Basic Factory Dynamics

Basic Factory Dynamics
1
© Wallace J. Hopp, Mark L. Spearman, http://www.factory-
1996, 2000
physics.com
HAL Case
Large Panel Line: produces unpopulated printed

circuit boards
Line runs 24 hr/day (but 19.5 hrs of productive time)

Recent Performance:
• throughput = 1,400 panels per day (71.8 panels/hr)
• WIP = 47,600 panels
• CT = 34 days (663 hr at 19.5 hr/day)
• customer service = 75% on-time delivery
Is HAL
lean?
What data do we need to
decide?
2
1996, 2000
physics.com
HAL - Large Panel Line Processes
Lamination (Cores): press copper and prepreg into core blanks
Machining: trim cores to size
Internal Circuitize: etch circuitry into copper of cores
Optical Test and Repair (Internal): scan panels optically for
defects
Lamination (Composites): press cores into multiple layer
boards
External Circuitize: etch circuitry into copper on outside of
composites
Optical Test and Repair (External): scan composites optically
for defects
Drilling: holes to provide connections between layers
Copper Plate: deposits copper in holes to establish connections
Procoat: apply plastic coating to protect boards
3
Sizing: cut panels into http://www.factory-
boards
© Wallace J. Hopp, Mark L. Spearman,
1996, 2000
physics.com
End of Line Test: final electrical test
HAL Case - Science?
External Benchmarking
Internal Benchmarking
Need relationships between WIP, TH, CT,

service!
4
1996, 2000
physics.com
Definitions
Workstations: a collection of one or more identical

machines.
Parts: a component, sub-assembly, or an assembly that
moves through the workstations.
End Items: parts sold directly to customers; relationship to
constituent parts defined in bill of material.
Consumables: bits, chemicals, gasses, etc., used in process
but do not become part of the product that is sold.
Routing: sequence of workstations needed to make a part.
Order: request from customer.
Job: transfer quantity on the line. 5
1996, 2000
physics.com
Definitions (cont.)
Throughput (TH): for a line, throughput is the average

quantity of good (non-defective) parts produced per unit
time.
Work in Process (WIP): inventory between the start and
endpoints of a product routing.
Raw Material Inventory (RMI): material stocked at
beginning of routing.
Crib and Finished Goods Inventory (FGI): crib
inventory is material held in a stockpoint at the end of a
routing; FGI is material held in inventory prior to
shipping to the customer.
Cycle Time (CT): time between release of the job at the
6
beginning of the routing until it reaches an inventory
http://www.factory-
point at the end of the

1996, 2000
routing.
physics.com
Parameters
Descriptors of a Line:
1) Bottleneck Rate (rb): Rate (parts/unit time or jobs/
unit time) of the process center having the highest long-
term utilization.
2) Raw Process Time (T0): Sum of the long-term

average process times of each station in the line.
3) Congestion Coefficient (α): A unitless measure of

congestion.
Note: we won’t use α
• Zero variability case, α = 0. quantitatively,
• “Practical worst case,” α = 1. but point it out to recognize
• “Worst possible case,” α = W0that. lines
with same r b and T 0 can behave
7
1996, 2000
very
http://www.factory-
physics.com
differently.
Parameters (cont.)
Relationship:
Critical WIP (W0): WIP level in which a line

