0 Factory Physics?
0.1 The Short Answer
0.2 The Long Answer
0.2.1 Focus:Manufacturing Management
0.2.2 Scope:Operations
0.2.3 Method:Factory Physics
0.2.4 Perspective:Flow Lines
0.3 An Overview of the Book
PART I THE LESSONS OF HISTORY
1 Manufacturing in America
1.1 Introduction
1.2 The American Experience
1.3 The First Industrial Revolution
1.3.1 The Industrial Revolution in America
1.3.2 The American System of Manufacturing
1.4 The Second Industrial Revolution
1.4.1 The Role of the Railroads
1.4.2 Mass Retailers
1.4.3 Andrew Carnegie and Scale
1.4.4 Henry Ford and Speed
1.5 Scientific Management
1.5.1 Frederick W.Taylor
1.5.2 Planning versus Doing
1.5.3 Other Pioneers of Scientific Management
1.5.4 The Science of Scientific Management
1.6 The Rise of the Modern Manufacturing Organization
1.6.1 Du Pont,Sloan,and Structure
1.6.2 Hawthorne and the Human Element
1.6.3 Management Education
1.7 Peak,Decline,and Resurgence of American Manufacturing
1.7.1 The Golden Era
1.7.2 Accountants Count and Salesment Sell
1.7.3 The Professional Manager
1.7.4 Recovery and Globalization of Manufacturing
1.8 The Future
Discussion Points
Study questions
2 Inventory Control:From EOQ to ROP
2.1 Introduction
2.2 The Economic Order Quantity Model
2.2.1 Motivation
2.2.2 The Model
2.2.3 The Key Insight of EOQ
2.2.4 Sensitivity
2.2.5 EOQ Extensions
2.3 Dynamic Lot Sizing
2.3.1 Motivation
2.3.2 Problem Formulation
2.3.3 The Wagner-Whitin Procedure
2.3.4 Interpreting the Solution
2.3.5 Caveats
2.4 Statistical Inventory Models
2.4.1 The News Vendor Model
2.4.2 The Base Stock Model
2.4.3 The Model
2.5 Conclusions
Appendix 2A Basic Probability
Appendix 2B Inventory Formulas
Study Questions
Problems
3 The MRP Crusade
3.1 Material Requirements Planning-MRP
3.1.1 The Key Insight of MRP
3.1.2 Overview of MRP
3.1.3 MRP Inputs and Outputs
3.1.4 The MRP Procedure
3.1.5 Special Topics in MRP
3.1.6 Lot Sizing in MRP
3.1.7 Safety Stock and Safety Lead Times
3.1.8 Accommodating Yield Losses
3.1.9 Problems in MRP
3.2 Manufacturing Resources Planning-MRP II
3.2.1 The MRP II Hierarchy
3.2.2 Long-Range Planning
3.2.3 Intermediate Planning
3.2.4 Short-Term Control
3.3 Beyond MRP II-Enterprise Resources Planning
3.3.1 History and Success of ERP
3.3.2 An Example:SAP R/3
3.3.3 Manufacturing Execution Systems
3.3.4 Advanced Planning Systems
3.4 Conclusions
Study Questions
Problems
4 The JIT Revolution
4.1 The Origins of JIT
4.2 JIT Goals
4.3 The Environment as a Control
4.4 Implementing JIT
4.4.1 Production Smoothing
4.4.2 Capacity Buffers
4.4.3 Setup Reduction
4.4.4 Cross-Training and Plant Layout
4.4.5 Total Quality Management
4.5 Kanban
4.6 The Lessons of JIT
Discussion Point
Study Questions
5 What Went Wrong
5.1 Introduction
5.2 Trouble with Scientific Management
5.3 Trouble with MRP
5.4 Trouble with JIT
5.5 Where from Here?
Discussion Points
Study Questions
PART II FACTORY PHYSICS
6 A Science of Manufacturing
6.1 The Seeds of Science
6.1.1 Why Science?
6.1.2 Defining a Manufacturing System
6.1.3 Prescriptive and Descriptive Models
