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

An application of a cocitation-analysis method to find further research possibilities on the area of scheduling problems

In this article we will give firstly a classification scheme of scheduling problems and their solving methods. The main aspects under examination are the following: machine and secondary resources, constraints, objective functions, uncertainty, mathematical models and adapted solution methods. In a second part, based on this scheme, we will examine a corpus of 60 main articles (1015 citation links were recorded in total) in scheduling literature from 1977 to 2009. The main purpose is to discover the underlying themes within the literature and to examine how they have evolved. To identify documents likely to be closely related, we are going to use the cocitation-based method of Greene et al. (2008). Our aim is to build a base of articles in order to extract the much developed research themes and find the less examined ones as well, and then try to discuss the reasons of the poorly investigation of some areas

Unified Concept of Bottleneck

The term `bottleneck` has been extensively used in operations management literature. Management paradigms like the Theory of Constraints focus on the identification and exploitation of bottlenecks. Yet, we show that the term has not been rigorously defined. We provide a classification of bottleneck definitions available in literature and discuss several myths associated with the concept of bottleneck. The apparent diversity of definitions raises the question whether it is possible to have a single bottleneck definition which has as much applicability in high variety job shops as in mass production environments. The key to the formulation of an unified concept of bottleneck lies in relating the concept of bottleneck to the concept of shadow price of resources. We propose an universally applicable bottleneck definition based on the concept of average shadow price. We discuss the procedure for determination of bottleneck values for diverse production environments. The Law of Diminishing Returns is shown to be a sufficient but not necessary condition for the equivalence of the average and the marginal shadow price. The equivalence of these two prices is proved for several environments. Bottleneck identification is the first step in resource acquisition decisions faced by managers. The definition of bottleneck presented in the paper has the potential to not only reduce ambiguity regarding the meaning of the term but also open a new window to the formulation and analysis of a rich set of problems faced by managers.

The Integration of Process Planning and Shop Floor Scheduling in Small Batch Part Manufacturing

In this paper we explore possibilities to cut manufacturing leadtimes and to improve delivery performance in a small batch part manufacturing shop by integrating process planning and shop floor scheduling. Using a set of initial process plans (one for each order in the shop), we exploit a resource decomposition procedure to determine schedules to determine schedules which minimize the maximum lateness, given these process plans. If the resulting schedule is still unsatisfactory, a critical path analysis is performed to select jobs as candidates for alternative process plans. In this way, an excellent due date performance can be achieved, with a minimum of process planning and scheduling effort

A Decision Support System for Ship Maintenance Capacity Planning

In this paper, the basic framework and algorithms of a decision support system are discussed, which enhance process and capacity planning at a large repair shop. The research is strongly motivated by experiences in a project carried out at a dockyard, which performs repair, overhaul and modification programs for various classes of navy ships. We outline the basic requirements placed upon order acceptance, process planning and capacity scheduling for large maintenance projects. In subsequent sections a number of procedures and algorithms to deal with these requirements, in particular a procedure for workload-based capacity planning, a database system to support process planning are developed, as well as a resource-constrained project scheduling system to support work planning at a more detailed level. The system has been designed to support decision making at the Navy Dockyard in particular, however, we believe that, due to its generic structure, it is applicable to a wide range of project-based manufacturing and maintenance environments

A greedy heuristic approach for the project scheduling with labour allocation problem

Responding to the growing need of generating a robust project scheduling, in this article we present a greedy algorithm to generate the project baseline schedule. The robustness achieved by integrating two dimensions of the human resources flexibilities. The first is the operators’ polyvalence, i.e. each operator has one or more secondary skill(s) beside his principal one, his mastering level being characterized by a factor we call “efficiency”. The second refers to the working time modulation, i.e. the workers have a flexible time-table that may vary on a daily or weekly basis respecting annualized working strategy. Moreover, the activity processing time is a non-increasing function of the number of workforce allocated to create it, also of their heterogynous working efficiencies. This modelling approach has led to a nonlinear optimization model with mixed variables. We present: the problem under study, the greedy algorithm used to solve it, and then results in comparison with those of the genetic algorithms

Welcome to OR&S! Where students, academics and professionals come together

In this manuscript, an overview is given of the activities done at the Operations Research and Scheduling (OR&S) research group of the faculty of Economics and Business Administration of Ghent University. Unlike the book published by [1] that gives a summary of all academic and professional activities done in the field of Project Management in collaboration with the OR&S group, the focus of the current manuscript lies on academic publications and the integration of these published results in teaching activities. An overview is given of the publications from the very beginning till today, and some of the topics that have led to publications are discussed in somewhat more detail. Moreover, it is shown how the research results have been used in the classroom to actively involve students in our research activities

Reengineering Production Systems: the Royal Netherlands Naval Dockyard

Reengineering production systems in an attempt to meet tight cost, quality and leadtime standards has received considerable attention in the last decade. In this paper, we discuss the reengineering process at the Royal Netherlands Naval Dockyard. The process starts with a characterisation and a careful analysis of the production system and the set of objectives to be pursued. Next, a new production management structure is defined after which supporting planning and control systems are designed and a number of organisational changes are carried through. In this way, the Dockyard may combine high technological capabilities with an excellent logistic performance