Question

Suggest as many mechanisms as you can by which a firm could establish a WIP Cap (upper limit) for a production line.?

Answer 1

To put an upper limit to the production line, the company is opting for a pull system. Different ways in which a pull system can be established are as follows:

· Using Kanbans to develop a pull system in the production process. Kanban card can regulate the production process quite effectively

· By assessing and keeping track of the new demand arriving in the company, the pull system can be established quite robustly

· The most easiest way to establish a pull system is by limiting the inventory of the manufacturing plant, This helps in putting an upper limit to the production line of the company

· Following the principle of two-box system, the pull system can be established. Two box system is basically 2 kanbans. When the inventory of a Kanban gets exhausted, then it is sent to manufacturing plant for refill, thereby maintaining a pull system.