Showing papers in "Production Planning & Control in 2004"
TL;DR: In this paper, the authors explore a method to assess assets performance and predict the remaining useful life, which would lead to proactive maintenance processes to minimize downtime of machinery and production in various industries, thus increasing efficiency of operations and manufacturing.
Abstract: This paper explores a method to assess assets performance and predict the remaining useful life, which would lead to proactive maintenance processes to minimize downtime of machinery and production in various industries, thus increasing efficiency of operations and manufacturing. At first, a performance model is established by taking advantage of logistic regression analysis with maximum-likelihood technique. Two kinds of application situations, with or without enough historical data, are discussed in detail. Then, real-time performance is evaluated by inputting features of online data to the logistic model. Finally, the remaining life is estimated using an ARMA model based on machine performance history; degradation predictions are also upgraded dynamically. The results such as current machine running condition and the remaining useful life, are output to the maintenance decision module to determine a window of appropriate maintenance before the machine fails. An application of the method on an elevator ...
264 citations
TL;DR: In this paper, the authors adjust the typical customer order decoupling point (CODP) typology and show how the engineering resources can be integrated with the production process so as to take the features of mass customization environments into account.
Abstract: In recent years the customer order decoupling point (CODP) has gained increased acceptance as an important concept when organizing value-adding activities in production and logistics The CODP, which is defined as the point in the value-adding material flow that separates decisions made under uncertainty from decisions made under certainty concerning customer demand, is however normally only used for production- and distribution- related activities Here we adjust the typical CODP typology and show how the engineering resources can be integrated with the production process so as to take the features of mass customization environments into account This paper also examines existing mass customization frameworks and offers a more thorough and nuanced typology for classifying various levels of mass customization Finally, the adjusted CODP typology is used as a foundation for developing a reliable order promise process for mass customizers
251 citations
TL;DR: This paper analyses mass customization, postponement and modularization strategies through a ‘modularization characteristic curve’, which is shaped by two variables: opportunities for modularization and interface constraints, which represent the aggregate effect from interface compatibility effects, component customization, value inputs and supplier–buyer interdependence.
Abstract: This paper focuses on three interrelated and complementary strategies for managing supply-chain integration: mass customization, postponement and modularization. While the goal of mass customizatio...
203 citations
TL;DR: A large amount of research works on the adoption of multi-agent systems (MAS) in several industrial environments has flourished as discussed by the authors, which assumes the presence of several decision-making entities, distributed inside the manufacturing system, interacting and cooperating each other.
Abstract: The ever fast changes of customers’ needs and demands ask for reconfigurable and adaptive production systems, which can provide companies with the proper level of agility and effectiveness, without disregarding at the same time cost factors. In the last decade, a large amount of research works on the adoption of multi-agent systems (MAS) in several industrial environments has flourished. This approach, unlike traditional centralized or multilevel hierarchical approaches, assumes the presence of several decision-making entities, distributed inside the manufacturing system, interacting and cooperating each other in order to achieve optimal global performance. Aim of this paper is at first to provide readers, which are not experienced with the multi-agent approach, with some definitions and categorizations of this paradigm. Secondarily, by making use of an extensive database of more than 100 contributions on this field, authors intend to evaluate how multi-agents systems have really impacted on the industria...
195 citations
TL;DR: In this paper, the authors take a step towards integrating these perspectives into a more systemic view of mass customization strategy implementation, exploring how a firm's supply chain should be configured when different degrees of customization are offered.
Abstract: Much of the research on mass customization strategy implementation reflects a functional focus, considering product design, marketing, manufacturing or sourcing, individually. This paper takes a step towards integrating these perspectives into a more systemic view of mass customization strategy implementation. More precisely, the paper explores how a firm's supply chain – meant as the whole of its supply, manufacturing and distribution networks – should be configured when different degrees of customization are offered. The empirical research consists of a multiple case study including firms in the telecommunications, transportation vehicles and food processing equipment industries. Case analyses highlighted that the degrees of freedom customers have in specifying product features, heavily affects the supply-chain configuration, as well as product architecture and, ultimately, firm performances. Our findings further show that two peculiar supply-chain configurations can be identified, each one suggesting a...
