An application of master schedule smoothing and planned lead time control
Make-to-order (MTO) manufacturers must ensure concurrent availability of all parts required for production, as any unavailability may cause a delay in completion time. A major challenge for MTO manufacturers operating under high demand variability is to produce customized parts in time to meet inter...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
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2013
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| Online Access: | https://hdl.handle.net/10356/98150 http://hdl.handle.net/10220/12323 |
| _version_ | 1826122386489999360 |
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| author | Graves, Stephen C. Teo, Chee-Chong Bhatnagar, Rohit |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Graves, Stephen C. Teo, Chee-Chong Bhatnagar, Rohit |
| author_sort | Graves, Stephen C. |
| collection | NTU |
| description | Make-to-order (MTO) manufacturers must ensure concurrent availability of all parts required for production, as any unavailability may cause a delay in completion time. A major challenge for MTO manufacturers operating under high demand variability is to produce customized parts in time to meet internal production schedules. We present a case study of a producer of MTO offshore oil rigs that highlights the key aspects of the problem. The producer was faced with an increase in both demand and demand variability. Consequently, it had to rely heavily on subcontracting to handle production requirements that were in excess of its capacity. We focused on the manufacture of customized steel panels, which represent the main sub-assemblies for building an oil rig. We considered two key tactical parameters: the planning window of the master production schedule and the planned lead time of each workstation. Under the constraint of a fixed internal delivery lead time, we determined the optimal planning parameters. This improvement effort reduced the subcontracting cost by implementing several actions: the creation of a master schedule for each sub-assembly family of the steel panels, the smoothing of the master schedule over its planning window, and the controlling of production at each workstation by its planned lead time. We report our experience in applying the analytical model, the managerial insights gained, and how the application benefits the oil-rig producer. |
| first_indexed | 2024-10-01T05:47:39Z |
| format | Journal Article |
| id | ntu-10356/98150 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T05:47:39Z |
| publishDate | 2013 |
| record_format | dspace |
| spelling | ntu-10356/981502023-05-19T06:44:44Z An application of master schedule smoothing and planned lead time control Graves, Stephen C. Teo, Chee-Chong Bhatnagar, Rohit Nanyang Business School School of Civil and Environmental Engineering Singapore-MIT Alliance Programme Production Smoothing Oil-rig Building DRNTU::Engineering::Civil engineering Make-to-order (MTO) manufacturers must ensure concurrent availability of all parts required for production, as any unavailability may cause a delay in completion time. A major challenge for MTO manufacturers operating under high demand variability is to produce customized parts in time to meet internal production schedules. We present a case study of a producer of MTO offshore oil rigs that highlights the key aspects of the problem. The producer was faced with an increase in both demand and demand variability. Consequently, it had to rely heavily on subcontracting to handle production requirements that were in excess of its capacity. We focused on the manufacture of customized steel panels, which represent the main sub-assemblies for building an oil rig. We considered two key tactical parameters: the planning window of the master production schedule and the planned lead time of each workstation. Under the constraint of a fixed internal delivery lead time, we determined the optimal planning parameters. This improvement effort reduced the subcontracting cost by implementing several actions: the creation of a master schedule for each sub-assembly family of the steel panels, the smoothing of the master schedule over its planning window, and the controlling of production at each workstation by its planned lead time. We report our experience in applying the analytical model, the managerial insights gained, and how the application benefits the oil-rig producer. Accepted version 2013-07-26T01:17:49Z 2019-12-06T19:51:28Z 2013-07-26T01:17:49Z 2019-12-06T19:51:28Z 2012 Journal Article Teo, C.-C., Bhatnagar, R., & Graves, S. C. (2012). An application of master schedule smoothing and planned lead time control. Production and Operations Management, 21(2), 211-223. doi:10.1111/j.1937-5956.2011.01263.x 1059-1478 https://hdl.handle.net/10356/98150 http://hdl.handle.net/10220/12323 10.1111/j.1937-5956.2011.01263.x en Production and Operations Management © 2012 John Wiley & Sons, Inc. All rights reserved. This paper was published in Production and Operations Management and is made available with permission of John Wiley & Sons, Inc. 30 p. application/pdf |
| spellingShingle | Production Smoothing Oil-rig Building DRNTU::Engineering::Civil engineering Graves, Stephen C. Teo, Chee-Chong Bhatnagar, Rohit An application of master schedule smoothing and planned lead time control |
| title | An application of master schedule smoothing and planned lead time control |
| title_full | An application of master schedule smoothing and planned lead time control |
| title_fullStr | An application of master schedule smoothing and planned lead time control |
| title_full_unstemmed | An application of master schedule smoothing and planned lead time control |
| title_short | An application of master schedule smoothing and planned lead time control |
| title_sort | application of master schedule smoothing and planned lead time control |
| topic | Production Smoothing Oil-rig Building DRNTU::Engineering::Civil engineering |
| url | https://hdl.handle.net/10356/98150 http://hdl.handle.net/10220/12323 |
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