
By: Michael E. Martinez
A
Production push is when a manufacturer makes a product and sends it to
a business to sell the product. Its then up to that business to find
buyers for the product. A production pull is when a manufacturer makes
products from actual orders from their customers, where the company
would have to make the product when it was requested by the customer.
An industry that currently uses the push method are the clothing and
shoe manufacturers. If you want to buy a pair of Nike's you can go to
the Nike outlet store or to the Footlocker, pick out what you want, pay
for it and walk away.
How would it be if you went into a Nike
store, got sized for your shoes, told them what color and style you
wanted, then had to wait three weeks for delivery? It would be hard for
a company like Nike to all of a sudden start making individual, custom
orders. The shoes are made on a mass production plan; to stop and make
individual shoes will require a company like Nike to make quite a few
adjustments. They would have to hire more workers, redo their layouts
on how the shoes are made; they would also have to redo their material
ordering systems from their suppliers. I think the end result of this
would be very expensive shoes.
There are a lot of companies that
use both production push and pull, but one of the companies that just
uses the pull method would be Dell computers. When you want to order a
computer, each computer is made especially for you based on your needs.
You can add or take away certain features before buying; however, Dell
outlet stores are now popping up where you don't necessarily have to
custom order online, you can talk directly to a representative in say a
mall. If they shifted to production push, they would make up the
computers in bulk and deliver them to such stores as Best Buy and
Circuit City.
The downside to this is no custom orders and
many consumers would be buying older computers. Most companies that
deal with production push and pull choose one that's best for their
industry. What works for Dell won't work for Nike. The main job of
production and operation managers is to see that the workers and the
machines can effectively take material and resources and turn them into
finished goods and services. A company may find that a production push
method may work for them at first, until the product is out and widely
used. They may find that the pull method, in the future, for some of
their products if not all of them, may work better.
In the
world in which we live today, I feel there are two types of consumers,
ones that like to go out, buy a product and get it right away, and the
other is willing to wait to get something that they really want custom
made for their needs; even if it requires spending a little more money
and waiting a few weeks. Several industries that use production push
methods are supermarkets, auto companies, the clothing industry, the
gas and oil industry and more. Companies that use the production pull
methods that include actual customer orders are a few specialty car
makers, computers, specialty houses and contractors.
One of
the industries that use both to create an effective business is the
housing industry. Sometimes you can go to a new housing development
where model homes are being shown where you can go in and tour the
home; and decide from there, what you want to do with the home to make
it appealing to you. On the other hand, some housing developments are
already built just waiting for people to move in.
Posted at Thursday, February 16, 2006 by MartinezMic