poorly defined processes or inconsistent work methods create uneven production flows, leading to bottlenecks.
Impact of Excess Inventory:
- Hides Problems: Excess inventory can mask inefficiencies, making it harder to identify and fix underlying issues.
- Increases Costs: Extra inventory requires space, handling, and management, increasing operational costs.
- Reduces Agility: A pull system thrives on responsiveness. Too much inventory slows down adaptation to changes in demand.
Thus, in a well-functioning pull system, inventory should flow smoothly with minimal accumulation. A pile of inventory in front of a workstation signals a problem that needs to be identified and resolved to maintain efficiency.