An Application of Master Schedule Smoothing and Planned Lead Time Control

Make‐to‐order (MTO) manufacturers must ensure concurrent availability of all parts required for production, as any unavailability may cause a delay in completion time. A major challenge for MTO manufacturers operating under high demand variability is to produce customized parts in time to meet internal production schedules. We present a case study of a producer of MTO offshore oil rigs that highlights the key aspects of the problem. The producer was faced with an increase in both demand and demand variability. Consequently, it had to rely heavily on subcontracting to handle production requirements that were in excess of its capacity. We focused on the manufacture of customized steel panels, which represent the main sub‐assemblies for building an oil rig. We considered two key tactical parameters: the planning window of the master production schedule and the planned lead time of each workstation. Under the constraint of a fixed internal delivery lead time, we determined the optimal planning parameters. This improvement effort reduced the subcontracting cost by implementing several actions: the creation of a master schedule for each sub‐assembly family of the steel panels, the smoothing of the master schedule over its planning window, and the controlling of production at each workstation by its planned lead time. We report our experience in applying the analytical model, the managerial insights gained, and how the application benefits the oil‐rig producer.     

Production planning and control as a tool for eco-efficency improvement and environmental impact reduction

The environmental impacts of industrial activity are an increasing concern amongst firms and their stakeholders. As a result, companies around the world have been exploring new tools to diminish the adverse impact of their activities on the environment. Eco-efficiency has played an essential role in this scenario, as companies are continuously seeking to produce more while utilizsing fewer resources and minimising adverse effects on the environment. The literature includes several initiatives to improve eco-efficiency and to reduce the environmental impact of manufacturing operations, but the use of production planning and control (PPC) activities to accomplish these goals has rarely been considered. Therefore, to contribute to the assessment of this issue, this paper proposes to integrate environmental concepts and actions as part of the PPC execution; therefore, they could also be applied to minimise environmental impacts, resulting in an increase in the eco-efficiency level of a company. The practical utilisation of the suggested procedure was confirmed using a case study where the procedure was successfully applied to a make-to-order firm, where a simplified version of a workload control (WLC) form of PPC was in use. As a result, incorporating environmental considerations into the WLC practices enabled the eco-efficiency level of the designated production area to increase by 42%, while the environmental impact of production was reduced by 13%.     

Information quality deficiencies in delivery schedules and their impact on production scheduling

The purpose of this paper is to explore how different delivery schedule characteristics affect the quality of shared delivery schedule information and, in turn, how deficiencies in quality affect a supplier’s production scheduling process. It describes a case study conducted in the Swedish automotive industry involving a supplier that operates as the first-, second- and third-tier supplier to an original equipment manufacturer. The study reveals how four delivery schedule characteristics – namely, receiving frequency, planning period, frozen period and demand variation – create information quality (IQ) deficiencies in five dimensions of IQ: completeness, conciseness, reliability, timeliness and credibility. At the same time, it demonstrates how such deficiencies affect the supplier’s production scheduling process by requiring additional rescheduling, reworking and follow-up activities as well as additional capacity problems, safety time, safety stock and backlogs. In effect, the paper extends previous IQ-related research by considering IQ in delivery schedules.     

规避农副产品原材料产出不确定风险的商业保险策略

为了保证产品质量、降低生产成本，许多农副产品制造商选择自己种植原材料以满足农副产品的加工生产。然而，农作物的产出易受不利事件（如各种自然灾害）的影响而具有不确定性。这种不确定性可能导致最终产品产出不足，严重时甚至引发财务危机。为了应对潜在风险，农副产品制造商可向金融机构购买商业保险。本文建立了单周期农副产品制造商的计划产量决策模型，通过研究制造商购买商业保险的边界条件及最优商业保险策略，分析商业保险策略在制造商规避原材料产出不确定风险时所具有的价值。研究结果表明：（1）只有保费的安全因子低于外部融资的单位惩罚成本时，制造商才会购买商业保险；（2）最优商业保险策略与计划产量无关；（3）最终产品单位净收益越低，商业保险的价值反而越高。     

Value assessment of e-procurement projects: a modular methodology

Over the last few years, an increasing number of companies have introduced or plan to adopt some kinds of e-Business solutions. They allow new forms of communication between buyers and sellers and they are expected to provide opportunities to create new marketplaces, whilst firm's productivity and efficiency should benefit. Because of the recent history of such type of projects, it hasn’t been possible yet to identify neither clear guidelines for the implementation process nor evaluation procedures for assessing the validity of a certain e-Business project. Furthermore, it has to be noted that a high number of e-Projects have failed or haven’t led to the expected results. This paper focuses on a particular aspect of this new way of doing business: the transfer of a part of purchasing activities on the net, the so called e-Procurement. The proposed methodology aims to give a structured procedure for both a quantitative and a qualitative evaluation of a certain e-Procurement investment starting from the identification of the main relationships among relevant elements influenced by the e-Procurement introduction (activities, performance indicators and company's features). The analysis also includes some considerations of a strategic nature and should lead to the reduction of a final report which has to support managers during the investment decision by highlighting expected benefits. The application of the proposed methodology to an Italian firm which has introduced the e-Procurement is described.     

