Summary Design and Planning of Production by Tobias Schiphorst
1. Manufacturing strategy, product/process matrix & resource based view ......................................... 6
1.1 Manufacturing strategy ................................................................................................................. 6
1.2 Product/Process matrix ................................................................................................................. 7
1.3 Resource based view ................................................................................................................... 12
1.4 Manufacturing Strategy: Defining the missing link Steven C. Wheelwright ............................... 14
1.4.1 Overview............................................................................................................................... 14
1.4.2 Management philosophy, driving forces and competitive advantage ................................. 14
1.4.3 Driving forces ........................................................................................................................ 15
1.4.4 Competitive priorities........................................................................................................... 15
1.4.5 Concept of manufacturing strategy ..................................................................................... 15
1.4.6 Three primary levels of strategy within manufacturing ....................................................... 16
1.4.7 Manufacturing functional strategy....................................................................................... 16
1.4.8 Manufacturing corporate strategy ....................................................................................... 16
1.4.9 Role of manufacturing in defining desired competitive advantage ..................................... 17
1.5 An Empirical Analysis of the Product-Process Matrix M. Hossein Safizadeh, Larry P. Ritzman,
Deven Sharma, Craig Wood .............................................................................................................. 17
1.5.1 Process choice ...................................................................................................................... 17
1.5.2 Process choice linked to product plans ................................................................................ 18
1.5.3 Process choice linked to competitive priorities ................................................................... 19
1.5.4 Process choice and performance ......................................................................................... 19
1.5.5 Propositions & findings ........................................................................................................ 19
1.5.6 Conclusion ............................................................................................................................ 20
1.6 A resource-based view of manufacturing strategy and the relationship to manufacturing
performance Roger G. Schroeder, Kimberly A. Bates and Mikko A. Junttila .................................... 21
1.6.1 Resource based view (RBV) .................................................................................................. 21
1.6.2 Manufacturing and RBV ....................................................................................................... 21
1.6.3 Internal learning ................................................................................................................... 21
1.6.4 External learning................................................................................................................... 22
1.6.4 Proprietary manufacturing processes and equipment ........................................................ 22
1.6.5 Manufacturing performance ................................................................................................ 22
1.6.6 Conclusions ........................................................................................................................... 22
2. Lean production ................................................................................................................................ 22
2.1 Introduction of Lean production ................................................................................................. 22
2.2 Lean toolbox ................................................................................................................................ 26
2.3 The human side of Lean .............................................................................................................. 36
1
,3. Layout and flow & small batches ...................................................................................................... 40
3.1 Layout and flow ........................................................................................................................... 40
3.2 Batch-size basics .......................................................................................................................... 43
3.3 Small batches............................................................................................................................... 43
3.3.1 Focus in batching .................................................................................................................. 43
3.3.2 Buffers .................................................................................................................................. 44
3.3.3 Cause of large batches.......................................................................................................... 44
3.4 Batch sizing .................................................................................................................................. 45
3.4.1 Batch-for-Batch and POQ ..................................................................................................... 45
3.4.2 Economic Order Quantity (EOQ) .......................................................................................... 45
3.4.3 Economic Manufacturing Quantity (EMQ) ........................................................................... 46
3.4.4 Batch size effects .................................................................................................................. 47
3.4.5 EOQ-based methods: Discussion .......................................................................................... 48
3.5 Appropriate coordination techniques ......................................................................................... 48
4. Scheduling ......................................................................................................................................... 49
4.1 What is scheduling ...................................................................................................................... 49
4.1.1 Why schedule ....................................................................................................................... 49
4.2 Mixed-Model Production: Heijunka ............................................................................................ 50
4.2.1 Heijunka ................................................................................................................................ 50
4.3 Priority rules ................................................................................................................................ 50
4.3.1 First-Come-First-Serve (FCFS) ............................................................................................... 51
4.3.2 Shortest-Processing-Time-First (SPTF) ................................................................................. 51
4.3.3 Earliest-Due-Date (EDD) ....................................................................................................... 52
4.4 Why should we schedule? ........................................................................................................... 52
4.5 Performance criteria & interconnections of planning................................................................. 53
4.6 An empirical investigation of scheduling performance criteria .................................................. 54
4.7 Outflanking Undecided Ever-changing puzzles ........................................................................... 56
4.7.1 Scheduling paradigms (models/theories) ............................................................................ 56
4.7.2 Why scheduling problems are difficult................................................................................. 56
4.7.3 Behavioural aspects of planning and scheduling ................................................................. 57
4.7.4 The organizational interconnectivity of planning and scheduling ....................................... 59
4.7.5 Computer support for planning and scheduling .................................................................. 60
4.7.6 Behavioural effects of using scheduling algorithms ............................................................. 60
4.7.7 Design methodology for scheduling support ....................................................................... 61
