Organizational, systems and human issues in production planning, scheduling and control

With global markets and global competition, pressures are placed on manufacturing organizations to compress order fulfillment times, meet delivery commitments consistently and also maintain efficiency in operations to address cost issues. This chapter argues for a process perspective on planning, scheduling and control that integrates organizational planning structures, information systems as well as human decision makers. The chapter begins with a reconsideration of the gap between theory and practice, in particular for classical scheduling theory and hierarchical production planning and control. A number of the key studies of industrial practice are then described and their implications noted. A recent model of scheduling practice derived from a detailed study of real businesses is described. Socio-technical concepts are then introduced and their implications for the design and management of planning, scheduling and control systems are discussed. The implications of adopting a process perspective are noted along with insights from knowledge management. An overview is presented of a methodology for the (re-)design of planning, scheduling and control systems that integrates organizational, system and human perspectives. The most important messages from the chapter are then summarized.

Intelligent pipeline control - a simulation study in the automotive sector

Automotive producers are aiming to make their order fulfilment processes more flexible. Opening the pipeline of planned products for dynamic allocation to dealers/ customers is a significant step to be more flexible but the behaviour of such Virtual-Build-To-Order systems are complex to predict and their performance varies significantly as product variety levels change. This study investigates the potential for intelligent control of the pipeline feed, taking into account the current status of inventory (level and mix) and of the volume and mix of unsold products in the planning pipeline, as well as the demand profile. Five ‘intelligent’ methods for selecting the next product to be planned into the production pipeline are analysed using a discrete event simulation model and compared to the unintelligent random feed. The methods are tested under two conditions, firstly when customers must be fulfilled with the exact product they request, and secondly when customers trade-off a shorter waiting time for compromise in specification. The two forms of customer behaviour have a substantial impact on the performance of the methods and there are also significant differences between the methods themselves. When the producer has an accurate model of customer demand, methods that attempt to harmonise the mix in the system to the demand distribution are superior.