Overview

Production Control in Practice Practice-oriented coverage of production planning and control processes for goods and services, written for any industry Production Control in Practice explores the operational control of production and inventory processes in organizations across industries, covering both tangible and intangible products and offering viable, efficient solutions to characteristic production control problems, such as what goods to produce when and how. A number of examples/stylized applications are included to help readers understand and apply the discussed concepts and theories to their own organizations. This book distinguishes between the control of production units and the control of goods flow between these units and the market and discusses various coordination and material supply control mechanisms relevant to supply chains. It also presents a typology of production situations found in practice, using a structured approach to discussing the relevant control decisions for each situation. This book is unique because (basic) control decisions are discussed for the different characteristic Decoupling Point Control and Production Unit Control situations from a holistic point of view, taking into account both mathematical considerations as well as various situational factors. Sample topics covered in Production Control in Practice include: Terminology and concepts used in production control, including complexity, uncertainty, and flexibility Types of release triggers, covering just-in-time versus just-in-case and push versus pull in logistics Horizontal and vertical decomposition, and time series-related forecasting for stationary demand versus demand with trend Order size, covering optimal batch size in case of fixed order size, relaxation of assumptions, and single period considerations MRP systems, covering Material Requirements Planning (MRP-I) and Manufacturing Resource Planning Systems (MRP-II) With excellent coverage of the subject across different products and industries and several examples to help readers follow along, Production Control in Practice is an ideal reference for bachelor students from universities of applied sciences and academic bachelor students, as well as practitioners in related disciplines.

Full Product Details

Author:   Henny Van Ooijen (Eindhoven University of Technology) ,  Corné Dirne (Fontys University of Applied Sciences)
Publisher:   Wiley-VCH Verlag GmbH
Imprint:   Blackwell Verlag GmbH
ISBN:  

9783527353446

ISBN 10:   3527353445
Pages:   320
Publication Date:   12 June 2024
Audience:   Professional and scholarly ,  Professional & Vocational
Format:   Paperback
Publisher's Status:   Forthcoming
Availability:   Awaiting stock  

