Management at Pepman has decided to switch from a push system to a pull system of manufacturing. They are a large repetitive manufacturer of bicycles. Which one of the following is most likely to occur?
A) The cycle time will increase, resulting in higher inventory levels.
B) The space required will increase due to the increase in the number of units that require rework.
C) The decrease in WIP inventory levels will reduce the space requirements.
D) The workers at any given process will produce units before they are needed by the subsequent process.

Question

Quizplus · Accepted Answer

The pull system is designed to reduce Work-in-Process (WIP) inventory levels through just-in-time (JIT) production. This means that production is based on customer demand, and materials and components are only ordered and used as needed. Therefore, the decrease in WIP inventory levels will reduce the space requirements, as there will be less inventory to store. A decrease in cycle time is also possible with a well-designed pull system, as production is streamlined based on customer demand, reducing the time and effort required to produce and deliver products. Option A is incorrect as the pull system is designed to reduce inventory levels, not increase them. Option B is incorrect as the pull system is intended to identify and address quality issues early in production, reducing the number of units requiring rework. Option D is incorrect as the pull system is designed to produce units only when needed by the subsequent process, reducing the amount of work in progress and inventory levels.

Management at Pepman Has Decided to Switch from a Push