Design and Analysis of Lean Production Systems

by Askin, Ronald G.; Goldberg, Jeffrey B.

• ISBN13: 9780471115939
• ISBN10: 0471115932
• Edition: 1st
• Format: Paperback
• Copyright: 2001-11-16
• Publisher: Wiley

Summary

This book covers the design and improvement of single and multistage production systems. Following the standard production planning and scheduling decision hierarchy, it describes the inputs and outputs at each level of the decision hierarchy and one or more decision approaches. The assumptions leading to each approach are included along with the details of the model and the corresponding solution. Modern system concepts and the engineering methods for creating lean production systems are included.

Author Biography

Ronald G. Askin is the author of Design and Analysis of Lean Production Systems, published by Wiley. Jeffrey B. Goldberg is the author of Design and Analysis of Lean Production Systems, published by Wiley.

Table of Contents

Preface	vii
The Industrial Enterprise	1	(18)
Measures of Competitiveness	3	(1)
Functional Areas of the Firm	3	(1)
Product Design, Manufacture, and Delivery	3	(8)
Integrated Product, Process, Tooling, and Test Design	5	(5)
Manufacturing	10	(1)
Distribution	10	(1)
Maintenance and Support	10	(1)
Disposal	11	(1)
Business Processes	11	(2)
Accounting Systems: Acquisition and Management of Model Data	13	(4)
Summary	17	(1)
References	17	(1)
Problems	18	(1)
Introduction to the Production System and the Role of Inventory	19	(31)
The Production System	19	(9)
System Objectives	19	(1)
System Components and Hierarchy	20	(3)
Types of Production Systems	23	(1)
Physical Organization Schemes	23	(1)
Key Resources	24	(1)
Product Flow Control	25	(1)
Order Initiation	25	(1)
Production Authorization	26	(1)
Product Volume and Variety	27	(1)
Product Structure--Fabrication and Assembly	27	(1)
Time Horizon (Static vs. Dynamic Environments)	28	(1)
The Role of Inventory	28	(7)
Inventory Definitions and Decisions	28	(1)
Types of Inventory	29	(2)
Justification of Inventory	31	(1)
Inventory Costs and Tradeoffs	31	(1)
Ordering and Setup Costs	32	(1)
Inventory Carrying Costs	33	(1)
Shortage Costs	33	(1)
The Trade Offs: Inventory vs. Setup and Shortages	34	(1)
The Role of Information	35	(2)
Principles of Production Systems	37	(6)
Learning Curves: Decreasing Marginal Costs	37	(1)
The Product Demand Life Cycle	38	(1)
Production Setups Drive Operations for Low- and Medium-Volume Products	39	(1)
Inventory Is Needed to Support Production	40	(2)
Capacity Balancing	42	(1)
Customer-Defined Value	42	(1)
Large Inventories Imply Long Throughput Times	42	(1)
Throughput Time ≥ Cumulative Move and Processing Time for a Transfer Batch	43	(1)
Production System Models	43	(3)
Definition of a Model	43	(1)
Role of Models	44	(2)
A Systems Perspective	46	(1)
Summary	47	(1)
References	48	(1)
Problems	48	(2)
Market Characterization	50	(34)
Forecasting Systems	50	(4)
Purpose and Use of Forecasts	51	(1)
Hierarchical Forecasting Systems	51	(1)
Model Building	52	(1)
Checking Model Adequacy	53	(1)
Time Series Extrapolation for Short-Term Forecasting	54	(14)
Simple Exponential Smoothing	54	(2)
Seasonal Forecasting Methods (Winter's)	56	(1)
Updating Equations	56	(2)
Forecasting Equation	58	(1)
Initialization	58	(3)
Tracking Signals and Monitoring of Forecasts	61	(2)
Adaptive Control	63	(1)
Time Series Decomposition	63	(4)
Box-Jenkins Time Series Models	67	(1)
Medium-Term Extrapolative and Causal Models	68	(10)
Linear Regression Methods	68	(1)
Parameter Estimation	69	(3)
Model Adequacy	72	(3)
Model Building	75	(3)
Econometric Models	78	(1)
Judgmental Forecasting	78	(2)
The Delphi Method	79	(1)
Market Surveys	79	(1)
Combining Forecasts	80	(1)
Summary	80	(1)
References	81	(1)
Problems	81	(3)
Manufacturing Strategy and the Supply Chain	84	(46)
Manufacturing Strategy	84	(12)
Dimensions of Manufacturing Strategy	85	(1)
Core Competencies	85	(1)
Customer Markets and Distribution	86	(1)
Vertical Integration	86	(1)
The Level of Flexibility	87	(1)
Supporting Decisions	88	(1)
Make vs. Buy Decision	88	(1)
Make-to-Stock vs. Make-to-Order	89	(2)
Selection of Technologies and Equipment	91	(2)
Justification of New Systems and Technologies	93	(3)