Table of Contents

Preface xi Part I Production Control in General 1 1 Production Control – A Logistic Control Function 3 1.1 Logistics 3 1.2 Logistics Planning and Control 6 1.3 Logistic Concepts in Production 7 1.4 Terminology for Production Control 10 1.4.1 Concepts Used in Production Control 10 1.4.2 Complexity, Uncertainty, and Flexibility 12 References 13 2 Horizontal and Vertical Decomposition 15 2.1 Horizontal Decomposition 16 2.2 Vertical Decomposition 22 2.3 Types of Release Triggers 25 2.3.1 Just-in-Time Versus Just-in-Case 25 2.3.2 Push Versus Pull in Logistics 28 2.4 An Example of Decomposition 30 References 32 3 Planning and Control in Production Units 33 3.1 Production Control in General 33 3.2 Basic Forms of Production 35 3.2.1 Process-Wise Production 35 3.2.2 Mass Assembly/Flow Production 36 3.2.3 (Repetitive) Small Series Production (Also Called Job-Shop) 36 3.2.4 (Repetitive) Project-Wise Production 37 3.2.5 Throughput Time Production Units 37 References 39 4 Framework for Logistic Planning and Control in Production Systems 41 4.1 General Framework 41 4.2 Position of this Book 45 References 46 Part II Planning and Control of Decoupling Points 47 5 Decoupling Point Control 49 5.1 Decoupling Point Control – An Introduction 49 5.2 Performance Measures for Decoupling Point Control 53 5.3 Demand and Forecasting 58 5.3.1 Demand Pattern 59 5.3.2 Forecasting Methods 60 5.3.2.1 Time Series-Related Forecasting for Stationary Demand 63 5.3.2.2 Time Series-Related Forecasting for Demand with a Trend 67 5.4 Order Size 71 5.4.1 Optimal Batch Size in Case of Fixed Order Size 72 5.4.2 Relaxation of Assumptions 75 5.4.2.1 Known or Predicted Demand Variation 75 5.4.2.2 Quantity Discount 78 5.4.2.3 Minimum Order Quantity 79 5.4.2.4 No Variable Order-Related Costs 79 5.4.2.5 Interdependencies of Order Sizes – Not BOM Related 80 5.4.2.6 Interdependencies of Order Sizes – BOM Related 81 5.4.3 Single Period Problem 83 Appendix 5.A The Wagner-Whitin Algorithm 84 Appendix 5.B Example Impact Advanced and Optimal Approach for Determining Batch Sizes 87 Appendix 5.C Newsvendor Problem 87 References 90 6 Reorder Point Decoupling Point Control Systems 93 6.1 General Discussion of Reorder Point Systems 93 6.2 When to Order? 96 6.2.1 Continuous Review 97 6.2.2 Periodic Review 99 6.2.3 The Reorder Level – Continuous Review 100 6.2.4 The Reorder Level – Periodic Review 107 6.3 How Much to Order? 109 6.3.1 Fixed Amount 109 6.3.2 Maximum Level 109 6.3.2.1 (s, S) 109 6.3.2.2 (R, s, S) 110 Appendix 6.A Table of the One-Sided Standard Normal Distribution 110 Appendix 6.B Table Standard Normal Loss Function 112 Appendix 6.C Reorder Level Determination in Case of a General Distribution 113 6.C.1 Discrete Demand 113 6.C.2 Continuous Demand 115 6.C.3 Determining the Reorder Level 116 References 116 7 MRP Decoupling Point Control Systems 117 7.1 General Discussion of MRP Systems 117 7.1.1 Material Requirements Planning (MRP-I) 117 7.1.2 Manufacturing Resources Planning (MRP-II) 119 7.1.2.1 Engine 119 7.1.2.2 Front End 120 7.1.2.3 Back End 121 7.2 When to Order 122 7.3 How Much to Order? 125 7.4 Discussion on MRP-Related Issues 128 7.4.1 Dealing with Uncertainty 128 7.4.2 Bill-of-Materials Versus Bill-of-Distribution 130 Appendix 7.A MRP Formulas 132 7.A.1 Rescheduling Assumption 132 References 133 8 Systems Using Echelon Stock (ESC, LRP) 135 8.1 General Discussion of Systems Using Global Norms 135 8.1.1 Discussion on ROP and MRP 136 8.1.2 Echelon Stock Control Systems 137 8.1.3 Line Requirements Planning 138 8.2 When and How Much to Order? 139 8.2.1 When and How Much to Order in Echelon Stock Systems? 139 8.2.2 When and How Much to Order in Line Requirements Planning Systems? 139 8.3 Discussion on Echelon Stock Systems 142 References 143 9 Choosing an Appropriate DPC System 145 9.1 General Considerations 145 9.2 Advantages/Disadvantages of the Different DPC Systems 146 9.2.1 Bullwhip Effect 147 9.3 Which Decoupling Point Control System to Use? 150 References 157 Part III Production Unit Control 159 10 General Discussion of Production Control Decisions 163 10.1 Priority Control 164 10.2 Capacity Allocation 165 10.3 Work Order Release/Work Order Detail Planning (Scheduling) 166 References 168 11 Production Control for Deterministic, Static Production Situations (Scheduling) 169 11.1 Sequencing Orders Without Delivery Date (Throughput Time Oriented) 170 11.1.1 Work Orders with One Operation and Work Centers with One Machine 171 11.1.1.1 Relation Between Work-in-Process and Throughput Time 171 11.1.1.2 Minimization of the Average Throughput Time 171 11.1.1.3 Minimization of Weighted Average Throughput Time 171 11.1.2 Work Orders with One Operation and Work Centers with Parallel, Identical Machines 172 11.1.2.1 Minimizing the Makespan 172 11.1.2.2 Minimizing the Average Throughput Time 172 11.1.3 Work Orders with Multiple Operations and Work Centers with One Machine 173 11.1.3.1 Minimizing the Makespan