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 Production Management
Advanced Models, Tools, and Applications
for Pull Systems
 Production Management
Advanced Models, Tools, and Applications
for Pull Systems

Edited by
Yacob Khojasteh
CRC Press
Taylor & Francis Group
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Boca Raton, FL 33487-2742

© 2018 by Taylor & Francis Group, LLC

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Contents

Preface...................................................................................................................................... vii
Editor..........................................................................................................................................ix
Contributors...............................................................................................................................xi

Part I DESIGN, IMPLEMENTATION, AND PERFORMANCE EVALUATION

1 Pull Production Control Systems: Selection and Implementation Issues.....................3
YACOB KHOJASTEH

2 Kanban Allocation Policies of Multi-product Production Control Strategies............15

OLADIPUPO OLAITAN, PAUL YOUNG, AND JOHN GERAGHTY

3 BK-CONWIP Adaptive Control Strategies in a Multi-Product Manufacturing

System..........................................................................................................................45
PAOLO RENNA

4 Impact of Reworking in Job-Shop Environments Controlled by Kanban System......63

PEDRO L. GONZÁLEZ-R AND MARCOS CALLE

5 Takt Time Grouping: A New Approach to Flow Manufacturing................................85

MITCHELL A. MILLSTEIN AND JOSEPH S. MARTINICH

6 A Framework for Performance Evaluation of Pull Systems.......................................103

S. VINODH, R. BEN RUBEN, AND P. ASOKAN

Part II REVIEW ON PULL SYSTEMS

7 CONWIP and Hybrid CONWIP Production Control Systems:
A Literature Review...................................................................................................123
MEHMET BULENT DURMUSOGLU AND CANAN AGLAN

Part III PULL SYSTEMS IMPLEMENTATION – CASE STUDIES

8 Making CONWIP Scheme in One-of-a-Kind Production: A Case Study.................143
GUODONG HUANG AND JIE CHEN

v
vi ◾ Contents

9 Setting Push–Pull Boundaries: A Case of Textile Manufacturer.............................. 161

MD SARDER, MOHSEN HOSSEINI, AND MOHAMMAD MARUFUZZAMAN

10 Balancing Flexibility and Lean in Manufacturing Environments............................179

GWENDOLYN HOLOWECKY AND RATNA BABU CHINNAM

Index..................................................................................................................................213
Preface

Inventory control is an essential task in production management. An effective inventory control

can significantly reduce the holding cost and hence, total production cost. Selecting and imple-
menting a suitable production control system plays an important role in inventory reduction and
performance improvement of a production system. Since the introduction of Toyota’s just-in-time
philosophy, pull control systems have been adopted by numerous companies worldwide, both in
the manufacturing and service sectors. The most well-known pull control systems are Kanban,
constant work-in-process (CONWIP), and their extensions.
This book provides some recent developments in production management and presents model-
ing and analysis tools for pull production control systems. It contributes by combining theoretical
findings and case study analysis results with a practical and contemporary view on how to effec-
tively manage and control production systems.
Each chapter in this book focuses on a specific topic in production control systems, allowing
readers to identify the chapters that relate to their interests. More specifically, the book is presented
in three sections. The first section focuses on the design and implementation aspects of the pull
production control systems, as well as performance evaluation approaches for pull systems. The
second section presents a recent and comprehensive literature review. Three different case studies
on implementation of pull production control systems are presented in the last section.
In the first chapter of the book, I briefly discuss the complexity of comparing different
production control systems given the fact that selecting and implementing a superior pull pro-
duction control system has been controversial. By focusing on Kanban and CONWIP as two
well-known pull production control systems, I present two simple examples that show how the
superiority alters between these two control systems by a small change in the structure of the
production system. In Chapter 2, Oladipupo Olaitan, Paul Young, and John Geraghty address
the kanban allocation policies of multi-product production control strategies. They compare
the performance of the shared and dedicated kanban allocation policies under the application
of the Extended and the Generalized Kanban Control Strategies. They investigate the system
robustness to measure how well a strategy is able to maintain its optimized service level and
inventory control performance when subjected to variability in demand arrival rates and level
of machine availability.
In Chapter 3, Paolo Renna addresses a multi-product serial production line and proposes
dynamic card control policies in Hybrid Kanban CONWIP and Base-Stock control strategy with
shared kanbans. He develops a simulation model to test the proposed policies in steady and dynamic
demand conditions. The control policies consider two controllers to capture the demand changes
and machine failures in order to improve the performance level. In Chapter 4, Pedro González-R
and Marcos Calle examine the effect of reworking in the make-to-order job‑shop environments.

