Push Principle

What is Push Principle?

Push principle is a production system where a manufacturing company has no explicit limit on the amount of work in process (WIP) that can be in the system. In essence, there is no limit to the WIP.  The push principle differs from the pull principle (explicitly limits the amount of work in process that can be in the system). The prerequisite for the implementation of the push principle is that a product is not known to the consumer and the benefit of this product must first be signalled.

The manufacturer brings the product into the market – in other words, he “pushes” the product into the shelves. In this context, the company must make an effort to convince its customers to buy it – for example, through suitable marketing measures.

The potential buyer receives services or information from the manufacturer, even though there has been no real demand from his side before. The manufacturer must decide on the basis of estimates whether and how much should be produced. There is a risk of miscalculation. Moreover, production can only react to short-term changes, such as customer requests or additional orders, to a limited extent.