Capacity Planning and Leadtime management

In this paper we discuss a framework for capacity planning and lead time management in manufacturing companies, with an emphasis on the machine shop. First we show how queueing models can be used to find approximations of the mean and the variance of manufacturing shop lead times. These quantities often serve as a basis to set a fixed planned lead time in an MRP-controlled environment. A major drawback of a fixed planned lead time is the ignorance of the correlation between actual work loads and the lead times that can be realized under a limited capacity flexibility. To overcome this problem, we develop a method that determines the earliest possible completion time of any arriving job, without sacrificing the delivery performance of any other job in the shop. This earliest completion time is then taken to be the delivery date and thereby determines a workload-dependent planned lead time. We compare this capacity planning procedure with a fixed planned lead time approach (as in MRP), with a procedure in which lead times are estimated based on the amount of work in the shop, and with a workload-oriented release procedure. Numerical experiments so far show an excellent performance of the capacity planning procedure

Dynamic scheduling in a multi-product manufacturing system

To remain competitive in global marketplace, manufacturing companies need to improve their operational practices. One of the methods to increase competitiveness in manufacturing is by implementing proper scheduling system. This is important to enable job orders to be completed on time, minimize waiting time and maximize utilization of equipment and machineries. The dynamics of real manufacturing system are very complex in nature. Schedules developed based on deterministic algorithms are unable to effectively deal with uncertainties in demand and capacity. Significant differences can be found between planned schedules and actual schedule implementation. This study attempted to develop a scheduling system that is able to react quickly and reliably for accommodating changes in product demand and manufacturing capacity. A case study, 6 by 6 job shop scheduling problem was adapted with uncertainty elements added to the data sets. A simulation model was designed and implemented using ARENA simulation package to generate various job shop scheduling scenarios. Their performances were evaluated using scheduling rules, namely, first-in-first-out (FIFO), earliest due date (EDD), and shortest processing time (SPT). An artificial neural network (ANN) model was developed and trained using various scheduling scenarios generated by ARENA simulation. The experimental results suggest that the ANN scheduling model can provided moderately reliable prediction results for limited scenarios when predicting the number completed jobs, maximum flowtime, average machine utilization, and average length of queue. This study has provided better understanding on the effects of changes in demand and capacity on the job shop schedules. Areas for further study includes: (i) Fine tune the proposed ANN scheduling model (ii) Consider more variety of job shop environment (iii) Incorporate an expert system for interpretation of results. The theoretical framework proposed in this study can be used as a basis for further investigation

Design and Analysis of an Estimation of Distribution Approximation Algorithm for Single Machine Scheduling in Uncertain Environments

In the current work we introduce a novel estimation of distribution algorithm to tackle a hard combinatorial optimization problem, namely the single-machine scheduling problem, with uncertain delivery times. The majority of the existing research coping with optimization problems in uncertain environment aims at finding a single sufficiently robust solution so that random noise and unpredictable circumstances would have the least possible detrimental effect on the quality of the solution. The measures of robustness are usually based on various kinds of empirically designed averaging techniques. In contrast to the previous work, our algorithm aims at finding a collection of robust schedules that allow for a more informative decision making. The notion of robustness is measured quantitatively in terms of the classical mathematical notion of a norm on a vector space. We provide a theoretical insight into the relationship between the properties of the probability distribution over the uncertain delivery times and the robustness quality of the schedules produced by the algorithm after a polynomial runtime in terms of approximation ratios

Project scheduling under undertainty – survey and research potentials.

The vast majority of the research efforts in project scheduling assume complete information about the scheduling problem to be solved and a static deterministic environment within which the pre-computed baseline schedule will be executed. However, in the real world, project activities are subject to considerable uncertainty, that is gradually resolved during project execution. In this survey we review the fundamental approaches for scheduling under uncertainty: reactive scheduling, stochastic project scheduling, stochastic GERT network scheduling, fuzzy project scheduling, robust (proactive) scheduling and sensitivity analysis. We discuss the potentials of these approaches for scheduling projects under uncertainty.Management; Project management; Robustness; Scheduling; Stability;

Tightness of lead times

This paper introduces a general, formal treatment of dynamic constraints, i.e., constraints on the state changes that are allowed in a given state space. Such dynamic constraints can be seen as representations of "real world" constraints in a managerial context. The notions of transition, reversible and irreversible transition, and transition relation will be introduced. The link with Kripke models (for modal logics) is also made explicit. Several (subtle) examples of dynamic constraints will be given. Some important classes of dynamic constraints in a database context will be identified, e.g. various forms of cumulativity, non-decreasing values, constraints on initial and final values, life cycles, changing life cycles, and transition and constant dependencies. Several properties of these dependencies will be treated. For instance, it turns out that functional dependencies can be considered as "degenerated" transition dependencies. Also, the distinction between primary keys and alternate keys is reexamined, from a dynamic point of view.

Combined make-to-order and make-to-stock in a food production system

The research into multi-product production/inventory control systems has mainly assumed one of the two strategies: Make-to-Order (MTO) or Make-to-Stock (MTS). In practice, however, many companies cater to an increasing variety of products with varying logistical demands (e.g. short due dates, specific products) and production characteristics (e.g. capacity usage, setup) to different market segments and so they are moving to more MTO-production. As a consequence they operate under a hybrid MTO-MTS strategy. Important issues arising out of such situations are, for example, which products should be manufactured to stock and which ones on order and, how to allocate capacity among various MTO-MTS products. This paper presents the state-of-the-art literature review of the combined MTO-MTS production situations. A variety of production management issues in the context of food processing companies, where combined MTO-MTS production is quite common, are discussed in details. The authors propose a comprehensive hierarchical planning framework that covers the important production management decisions to serve as a starting point for evaluation and further research on the planning system for MTO-MTS situations.

Mechanism design for decentralized online machine scheduling

Traditional optimization models assume a central decision maker who optimizes a global system performance measure. However, problem data is often distributed among several agents, and agents take autonomous decisions. This gives incentives for strategic behavior of agents, possibly leading to sub-optimal system performance. Furthermore, in dynamic environments, machines are locally dispersed and administratively independent. Examples are found both in business and engineering applications. We investigate such issues for a parallel machine scheduling model where jobs arrive online over time. Instead of centrally assigning jobs to machines, each machine implements a local sequencing rule and jobs decide for machines themselves. In this context, we introduce the concept of a myopic best response equilibrium, a concept weaker than the classical dominant strategy equilibrium, but appropriate for online problems. Our main result is a polynomial time, online mechanism that |assuming rational behavior of jobs| results in an equilibrium schedule that is 3.281-competitive with respect to the maximal social welfare. This is only lightly worse than state-of-the-art algorithms with central coordination