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Order Review/Release in a Job Shop

Order Review/Release in a Job Shop. 1998 년 9 월 10 일 산업공학과 공장자동화실험실 최 병 대. Order review and release strategies in a job shop environment: a review and a classification. Bergamaschi, D.*, Cigolini, R.**, Perona, M.** and Portioli, A.**, IJPR, 1997, 35(2), 399-420.

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Order Review/Release in a Job Shop

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  1. Order Review/Release in a Job Shop 1998년 9월 10일 산업공학과 공장자동화실험실 최 병 대

  2. Order review and release strategies in a job shop environment: a review and a classification Bergamaschi, D.*, Cigolini, R.**, Perona, M.** and Portioli, A.**, IJPR, 1997, 35(2), 399-420. *Former student of Politecnico di Milano, Milano, Italy **Dipartimento di Economia e Produzione, Politecnico di Milano, Milano, Italy

  3. Contents • Objectives of this paper • Order Review/Release System의 역할 • Order Review/Release System의 구성 • Literature Review • Analysis and Classification • Conclusion and Further Research Paths

  4. Objectives of this paper • A review and a classification framework of the main research work carried out to date • A better understanding of ORR strategies and the most promising research paths

  5. Order Review/Release System의 역할 • Planning 단계에서 생성된 생산 계획오더를 shop floor의 실행 단계로의 전환을 관리 • Decision: which order, at what time, under what conditions to release • WIP control과 workload balance를 통해 shop의 utilization을 높이고, 인도기간을 줄여 delivery performance를 향상시키는 것을 목적으로 함 • both filtering mechanism and capacity management tool

  6. Order Review/Release System의 구성 • Order Entry Phase • Routing Check, Pick List Check, Due/Delivery Date Assignment • Pre Shop Pool Management Phase • Sequencing orders according to their priority • EDD, ERD, CR, Capacity slack based rule • Order Release Phase • 어떤 order를 언제 shop에 release할 것인가를 결정(triggering or input control mechanism) • employ three types of information: current pre-shop pool status, current shop status, planned shop performance (manufacturing lead time, delivery timeliness)

  7. MPS Production Planning MRP System Customers Order entry phase Order Review and Release Job arrival Pre shop pool management phase Pre Sop Pool Order release phase Job release Production Control Shop floor Job departure Position of ORR within PPC

  8. Literature Review (1/6) • Wight(1970) • first to understand and describe the importance of controlled release • The interactions between ORR and dispatching rules • Nicholson et al.(1971), Bechte(1988): if job release is carefully controlled, sophisticated dispatching rules might be replaced by a simple FCFS • Bertrand(1983): even with an effective order release procedure, such rules as tSPT can yield to better shop performance than FCFS • Ragatz et al.(1988): the greatest advantage from the use of ORR appears to be achieved with non due date related sequencing rules • Ahmed et al.(1992): an interaction does exist among three activities of a job scheduling policy (due-date assignment, ORR and dispatching) • Perona et al.(1996): the impact of an ORR procedure should be evaluated while considering all the relevant scheduling decisions

  9. Literature Review (2/6) • The relationship between WIP, MLT and throughput rate • Little (1961): from a theoretical point of view • Shimoyashiro (1984): simulation approach • A strong indication towards the existence of a critical level of WIP inventory that should be kept in the system. • These conclusions led researchers to look for an effective way of controlling both lead time and WIP inventory through the control of work input to the shop Utilization MLT Desired WIP level WIP

  10. Literature Review (3/6) • Basic mechanisms to control the shop's workload • the limitations of load released to the shop • Wiendahl (1995), Bechte(1988, 1994), Ragatz et al. (1988), Bobrowski (1989), Philipoom et al. (1993) • the balancing of workload among different work centers of the shop • Irastorza and Deane (1974): MILP • LIMITE by Portioli (1991): loosening the rigid limitation of workload for improving overall workload balance

  11. Literature Review (4/6) • Application of workload control • Input control • A feedback tool to control and reduce lead times through shop load limitations and balancing • Output control • The regulation of the shop production capacity with a feed-forward approach • Hendry and Kingsman (1991): input과 output을 동시에 control • Onur and Fabrycky (1987): an combined feed-forward/back control procedure • To prevent specific work center from being idle • Glassey and Resende (1988): Starvation Avoidance • Melnyk and Ragatz (1989): WCEDD, AGGWNQ • may prove ineffective whenever multiple bottleneck work centers are dynamically changing over time, subject to the particular order mix processed

