Primarily due to rapid development of technology in the past thirty years, the market structure throughout the world has changed considerably. Local markets have become accessible to foreign manufacturers, who are able to perform well in their newly established territories in part due to their superior application of technology. In this light, most companies, including small and medium size, have embedded globalization in their expansion strategies, consistently seeking for new markets abroad. Consequently, local manufacturing companies are facing global competition, forcing them to adopt new concepts with respect to people, process and technologies. This document describes these approaches to production planning in detail as well outlines a software solution. The software solution (Production/3) combines both pull and push techniques and enables small to medium size organizations to fully automate their production system while retaining their investment in their legacy enterprise resource planning (ERP) systems.
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Box , the material flows freely as if it was in a push system. Inside the Black Box , WIP naturally accumulates in front of the bottleneck station. CONWIP system handles a mix of parts having different bottlenecks with more ease than kanban system. If the bottleneck shifts as the mix of parts changes, there may be an opportunity to reduce WIP by reducing total number of cards allocated for product flow. Conversely, cards may need to be added to increase WIP and ensure a desired throughput. CONWIP