for a Flow Shop with Two Operations 174 11.1.3.2 Minimizing the Makespan for a Flow Shop with More Than Two Operations 176 11.2 Sequencing Orders with a Delivery Date (Reliability Oriented) 178 11.2.1 Minimizing the Average Lateness 179 11.2.2 Minimizing the Maximum Tardiness 179 11.2.3 Minimizing the Number of Tardy Orders (N T) 179 11.2.4 Minimizing the Average Tardiness 181 11.3 Relaxing Assumptions 183 11.3.1 Orders with Sequence-Dependent Set-Up Times 183 11.3.2 Sequencing Orders with Different Routings 184 References 185 12 Flow Process Production 187 12.1 General Description 187 12.2 Main Control Attention Points of Flow Process Production 189 12.2.1 General 189 12.2.2 Cycle Time Determination 190 12.2.2.1 A Stable Level of Demand 191 12.2.2.2 Variable Demand 194 12.2.2.3 Different Cycles on One Production Line 196 12.3 Production Control Decisions for Flow Process Production in MTS Situations 196 12.3.1 Sequencing 196 12.3.2 Capacity Allocation 197 12.3.3 Work Order Release 197 12.4 Production Control Decisions for Flow Process Production in MTO Situations 197 12.4.1 Sequencing and Work Order Release 198 12.4.2 Capacity Allocation 200 12.5 Application 200 References 204 13 Mass Assembly Production 205 13.1 General Description 205 13.2 Main Control Attention Points of Mass Assembly Production 207 13.2.1 Pure Flow Production 208 13.2.2 Variants of Pure Flow Production 209 13.2.2.1 Different Processing Times 209 13.2.2.2 Variable Processing Times 211 13.2.2.3 Different Products (Needing Different Materials and/or Resources) 211 13.2.2.4 Disturbances at the Work Centers 212 13.2.2.5 No Availability of Efficient Technology 212 13.2.2.6 A Variety of Routings (Some Operations Are Skipped) 213 13.2.3 Quantitative Models for Analyzing the Effect of Buffers 214 13.2.3.1 Two Stations Without Failures 215 13.2.3.2 More Than Two Stations Without Failures 216 13.2.3.3 Two Stations with (Time-Dependent) Failures 216 13.2.3.4 More Than Two Stations with (Time-Dependent) Failures 218 13.2.4 Cross Training 219 13.3 Production Control Decisions for Mass Assembly Production 220 13.3.1 Sequencing 220 13.3.2 Capacity Allocation 220 13.3.3 Work Order Release 221 13.4 Application 222 References 224 14 Small Series Production 227 14.1 General Description 227 14.2 Main Control Attention Points of Small Series Production 229 14.2.1 Fundamental Results from Queueing Theory 230 14.2.2 Throughput Time-Related Aspects 236 14.2.2.1 Production Layout 236 14.2.2.2 Measures Based Upon Insights from Queuing Theory 236 14.2.2.3 Customer Differentiation 238 14.2.3 Lead Time Reliability Related Aspects 239 14.2.3.1 Due Date Determination Rules 240 14.2.3.2 The Effect of the Value of the Slack on the Delivery Reliability 246 14.2.3.3 Internal Versus External Due Date 248 14.3 Production Control Decisions for Small Series Production 248 14.3.1 Throughput Time 249 14.3.1.1 Sequencing 249 14.3.1.2 Capacity Allocation 252 14.3.1.3 Work Order Release/Work Order Detail Planning 256 14.3.2 Lead Time Reliability 259 14.3.2.1 Sequencing 259 14.3.2.2 Capacity Allocation 262 14.3.2.3 Work Order Release 263 14.4 Application 263 Appendix 14.A Short-Term Capacity Adjustment 265 Appendix 14.B Flexible Batching 267 Appendix 14.C The Effect of Workload Control in Case There Is a Relationship Between Productivity and Workload 268 References 271 15 (Repetitive) Project-Based Production 273 15.1 General Description 273 15.2 Main Control Attention Points of Project-Based Production 275 15.2.1 Construction of a Network 276 15.2.1.1 Terminology 276 15.2.1.2 Duration of the Activities 279 15.2.1.3 Critical Path and Project Duration in Case Activity Times Are Deterministic 279 15.2.1.4 Slack 281 15.2.1.5 Uncertainty in Project Duration Due to Stochastic Activity Times 282 15.2.1.6 Realistic Estimates of the Activity Times 284 15.2.1.7 Activity on Node Networks 284 15.3 Production Control Decisions for Project-Based Production 286 15.3.1 Sequencing 286 15.3.2 Capacity Allocation (and Scheduling) 286 15.3.2.1 Resource Loading 286 15.3.2.2 Resource Leveling 286 15.3.2.3 (Constrained Resource) Scheduling 287 15.3.3 Work Order Release/Project Scheduling 289 15.3.3.1 Work Order Scheduling 289 15.3.3.2 Work Order Release 290 15.4 Application 291 References 295 Index 297

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Author Information

Henny Van Ooijen, PhD, is Professor in Production and Operations Management at the School of Industrial Engineering of Eindhoven University of Technology, The Netherlands. He teaches Introduction to Industrial Engineering, Analyses of Production, Warehousing and Transportation Systems, and other courses. Corné Dirne, PhD, is Professor in Operational Excellence at the Fontys University of Applied Sciences, The Netherlands. Earlier, he was senior lecturer and curriculum coordinator for Industrial Engineering at Avans University of Applied Sciences.

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