  12. Literature Review (5/6) • Broadening ORR: time-wise workload smoothing • Melnyk & Ragatz (1991) • the effects of broadening the range of ORR functions, by smoothing workload over time • Fredendall and Melnyk (1995) • ORR’s potential is greatly improved by providing for a time-wise workload balancing with an extended schedule visibility • Contributions to OE and PSP phases • Bobrowski (1989): loading exchange heuristics in OE phase • Philipoom and Fry (1992): consider rejecting customer orders • Philipoom et al. (1993): demonstrated the choice of an appropriate PSP priority rule plays a leading role in a ORR procedure effectiveness and thus has a significant impact on overall shop performance

  13. Literature Review (6/6) • Order Review/Release에 대한 상반된 견해 • Positive view: reduced stock carrying cost, shop congestion and flow times • Negative view • Bertrand(1983), Baker(1984), Kanet (1988), Melnyk and Ragatz(1988), Melnyk et al.(1994): long delay in the pool, overall MLT may increase • Bechte(1988), Perona and Portioli(1996) • above authors might have undervalued the possibility offered by an appropriate ORR strategy to better balance workloads both over time and among the work centers of the shop, thus achieving better utilization and throughput rate, together with improved MLTs and delivery performance.

  14. Analysis and Classification (1/8) • Eight dimensions of OR methodologies • Order release mechanism • Timing convention • Workload measure • Aggregation of workload measure • Workload accounting overtime • Workload control • Capacity planning • Schedule visibility

  15. Analysis and Classification (2/8) • Order release mechanism: mechanism that triggers the release of one or more orders • Load limited methodologies: decide which orders should be released based upon their distinctive features and the existing workload in the shop • Time phased methodologies: computing a release time for each order based on information about jobs in the pool such as: due date, job work content and job routing (MIL, CMS)

  16. Analysis and Classification (3/8) • Timing convention: determines when an order release can take place • Discrete: periodic interval • Continuous: MIL, SA, AGGWNQ, WCEDD, ORM, CMS • Workload measure • number of jobs: MIL(Ragatz), MNJ, CMS • work content (hours or percentage of the planned capacity) • A logic which looks after more than the simple number of jobs on the shop floor is needed at the release stage

  17. Analysis and Classification (4/8) • Aggregation of workload measure • total shop load: AGGWNQ, MNJ, MAX • bottleneck work center load: SA, ORM • load by each work center • In a job shop environment a workload control methodology seems to be fully effective only if the workload distribution among work centers is considered (Melnyk et al. 1989)

  18. Analysis and Classification (5/8) • Workload accounting over time • load의 종류: load on hand, load in transit, released load • Attemporal: (total shop load 일 때는 대부분 attemporal) • Time bucketing: SCOPE2, BFL, FFL • requires a pre-processing scheduling activity • Probabilistic: LOMC, LIMITE • a greater robustness against the typical industrial perturbations • authors disagree the way by which workload accounting should be accounted over time

  19. Analysis and Classification (6/8) • Workload control • Upper bound only: BFL, LOMC, FFL, PBB, MNJ, ORM, MAX • control the WIP level and therefore the statistical distribution of MLTs result in a reduced mean with a smaller coefficient of variation • Upper and lower bounds: JSSWC • trying to ensure that each work center is provided with an appropriate buffer • Lower bound only: SA, AGGWNQ, WCEDD • potential drawback: the assumption of a fixed bottleneck • Workload balancing: Irastorza-Deane, SCOPE 2, DI/OCS • selective release of orders to the shop on condition that the sum of deviations from aggregate balance of each machine center is reduced • Authors disagree about the way in which workload should be limited

  20. Analysis and Classification (7/8) • Capacity planning: controlling/adjusting capacity • Passive: feedback logic • Active: Irastorza-Deane, SCOPE 2, DI/OCS, JSSWC • Onur and Fabrycky(1987): if the feedback input control is combined with a feed-forward control mechanism through which the amount of production capacity available is adjusted, better shop performances can be adjusted.

  21. Analysis and Classification (8/8) • Schedule visibility • Limited: oriented at controlling the workload level in the shop during the next closest planning period • workload is actually smoothed over time, but only in order to optimize the next period, regardless how following periods could be affected • Extended (Irastorza-Deane, DI/OCS, MAX): oriented at achieving a more general optimization of the shop performances along a time horizon longer than a single time horizon (look-ahead module) • In time phased release mechanism, the schedule visibility is absent.