4.7.8 Discussion ............................................................................................................................. 62
5. Smart industry / Industry 4.0 ............................................................................................................ 63
2
, 5.1 Industrial revolutions .................................................................................................................. 63
5.2 Industry 4.0.................................................................................................................................. 63
5.3 Physical Internet (PI) ................................................................................................................... 64
5.4 Condition based maintenance (CBM) ......................................................................................... 64
5.5 Smart industry enablers .............................................................................................................. 64
5.6 Smart industry / industry 4.0 link to OM..................................................................................... 66
5.6 Paper : Industry 4.0 ..................................................................................................................... 68
5.6.1 Application-pull and technology-push ................................................................................. 68
5.6.2 Fundamental Concepts......................................................................................................... 68
5.6.3 Relevance for Business and Information Systems Engineering and Exemplary Fields of
Application..................................................................................................................................... 68
5.6.4 Summary and expected trends ............................................................................................ 69
5.7 Paper : Industry 4.0 Opportunities and challenges for operations management ...................... 69
5.7.1 Introduction .......................................................................................................................... 69
5.7.2 Additive manufacturing (3D printing) .................................................................................. 70
5.7.3 The Internet of Things .......................................................................................................... 70
5.7.4 Blockchain............................................................................................................................. 70
5.7.5 Advanced Robotics ............................................................................................................... 71
5.7.6 Artificial Intelligence ............................................................................................................. 71
5.7.7 Other technologies ............................................................................................................... 72
5.7.8 Conclusion ............................................................................................................................ 72
6. Pull production .................................................................................................................................. 73
6.1 Traditional coordination .............................................................................................................. 74
6.2 Pull production ............................................................................................................................ 74
6.3 2-bin system ................................................................................................................................ 75
6.4 Pull production with buffers (ROP) ............................................................................................. 75
6.5 Kanban ......................................................................................................................................... 76
6.5.1 Conveyance Kanbans ............................................................................................................ 77
6.5.2 Production Kanbans ............................................................................................................. 77
6.5.3 Lecture example Kanban ...................................................................................................... 78
6.5.4 More Kanban cards .............................................................................................................. 78
6.6 Rules for pull production with Kanban ........................................................................................ 79
6.7 Some additional notes................................................................................................................. 79
7. Cellular Manufacturing ...................................................................................................................... 80
7.1 What is Cellular Manufacturing? ................................................................................................. 80
7.2 From Process layout to Cellular Manufacturing .......................................................................... 80
3
, 7.2.1 Planning and control ............................................................................................................ 81
7.2.2 Organizational issues ............................................................................................................ 81
7.2.3 Attitudinal issues .................................................................................................................. 81
7.3 (Dis)advantages of Cellular Manufacturing ................................................................................. 81
7.4 How are the cells determined (group technology) ..................................................................... 82
7.4.1 Focused factories.................................................................................................................. 82
7.5 Group formation.......................................................................................................................... 83
7.5.1 Group technology (GT coding) ............................................................................................. 83
7.5.1 Visual cluster analysis ........................................................................................................... 83
7.5.2 Production Flow Analysis (PFA) ............................................................................................ 83
7.6 Binary Ordering algorithm example ............................................................................................ 84
7.6.1 Dense blocks, Then what? .................................................................................................... 87
7.6.2 Binary Ordering algorithm .................................................................................................... 87
7.7 Now organize the group itself ..................................................................................................... 88
7.7.1 Work cell design ................................................................................................................... 88
7.7.2 Assembly workcell formulas ................................................................................................. 88
7.7.3 Machining workcell formulas ............................................................................................... 90
8. Line balancing .................................................................................................................................... 90
8.1 Line production ........................................................................................................................... 91
8.1.1 Flow line ............................................................................................................................... 91
8.2 Balancing ..................................................................................................................................... 91
8.3 Line balancing .............................................................................................................................. 91
8.3.1 Line Balancing steps ............................................................................................................. 92
8.3.2 Precedence diagram; production of bicycles ....................................................................... 92
8.3.3 Calculate the efficiency of a sequence of workstations ....................................................... 93
8.3.4 Longest processing time ....................................................................................................... 93
8.3.5 Weighted average time ........................................................................................................ 97
8.3.6 Rank Positional Weight example .......................................................................................... 98
8.3.7 Uncertainty in task times.................................................................................................... 102
