Pull Value
Many firms produce for inventory and then try to sell the excess goods they have produced. Efforts are made to create demand for the excess goods-goods that customers probably do not even want. Lean manufacturing uses a demand-pull system. The objective of lean manufacturing waste by customer. Demand pulls products through the manufacturing process. Each operation produces only what is necessary to satisfy the demand of the succeeding operation. No production takes place until a signal from a succeeding process indicates a need to produce. Parts and materials arrive just in time to be used in production. Low setup times and cellular manufacturing are the major enabling factors for producing on demand. The Kanban system described in Chapter 20 is one way to ensure that materials and products flow according to demand.