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The Role of Work-In-Process Inventory in Serial Production Lines

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Abstract

We study simple, generic production systems to gain insight into the behavior of more complex systems. Results are presented for: identical workstations with and without buffers; balanced lines in which variability of processing times differs between stations; unbalanced lines; and lines with unreliable workstations. In general, buffers between workstations increase system capacity but with sharply diminishing returns. Position as well as capacity of the buffers are important. These results are preliminary, to be confirmed and extended by further study. 22 Refs.
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The Role of Work-in-Process Inventory in Serial Production
Lines
Richard Conway, William Maxwell, John O. McClain, L. Joseph Thomas,
To cite this article:
Richard Conway, William Maxwell, John O. McClain, L. Joseph Thomas, (1988) The Role of Work-in-Process Inventory in Serial
Production Lines. Operations Research 36(2):229-241. http://dx.doi.org/10.1287/opre.36.2.229
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... Reference [33] also connects buffer allocation with downtime. It shows that onedowntime buffering is sufficient to regain about 50% of production losses if the downtime is constant (deterministic). ...
... Thus, for in-process buffers, this research follows references [31] and [33] and provides additional results on rules-of-thumb for buffer capacity allocation necessary to accommodate downtime and achieve the desired production rate of serial production lines. One of the main purposes of this study is to generalize the results using several different machine models, such as those based on the exponential, gamma, log-normal, and ...
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Dissertation (Ph.D.)--University of Michigan.
... By adding an additional die at four stations, we find that, without any initial inventory, the throughput of options X1234, X1245, and X2345 is essentially equivalent. When combined with initial inventory, however, option X2345 is far superior, indicating that position as well as buffer size are important (Conway et al. 1988). By placing the bottleneck at the beginning of the line, the extra inventory at the other stations allows them to pass on rolls larger than six for a number of rounds (Gupta and Boyd 2011). ...
... The graphs for the other capacity options follow a similar pattern. This coincides with the findings in Conway et al. (1988) and Martin (2007) that a small amount of WIP can produce significant benefits, but the returns eventually diminish sharply. ...
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We provide and describe an Excel-based simulation of a classic dice game. Instructors can use the simulation in large classes to allow student teams to try to select the best combination of capacity and inventory-improvement options to maximize profit. Instructors generate the results during class in real time. The game also provides excellent debriefing opportunities for further insight. In this paper, we not only present the game itself, but we perform extensive numerical analysis to develop deeper insight regarding the effect of the different options. This analysis provides instructors with tools to modify our original costs to produce different winning combinations and to potentially play the game multiple times to strengthen the managerial insights derived in this illustration of addressing the problem of dependent events and statistical fluctuations in assembly lines. Instructors of analytics or modeling courses could even ask their students to design the basic Monte Carlo simulation model themselves. Survey evidence has shown enthusiastic student endorsement of the game, and pretest/posttest analysis suggests strong learning effects.
... Work in process (WIP) is a company's product that is in the production process, and still has not yet been produced and has not been sent to the storage area for the finished product. According to Conway, Maxwell, McClain, & Thomas (1988) [11] WIP is a company's product that has gone thoroughly the initial process and has not been processed. If there are more WIPs, the impacts that can be occurred are as follows: 1. ...
... These results highlight the influence of the buffer size, as confirmed by multiple authors such as [28]. In the numerical experiments presented, a simple line composed by only three workstations have been considered; for sure production efficiency differences between "G" and "B" scenarios would increase with the length of the line. ...
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In current industrial scenarios, the new paradigm of Industry 5.0 (I5.0) is gaining interest: considering the Industry 4.0 paradigm as a base, I5.0 is aimed at reaching a more sustainable, human-centric, and resilient industry. Under the I5.0 human-centric perspective, behavioural issues assume high criticality, thus requiring a more reliable prediction of operators' performances. In manual assembly lines, operators' performances are characterized by a stochastic behaviour over time. System's and operator's features cause the variability of task completion time: the former is related to properties of the work environment (e.g., ergonomics, cycle time), the latter is related to the intrinsic stochastic behaviour of operators. Furthermore, workers' features and their different attitudes to becoming fatigued, influence performance variability. In this context, the authors propose a new stochastic model that expresses the variability of execution times of operators involved in manual assembly lines by considering their differences in age, experience, and fatigue state. The novelty of the proposed model relies on considering the stochastic behaviour of workers influenced by age, experience as well as fatigue. The effectiveness of the proposed model is tested through numerical experiments of a job rotation scheduling problem to maximize productivity with proper worker-workstation assignments.
... In general, as CV increases, the process performance for production gets worse. Conway et al. (1988) investigated the effect of WIP inventories in flowshop production [14]. Through simulation, they concluded that the larger the CV, the lower the capacity of a production line, and WIP inventories were important to recover the capacity. ...
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Production scheduling faces three challenges, which are inconsistent key performance indicators (KPIs), processing time uncertainties, and production schemes. Applying modern portfolio theory (MPT), Li et al. (2021) proposed a ToB(α) heuristic to balance trade-offs in one-stage production. However, production schemes for optimizing average performance of individual KPIs, trade-off values, or worst-case scenarios affect the stability of a process differently, especially with processing time uncertainties. We propose an innovative approach using transfer functions for stability (TF4S) in balancing trade-offs in production scheduling. Our TF4S approach provides a systematic way to analyze the stability of one-stage production and can be extended to production scheduling for classic m-machine flow lines.
... Previous research on stochastic flow lines suggested that buffers should be installed at the center or near the center of balanced flow lines (see, e.g., Hillier & Boling, 1967;Hillier & Boling, 1979or Conway, Maxwell, McClain, & Thomas, 1988. Table 11 lists different cases for the allocation of spare parts in a balanced flow line. ...
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