6.2 Objectives,Measures,and Controls
6.2.1 The Systems Approach
6.2.2 The Fundamental Objective
6.2.3 Hierarchical Objectives
6.2.4 Control and Information Systems
6.3 Models and Performance Measures
6.3.1 The Danger of Simple Models
6.3.2 Building Better Prescriptive Models
6.3.3 Accounting Models
6.3.4 Tactical and Strategic Modeling
6.3.5 Considering
6.4 Conclusions
Appendix 6A Activity-Based Costing
Study Questions
Problems
7 Basic Factory Dynamics
7.1 Introduction
7.2 Definitions and Parameters
7.2.1 Definitions
7.2.2 Parameters
7.2.3 Examples
7.3 Simple Relationships
7.3.1 Best-Case Performance
7.3.2 Worst-Case Performance
7.3.3 Practical Worst-Case Performance
7.3.4 Bottleneck Pates and Cycle Time
7.3.5 Internal Benchmarking
7.4 Labor-Constrained Systems
7.4.1 Ample Capacity Case
7.4.2 Ful Flexibility Case
7.4.3 CONWIP Lines with Flexible Labor
7.5 Conclusions
Study Questions
Problems
Intuition-Building Exercises
8 Variabiity Basics
8.1 Introduction
8.2 Variability and Randomness
8.2.1 The Roots of Randomness
8.2.2 Probabilistic Intuition
8.3 Process Time Variability
8.3.1 Measures and Classes of Varibability
8.3.2 Low and Moderate Variability
8.3.3 Highly Variable Process Times
8.4 Causes of Variability
8.4.1 Natural Variability
8.4.2 Variability from Preemptive Outages(Breakdowns)
8.4.3 Variability from Nonpreemptive Outages
8.4.4 Variability from Recycle
8.4.5 Summary of Variability Formulas
8.5 Flow Variability
8.5.1 Characterizing Variability in Flows
8.5.2 Batch Arrivals and Departures
8.6 Variability Interactions-Queueing
8.6.1 Queueing Notation and Measures
8.6.2 Fundamental Relations
8.6.3 The M/M/1 Queue
8.6.4 Performance Measures
8.6.5 Systems with General Process and Interarrival Times
8.6.6 Parallel Machines
8.6.7 Parallel Machines and General Times
8.7 Effects of Blocking
8.7.1 The M/M/1/b Queue
8.7.2 General Blocking Models
8.8 Variability Pooling
8.8.1 Batch Processing
8.8.2 Safety Stock Aggregation
8.8.3 Queue Sharing
8.9 Conclusions
Study Questions
Problems
9 The Corrupting Influence of Variability
9.1 Introduction
9.1.1 Can Variability Be Good?
9.1.2 Examples of Good and Bad Variability
9.2 Performance and Variability
9.2.1 Measures of Manufacturing Performance
9.2.2 Variability Laws
9.2.3 Buffering Examples
9.2.4 Pay Me Now or Pay Me Later
9.2.5 Flexibility
9.2.6 Organizational Learning
9.3 Flow Laws
9.3.1 Product Flows
9.3.2 Capacity
9.3.3 Utilization
9.3.4 Variability and Flow
9.4 Batching Laws
9.4.1 Types of Batches
9.4.2 Process Batching
9.4.3 Move Batching
9.5 Cycle Time
9.5.1 Cycle Time at a Single Station
9.5.2 Assembly Operations
9.5.3 Line Cycle Time
9.5.4 Cycle Time,Lead Time,and Service
9.6 Diagnostics and Improvement
9.6.1 Increasing Throughput
9.6.2 Reducing Cycle Time
9.6.3 Improving Customer Service
9.7 Conclusions
Study Questions
Intuition-Building Exercises
Problems
10 Push and Pull Production Systems
10.1 Introduction
10.2 Definitions
10.2.1 The Key Difference between Push and Pull
10.2.2 The Push-Pull Interface
10.3 The Magic of Pull
10.3.1 Reducing Manufacturing Costs