having no congestion would achieve maximum
throughput (i.e., r b) with minimum cycle time (i.e.,
T0 ).
W 0 = rb T 0
8
1996, 2000
physics.com
The Penny Fab
Characteristics:
• Four identical tools in series.
• Each takes 2 hours per piece (penny).
• No variability.
• CONWIP job releases.
Parameters:
rb = 0.5 pennies/
hour
T0 = 8
hours
0.5 × 8 = 4
W0 =
α = pennies
0 (no variability, best case
conditions)
9
1996, 2000
physics.com
The Penny Fab
10
1996, 2000
physics.com
The Penny Fab (WIP=1)
Time = 0
hours
11
1996, 2000
physics.com
Time = 2
hours
12
1996, 2000
physics.com
Time = 4
hours
13
1996, 2000
physics.com
Time = 6
hours
14
1996, 2000
physics.com
Time = 8
hours
15
1996, 2000
physics.com
Time = 10
hours
16
1996, 2000
physics.com
Time = 12
hours
17
1996, 2000
physics.com
Time = 14
hours
18
1996, 2000
physics.com
Time = 16
hours
19
1996, 2000
physics.com
Penny Fab Performance
20
1996, 2000
physics.com
Time = 0
hours
21
1996, 2000
physics.com
Time = 2
hours
22
1996, 2000
physics.com
Time = 4
hours
23
1996, 2000
physics.com
Time = 6
hours
24
1996, 2000
physics.com
Time = 8
hours
25
1996, 2000
physics.com
Time = 10
hours
26
1996, 2000
physics.com
Time = 12
hours
27
1996, 2000
physics.com
Time = 14
hours
28
1996, 2000
physics.com
Time = 16
hours
29
1996, 2000
physics.com
Time = 18
hours
30
1996, 2000
physics.com
31
1996, 2000
physics.com
Time = 0
hours
32
1996, 2000
physics.com
Time = 2
hours
33
1996, 2000
physics.com
Time = 4
hours
34
1996, 2000
physics.com
Time = 6
hours
35
1996, 2000
physics.com
Time = 8
hours
36
1996, 2000
physics.com
Time = 10
hours
37
1996, 2000
physics.com
Time = 12
hours
38
1996, 2000
physics.com
Time = 14
hours
39
1996, 2000
physics.com
40
1996, 2000
physics.com
Time = 0
hours
41
1996, 2000
physics.com
Time = 2
hours
42
1996, 2000
physics.com
Time = 4
hours
43
1996, 2000
physics.com
Time = 6
hours
44
1996, 2000
physics.com
Time = 8
hours
45
1996, 2000
physics.com
Time = 10
hours
46
1996, 2000
physics.com
Time = 12
hours
47
1996, 2000
physics.com
48
1996, 2000
physics.com
TH vs. WIP: Best Case
r
b
1/
T0
W
0
49
1996, 2000
physics.com
CT vs. WIP: Best Case
1/
rb
T
0
W
0
50
1996, 2000
physics.com
Best Case Performance
Best Case Law: The minimum cycle time (CT best) for
a given WIP level, w, is given by
The maximum throughput (TH best) for a given WIP

level, w is given by,
51
1996, 2000
physics.com
Best Case Performance (cont.)
Example: For Penny Fab, rb = 0.5 and T0 = 8, so W0 = 0.5

× 8 = 4,
which are exactly the curves we plotted.
52
1996, 2000
physics.com
A Manufacturing Law
Little's Law: The fundamental relation between

