Name- Ranjit Sawant

Date- 07/16/2023
MGT 5103
Article Review #6
Production planning and control in multi-stage assembly systems: an assessment of
Kanban, MRP, OPT (DBR) and DDMRP.

Article Summary-
As of plan management enthusiast student, I found the article "Production planning and control
in multi-stage assembly systems: an assessment of Kanban, MRP, OPT (DBR) and DDMRP by
simulation" by Matthias Thürer, Nuno O Fernandes, and Mark Stevenson to be an insightful and
engaging read. The paper delves into the evaluation of various production planning and control
methodologies in multi-stage assembly systems, providing valuable insights into their strengths
and limitations.

The authors' approach of using simulation to assess four widely used methodologies, namely
Kanban, MRP, OPT (DBR), and DDMRP, is commendable. The use of simulation enables a
more accurate representation of real-world scenarios and allows for a comprehensive analysis of
each technique's performance. I appreciate how the authors considered the complexities of multi-
stage assembly systems, where synchronization and coordination between different stages are
critical for efficiency and effectiveness.

Ethics Lessons-
The comparison of Kanban, MRP, OPT (DBR), and DDMRP in terms of various performance
metrics, such as lead time, inventory levels, and throughput, provides valuable insights into the
strengths and weaknesses of each approach. As a reader, I was able to gain a deeper
understanding of when and where each methodology excels, and which factors influence their
performance.

The inclusion of Design and Control of Manufacturing Systems principles in the evaluation is
also a notable aspect of the article. This not only adds rigor to the analysis but also makes the
findings relevant to practitioners seeking to optimize their production planning and control
strategies. One aspect that stood out to me was the authors' focus on the emerging methodology
of DDMRP (Demand-Driven Material Requirements Planning). This methodology has gained
attention in recent years, and the paper's analysis of its performance in comparison to established
approaches offers valuable guidance for decision-makers exploring innovative solutions.

However, I would have liked to see a more in-depth discussion of the real-world applicability of
the findings. While simulation provides a robust evaluation framework, the transition from
simulation to actual implementation in complex manufacturing environments may present
additional challenges not covered in the study.

As per class presentation I learn that Capacity management is a critical aspect of operations
management that involves systematically matching planned system outputs with capacity
requirements. It encompasses long-range, medium-range, and short-range planning levels to
ensure reliable and efficient production. Several managerial factors, such as regular time per
employee, overtime per employee, and facility capacity, play a significant role in capacity
planning.

The capacity of a system is measured by the rate of work projected to be produced by workers,
machines, work centers, or entire plants over a specific unit of time. This capacity is influenced
by various factors like product specifications, product mix, equipment availability, and employee
productivity. Different types of capacity are considered in capacity management, such as design
capacity (the total effective capacity under perfect conditions), effective capacity utilization (the
ratio of effective capacity to design capacity), and capacity efficiency (the ratio of production
output to effective capacity).

In the capacity planning and control framework, long-range capacity planning involves resource
planning and rough-cut capacity planning, while medium-range capacity planning deals with
capacity requirements planning (CRP). Short-range capacity planning employs input-output
analysis and supplier capacity planning (SCP) to ensure smooth operations. Capacity planning is
crucial for companies to ensure they can meet customer demand while utilizing resources
efficiently and managing uncertainties effectively. Remanufacturing is the process of recovering,
processing, and selling like-new products from used components or cores. It differs from repair,
reconditioning, and recycling as it involves extensive processing and restoring used products to
their original condition or better.

The remanufacturing process starts with the core supply, which presents challenges due to
uncertain quantities and qualities of returned products. Planning and controlling remanufacturing
processes require a specific framework that incorporates demand management, resource
planning, and detailed material and capacity planning. Demand management for remanufacturing
involves forecasting customer demand for remanufactured products, which can be complex due
to source uncertainty. Resource planning requires converting production plans into long-term
resource plans, accounting for uncertain core availability and capacity requirements. Aggregate
production planning helps match resources and capacity to overall demand.

The master production scheduling (MPS) is a detailed version of the production plan, but its
stability can be affected by source uncertainty, leading to operational inefficiencies and poor
customer service. The remanufacturing planning and control framework extends to the back end,
involving sourcing systems and shop-floor systems to manage core acquisition and material flow.
Effective core inventory management and core acquisition strategies are crucial for smooth
remanufacturing operations. Remanufacturing industries face challenges in forecasting core
demand and building strong sourcing relationships. Improving forecast accuracy and
implementing statistical techniques for planning and control can optimize remanufacturing
processes.

The class lectures discussed capacity management and production planning, while the article
focused on evaluating different production planning methods in multi-stage assembly systems.
The lectures covered fundamental concepts and capacity measurement techniques, providing a
broad overview for learners. In contrast, the article used simulation to study Kanban, MRP, OPT
(DBR), and DDMRP, giving practical insights for real-world applications.

My Perspective-
Personally, I think both the lectures and the article complement each other well. The lectures laid
a strong theoretical foundation for understanding capacity management, while the article offered
data-driven analysis of specific methodologies. As someone interested in operations
management, I found the combination of theoretical knowledge and practical insights enriching,
especially the emphasis on the emerging DDMRP approach.

In conclusion, the lectures and the article provide valuable perspectives on production planning
and control. The lectures offer essential concepts, while the article's simulations give detailed
guidance for decision-making in complex manufacturing settings. Together, they contribute to a
comprehensive understanding of effective production planning and control strategies in modern
industries.

References-

 Class ppt chapter 9 and 10,

 Production planning and control in multi-stage assembly systems: an assessment of
Kanban, MRP, OPT (DBR) and DDMRP (2020)by simulation Authors Matthias
ThürerNuno O FernandesMark Stevenson