Factory Physics? | p. 1 |
The Short Answer | p. 1 |
The Long Answer | p. 1 |
Focus: Manufacturing Management | p. 1 |
Scope: Operations | p. 3 |
Method: Factory Physics | p. 6 |
Perspective: Flow Lines | p. 8 |
An Overview of the Book | p. 10 |
The Lessons of History | |
Manufacturing in America | p. 14 |
Introduction | p. 14 |
The American Experience | p. 15 |
The First Industrial Revolution | p. 17 |
The Industrial Revolution in America | p. 18 |
The American System of Manufacturing | p. 19 |
The Second Industrial Revolution | p. 20 |
The Role of the Railroads | p. 21 |
Mass Retailers | p. 22 |
Andrew Carnegie and Scale | p. 23 |
Henry Ford and Speed | p. 24 |
Scientific Management | p. 25 |
Frederick W. Taylor | p. 27 |
Planning versus Doing | p. 29 |
Other Pioneers of Scientific Management | p. 31 |
The Science of Scientific Management | p. 32 |
The Rise of the Modern Manufacturing Organization | p. 32 |
Du Pont, Sloan, and Structure | p. 33 |
Hawthorne and the Human Element | p. 34 |
Management Education | p. 36 |
Peak, Decline, and Resurgence of American Manufacturing | p. 37 |
The Golden Era | p. 37 |
Accountants Count and Salesmen Sell | p. 38 |
The Professional Manager | p. 40 |
Recovery and Globalization of Manufacturing | p. 42 |
The Future | p. 43 |
Discussion Points | p. 45 |
Study Questions | p. 46 |
Inventory Control: From EOQ to ROP | p. 48 |
Introduction | p. 48 |
The Economic Order Quantity Model | p. 49 |
Motivation | p. 49 |
The Model | p. 49 |
The Key Insight of EOQ | p. 52 |
Sensitivity | p. 54 |
EOQ Extensions | p. 56 |
Dynamic Lot Sizing | p. 56 |
Motivation | p. 57 |
Problem Formulation | p. 57 |
The Wagner-Whitin Procedure | p. 59 |
Interpreting the Solution | p. 62 |
Caveats | p. 63 |
Statistical Inventory Models | p. 64 |
The News Vendor Model | p. 65 |
The Base Stock Model | p. 69 |
The (Q, r) Model | p. 75 |
Conclusions | p. 88 |
Basic Probability | p. 89 |
Inventory Formulas | p. 100 |
Study Questions | p. 103 |
Problems | p. 104 |
The MRP Crusade | p. 109 |
Material Requirements Planning--MRP | p. 109 |
The Key Insight of MRP | p. 109 |
Overview of MRP | p. 110 |
MRP Inputs and Outputs | p. 114 |
The MRP Procedure | p. 116 |
Special Topics in MRP | p. 122 |
Lot Sizing in MRP | p. 124 |
Safety Stock and Safety Lead Times | p. 128 |
Accommodating Yield Losses | p. 130 |
Problems in MRP | p. 131 |
Manufacturing Resources Planning--MRP II | p. 135 |
The MRP II Hierarchy | p. 136 |
Long-Range Planning | p. 136 |
Intermediate Planning | p. 137 |
Short-Term Control | p. 141 |
Beyond MRP II--Enterprise Resources Planning | p. 143 |
History and Success of ERP | p. 143 |
An Example: SAP R/3 | p. 144 |
Manufacturing Execution Systems | p. 145 |
Advanced Planning Systems | p. 145 |
Conclusions | p. 145 |
Study Questions | p. 146 |
Problems | p. 147 |
The JIT Revolution | p. 151 |
The Origins of JIT | p. 151 |
JIT Goals | p. 153 |
The Environment as a Control | p. 154 |
Implementing JIT | p. 155 |
Production Smoothing | p. 156 |
Capacity Buffers | p. 157 |
Setup Reduction | p. 158 |
Cross-Training and Plant Layout | p. 159 |
Total Quality Management | p. 160 |
Kanban | p. 162 |
The Lessons of JIT | p. 165 |
Discussion Point | p. 166 |
Study Questions | p. 166 |
What Went Wrong | p. 168 |
Introduction | p. 168 |
Trouble with Scientific Management | p. 169 |
Trouble with MRP | p. 173 |
Trouble with JIT | p. 176 |
Where from Here? | p. 181 |
Discussion Points | p. 183 |
Study Questions | p. 183 |
Factory Physics | |
A Science of Manufacturing | p. 186 |
The Seeds of Science | p. 186 |
Why Science? | p. 187 |
Defining a Manufacturing System | p. 190 |
Prescriptive and Descriptive Models | p. 190 |
