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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