vii
viii ◾ Preface

Using discrete event simulation, they compare the performance of two production control systems,
Kanban and Workload Control, in different job-shop environments with different rework levels.
Moreover, they highlight the advantages and disadvantages of those two control systems.
In Chapter 5, Mitchell Millstein and Joseph Martinich present a method called
“Takt Time Grouping” for implementing kanban-flow manufacturing. Using a discrete event
simulation model, they show the superiority of the proposed method to the other approaches
including one-piece flow, CONWIP, and drum-buffer-rope, with a high throughput rate, lower
work-in-process inventory, and a faster flow time. In Chapter 6, S. Vinodh, R. Ben Ruben, and
P. Asokan discuss the different types of pull systems, and develop a conceptual framework for
evaluating performance of pull systems. The developed performance evaluation model is based
on the fuzzy logic approach which is capable of handling vagueness and uncertainty that usually
exist in conventional performance evaluation models. They conduct a case study to validate the
proposed framework and to ensure its practical relevance.
The second section of the book includes a chapter that reviews the literature for CONWIP
control system. In this chapter, Mehmet Durmusoglu and Canan Aglan explain the design
requirements of CONWIP control system, and then review the related literature for each design
requirement. They also evaluate the studies on CONWIP performance comparisons with respect
to aims, manufacturing environment, and design parameters.
The last section in the book presents three different case studies on implementation of pull
production control systems. In the first chapter of the section, Guodong Huang and Jie Chen
propose a CONWIP design framework to make CONWIP scheme in one-of-a-kind production
environment (a wire-rope equipment manufacturer). A feasible CONWIP scheme is determined
after simulation assessments of the CONWIP alternatives. In Chapter 9, MD Sarder, Mohsen
Hosseini, and Mohammad Marufuzzaman discuss a case study to define the push–pull bound-
ary for both continuous and periodic review policies to make the multi-stage supply chain
more efficient. They compare the performance of a push-based supply chain and a combined
(push–pull)-based supply chain by considering and prioritizing the cost reduction, aggregation
of product types, and shipping and transportation methods to set the appropriate push–pull
boundaries.
In the last chapter of the book, Chapter 10, Gwendolyn Holowecky and Ratna Babu
Chinnam address balancing flexibility and lean in manufacturing environments. They develop
a framework for integrating flexibility within a lean environment by logically linking empirical
studies in non-lean contexts with the literature on lean manufacturing practices. The frame-
work is based on strategic, operational, and tactical timeframes. A case study is also provided
as confirmation for the proposed framework.
This book can be used as an essential source for students and scholars who need to specifically
study the pull control systems. Since the superiority of these systems is controversial, this book can
also provide an interesting and informative read for practitioners, managers, and employees who
need to deepen their knowledge on pull production management systems.
I would like to thank all the authors who have contributed to this book. I express my gratitude
to those authors who helped me on early reviewing of some chapters.
I would also like to thank my wife Miya and sons Nima and Yuma for allowing me to devote
the time necessary to complete this book. I dedicate this book to them.