192 citations
TL;DR: In this article, the authors report the results of a survey on the critical success factors (CSFs) of web-based supply-chain management systems (WSCMS), and an exploratory factor analysis of the survey data revealed five major dimensions of the CSFs for WSCMS implementation.
Abstract: This paper reports the results of a survey on the critical success factors (CSFs) of web-based supply-chain management systems (WSCMS). An empirical study was conducted and an exploratory factor analysis of the survey data revealed five major dimensions of the CSFs for WSCMS implementation, namely (1) communication, (2) top management commitment, (3) data security, (4) training and education, and (5) hardware and software reliability. The findings of the results provide insights for companies using or planning to use WSCMS.
151 citations
TL;DR: In this paper, the authors present definitions and explanations of the different approaches to mass customization, and describe the potential reasons for and benefits of mass customization. But, despite the strong interest in configurational research in the business and operations strategy area, there are few works that develop and propose models for underst...
Abstract: This paper introduces the aim, scope and content of this special issue on mass customization. It begins by providing a background review of mass customization, which revolves around two questions: what is mass customization, and why mass customize? By focusing on these, the paper presents definitions and explanations of the different approaches to mass customization, and describes the potential reasons for and benefits of mass customization. In addition to setting the scene for the special issue, this introductory review asserts that there is a relative dearth of research on how to design and operate a manufacturing system capable of mass customizing. This is a system design or configuration issue, which involves determining the most appropriate or viable design for the available range of multiple and interdependent design variables. However, despite the strong interest in configurational research in the business and operations strategy area, there are few works that develop and propose models for underst...
117 citations
TL;DR: In this article, the experiences of a virtual supply chain (VSC) company are discussed with reference to the strategies, methods and technologies of its supply-chain, which aims for improved customer satisfaction and hence for overall competitiveness.
Abstract: In global business competition, companies believe greater transparency in supply-chain operations and collaboration is very important for success. Transparency brings accountability and responsibility. This openness in the supply-chain allows companies to see how their suppliers are performing, from their sourcing of raw materials to their delivery to the retail outlet. Achieving greater transparency in the supply chain requires the development of comprehensive e-Logistics tools, which provide all players with open communication and shared information in every stage of the order-to-delivery process. Supply-chain transparency in ordering, inventory and transportation is a prerequisite for optimization and is critical for making business decisions. In this paper, the experiences of a virtual supply-chain (VSC) company are discussed with reference to the strategies, methods and technologies of its supply-chain. The supply-chain aims for improved customer satisfaction and hence for overall competitiveness in ...
117 citations
TL;DR: In this article, the optimal replenishment policy under conditions of permissible delay in payments within an economic production quantity (EPQ) framework was investigated, and the convexity of the total annual re...
Abstract: This paper investigates the optimal replenishment policy under conditions of permissible delay in payments within an economic production quantity (EPQ) framework. In 1985, Goyal assumed that: 1. The unit selling price and the unit purchasing price are equal. 2. The replenishment rate is infinite. 3. At the end of the credit period, the account is settled. The retailer starts paying for higher interest charges on the items in stock and returns money of the remaining balance immediately when the items are sold. The main purpose of this paper is to modify Goyal's model to presume that the unit selling price and the unit purchasing price are not necessarily equal to reflect the real-life situations, and assumes the replenishment rate is finite. Furthermore, this paper will propose that at the end of the credit period, the retailer will make a partial payment on total purchasing cost and pay off the remaining balance by loan from the bank. One theorem is obtained to explore the convexity of the total annual re...
102 citations
TL;DR: In this paper, a robust optimization model is developed to solve the aggregate production planning problems in an environment of uncertainty in which the production cost, labour cost, inventory cost, and hiring and layoff cost are minimized.
Abstract: The aggregate production planning (APP) problem considers the medium-term production loading plans subject to certain restrictions such as production capacity and workforce level. It is not uncommon for management to often encounter uncertainty and noisy data, in which the variables or parameters are stochastic. In this paper, a robust optimization model is developed to solve the aggregate production planning problems in an environment of uncertainty in which the production cost, labour cost, inventory cost, and hiring and layoff cost are minimized. By adjusting penalty parameters, decision-makers can determine an optimal medium-term production strategy including production loading plan and workforce level while considering different economic growth scenarios. Numerical results demonstrate the robustness and effectiveness of the proposed model. The proposed model is realistic for dealing with uncertain economic conditions. The analysis of the tradeoff between solution robustness and model robustness is al...