WIP, CT, and TH over the long-term is:
Insights:
• Fundamental relationship
• Simple units transformation
• Definition of cycle time (CT = WIP/TH)
53
1996, 2000
physics.com
Penny Fab Two
2
hr 5 3
hr hr
10
hr
54
1996, 2000
physics.com
Penny Fab Two
0.
5
0.
4
0.
6
0.6
7
0.4 p/
r b = ____________ 20
T0 = ____________ 8
W 0 = ____________
hr hr pennie
s
55
1996, 2000
physics.com
Penny Fab Two Simulation (Time=0)
2
hr 5 3
hr hr
10
hr
56
1996, 2000
physics.com
7
4
2
hr 5 3
hr hr
10
hr
57
1996, 2000
physics.com
7
6
9
2
hr 5 3
hr hr
10
hr
58
1996, 2000
physics.com
7
8
9
2
hr 5 3
hr hr
10
hr
59
1996, 2000
physics.com
1
7
1
8 2
9
2
hr 5 3
hr hr
10
hr
60
1996, 2000
physics.com
1
7
1
1 2
0 9
2
hr 5 3
hr hr
10
hr
61
1996, 2000
physics.com
1
7
1
9
1
1 2
0 1
4
2
hr 5 3
hr hr
10
hr
62
1996, 2000
physics.com
1
7
1
9
1
1 2
2 1
4
2
hr 5 3
hr hr
10
hr
63
1996, 2000
physics.com
1
7
1
9
1 2
1 7 2
4 1
4
2
hr 5 3
hr hr
10
hr
64
1996, 2000
physics.com
1
7
1
9
1 2
1 7 2
6 1 2
9 4
2
hr 5 3
hr hr
10
hr
65
1996, 2000
physics.com
1
7
1
9
1 2
7 2
1 2
9 4
2
hr 5 3
hr hr
10
hr
66
1996, 2000
physics.com
2
7
1
9
2 2 2
2 2 0
1 2
9 4
2
hr 5 3
hr hr
10
hr
67
1996, 2000
physics.com
2
7
2
9
2 2 2
2 2 0
2 2 2
4 4 2
2
hr 5 3
hr hr
10
hr
68
1996, 2000
physics.com
2
Note: job will 7
arrive at
bottleneck just in 2
time 9
to prevent 2 2
starvation.2 2 2
2 2 2 2
4 4 2
2
hr 5 3
hr hr
10
hr
69
1996, 2000
physics.com
2
7
2
9
2 3 2
2 7 2 5
4 2 2
4 4
2
hr 5 3
hr hr
Note: job will

arrive at
bottleneck just in 10
time hr
to prevent 70
starvation.
1996, 2000
physics.com
2
7
2
9
2 3 2
7 2 5
2 3 2
9 4 7
2
hr 5 3
hr hr And so on….
Bottleneck will
just
10 stay busy; all
hr others
will starve
71
1996, 2000
http://www.factory- periodically
physics.com
Worst Case
Observation: The Best Case yields the minimum cycle

time and maximum throughput for each WIP level.
Question: What conditions would cause the maximum

cycle time and minimum throughput?
Experiment:
• set average process times same as Best Case (so r b and
T0 unchanged)
• follow a marked job through system
• imagine marked job experiences maximum queueing
72
1996, 2000
physics.com
Worst Case Penny Fab
Time = 0
hours
73
1996, 2000
physics.com
Time = 8
hours
74
1996, 2000
physics.com
Time = 16
hours
75
1996, 2000
physics.com
Time = 24
hours
76
1996, 2000
physics.com
Note:
Time = 32
CT = 32 hours
hours
= 4× 8 = wT 0
TH = 4/32 = 1/8 = 1/
T0
77
1996, 2000
physics.com
TH vs. WIP: Worst Case
Best
r Case
b
Worst Case
1/
T0
W
0
78
1996, 2000
physics.com
CT vs. WIP: Worst Case
Worst Case
Best
Case
T
0
W
0
79
1996, 2000
physics.com
Worst Case Performance
Worst Case Law: The worst case cycle time for a

given WIP level, w, is given by,
CTworst = w T0
The worst case throughput for a given WIP level,

w, is given by,
THworst = 1 / T0
80
1996, 2000
physics.com
Practical Worst Case
Observation: There is a BIG GAP between the Best

Case and Worst Case performance.
Question: Can we find an intermediate case that:

• divides “good” and “bad” lines, and
• is computable?
Experiment: consider a line with a given rb and T 0 and:

• single machine stations
• balanced lines
• variability such that all WIP configurations (states) are
equally likely
81
1996, 2000
physics.com
PWC Example – 3 jobs, 4 stations
82
1996, 2000
physics.com
Practical Worst Case
Let w = jobs in system, N = no. stations in line,

and t = process time at all stations:
CT(single) = (1 + (w-1)/N) t
CT(line) = N [1 + (w-1)/N] t
= Nt + (w-1)t
= T0 + (w-1)/r b
TH = WIP/CT From Little’s

= [w/(w+W 0 -1)]r b Law
83
1996, 2000
physics.com
Practical Worst Case Performance
Practical Worst Case Definition: The practical

worst case (PWC) cycle time for a given WIP level,
w, is given by,
The PWC throughput for a given WIP level, w, is

given by,
where W 0 is the critical WIP.

