Materials Requirement Planning, is it a Push system or a pull system?
When ever I go for MRP implementation, most often I come across this question. What is the real difference between Push system and pull system? How do we implement JIT, Kanban and other planning systems along with MRP? Can they co-exist? These are typical questions asked during implementation. It is very important, before the MRP implementation these are understood for implementing “an effective implementation process, not just an efficient process”. Efficiency is doing the things right and Effectiveness is doing the right things. In simple terms, Push system is based on Customer Orders (Demand) and the forecast. Based on the demand, both material and capacity planning is done. Shop floor control is based on the demand and orders. Here both the material flow and the information flow are in the same direction. This is generally suitable for Make to stock situation. MRP is a Push system. A Pull system on the contrast is based on Made to Order situation. The material is flow is in the rev