Sienci Labs: Managing Production (Push or Pull?)
Abstract
In May 2022 operations were running smoothly for Kye Allen, Inventory and Logistics Manager, Sienci Labs (SL), Waterloo, Ontario, Canada, when he was introduced to the idea of switching to a visual pull production system by his former professor, Dr Fatih Yegul, at Conestoga College, Kitchener, Ontario. SL was struggling with supply disruptions causing delays in product shipments. Allen was working on new material requirement planning (MRP) system implementation, now ready to go live. SL launched an applied research project to optimize SL's production capacity based on lean production principles under the guidance of Yegul and Stephen Thomson, Director of the Centre for Supply Chain Innovation, Conestoga College. With the new MRP system, Allen aimed to control the assembly operations and supply of materials based upon a make-to-stock push production flow through work orders issued to shop floor employees. Yegul and Thomson asked Allen to explore moving to a visual make-to-order production management system based on pull principles instead of using work orders. Allen was in favour of the pull system but wasn't sure if it was the right time to make the switch? Could he convince Andy Lee, Chief Executive Officer, SL, to move to the pull system?