98 citations
TL;DR: In this paper, a case study on the use of multi-agents for integrated dynamic scheduling of steel milling and casting is presented, where each agent embodies its own scheduling model and realizes its local predictive-reactive schedule taking into account local objectives, real-time information and information received from other agents.
Abstract: This paper presents a case study on the use of multi-agents for integrated dynamic scheduling of steel milling and casting. Steel production is an extremely complex problem requiring the consideration of several different constraints and objectives of a range of processes in a dynamic environment. Most research in steel production scheduling considers static scheduling of processes in isolation. In contrast to earlier approaches, the multi-agent architecture proposed consists of a set of heterogeneous agents which integrate and optimize a range of scheduling objectives related to different processes of steel production, and can adapt to changes in the environment while still achieving overall system goals. Each agent embodies its own scheduling model and realizes its local predictive-reactive schedule taking into account local objectives, real-time information and information received from other agents. Agents cooperate in order to find a globally good schedule, which is able to effectively react to real-...
TL;DR: In this paper, it is argued that while mass customization can increase the value of an offering, it is not always the case, in other words, mass customization does not represent the best strategy for all firms in all cases.
Abstract: The purpose of this paper is to ask the question – does mass customization really hold the key to customer value? It is argued that while mass customization can, and often does, increase the value of an offering, it is not always the case. In other words, mass customization does not represent the best strategy for all firms in all cases. Neoclassical economists tend to examine the concept of value in terms of utility. Utility is a measure of satisfaction a consumer receives from consumption of goods or services. Utility theory states that consumers spend their income to maximize their satisfaction or utility (Bowman and Ambrosini 2000). In this light, the concept of value delves deeper into the reasons behind consumer choice; in other words, how do consumers decide which offering will bestow maximum utility? For example, Zeithaml incorporates the notion of utility in her definition but goes further to encompass the basis on which utility is assessed, i.e. through what is given and what is received. It is ...
TL;DR: The PABADIS approach as discussed by the authors uses mobile and residential agents to establish distributed intelligence on the level of manufacturing execution systems and integration of distributed intelligence at the field control level, respectively.
Abstract: To manage the emerging problems of companies in today's economical surroundings a new thinking in control is required. On the level of field control a step to distributed systems based on distributed intelligence is the state of the art. But on the above levels of control, central and therefore inflexible systems are predominant. This leads to rigid control structures unable to react on system changes with respect to machinery and product programme in a fast and cost-saving way. The PABADIS approach aims in solving the mentioned problems by introduction of horizontal as well as vertical flexibility into the control structure. This flexibility is reached by using mobile and residential agents to establish distributed intelligence on the level of manufacturing execution systems and integration of distributed intelligence on the field control level.
TL;DR: In this article, the main distributed manufacturing paradigms are briefly introduced and various forms of interdependence that commonly constrain manufacturing activities are reviewed, as well as the coordination mechanisms used to manage them.
Abstract: This paper addresses two fundamental issues inherent to every manufacturing system. These issues concern the coordination and control of manufacturing activities. In doing so, many aspects are reviewed and analysed. First, the main distributed manufacturing paradigms are briefly introduced. Next, the various forms of interdependence that commonly constrain manufacturing activities are reviewed, as well as the coordination mechanisms used to manage them. Then, after analysing different approaches developed to address coordination and control of manufacturing activities in distributed and agent-based manufacturing systems, this paper highlights the limits of the existing classification schemes for coordination mechanisms and provides a new scheme that extends beyond those previously reviewed in order to take into account recent advances. The studied distributed manufacturing paradigms are finally compared in terms of coordination and control.
TL;DR: This paper has analysed 23 e-Business frameworks to identify their basic features and to categorize them, and discusses experiences from XML-based supply-chain integration.