10.3.2 Reducing Variability
10.3.3 Improving Quality
10.3.4 Maintaining Flexibility
10.3.5 Facilitating Work Ahead
10.4 CONWIP
10.4.1 Basic Mechanics
10.4.2 Mean-Value Analysis Model
10.5 Comparisons of CONWIP with MRP
10.5.1 Observability
10.5.2 Efficiency
10.5.3 Variability
10.5.4 Robustness
10.6 Comparisons of CONWIP with Kanban
10.6.1 Card Count Issues
10.6.2 Product Mix Issues
10.6.3 People Issues
10.7 Conclusions
Study Question
Problems
11 The Human Element in Operations Management
11.1 Introduction
11.2 Basic Human Laws
11.2.1 The Foundation of Self-interest
11.2.2 The Fact of Diversity
11.2.3 The Power of Zealotry
11.2.4 The Reality of Burnout
11.3 Planning versus Motivating
11.4 Responsibility and Authority
11.5 Summary
Discussion Points
Study Questions
12 Total Quality Manufacturing
12.1 Introduction
12.1.1 The Decade of Quality
12.1.2 A quality anecdote
12.1.3 The Status of Quality
12.2 Views of Quality
12.2.1 General Definitions
12.2.2 Internal versus External Quality
12.3 Statistical Quality Control
12.3.1 SQC Approaches
12.3.2 Statistical Process Control
12.3.3 SPC Extensions
12.4 Quality and Operations
12.4.1 Quality Supports Operations
12.4.2 Operations Supports Quality
12.5 Quality and the Supply Chain
12.5.1 A Safety Lead Time Example
12.5.2 Purchased Parts in an Assembly System
12.5.3 Vendor Selection and Management
12.6 Conclusions
Study Questions
Problems
PART III PRINCIPLES IN PRACTICE
13 A Pull Planning Framework
13.1 Introduction
13.2 Disaggregation
13.2.1 Time Scales in Production Planning
13.2.2 Other dimensions of Disaggregation
13.2.3 Coordination
13.3 Forecasting
13.3.1 Causal Forecasting
13.3.2 Time Series Forecasting
13.3.3 The Art of Forecasting
13.4 Planning for Pull
13.5 Hierarchical Production Planning
13.5.1 Capacity/Facility Planning
13.5.2 Workforce Planning
13.5.3 Aggregate Planning
13.5.4 WIP and Quota Setting
13.5.5 Demand Management
13.5.6 Sequencing and Scheduling
13.5.7 Shop Floor Control
13.5.8 Real-Time Simulation
13.5.9 Production Traching
13.6 Conclusions
Appendix 13A A Quota-Setting Model
Study Questions
Problems
14 Shop Floor Control
14.1 Introduction
14.2 General Considerations
14.2.1 Gross Capacity Control
14.2.2 Bottleneck Planning
14.2.3 Span of Control
14.3 CONWIP Configurations
14.3.1 Basic CONWIP
14.3.2 Tandem CONWIP Lines
14.3.3 Shared Resources
14.3.4 Multiple-Product Families
14.3.5 CONWIP Assembly Lines
14.4 Other Pull Mechanisms
14.4.1 Kanban
14.4.2 Pull-from-the-Bottleneck Methods
14.4.3 Shop Floor Control and Scheduling
14.5 Production Tracking
14.5.1 Statistical Throughput Control
14.5.2 Long-Range Capacity Tracking
14.6 Conclusions
Appendix 14A Statistical Throughput Control
Study Questions
Problems
15 Production Scheduling
15.1 Goals of Production Scheduling
15.1.1 Meeting Due Dates
15.1.2 Maximizing Utilization
15.1.3 Reducing WIP and Cycle Times
15.2 Review of Scheduling Research
15.2.1 MRP,MRP II,and ERP
15.2.2 Classic Scheduling
15.2.3 Dispatching
15.2.4 Why Scheduling Is Hard
15.2.5 Good News and Bad News
15.2.6 Practical Finite-Capacity Scheduling