Yacob Khojasteh
Tokyo, Japan
May 2017
Editor

Dr. Yacob Khojasteh is an associate professor of operations management at the Graduate School
of Global Studies, Sophia University, Tokyo, Japan. He received his PhD in engineering from
the University of Tsukuba, Japan. He also received his MSc in policy and planning sciences,
and in industrial engineering from the University of Tsukuba and Tarbiat Modares University,
respectively. He has several years of professional experience in industry and consulting. His recent
books, entitled Production Control Systems: A Guide to Enhance Performance of Pull Systems and
Supply Chain Risk Management were published by Springer in 2016 and 2017, respectively. His
research interests include production and operations management, supply chain management,
systems modeling and optimization, and lean production systems.

ix
Contributors

Canan Aglan John Geraghty

Faculty of Industrial Engineering Enterprise Process Research Centre
Marmara University Dublin City University
Istanbul, Turkey Dublin, Ireland

P. Asokan Pedro L. González-R

Department of Production Engineering Industrial Organization and Business
National Institute of Technology Management
Tiruchirappalli, India University of Seville
Seville, Spain
R. Ben Ruben
Department of Production Engineering Gwendolyn Holowecky
National Institute of Technology Industrial Engineering and Facilities
Tiruchirappalli, India TRQSS, Tokai Rika Group North America,
Quality Safety Systems Company
Marcos Calle Tecumseh, Canada
Industrial Organization and Business and
Management Industrial & Systems Engineering Department
University of Seville Wayne State University
Seville, Spain Detroit, Michigan

Jie Chen Mohsen Hosseini

School of Economics & Management Center for Logistics, Trade and Transportation
Nanjing University of Science & Technology University of Southern Mississippi
Nanjing, China Long Beach, Mississippi

Ratna Babu Chinnam Guodong Huang

Industrial & Systems Engineering Department School of Economics & Management
Wayne State University Nanjing University of Science & Technology
Detroit, Michigan Nanjing, China

Mehmet Bulent Durmusoglu Yacob Khojasteh

Faculty of Industrial Engineering Graduate School of Global Studies
Istanbul Technical University Sophia University
Istanbul, Turkey Tokyo, Japan

xi
xii ◾ Contributors

Mohammad Marufuzzaman Paolo Renna

Department of Industrial & Systems School of Engineering, University of Basilicata
Engineering Potenza, Italy
Mississippi State University
Starkville, Mississippi M.D. Sarder
Department of Engineering Technologies,
Joseph S. Martinich Bowling Green State University, Bowling
Department of Logistics and Operations Green, Ohio
Management
University of Missouri S. Vinodh
St. Louis, Missouri Department of Production Engineering
National Institute of Technology
Mitchell A. Millstein Tiruchirappalli, India
Department of Logistics and Operations
Management Paul Young
University of Missouri Enterprise Process Research Centre
St. Louis, Missouri Dublin City University
Dublin, Ireland
Oladipupo Olaitan
Department of Mechanical and Industrial
Engineering
Norwegian University of Science and
Technology (NTNU)
Trondheim, Norway
DESIGN, I
IMPLEMENTATION, AND
PERFORMANCE EVALUATION
Chapter 1

Pull Production Control

Systems: Selection and
Implementation Issues
Yacob Khojasteh

Contents
1.1 Introduction........................................................................................................................ 3
1.2 Comparison Method........................................................................................................... 4
1.2.1 Analytical Comparisons........................................................................................... 6
1.3 Numerical Experiments...................................................................................................... 6
1.3.1 An Example............................................................................................................. 6
1.3.1.1 Scenario 1.................................................................................................. 7
1.3.1.2 Scenario 2.................................................................................................11
1.4 Conclusions........................................................................................................................11
References...................................................................................................................................14

1.1 Introduction
There are many studies regarding the evaluation and comparison of production control systems.
Usually, two or more control systems are addressed and the superior system is highlighted, under
certain conditions with a set of assumptions. Some studies propose a model or framework to
conduct such comparisons. For example, Ghrayeb et al. (2009) compared push, pull, and hybrid
control systems in an assemble-to-order manufacturing environment. They showed that in most
cases, the hybrid system had the best performance. However, when the cost ratio of delivery lead
time and inventory was small, the pull system performed better.
Gaury et al. (2000) compared Kanban, CONWIP, and hybrid control systems in a serial pro-
duction line, and pointed out that the hybrid control system had the best performance. Pettersen
and Segerstedt (2009) compared Kanban and CONWIP control systems through a simulation
study over a small supply chain. They showed that the CONWIP control was superior to the