4
1. Manufacturing strategy, product/process matrix & resource based view ......................................... 6
1.1 Manufacturing strategy ................................................................................................................. 6
1.2 Product/Process matrix ................................................................................................................. 7
1.3 Resource based view ................................................................................................................... 12
1.4 Manufacturing Strategy: Defining the missing link Steven C. Wheelwright ............................... 14
1.4.1 Overview............................................................................................................................... 14
1.4.2 Management philosophy, driving forces and competitive advantage ................................. 14
1.4.3 Driving forces ........................................................................................................................ 15
1.4.4 Competitive priorities........................................................................................................... 15
1.4.5 Concept of manufacturing strategy ..................................................................................... 15
1.4.6 Three primary levels of strategy within manufacturing ....................................................... 16
1.4.7 Manufacturing functional strategy....................................................................................... 16
1.4.8 Manufacturing corporate strategy ....................................................................................... 16
1.4.9 Role of manufacturing in defining desired competitive advantage ..................................... 17
1.5 An Empirical Analysis of the Product-Process Matrix M. Hossein Safizadeh, Larry P. Ritzman,
Deven Sharma, Craig Wood .............................................................................................................. 17
1.5.1 Process choice ...................................................................................................................... 17
1.5.2 Process choice linked to product plans ................................................................................ 18
1.5.3 Process choice linked to competitive priorities ................................................................... 19
1.5.4 Process choice and performance ......................................................................................... 19
1.5.5 Propositions & findings ........................................................................................................ 19
1.5.6 Conclusion ............................................................................................................................ 20
1.6 A resource-based view of manufacturing strategy and the relationship to manufacturing
performance Roger G. Schroeder, Kimberly A. Bates and Mikko A. Junttila .................................... 21
1.6.1 Resource based view (RBV) .................................................................................................. 21
1.6.2 Manufacturing and RBV ....................................................................................................... 21
1.6.3 Internal learning ................................................................................................................... 21
1.6.4 External learning................................................................................................................... 22
1.6.4 Proprietary manufacturing processes and equipment ........................................................ 22
1.6.5 Manufacturing performance ................................................................................................ 22
1.6.6 Conclusions ........................................................................................................................... 22
2. Lean production ................................................................................................................................ 22
2.1 Introduction of Lean production ................................................................................................. 22
2.2 Lean toolbox ................................................................................................................................ 26
2.3 The human side of Lean .............................................................................................................. 36
1
,3. Layout and flow & small batches ...................................................................................................... 40
3.1 Layout and flow ........................................................................................................................... 40
3.2 Batch-size basics .......................................................................................................................... 43
3.3 Small batches............................................................................................................................... 43
3.3.1 Focus in batching .................................................................................................................. 43
3.3.2 Buffers .................................................................................................................................. 44
3.3.3 Cause of large batches.......................................................................................................... 44
3.4 Batch sizing .................................................................................................................................. 45
3.4.1 Batch-for-Batch and POQ ..................................................................................................... 45
3.4.2 Economic Order Quantity (EOQ) .......................................................................................... 45
3.4.3 Economic Manufacturing Quantity (EMQ) ........................................................................... 46
3.4.4 Batch size effects .................................................................................................................. 47
3.4.5 EOQ-based methods: Discussion .......................................................................................... 48
3.5 Appropriate coordination techniques ......................................................................................... 48
4. Scheduling ......................................................................................................................................... 49
4.1 What is scheduling ...................................................................................................................... 49
4.1.1 Why schedule ....................................................................................................................... 49
4.2 Mixed-Model Production: Heijunka ............................................................................................ 50
4.2.1 Heijunka ................................................................................................................................ 50
4.3 Priority rules ................................................................................................................................ 50
4.3.1 First-Come-First-Serve (FCFS) ............................................................................................... 51
4.3.2 Shortest-Processing-Time-First (SPTF) ................................................................................. 51
4.3.3 Earliest-Due-Date (EDD) ....................................................................................................... 52
4.4 Why should we schedule? ........................................................................................................... 52
4.5 Performance criteria & interconnections of planning................................................................. 53
4.6 An empirical investigation of scheduling performance criteria .................................................. 54
4.7 Outflanking Undecided Ever-changing puzzles ........................................................................... 56
4.7.1 Scheduling paradigms (models/theories) ............................................................................ 56
4.7.2 Why scheduling problems are difficult................................................................................. 56
4.7.3 Behavioural aspects of planning and scheduling ................................................................. 57
4.7.4 The organizational interconnectivity of planning and scheduling ....................................... 59
4.7.5 Computer support for planning and scheduling .................................................................. 60
4.7.6 Behavioural effects of using scheduling algorithms ............................................................. 60
4.7.7 Design methodology for scheduling support ....................................................................... 61