Abstract: Several initiatives support supply-chain integration by using Extensible Markup Language (XML). We study the main XML technologies to accomplish the integration. The basic XML technologies enable straightforward exchange of data as XML documents between the trading partners in a supply chain. We clarify the motivation to standardize the use of XML technologies in e-Business frameworks. We have analysed 23 e-Business frameworks to identify their basic features and to categorize them. A comparison is made between eight important frameworks. The paper also discusses experiences from XML-based supply-chain integration. The existing experiences are limited and comparison with Electronic Data Interchange (EDI) is not simple. A shared understanding of business documents and business processes is necessary for supply-chain integration, and XML technologies alone do not solve all these issues.
TL;DR: A case study of schedule nervousness based on field observations in a shoe manufacturing company in Indonesia is presented in this article, where a model to quantify nervousness is also presented, and the authors provide an insight that efforts to quantify and understand how it occurred, are necessary in order to reduce nervousness.
Abstract: Schedule nervousness has received significant attention from the academics for almost three decades. However, the majority of published works on schedule nervousness have relied upon experimental results as a basis for making conclusions and there appears to be very little field-based evidence presented in the relevant literature. This paper presents a case study of schedule nervousness based on field observations in a shoe manufacturing company in Indonesia. A model to quantify nervousness is also presented. This study provides an insight that schedule nervousness is an important issue in practice and efforts to quantify nervousness, as well as to understand how it occurred, are necessary in order to reduce nervousness.
TL;DR: In this paper, a case study is described that prototypes the use of an internet-enabled production information system designed to assess the feasibility of driving a build-to-order methodology through three tiers of a high-volume, high-variety supply chain.
Abstract: Mass customization initiatives are usually concerned with analysing and improving the flexibility of manufacturing operations to support the modular build of complex products. This paper is concerned with extending the concept of customization to manufacturing activities upstream of the final product assembly process. A case study is described that prototypes the use of an internet-enabled production information system designed to assess the feasibility of driving a build-to-order methodology through three tiers of a high-volume, high-variety supply chain. In addition, the characteristics that currently support mass customization environments and define the relationship between mass customization and supply-chain management are reviewed and discussed.
TL;DR: A distributed and decentralized information system, based on an architecture of agents and extensively using the internet, was designed and implemented, addressing the requirements of a make-to-order environment.
Abstract: There is an increasing interest in exploring the opportunities for competitive advantage that arise from reinforcing core competencies and innovative capabilities of the individual companies, and by forming integrated supply networks. In complex and dynamic environments such as the automotive and semiconductor industries, managing and co-ordinating the procurement of materials, their transformation into intermediate and finished products, and the distribution to the final customers, are very demanding tasks in terms of information systems. In general, current available software packages do not provide the full support needed for networked and distributed organizations, and are clearly insufficient in what concerns the planning and coordination activities needed in these heterogeneous environments. In order to adequately tackle these problems, this work proposes a multi-agent system architecture for real-time customer-order planning in distributed manufacturing enterprises, addressing the requirements of a...
TL;DR: In this paper, the effects of modularity and customer involvement on the production planning, channel and materials management practices at plants producing mass customized products are explored, based on a survey of manufacturing plants in the USA.
Abstract: Mass customization typologies based on modularity and customer involvement can be used to identify and classify mass customizers. This classification determines the initial choice of process design and determines the competitive capabilities of the manufacturing plant. However, the impact of modularity and customer involvement on the details of the production system have not been adequately addressed. This paper takes a tactical look at the implementation of mass customization by exploring the effects of modularity and customer involvement on the production planning, channel and materials management practices at plants producing mass customized products. This study uses data gathered from a survey of manufacturing plants in the USA. Comparing 126 mass customizers, this study finds that the type of modularity employed plays a major role in the choice of channel integration, inventory and planning techniques for mass customizers. The point of customer involvement in the production cycle does not make a sign...
TL;DR: In this paper, an e-Business planning framework is proposed which links both in strategic and operations management by applying quality function deployment (QFD), also known as house of quality, and the balanced scorecard (BSC) is used to provide an organization overview to objectives setting, critical in ensuring e-Initiatives are aligned with organization vision and objectives.