Objectives, Measures, and Controls | p. 192 |
The Systems Approach | p. 192 |
The Fundamental Objective | p. 195 |
Hierarchical Objectives | p. 195 |
Control and Information Systems | p. 197 |
Models and Performance Measures | p. 198 |
The Danger of Simple Models | p. 198 |
Building Better Prescriptive Models | p. 199 |
Accounting Models | p. 200 |
Tactical and Strategic Modeling | p. 204 |
Considering Risk | p. 205 |
Conclusions | p. 208 |
Activity-Based Costing | p. 208 |
Study Questions | p. 209 |
Problems | p. 210 |
Basic Factory Dynamics | p. 213 |
Introduction | p. 213 |
Definitions and Parameters | p. 215 |
Definitions | p. 215 |
Parameters | p. 218 |
Examples | p. 219 |
Simple Relationships | p. 221 |
Best-Case Performance | p. 221 |
Worst-Case Performance | p. 226 |
Practical Worst-Case Performance | p. 229 |
Bottleneck Rates and Cycle Time | p. 233 |
Internal Benchmarking | p. 235 |
Labor-Constrained Systems | p. 238 |
Ample Capacity Case | p. 238 |
Full Flexibility Case | p. 239 |
CONWIP Lines with Flexible Labor | p. 240 |
Conclusions | p. 242 |
Study Questions | p. 243 |
Problems | p. 244 |
Intuition-Building Exercises | p. 246 |
Variability Basics | p. 248 |
Introduction | p. 248 |
Variability and Randomness | p. 249 |
The Roots of Randomness | p. 249 |
Probabilistic Intuition | p. 250 |
Process Time Variability | p. 251 |
Measures and Classes of Variability | p. 252 |
Low and Moderate Variability | p. 252 |
Highly Variable Process Times | p. 254 |
Causes of Variability | p. 255 |
Natural Variability | p. 255 |
Variability from Preemptive Outages (Breakdowns) | p. 255 |
Variability from Nonpreemptive Outages | p. 258 |
Variability from Recycle | p. 260 |
Summary of Variability Formulas | p. 260 |
Flow Variability | p. 261 |
Characterizing Variability in Flows | p. 261 |
Batch Arrivals and Departures | p. 264 |
Variability Interactions--Queueing | p. 264 |
Queueing Notation and Measures | p. 265 |
Fundamental Relations | p. 266 |
The M/M/1 Queue | p. 267 |
Performance Measures | p. 269 |
Systems with General Process and Interarrival Times | p. 270 |
Parallel Machines | p. 271 |
Parallel Machines and General Times | p. 273 |
Effects of Blocking | p. 273 |
The M/M/1/b Queue | p. 273 |
General Blocking Models | p. 277 |
Variability Pooling | p. 279 |
Batch Processing | p. 280 |
Safety Stock Aggregation | p. 280 |
Queue Sharing | p. 281 |
Conclusions | p. 282 |
Study Questions | p. 283 |
Problems | p. 283 |
The Corrupting Influence of Variability | p. 287 |
Introduction | p. 287 |
Can Variability Be Good? | p. 287 |
Examples of Good and Bad Variability | p. 288 |
Performance and Variability | p. 289 |
Measures of Manufacturing Performance | p. 289 |
Variability Laws | p. 294 |
Buffering Examples | p. 295 |
Pay Me Now or Pay Me Later | p. 297 |
Flexibility | p. 300 |
Organizational Learning | p. 300 |
Flow Laws | p. 301 |
Product Flows | p. 301 |
Capacity | p. 301 |
Utilization | p. 303 |
Variability and Flow | p. 304 |
Batching Laws | p. 305 |
Types of Batches | p. 305 |
Process Batching | p. 306 |
Move Batching | p. 311 |
Cycle Time | p. 314 |
Cycle Time at a Single Station | p. 315 |
Assembly Operations | p. 315 |
Line Cycle Time | p. 316 |
Cycle Time, Lead Time, and Service | p. 321 |
Diagnostics and Improvement | p. 324 |
Increasing Throughput | p. 324 |
Reducing Cycle Time | p. 327 |
Improving Customer Service | p. 330 |
Conclusions | p. 331 |
Study Questions | p. 333 |
Intuition-Building Exercises | p. 333 |
Problems | p. 335 |
Push and Pull Production Systems | p. 339 |
Introduction | p. 339 |
Definitions | p. 339 |
The Key Difference between Push and Pull | p. 340 |