A production model for deteriorating items with stochastic preventive maintenance time and rework process with FIFO rule

Due to unreliable production facility and stochastic preventive maintenance, deriving an optimal production inventory decision in practice is very complicated. In this paper, we develop a production model for deteriorating items with stochastic preventive maintenance time and rework using the first in first out (FIFO) rule. From our literature search, no study has been done on the above problem. The problem is solved using a simple search procedure; this makes it more practical for use by industries. Two case examples using uniform and exponential distribution preventive maintenance time are applied. Examples and sensitivity analysis are conducted for each case. The results show that rework and preventive maintenance time have significant affected the total cost and the optimal production time. This provides helpful managerial insights to help management in making smart decisions.     

A production model for deteriorating items with stochastic preventive maintenance time and rework process with FIFO rule

Due to unreliable production facility and stochastic preventive maintenance, deriving an optimal production inventory decision in practice is very complicated. In this paper, we develop a production model for deteriorating items with stochastic preventive maintenance time and rework using the first in first out (FIFO) rule. From our literature search, no study has been done on the above problem. The problem is solved using a simple search procedure; this makes it more practical for use by industries. Two case examples using uniform and exponential distribution preventive maintenance time are applied. Examples and sensitivity analysis are conducted for each case. The results show that rework and preventive maintenance time have significant affected the total cost and the optimal production time. This provides helpful managerial insights to help management in making smart decisions.     

Multiversity of the twenty-first century – examining opportunities for integrating community engagement in planning curricula

Abstract

This paper examines student-community engagement activity in planning. This is a subset of university–community engagement, and is a point of overlap between such engagement and planning education. Community engagement activity enables students to learn in situ practical skills within live projects, while community partners may benefit from technical knowhow, and labour input. Based on a UK-wide survey and three in-depth case studies, the paper explores the pedagogical designs underpinning community engagement activities involving students, as well as the various capacities in which the different participants – students, instructors and community members – act. The analysis reveals considerable diversity in approaches. An alignment of student engagement activities in the planning curriculum with emerging transformative co-learning models of university-community engagement could offer novel opportunities for the discipline of planning and their impact on communities as well as the fields standing in today’s multiversities.     

Correct accounting for duty drawbacks with outward and inward processing in global production networks

We develop a new model for the correct accounting of customs duties levied on a product. We examine inward and outward processing – that is, processed components can be either imported or produced in a foreign country – in the strategic planning of a global production network. This complex modeling problem is structured with path variables, and the duty drawbacks can be simultaneously and correctly entered for n production stages in m market regions (with corresponding duty regions) for all products with a maximum n-level bill of materials. We present a case study from the automotive industry to examine whether or not the possibility of future duty rate changes or free trade agreements, such as one between the United States and the European Union, could affect the design of a production network and hence should be considered in strategic planning. We show that correctly accounting for duty drawbacks can lead to changes in the global footprint of production. We also demonstrate that intercontinental trade barriers (in the form of duties) diminish working capital and entail longer delivery routes. Eliminating these political trade barriers could increase the returns to capital while reducing both delivery lead times and environmental costs.     

THE USE OF INDUSTRIAL SOFTWARE TO CREATE EXPERIENTIAL LEARNING ACTIVITIES IN OPERATIONS MANAGEMENT COURSES

Computer-based manufacturing planning and control (MPC) systems are widely used in industry to gain competitive advantage through integration and coordination of managerial activities. In collegiate business schools, important operations management activities are taught and studied, often by sequential examination of discrete topics such as aggregate production planning, master production scheduling, capacity planning, material planning, and production activity control. This paper explores the potential use of industrial MPC software in the classroom to create experiential learning activities that address the dynamic and integrative nature of operations management. Experiences with this pedagogical approach over the past decade are reported.     

Linking Objectives to Actions: A Decision Support Approach Based on Cause–Effect Linkages

The process of translating objectives into actions is a difficult task. This difficulty is due to the wide range of possibilities and the lack of structured information. Managers must take into account relevant information and generate a range of options before a decision is reached. So far, little is available to guide managers in translating a set of objectives into actions. This paper presents a three‐stage action‐planning process to address this gap. The process, supported by a software tool, takes managers through the stages of model building, action generation, and action evaluation and selection. A case study illustrates the application of the process. The paper concludes by discussing the implication of this work for managers and academics.     