84
1996, 2000
physics.com
TH vs. WIP: Practical Worst Case
Best
r Case
b
Good
PW
(lean) C
Bad (fat) Worst Case
1/
T0
W
0
85
1996, 2000
physics.com
CT vs. WIP: Practical Worst Case
Worst Case PW
C
Bad (fat)
Best
Goo
(leand Case
T )
0
W
0
86
1996, 2000
physics.com
Penny Fab Two Performance
Note:
Best Case
rb process
times in
y PF2
Penn
Fab 2 have var
t equal
ca l Wors
Practi to PWC.
Case
But…
unlike
PWC, it has
1/T 0
Worst
unbalance
Case d
line and
W multi
0 machine
87
© Wallace J. Hopp, Mark L. Spearman, http://www.factory- stations.
1996, 2000
physics.com
Penny Fab Two Performance (cont.)
Worst
Case t
ors
a lW
a c tic
Pr e nn
y
s Pe 2
Ca b 1/
Fa
rb
T0
Best Case
W
0
88
1996, 2000
physics.com
Back to the HAL Case - Capacity Data
89
1996, 2000
physics.com
HAL Case - Situation
Critical WIP: rbT0 = 114 × 33.9 = 3,869
Actual Values:
• CT = 34 days = 663 hours (at 19.5 hr/day)
• WIP = 47,600 panels
• TH = 71.8 panels/hour
Conclusions:
• Throughput is 63% of capacity
• WIP is 12.3 times critical WIP
• CT is 24.1 times raw process time
90
1996, 2000
physics.com
HAL Case - Analysis
TH Resulting from PWC with WIP =

47,600?
Much higher
than actual
TH!
WIP Required for PWC to Achieve TH = 0.63rb?
Much lower
than
actual WIP!
Conclusion: actual system is much worse
than PWC!
91
1996, 2000
physics.com
HAL Internal Benchmarking Outcome
“Lean"
Region
“Fat"
Region
92
1996, 2000
physics.com
Factory Dynamics Takeaways
Performance Measures:
• throughput
• WIP
• cycle time
• service
Range of Cases:
• best case
• practical worst case
• worst case
Diagnostics:
• simple assessment based on rb, T0, actual WIP,actual TH
• evaluate relative to practical worst case
93
1996, 2000
physics.com

Basic Factory Dynamics

Uploaded by

Copyright:

Available Formats

You might also like

Basic Factory Dynamics

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Basic Factory Dynamics

Uploaded by

Copyright:

Available Formats

Basic Factory Dynamics

Large Panel Line: produces unpopulated printed

Line runs 24 hr/day (but 19.5 hrs of productive time)

Need relationships between WIP, TH, CT,

Workstations: a collection of one or more identical

Throughput (TH): for a line, throughput is the average

point at the end of the

2) Raw Process Time (T0): Sum of the long-term

3) Congestion Coeﬃcient (α): A unitless measure of

Critical WIP (W0): WIP level in which a line

The maximum throughput (TH best) for a given WIP

Example: For Penny Fab, rb = 0.5 and T0 = 8, so W0 = 0.5

which are exactly the curves we plotted.

Little's Law: The fundamental relation between

Note: job will

Observation: The Best Case yields the minimum cycle

Question: What conditions would cause the maximum

Worst Case Law: The worst case cycle time for a

The worst case throughput for a given WIP level,

Observation: There is a BIG GAP between the Best

Question: Can we ﬁnd an intermediate case that:

Experiment: consider a line with a given rb and T 0 and:

Let w = jobs in system, N = no. stations in line,

TH = WIP/CT From Little’s

Practical Worst Case Deﬁnition: The practical

The PWC throughput for a given WIP level, w, is

where W 0 is the critical WIP.

Critical WIP: rbT0 = 114 × 33.9 = 3,869

TH Resulting from PWC with WIP =

WIP Required for PWC to Achieve TH = 0.63rb?

You might also like