15.3 Linking Planning and Scheduling
15.3.1 Optimal Batching
15.3.2 Due Date Quoting
15.4 Bottleneck Scheduling
15.4.1 CONWIP Lines Without Setups
15.4.2 Single CONWIP Lines with Setups
15.4.3 Bottleneck Scheduling Results
15.5 Diagnostic Scheduling
15.5.1 Types of Schedule Infeasibility
15.5.2 Capacitated Material Requirements Planning-MRP-C
15.5.3 Extending MRP-C to More General Environments
15.5.4 Practical Issues
15.6 Production Scheduling in a Pull Environment
15.6.1 Schedule Planning,Pull Execution
15.6.2 Using CONWIP with MRP
15.7 Conclusions
Study Questions
Problems
16 Aggregate and Workforce Planning
16.1 Introduction
16.2 Basic Aggregate Planning
16.2.1 A Simple Model
16.2.2 An LP Example
16.3 Product Mix Planning
16.3.1 Basic Model
16.3.2 A simple Example
16.3.3 Extensions to the Basic Model
16.4 Workforce Planning
16.4.1 An LP Model
16.4.2 A Combined AP/WP Example
16.4.3 Modeling Insights
16.5 Conclusions
Appendix 16A Linear Programming
Study Questions
Problems
17 Supply Chain Management
17.1 Introduction
17.2 Reasons for Holding Inventory
17.2.1 Raw Materials
17.2.2 Work in Process
17.2.3 Finished Goods Inventory
17.2.4 Spare Parts
17.3 Managing Raw Materials
17.3.1 Visibility Improvements
17.3.2 ABC Classification
17.3.3 Just-in-Time
17.3.4 Setting Safety Stock/Lead Times for Purchased Components
17.3.5 Setting Order Frequencies for Purchased Components
17.4 Managing WIP
17.4.1 Reducing Queueing
17.4.2 Reducing Wait-for-Batch WIP
17.4.3 Reducing Wait-to-Match WIP
17.5 Managing FGI
17.6 Managing Spare Parts
17.6.1 Stratifying Demand
17.6.2 Stocking Spare Parts for Emergency Repairs
17.7 Multiechelon Supply Chains
17.7.1 System Configurations
17.7.2 Performance Measures
17.7.3 The Bullwhip Effect
17.7.4 An Approximation for a Two-Level System
17.8 Conclusions
Discussion Point
Study Questions
Problems
18 Capacity Management
18.1 The Capacity-Setting Problem
18.1.1 Short-Term and Long-Term Capacity Setting
18.1.2 Strategic Capacity Planning
18.1.3 Traditional and Modern Views of Capacity Management
18.2 Modeling and Analysis
18.2.1 Example:A Minimum Cost,Capacity-Feasible Line
18.2.2 Forcing Cycle Time Compliance
18.3 Modifying Existing Production Lines
18.4 Designing New Production Lines
18.4.1 The Traditioinal Approach
18.4.2 A Factory Physics Approach
18.4.3 Other Facility Design Considerations
18.5 Capacity Allocation and Line Balancing
18.5.1 Paced Assembly Lines
18.5.2 Unbalancing Flow Lines
18.6 Conclusions
Appendix 18A The Line-of-Balance Problem
Study Questions
Problems
19 Synthesis-Pulling It All Together
19.1 The Strategic Importance of Details
19.2 The Practical Matter of Implementation
19.2.1 A Systems Perspective
19.2.2 Initiating Change
19.3 Focusing Teamwork
19.3.1 Pareto's Law
19.3.2 Factory Physics Laws
19.4 A Factory Physics Parable
19.4.1 Hitting the Trail
19.4.2 The Challenge
19.4.3 The Lay of the Land
19.4.4 Teamwork to the Rescue
19.4.5 How the Plant Was Won
19.4.6 Epilogue
19.5 The Future
References
Index
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