Abstract: E-Business represents new avenues for sustainable competitive advantage. Small and medium-sized enterprises (SMEs) are now expected to be digital-ready to continue as trading partners for their customers. SMEs require socio-technical skills and organizational skills and know-how to comprehend e-Potentials and transform them into e-Implementation. An e-Business planning framework is proposed here which links both in strategic and operations management by applying quality function deployment (QFD, also known as house of quality). The balanced scorecard (BSC) will be used to provide an organization overview to objectives setting, critical in ensuring e-Initiatives are aligned with organization vision and objectives. The paper presents the pilot stage of this research project, discussing how the proposed planning framework works. Data from a case study are employed, and expert advice was sought to prioritize and rank the system components (the ‘whats’) and their interrelationships. The paper begins with an in...
TL;DR: A hierarchical organized model with distributed, cooperating agents was developed and a modular component diagnosis and monitoring (CDM) system is realized that enables the integration of legacy monitoring and diagnostic tools, specific to the application area.
Abstract: This paper presents a concept for building up a distributed monitoring and diagnosis system for complex industrial applications. For this purpose, a hierarchical organized model with distributed, cooperating agents was developed. The hierarchical aspect guarantees a predictable behaviour of the system with a high performance and the flexibility of the system is ensured by the federal distribution (Bongaerts 1998). By using this approach, a modular component diagnosis and monitoring (CDM) system is realized that enables the integration of legacy monitoring and diagnostic tools, specific to the application area. Universal applicable mechanisms were found to perform diagnostic processes and to improve the quality of a diagnosis by handling different diagnostic mechanisms in parallel and by applying conflict resolution algorithms. This software architecture for monitoring and diagnosis was developed by the University of Karlsruhe in cooperation with three industrial partners and one research institute within ...
TL;DR: In this paper, the authors investigate the impact that implementing quality improvement (QI) processes has on manufacturing flexibility and find that firms with QI programs achieve higher levels of manufacturing flexibility, though with a worse fit to the requirements of the environment.
Abstract: The purpose of this current research is to investigate the impact that implementing quality improvement (QI) processes has on manufacturing flexibility. First, we analyse whether firms that introduce QI processes better adapt their manufacturing flexibility level to the requirements of the environment. Second, we look at whether there are significant differences in this fit in terms of the manufacturing flexibility dimensions between firms that implement QI processes and those that do not. Third, we concentrate on finding out how QI processes intervene as a mediating mechanism in the relationship between manufacturing flexibility fit and performance. In order to do this, we have made a wide-ranging, transnational study within the framework of the European Union, using data from 417 European firms. The results reveal that firms with QI programs achieve higher levels of manufacturing flexibility, though with a worse fit to the requirements of the environment. This is due, not to a lack of flexibility but, r...
TL;DR: In this paper, the authors document the upcoming challenges for purchasing professionals and define a new role for purchasing managers based on in-depth discussions with a focus group of experts, and suggest key questions as an impetus for future research.
Abstract: Changing dynamics of the marketplace require that old mind-sets of the procurement function radically shift directions. Cost-based practices of the past should be replaced by a value-added focus in today's organizational supply channel. This paper, based upon in-depth discussions with a focus group of experts, documents the upcoming challenges for purchasing professionals and defines a new role for purchasing managers. Additionally, key questions are suggested as an impetus for future research.
TL;DR: In this article, a negotiation mechanism called "contract net with constraint propagation protocol" was developed for regulating the interaction between holons in the system and this protocol also implements a negotiation-driven scheduling procedure.
Abstract: Several trends in society in general, and manufacturing in particular, have changed the way business was made in the last decades of the 20th century, setting new requirements for companies and individuals. The research question being addressed in this paper is concerned with the ability to build computer-supported manufacturing systems able to cope with current and future requirements. For this matter, a hypothesis based on the holonic and multi-agent paradigms is proposed. The paper describes a holonic architecture for manufacturing enterprises and a prototype system (named Fabricare) for manufacturing orders scheduling based on that architecture. A negotiation mechanism called ‘contract net with constraint propagation protocol’ was developed for regulating the interaction between holons in the system. This protocol also implements a negotiation-driven scheduling procedure.