A reference activity model for smart factory design and improvement

Smart manufacturing systems (SMSs) are envisioned to contain highly automated and IT-driven production systems. To address the complexity that arises in such systems, a standard and holistic model for describing its activities and their interrelationships is needed. This paper introduces a factory design and improvement (FDI) activity model and illustrates a case study of FDI in an electromechanical component factory. In essence, FDI is a reference activity model that encompasses a range of manufacturing system activities for designing and improving a factory during its initial development and also its operational phases. The FDI model shows not only the dependency between activities and manufacturing control levels but also the pieces of information and software functions each activity relies on. We envision that the availability of these pieces of information in digital form to integrate across the software functions will increase the agility of factory design and improvement projects. Therefore, our future work lies in contributing to standards for exchanging such information.     

Application of TQM Principles in the International Technology Transfer Process of Industrial Production Plants: A Conceptual Framework

This paper attempts to illustrate the application of the principles in Total Quality Management (TQM) to the International Technology Transfer (ITT) processes used in industrial production plants. Disaggregated analysis of the ‘technology transformation’ process is deployed to highlight the application of TQM. AT&T's ‘customer–supplier’ model of quality is introduced to explain the interactive roles of the parties involved. It argues that the existing literature deals inadequately with the issues raised and discussed in this paper. A conceptual ITT-TQM model is proposed. Such a model should ensure proper assimilation of imported technology and permit continuous improvement of the processes leading to the customer satisfaction. It is suggested that the success of the model depends on the ‘win-win-win’ strategies of the supplier, the process owner and the customer. Examples from various sources are presented to reinforce the argument. In addition, international standards such as the ISO 9000 standard and frameworks for TQM such as the US Malcolm Baldrige National Quality Award and the European Quality Award (European Foundation for Quality Management) are posited as necessary to ensure quality technology transfer.     

Effects of maintenance policies on the productivity of flexible manufacturing cells

Flexible manufacturing cells (FMCs) often operate with increasing failure rate due to extensive utilization and wear-outs of equipment. While maintenance plans can eliminate wear-out failures, random failures are still unavoidable. This paper discusses a procedure that combines simulation and analytical models to analyze the effects of corrective, preventive, and opportunistic maintenance policies on productivity of a flexible manufacturing cell. The production output rate of an FMC, which is a function of availability, is determined under different maintenance policies and mean time between failures.     

Formal planning in major U.S. corporations

As the world about us changes, managers in all types of institutions try to cope in a variety of ways. In the early 1960s, many corporate managers realized they could not make sound decisions about future business activities in an expedient, reactive manner because their firms were growing very large and complex with new technologies, products, markets and competition to deal with. As a result, formal planning techniques which had been used in narrow functional applications were introduced on a much broader scale and formal long-range planning became popular. New corporate planning functions appeared in many companies, as well as new staff planning specialists and planning executives. The author conducted a field study on the design of these systems in the mid-1960s and he argues that they showed great promise for improved management.With this history in mind, we might ask why such subjects as ‘planning techniques’ and ‘problems of implementation’ are still topics of concern. It would seem that such techniques would be well known and established in most firms after 10–15 years. However, this is not the case, for during a second field study of corporate planning systems which was completed in 1976 the author found that many corporations, including some of the largest ones, had redesigned their planning systems in the early 1970s, essentially making a fresh start at formal long-range planning. (See Table 1).From his recent field study the author concludes that all corporations experience problems in implementing and using a formal planning system. The nature of these problems and some possible remedies are the subjects upon which this article focuses.     

The benefits of embedding experiential learning in the education of planners

Abstract

In a future of complexity, uncertainty and fragmented governance we envision planning graduates who will be better prepared for the real world of planning as a result of an experiential learning (EL) approach in undergraduate tertiary education. In this paper, we present the findings of an Australian research project in which planning educators developed and tested a range of experiential planning principles based on sound pedagogical theory. Embedding EL principles and activities within the planning curriculum provides a structured programme of engagement between theory and practice over the four years of an undergraduate Australian planning programme, including opportunities for work-integrated learning. Students gain experience in negotiated decision-making involving a wide range of interactions with planning practitioners. Students become more adaptable—cognizant of mechanisms influencing change, and recognize the value of lifelong learning founded on critical reflection. We propose that a more systematic approach to integrating experiential learning in tertiary planning education culminating in ‘work integrated learning’ would provide a vehicle for further partnerships with responsive local practitioners and communities. Finally, this paper also argues that applying experiential learning does not compromise the quality of planning education based on greater academic rigour.     