4.7.8 Discussion ............................................................................................................................. 62
5. Smart industry / Industry 4.0 ............................................................................................................ 63
2
, 5.1 Industrial revolutions .................................................................................................................. 63
5.2 Industry 4.0.................................................................................................................................. 63
5.3 Physical Internet (PI) ................................................................................................................... 64
5.4 Condition based maintenance (CBM) ......................................................................................... 64
5.5 Smart industry enablers .............................................................................................................. 64
5.6 Smart industry / industry 4.0 link to OM..................................................................................... 66
5.6 Paper : Industry 4.0 ..................................................................................................................... 68
5.6.1 Application-pull and technology-push ................................................................................. 68
5.6.2 Fundamental Concepts......................................................................................................... 68
5.6.3 Relevance for Business and Information Systems Engineering and Exemplary Fields of
Application..................................................................................................................................... 68
5.6.4 Summary and expected trends ............................................................................................ 69
5.7 Paper : Industry 4.0 Opportunities and challenges for operations management ...................... 69
5.7.1 Introduction .......................................................................................................................... 69
5.7.2 Additive manufacturing (3D printing) .................................................................................. 70
5.7.3 The Internet of Things .......................................................................................................... 70
5.7.4 Blockchain............................................................................................................................. 70
5.7.5 Advanced Robotics ............................................................................................................... 71
5.7.6 Artificial Intelligence ............................................................................................................. 71
5.7.7 Other technologies ............................................................................................................... 72
5.7.8 Conclusion ............................................................................................................................ 72
6. Pull production .................................................................................................................................. 73
6.1 Traditional coordination .............................................................................................................. 74
6.2 Pull production ............................................................................................................................ 74
6.3 2-bin system ................................................................................................................................ 75
6.4 Pull production with buffers (ROP) ............................................................................................. 75
6.5 Kanban ......................................................................................................................................... 76
6.5.1 Conveyance Kanbans ............................................................................................................ 77
6.5.2 Production Kanbans ............................................................................................................. 77
6.5.3 Lecture example Kanban ...................................................................................................... 78
6.5.4 More Kanban cards .............................................................................................................. 78
6.6 Rules for pull production with Kanban ........................................................................................ 79
6.7 Some additional notes................................................................................................................. 79
7. Cellular Manufacturing ...................................................................................................................... 80
7.1 What is Cellular Manufacturing? ................................................................................................. 80
7.2 From Process layout to Cellular Manufacturing .......................................................................... 80
3
, 7.2.1 Planning and control ............................................................................................................ 81
7.2.2 Organizational issues ............................................................................................................ 81
7.2.3 Attitudinal issues .................................................................................................................. 81
7.3 (Dis)advantages of Cellular Manufacturing ................................................................................. 81
7.4 How are the cells determined (group technology) ..................................................................... 82
7.4.1 Focused factories.................................................................................................................. 82
7.5 Group formation.......................................................................................................................... 83
7.5.1 Group technology (GT coding) ............................................................................................. 83
7.5.1 Visual cluster analysis ........................................................................................................... 83
7.5.2 Production Flow Analysis (PFA) ............................................................................................ 83
7.6 Binary Ordering algorithm example ............................................................................................ 84
7.6.1 Dense blocks, Then what? .................................................................................................... 87
7.6.2 Binary Ordering algorithm .................................................................................................... 87
7.7 Now organize the group itself ..................................................................................................... 88
7.7.1 Work cell design ................................................................................................................... 88
7.7.2 Assembly workcell formulas ................................................................................................. 88
7.7.3 Machining workcell formulas ............................................................................................... 90
8. Line balancing .................................................................................................................................... 90
8.1 Line production ........................................................................................................................... 91
8.1.1 Flow line ............................................................................................................................... 91
8.2 Balancing ..................................................................................................................................... 91
8.3 Line balancing .............................................................................................................................. 91
8.3.1 Line Balancing steps ............................................................................................................. 92
8.3.2 Precedence diagram; production of bicycles ....................................................................... 92
8.3.3 Calculate the efficiency of a sequence of workstations ....................................................... 93
8.3.4 Longest processing time ....................................................................................................... 93
8.3.5 Weighted average time ........................................................................................................ 97
8.3.6 Rank Positional Weight example .......................................................................................... 98
8.3.7 Uncertainty in task times.................................................................................................... 102
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