Push Principle

The Push Principle Concept/Term refers to a production system where material and products are manufactured and moved along the production line based on a predicted demand, rather than actual demand. This system operates under the assumption that the customer demand can be accurately forecasted and the production line can be appropriately scheduled to meet that demand.

However, the Push Principle often leads to negative impacts on operations. One of the main problems with this system is the assumption of accurate demand forecasting. In reality, customer demand is highly unpredictable and can fluctuate rapidly, leading to overproduction and inventory buildup. This excess inventory creates significant problems such as storage and handling costs, obsolescence, and potential quality issues.

Additionally, the Push Principle often results in an inefficient utilization of resources. The production line is designed to produce a set amount of product, regardless of actual demand. This can lead to idle time and equipment, increased energy costs, and reduced production capacity. The production process is also disrupted by production line breakdowns, worker absences, and equipment failures, resulting in increased downtime and decreased efficiency.

Another negative impact of the Push Principle is that it can lead to a lack of focus on customer needs. The emphasis is on meeting a predetermined production schedule, rather than meeting the actual needs of the customer. This can result in an overproduction of products that are not needed, as well as a lack of flexibility to adapt to changing customer demand.

To mitigate these negative impacts, Lean Management experts advocate for the implementation of the Pull Principle. The Pull Principle is a system where production is based on actual customer demand, rather than a predicted demand. This system allows for a more flexible and efficient utilization of resources, as well as a greater focus on meeting the actual needs of the customer.

In a nutshell, the Push Principle can lead to negative impacts on operations such as inventory buildup, resource inefficiency, and a lack of focus on customer needs. Lean Management experts recommend the implementation of the Pull Principle as a more efficient and effective alternative. By focusing on actual customer demand, organizations can achieve greater operational efficiency and meet the needs of their customers.