Joint modified block replacement and production/inventory control policy for a failure-prone manufacturing cell

This paper considers a joint preventive maintenance (PM) and production/inventory control policy of an unreliable single machine, mono-product manufacturing cell with stochastic non-negligible corrective and preventive delays. The production/inventory control policy, which is based on the hedging point policy (HPP), consists in building and maintaining a safety stock of finished products in order to respond to demand and to avoid shortages during maintenance actions. Without considering the impact of preventive and corrective actions on the overall performance of the production system, most authors working in the reliability and maintainability domains confirm that the age-based preventive maintenance policy (ARP) outperforms the classical block-replacement policy (BRP). In order to reduce wastage incurred by the classical BRP, we consider a modified block replacement policy (MBRP), which consists in canceling a preventive maintenance action if the time elapsed since the last maintenance action exceeds a specified time threshold. The main objective of this paper is to determine the joint optimal policy that minimizes the overall cost, which is composed of corrective and preventive maintenance costs as well as inventory holding and backlog costs. A simulation model mimicking the dynamic and stochastic behavior of the manufacturing cell, based on more realistic considerations of the real behavior of industrial manufacturing cells, is proposed. Based on simulation results, the joint optimal MBRP/HPP parameters are obtained through a numerical approach that combines design of experiment, analysis of variance and response surface methodologies. The joint optimal MBRP/HPP policy is compared to classical joint ARP/HPP and BRP/HPP optimal policies, and the results show that the proposed MBRP/HPP outperforms the latter. Sensitivity analyses are also carried out in order to confirm the superiority of the proposed MBRP/HPP, and it is observed that for practitioners, the proposed joint MBRP/HPP offers not only cost savings, but is also easy to manage, as compared to the ARP/HPP policy.     

考虑故障停机的生产控制与维修计划联合决策模型

通过生产控制与维修计划协同决策,降低生产成本。首先描述生产过程,分析各项费用。其次,建立了考虑生产过程失控、故障率和故障停时间的生产过程控制、生产计划优化和维修管理联合优化决策的模型。通过模型求解,联合制定出生产过程检查策略、生产计划（经济生产批量、生产批次）以及维修计划（PM间隔期）,实现单位时间内总费用最低的目标。再次,案例研究,分析生产过程失控、故障率和故障停机时间对于经济生产批量、生产过程检查策略和生产系统维修计划的影响。该模型从理论上解决了生产过程控制、生产计划优化和维修管理联合优化决策难题,对于指导企业制定生产计划和生产系统的检修计划,进而提高产品质量、降低生产成本、确保准时交货都具有指导意义和实用价值。     

An intelligent workstation controller for integrated planning and scheduling of FMS cell

This paper presents an experimental design developed to determine a combination of robust planning and scheduling rules for an intelligent workstation controller (IWC). The IWC is used as part of the control system for an automated flexible manufacturing system. A three-level hierarchical control structure (shop, workstation and equipment)is adopted in order effectively to control a shop-floor. At the top level is a shop controller which receives orders and their associated manufacturing information, and manages interactions among workstations. The IWC defines and resolves the production control activities necessary to coordinate a group of equipment controllers so as to ensure the completion of orders. Specifically, the IWC is responsible for selecting a specific process routeing for each part, allocating resources, scheduling and coordinating the activities across the equipment, monitoring the progress of activities, detecting and recovering from errors, and preparing reports. These activities are accomplished using planning, scheduling, and execution functions. In order to demonstrate the effectiveness and robustness of the IWC, all the controllable and uncontrollable factors need to be identified and detailed. Controllable factors are those which are set by the controller and cannot be directly affected by the production environment. Uncontrollable factors are those which vary with the production environment and cannot be directly changed by the controller developer. The objective of the paper is to illustrate how a good set of controllable factors that dictate the IWC's effectiveness and robustness over various uncontrollable factors can be determined. Due to the number of possible combinations of all the factors, a complete validation of the effectiveness and robustness of the IWC is extremely time consuming and far beyond the scope of this paper. Therefore, a few planning and scheduling strategies are selected and a formal experiment is conducted. The experiment illustrates how significant performance dependencies for various planning and scheduling strategies can be identified.     

How physicians can create their future

This article responds to the need for physicians to become proactive, using strategic planning to address changing conditions in the health care field. Strategic planning purposes are defined and a common process of strategic planning is presented. A case study analysis includes commentary on the need for planning, the context of planning in a larger system, process and procedure, a sample plan, benefits and actions to date, and future uses of the plan. Implications of this case of strategic planning for other physicians are discussed.