  22. Conclusion and Further Research Paths • Further Research Paths • To combine an upper & lower bounds approach with a continuous timing convention • The analysis of the workload control strategy by means of load balancing • A formalized investigation of the dimension related to workload accounting over time • Designing new techniques for capacity and workload planning in order to achieve good performances, while keeping them simple enough to be effectively implemented in a real-life industrial context • The adjustment of production capacity and the ability to optimize the order release over an extended time horizon • Time bucketing approach with schedule visibility

  23. References (1/4) • Ahmed, I. and Fisher, W. W., 1992, Due date assignment, job order release and sequencing interaction in job shop scheduling. Decision Sciences, 23, 633-647. • Baker, K. R., 1984, The effects of input control on the performance of a simple scheduling model. Journal of Operations Management,4(2), 99-112. • Bechte, W., 1988, Theory and practice of load-oriented manufacturing control. IJPR, 26, 375-395. • Bergamaschi, D., Cigolini, R., Perona, M. and Portioli, A., 1997, Order review and release strategies in a job shop environment: a review and a classification. IJPR, 35(2), 399-420. • Bertrand, J. W. M., 1983, The use of workload information to control job lateness in controlled and uncontrolled release production systems. Journal of Operations Management, 3, 79-92. • Bertrand, J. W. M. and van Ooijen, H. P. G., 1996, Integrating material coordination and capacity load smoothing in multi-product multi-phase production systems. IJPE, 46-47, 1-12. • Bobrowski, P. M., 1989, Implementing a loading heuristic in a discrete release job shop. IJPR, 27, 1935-1948.

  24. References (2/4) • Fredendall, L. D. and Melnyk, S. A., 1995, Assessing the impact of reducing demand variance through improved planning on the performance of a dual resource constrained job shop. IJPR, 27, 1935-1948. • Glassey, C. R. and Resende, M. G., 1988, Closed-loop job release control for VLSI circuit manufacturing. IEEE Transactions on Semiconductor Manufacturing, 1, 36-46. • Hendry, L. and Wong, S. K., 1994, Alternative order release mechanisms: a comparison by simulation. IJPR, 32, 2827-2842. • Lingayat, S., Mittenthal, J. and O'Keefe, R. M., 1995, An order release mechanism for a flexible flow system. IJPR, 33, 1241-1256. • Melnyk, S. A. and Ragatz, G. L., 1989, Order review/release: research issues and perspectives. IJPR, 27, 1081-1096. • Melnyk, S. A. and Ragatz, G. L. and Fredendall, L., 1991, Load smoothing by the planning and order review/release systems: a simulation experiment. Journal of Operations Management, 10(4), 512-523. • Melnyk, S. A., Tan, K. C., Denzler, D. R., 1994, Evaluating variance control, order review/release and dispatching: a regression analysis. IJPR, 32(5), 1045-1061.

  25. References (3/4) • Park., P. S. and Salegna, G. J., 1995, Load smoothing with feedback in a bottleneck job shop. IJPR, 33(6), 1549-1568. • Perona, M. and Portioli, A., 1996, An Enhanced loading model for the probabilistic workload control under imbalance. Production Planning and Control, 7(1), 68-78. • Philipoom, P. R. and Fry, T. D., 1992, Capacity-based order review/release strategies to improve manufacturing performance. IJPR, 30(11), 2259-2572. • Philipoom, P. R., Malhotra, M. K. and Jensen, J. B., 1993, An evaluation of capacity sensitive order review and release procedures in a job shops. Decision Sciences, 24(6), 1109-1133. • Shimoyashiro, S., Isoda, K. and Awane, H., 1984, Input scheduling and load balance control for a job shop. IJPR, 22(4), 597-605. • Roderick, L. M., Phillips, D. T. and Hogg, G. L., 1992, A comparison of order release strategies in production control systems. IJPR, 30(3), 611-626

  26. References (4/4) • Irastorza, J. C. and Deane, R. H., A loading and balancing methodology for job shop control. AIIE Transactions, 6, 302-307. • Melnyk, S. A. and Ragatz, G. L., 1988, Order review/release and its impact on the shop floor. Production and Inventory Management, 29, 13-17. • Onur, L. and Fabrycky, W. L., 1987, An input/output control system for the dynamic job shop. IIE Transactions, 19(1), (March), 88-97. • Ragatz, G. and Mabert, V. A., 1988, An evaluation of order release mechanisms in a job shop environment. Decision Sciences, 19, 167-189. • Wight, O. W., 1970, Input/Output control: a real handle on lead times. Production and Inventory Management, 11, 9-30.

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