The Push-Pull Interface | p. 341 |
The Magic of Pull | p. 344 |
Reducing Manufacturing Costs | p. 345 |
Reducing Variability | p. 346 |
Improving Quality | p. 347 |
Maintaining Flexibility | p. 348 |
Facilitating Work Ahead | p. 349 |
CONWIP | p. 349 |
Basic Mechanics | p. 349 |
Mean-Value Analysis Model | p. 350 |
Comparisons of CONWIP with MRP | p. 354 |
Observability | p. 355 |
Efficiency | p. 355 |
Variability | p. 356 |
Robustness | p. 357 |
Comparisons of CONWIP with Kanban | p. 359 |
Card Count Issues | p. 359 |
Product Mix Issues | p. 360 |
People Issues | p. 361 |
Conclusions | p. 362 |
Study Questions | p. 363 |
Problems | p. 363 |
The Human Element in Operations Management | p. 365 |
Introduction | p. 365 |
Basic Human Laws | p. 366 |
The Foundation of Self-interest | p. 366 |
The Fact of Diversity | p. 368 |
The Power of Zealotry | p. 371 |
The Reality of Burnout | p. 373 |
Planning versus Motivating | p. 374 |
Responsibility and Authority | p. 375 |
Summary | p. 377 |
Discussion Points | p. 378 |
Study Questions | p. 379 |
Total Quality Manufacturing | p. 380 |
Introduction | p. 380 |
The Decade of Quality | p. 380 |
A Quality Anecdote | p. 381 |
The Status of Quality | p. 382 |
Views of Quality | p. 383 |
General Definitions | p. 383 |
Internal versus External Quality | p. 383 |
Statistical Quality Control | p. 385 |
SQC Approaches | p. 385 |
Statistical Process Control | p. 385 |
SPC Extensions | p. 388 |
Quality and Operations | p. 389 |
Quality Supports Operations | p. 390 |
Operations Supports Quality | p. 396 |
Quality and the Supply Chain | p. 398 |
A Safety Lead Time Example | p. 399 |
Purchased Parts in an Assembly System | p. 399 |
Vendor Selection and Management | p. 401 |
Conclusions | p. 402 |
Study Questions | p. 402 |
Problems | p. 403 |
Principles in Practice | |
A Pull Planning Framework | p. 408 |
Introduction | p. 408 |
Disaggregation | p. 409 |
Time Scales in Production Planning | p. 409 |
Other Dimensions of Disaggregation | p. 411 |
Coordination | p. 413 |
Forecasting | p. 414 |
Causal Forecasting | p. 415 |
Time Series Forecasting | p. 418 |
The Art of Forecasting | p. 429 |
Planning for Pull | p. 430 |
Hierarchical Production Planning | p. 432 |
Capacity/Facility Planning | p. 434 |
Workforce Planning | p. 436 |
Aggregate Planning | p. 438 |
WIP and Quota Setting | p. 439 |
Demand Management | p. 441 |
Sequencing and Scheduling | p. 442 |
Shop Floor Control | p. 443 |
Real-Time Simulation | p. 443 |
Production Tracking | p. 444 |
Conclusions | p. 444 |
A Quota-Setting Model | p. 445 |
Study Questions | p. 447 |
Problems | p. 448 |
Shop Floor Control | p. 453 |
Introduction | p. 453 |
General Considerations | p. 456 |
Gross Capacity Control | p. 456 |
Bottleneck Planning | p. 458 |
Span of Control | p. 460 |
CONWIP Configurations | p. 461 |
Basic CONWIP | p. 461 |
Tandem CONWIP Lines | p. 464 |
Shared Resources | p. 465 |
Multiple-Product Families | p. 467 |
CONWIP Assembly Lines | p. 468 |
Other Pull Mechanisms | p. 469 |
Kanban | p. 470 |
Pull-from-the-Bottleneck Methods | p. 471 |
Shop Floor Control and Scheduling | p. 474 |
Production Tracking | p. 475 |
Statistical Throughput Control | p. 475 |
Long-Range Capacity Tracking | p. 478 |
Conclusions | p. 482 |
Statistical Throughput Control | p. 483 |
Study Questions | p. 484 |
Problems | p. 485 |
Production Scheduling | p. 488 |
Goals of Production Scheduling | p. 488 |
Meeting Due Dates | p. 488 |
Maximizing Utilization | p. 489 |
Reducing WIP and Cycle Times | p. 490 |
Review of Scheduling Research | p. 491 |
MRP, MRP II, and ERP | p. 491 |
Classic Scheduling | p. 491 |
Dispatching | p. 493 |
Why Scheduling Is Hard | p. 493 |