TL;DR: In this paper, the authors present a methodology for both a quantitative and a qualitative evaluation of a certain e-Procurement investment starting from the ide... and the proposed methodology aims to give a structured procedure for both qualitative and quantitative evaluation of the investment.
Abstract: 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 ide...
TL;DR: In this article, a theoretical taxonomy is developed to assess current capabilities and identify areas of change to move towards a mass customization environment, which can be used by management to strategically assess their current capabilities.
Abstract: Develops a theoretical taxonomy that can be used by management to strategically assess their current capabilities and identify areas of change to move towards a mass customization environment. Although many of the components have been previously published, this paper brings them together as a unified whole. The classification is applied to case study supply chains with a focus upon the primary producer. These are illustrated through process maps. By adopting a mass customization approach, these companies could generate competitive advantages. However, this is difficult for them to achieve in the dynamic production environment often advocated for mass customization. A more stable, supply-chain-based approach is needed. With this in mind, we use vendor-managed inventory to demonstrate the application of the taxonomy. This provides greater flexibility in the logistics system to deliver mass customization. The paper concludes that only by using a unified taxonomy can management get a full understanding of the...
TL;DR: In this article, the authors developed a framework to formulate electronic business capabilities and integrated supply-chain management capabilities, and then empirically tested a taxonomy that illustrated a firm's strategic positioning along these two components.
Abstract: Electronic business refers to the way of doing business electronically and has a great impact on business processes, particularly on integrated supply-chain management. However, most of these issues are descriptive and have often been mentioned without clearly indicating how the process can be implemented gradually and what this integration really requires. This study developed a framework to formulate electronic business capabilities and integrated supply-chain management capabilities, and then empirically tested a taxonomy that illustrated a firm's strategic positioning along these two components. The results from the Australian manufacturing industry indicated there to be four general strategic options that firms adopted: the Lagger, the E-Bus player, the ISCM player and the Integrator. Furthermore, the manufacturers tended to compete on three competitive dimensions simultaneously: information integrity, networking and joint efficiency operations, and B2B applications.
TL;DR: In this paper, the authors explore the purchasing function on behalf of the provider, when the purchasing takes the form of a request for proposals (RfP) from the client.
Abstract: This paper aims to explore the purchasing function on behalf of the provider, when the purchasing takes the form of a request for proposals (RfP) from the client. A methodology for handling the bidding process is presented, illustrated by a case study from the IT sector. The proposed methodology places risk as a factor for the selection of the best and final offer of the provider in addition to the traditional decision factors: delivery time, product cost and performance. The method is supported by a structured corporate memory and a decision support system based on the analytical hierarchy process.
TL;DR: The case of a traditional auto parts manufacturer that introduced information technology is presented, affected by the economic environment, and cooperated with its suppliers to introduce an e-Procurement system to enhance its competitiveness.
Abstract: This paper reviews the implementation of e-Commerce initiatives, especially e-Procurement initiatives. From a review of the literature, the principles and implementation models that enterprises can use in introducing information technology are presented. In addition, the case of a traditional auto parts manufacturer that introduced information technology is presented. Affected by the economic environment, the company decided to seek help from the government, and cooperated with its suppliers to introduce an e-Procurement system to enhance its competitiveness. The paper presents an in-depth discussion of the strategies, models and important factors involved in introducing this e-Procurement system. This study represents a valuable reference for other enterprises that wish to introduce information systems in their companies.
TL;DR: In this paper, a three-tiered hierarchical production plan for a strictly make-to-order steel fabrication plant with the objective of developing a production plan and master schedule for a set of product archetypes is implemented.
Abstract: A three-tiered hierarchical production plan (HPP) for a strictly make-to-order steel fabrication plant with the objective of developing a production plan and master schedule for a set of product archetypes is implemented. Data are collected from an actual steel fabrication plant located in the Midwestern section of the US. An aggregate linear programming model, a non-linear disaggregate model and a master production schedule comprise the respective tiers. Appropriate models provide the forecasts needed in the first two tiers. A production plan and master schedule based on data collected at the plant, benefits expected for its implementation and practical limitations are reported.