Supply Chain Management Concepts	96	(25)
Global Logistics	96	(3)
Logistics Information Systems	99	(1)
Variance Acceleration: The Bullwhip Effect	100	(9)
Product Design and Customization	109	(1)
Vendor Selection, Certification, and Contracting	109	(1)
Operational Decisions in Distribution Systems	110	(1)
Locating Inventory	111	(1)
Basic Trade-Off: Centralization vs. Responsiveness	112	(1)
Distributing Inventory Through the Supply Chain	113	(4)
Echelon vs. Installation Accounting	117	(4)
Multifacility Location-Allocation Models: Designing the Logistics Network	121	(3)
Synthesizing the Concepts	124	(1)
Summary	124	(1)
References	125	(1)
Problems	125	(3)
Case Study: Elba Electronics	128	(2)
Aggregate Planning	130	(39)
Planning Trade-Offs: Inventory, Workforce Changes, Overtime, Shortages	132	(1)
Basic Network Models	133	(5)
Linear Programming Models	138	(17)
Dynamic, Single-Stage Models	139	(7)
Dynamic Multistage Models	146	(1)
Multistage Production Facilities	147	(2)
Multifacility Production-Distribution Networks	149	(6)
Schedule Generation with Lot-Sizing	155	(3)
Parametric Production Planning	158	(1)
Other Approaches	159	(1)
Disaggregation	160	(3)
Single-Cycle Run-Out Time Model	160	(2)
Multiple Cycle Disaggregation	162	(1)
Run-Out Time with Dynamic Demand	163	(1)
Summary	163	(1)
References	164	(1)
Problems	164	(4)
Case Study: 3F Manufacturing	168	(1)
Single-Stage Inventory Control	169	(52)
Reorder Point Inventory Models for Static, Deterministic Demand	169	(17)
Economic Order Quantity (EOQ) Model	169	(3)
Economic Manufactured Quantity Model	172	(4)
The Case of Fixed Setup Cost	176	(1)
Price Breaks	177	(2)
Multiproduct Coordination Models	179	(1)
Organizational Constraints	179	(2)
Rotation Cycle Policies	181	(3)
Lead-Time Minimization	184	(2)
Reorder Point Inventory Models for Stochastic Demand	186	(15)
Service Levels	186	(1)
Continuous Review Systems	187	(7)
Periodic Review Systems	194	(1)
Order-Up-to R Policies	194	(2)
Single-Period Model	196	(4)
Discrete and Slow Demand	200	(1)
Multiproduct Systems	201	(1)
Dynamic Models	201	(12)
Infinite Capacity, Dynamic Lot-Sizing Models	202	(1)
Continuous Review: A Simple Runout Time Model	202	(1)
Periodic Review: The Wagner-Whitin Algorithm	203	(5)
Rolling Schedules and the Silver-Meal Heuristic	208	(1)
Limited Capacity Models	209	(4)
Model Implementation	213	(2)
ABC Analysis	213	(1)
Exchange Curves	214	(1)
Extensions	215	(1)
Summary	215	(1)
References	216	(1)
Problems	216	(5)
Decentralized Pull Systems	221	(48)
Techniques for Production Authorization	221	(4)
Information Requirements for Production Operations	222	(3)
Kanban Systems	225	(25)
The Kanban Authorization Concept	226	(1)
Single-Kanban System	226	(1)
Dual-Kanban Systems	227	(2)
Hybrid Single-Kanban Systems	229	(1)
Rules for Scheduling Kanban Production	229	(3)
Integration Through the Supply Chain	232	(1)
Specifying Parameter Values	233	(1)
Selection of Container Size	233	(2)
Selecting the Number of Kanbans	235	(4)
Selection of Production Quantity	239	(1)
Environmental Requirements for Kanban Systems	240	(3)
Average Inventory Level	243	(4)
Dynamic Management of WIP Levels	247	(1)
Defining the System Control Points	248	(2)
CONWIP: A Constant Work-in-Process Pull Alternative	250	(11)
Prioritizing Order Releases	252	(2)
Performance Evaluation of CONWIP Systems	254	(6)
CONWIP Variations and Extensions	260	(1)
Summary	261	(1)
References	262	(1)
Problems	263	(3)
Case Study: Safe-T Lock Company	266	(3)
Multistage Production Systems: Materials Requirements Planning for Dependent Demand	269	(41)
Materials Requirements Planning Basics	270	(5)
Data and Support System Requirements	270	(2)
Bill of Materials and Requirements Matrix	272	(3)
Requirements Explosion and Order Release Planning	275	(7)
Scrap Losses	281	(1)
Safety Stock and Safety Lead Time	281	(1)
Capacity Planning	282	(6)
Rough-Cut Capacity Planning	283	(2)
Capacity Requirements Planning	285	(2)
Load Reports	287	(1)
Incorporating Stochastic Behavior	288	(1)
Lot-Sizing Decisions	288	(3)
Managing Change	291	(8)
Net Change vs. Regenerative Updates	291	(2)
Order Issuance	293	(2)
Order Pegging	295	(1)
Firm-Planned Orders	296	(3)
Limitations and Reality of MRP	299	(3)
Environmental Assumptions	299	(1)