Good News and Bad News | p. 497 |
Practical Finite-Capacity Scheduling | p. 498 |
Linking Planning and Scheduling | p. 501 |
Optimal Batching | p. 502 |
Due Date Quoting | p. 510 |
Bottleneck Scheduling | p. 513 |
CONWIP Lines Without Setups | p. 513 |
Single CONWIP Lines with Setups | p. 514 |
Bottleneck Scheduling Results | p. 518 |
Diagnostic Scheduling | p. 518 |
Types of Schedule Infeasibility | p. 519 |
Capacitated Material Requirements Planning--MRP-C | p. 522 |
Extending MRP-C to More General Environments | p. 528 |
Practical Issues | p. 528 |
Production Scheduling in a Pull Environment | p. 529 |
Schedule Planning, Pull Execution | p. 529 |
Using CONWIP with MRP | p. 530 |
Conclusions | p. 530 |
Study Questions | p. 531 |
Problems | p. 531 |
Aggregate and Workforce Planning | p. 535 |
Introduction | p. 535 |
Basic Aggregate Planning | p. 536 |
A Simple Model | p. 536 |
An LP Example | p. 538 |
Product Mix Planning | p. 546 |
Basic Model | p. 546 |
A Simple Example | p. 548 |
Extensions to the Basic Model | p. 552 |
Workforce Planning | p. 557 |
An LP Model | p. 557 |
A Combined AP/WP Example | p. 559 |
Modeling Insights | p. 568 |
Conclusions | p. 568 |
Linear Programming | p. 569 |
Study Questions | p. 575 |
Problems | p. 575 |
Supply Chain Management | p. 582 |
Introduction | p. 582 |
Reasons for Holding Inventory | p. 583 |
Raw Materials | p. 583 |
Work in Process | p. 583 |
Finished Goods Inventory | p. 585 |
Spare Parts | p. 586 |
Managing Raw Materials | p. 586 |
Visibility Improvements | p. 587 |
ABC Classification | p. 587 |
Just-in-Time | p. 588 |
Setting Safety Stock/Lead Times for Purchased Components | p. 589 |
Setting Order Frequencies for Purchased Components | p. 589 |
Managing WIP | p. 595 |
Reducing Queueing | p. 596 |
Reducing Wait-for-Batch WIP | p. 597 |
Reducing Wait-to-Match WIP | p. 599 |
Managing FGI | p. 600 |
Managing Spare Parts | p. 601 |
Stratifying Demand | p. 602 |
Stocking Spare Parts for Emergency Repairs | p. 602 |
Multiechelon Supply Chains | p. 610 |
System Configurations | p. 610 |
Performance Measures | p. 612 |
The Bullwhip Effect | p. 612 |
An Approximation for a Two-Level System | p. 616 |
Conclusions | p. 621 |
Discussion Point | p. 622 |
Study Questions | p. 623 |
Problems | p. 623 |
Capacity Management | p. 626 |
The Capacity-Setting Problem | p. 626 |
Short-Term and Long-Term Capacity Setting | p. 626 |
Strategic Capacity Planning | p. 627 |
Traditional and Modern Views of Capacity Management | p. 629 |
Modeling and Analysis | p. 631 |
Example: A Minimum Cost, Capacity-Feasible Line | p. 633 |
Forcing Cycle Time Compliance | p. 634 |
Modifying Existing Production Lines | p. 636 |
Designing New Production Lines | p. 637 |
The Traditional Approach | p. 637 |
A Factory Physics Approach | p. 638 |
Other Facility Design Considerations | p. 639 |
Capacity Allocation and Line Balancing | p. 639 |
Paced Assembly Lines | p. 640 |
Unbalancing Flow Lines | p. 640 |
Conclusions | p. 641 |
The Line-of-Balance Problem | p. 642 |
Study Questions | p. 645 |
Problems | p. 645 |
Synthesis-Pulling It All Together | p. 647 |
The Strategic Importance of Details | p. 647 |
The Practical Matter of Implementation | p. 648 |
A Systems Perspective | p. 648 |
Initiating Change | p. 649 |
Focusing Teamwork | p. 650 |
Pareto's Law | p. 651 |
Factory Physics Laws | p. 651 |
A Factory Physics Parable | p. 654 |
Hitting the Trail | p. 654 |
The Challenge | p. 657 |
The Lay of the Land | p. 657 |
Teamwork to the Rescue | p. 660 |
How the Plant Was Won | p. 666 |
Epilogue | p. 668 |
The Future | p. 668 |
References | p. 672 |
Index | p. 683 |
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