Structural Limitations	300	(2)
Extensions and Integration Into the Firm	302	(4)
Manufacturing Resources Planning (MRP II)	302	(1)
Enterprise Resources Planning (ERP)	303	(1)
Hybrid Systems	303	(3)
MRP Performance Level	306	(1)
Summary	306	(1)
References	307	(1)
Problems	307	(3)
Multistage Models	310	(42)
Multistage Product Structures	310	(2)
Types Of Inventory	312	(2)
Inventory Costs	314	(1)
Linear Models For Low Setup Time (Non-Bottleneck) Facility	315	(3)
Continuous Time Models for Stationary Data	318	(9)
Assembly Structures-Lot Aggregation	318	(2)
Assembly Structures-Lot Splitting	320	(2)
Reorder Cycle Policies-Power-of-Two Heuristics for Assembly Structures	322	(2)
General Structures	324	(3)
Discrete Time Models for Non-Stationary Data	327	(20)
Serial Structures	328	(2)
Assembly Structures	330	(2)
Optimal Solution to ASE	332	(1)
Heuristic Solution to ASE--Level by Level Lot Sizing with Cost Adjustments	333	(3)
Heuristic Solution to AKG-e--Parallel Heuristic	336	(1)
Schedule Construction for the t + 1 Period Problem	337	(2)
Schedule Selection for the t + 1 Period Problem	339	(3)
General Product Structures	342	(1)
Afentakis and Gavish Model	342	(2)
Integer Programming Approaches	344	(3)
Application	347	(1)
Summary	348	(1)
References	348	(1)
Problems	349	(3)
Lean Manufacturing and the Just-in-Time Philosophy	352	(56)
Lean, Just-in-Time Production Systems	352	(1)
Improving the Production Environment	353	(20)
Eliminating Waste	353	(2)
Employee Cross-Training and Job Rotation	355	(2)
Employee Empowerment and Involvement	357	(1)
JIT Purchasing	358	(1)
Impact of Reducing Variability	358	(6)
Techniques for Mistake-Proofing Processes	364	(2)
Economics of Setup Time Reduction	366	(3)
Technology of Setup Time Reduction	369	(4)
Quality Engineering	373	(17)
Statistical Process Control	373	(1)
Determining Process Capability	374	(2)
Control Charts for Monitoring Statistical Control	376	(1)
X-bar and S Charts for Variables Data	377	(5)
Proportion Defective Charts for Attribute Data	382	(1)
Process Adjustments During Setup	383	(2)
Design of Experiments for Process Optimization	385	(1)
Process Improvement vs. Product Grading	386	(1)
Total Productive Maintenance	386	(4)
Improving Product Flow	390	(10)
Process Flow Charts	391	(1)
Forming Manufacturing Cells	392	(3)
Capacity Balancing	395	(5)
The Transition to Lean	400	(2)
Was Taylor Lean?	400	(1)
From Mass to Lean	400	(1)
Push vs. Pull Control	401	(1)
Summary	402	(1)
References	402	(1)
Problems	402	(4)
Case Study: Dream Desk Company	406	(2)
Shop Scheduling	408	(62)
Scheduling System Requirements, Goals and Measures of Performance	409	(5)
Order Release Strategies	414	(4)
Dispatching Approaches	415	(2)
Mathematical Programming Approaches	417	(1)
Bottleneck Scheduling	418	(4)
The Theory of Constraints (TOC)	419	(1)
Identification of Bottlenecks	420	(1)
Forward and Backward Scheduling	421	(1)
Single-Machine Scheduling	422	(15)
Flow-Time Related Criteria	423	(4)
Lateness and Tardiness Related Criteria	427	(10)
Flow-Shop Scheduling	437	(7)
Scheduling Two Machines-Johnson's Rule	438	(3)
M-Machine Flow Shops	441	(3)
Job Shop Scheduling	444	(20)
Real-Time Dispatching Rules for Multiple Machines	444	(2)
Mathematical Programming Approaches	446	(16)
Intelligent Scheduling Systems	462	(2)
Summary	464	(1)
References	464	(1)
Problems	465	(5)
Shop Floor Control: Systems and Extensions	470	(45)
Control System Architecture	471	(2)
Hierarchical Control Systems	471	(1)
Heterarchical Control Systems	472	(1)
Manufacturing Execution Systems	473	(2)
Design and Control of Flow Shop Systems	475	(25)
Assembly Line Balancing	476	(1)
Ranked Positional Weight	477	(5)
Random Processing Times and Buffers	482	(2)
Mixed-Model Releases	484	(1)
Determining Workstation Spacing	485	(4)
Lot-Streaming	489	(5)
Flexible Flow Lines	494	(6)
Re-Entrant Flow Lines	500	(2)
Tool Management Systems	502	(1)
Flexible Manufacturing Systems	503	(7)
Formation of Part Batches	505	(2)
Tool Loading	507	(2)
Resource Allocation	509	(1)
Summary	510	(1)
References	510	(1)
Problems	511	(4)
Appendices	515	(8)
IB Standard Normal Distribution Function	515	(1)
IB Unit Normal Linear Loss (L(u))	516	(1)
II Linear Programming	517	(6)
Index	523