3
4 ◾ Production Management

Kanban with a higher throughput rate and the same amount of work-in-process (WIP) inventory.
Khojasteh-Ghamari (2012) proposed a model for performance analysis of a production process
controlled by Kanban and CONWIP. He showed the impact of initial inventories and card distri-
bution as important parameters on system performance.
According to a survey by Framinan et al. (2003), comparing Kanban and CONWIP, many
authors showed that CONWIP is superior to Kanban, when processing times on component
operations in production processes are variable. However, a few studies, including Gstettner and
Kuhn (1996) and Khojasteh-Ghamari (2009), reached the opposite conclusion. They showed
that by choosing an appropriate number of cards at each workstation, Kanban could outperform
CONWIP.
Bonvik et al. (1997) compared performance of different production control systems, with
respect to WIP and service level, in a serial production line. They showed that CONWIP
outperforms Kanban and Base-stock, with a high service level and lower WIP. However, as
Framinan et al. (2003) mentioned, this result seems to be contradictory to the findings of Duenyas
and Patana-anake (1998) as well as Paternina-Arboleda and Das (2001), which indicated that
Base-stock outperforms CONWIP in a serial production line. These differing results highlight the
need for more clarification and analysis. In this chapter, we address this controversy in general-
izing the superiority among pull production control systems. For more literature reviews on the
comparison of pull control systems, see Geraghty and Heavey (2006), Gonzlez-R et al. (2012),
and Thürer et al. (2016).
Here, we introduce a comparison method (given in Section 1.2) followed by some numeri-
cal examples provided in Section 1.3 to briefly analyze the complexity in comparing the control
systems.

1.2 Comparison Method

In this chapter, the framework proposed by Sato and Khojasteh-Ghamari (2012) is used for
comparing pull production control systems in the presented example. For more details on
the framework, which is based on the theory of token transactions systems, see Sato and
Khojasteh-Ghamari (2012). In this section, we present a simple serial production process con-
trolled by CONWIP to support the discussion and the numerical example provided in the next
section.
We can consider a simple production process with four workstations. The activity interaction
diagram (AID) of this production process controlled by CONWIP is depicted in Figure 1.1. See
Sato and Praehofer (1997) for definitions and concepts of the AID.
Raw material R is being processed through p1 to p4 and at the end, it is stored in the place b4 as
finished products, while bi (i = 1,…,4) is the output buffer of station i, and wi (i = 1,…,4) represents
the worker/operator/machine of station i. Queue C contains CONWIP cards. Solid lines represent
material flows and dashed lines indicate card/information flows.
The system reaches a steady state after a sufficient period of time. We can show the steady
state of the system by referring to the state transition table (Sato and Praehofer, 1997). At steady
state, the system shows a periodic behavior. Table 1.1 shows part of the state transition table for
the CONWIP controlled production system depicted in Figure 1.1. Processing time at p1 to p4
is set to 7, 16, 6, and 5, respectively. Process p2 has two workers, while the others have one each.
Initial inventory in each buffer is set to zero. With this structure, at least four cards are needed to
circulate in the entire system to enable maximum throughput. In this table, “—” represents there
 Pull Production Control Systems: Selection and Implementation Issues ◾ 5

R p1 b1 p2 b2 p3 b3 p4 b4

w1 w2 w3 w4

Figure 1.1 A serial production process with four workstations controlled by CONWIP (Sato
and Khojasteh-Ghamari, 2012).

Table 1.1 State Transition Table of the CONWIP Example

Time C p1 w1 b1 p2 w2 b2 p3 w3 b3 p4 w4 b4

t 0 1(7) 0 1 1(10), 1(3) 0 0 — 1 0 1(5) 0 n

t+3 0 1(4) 0 0 1(7), 1(16) 0 0 1(6) 0 0 1(2) 0 n

t+5 0 1(2) 0 0 1(5), 1(14) 0 0 1(4) 0 0 — 1 n+1

t+7 0 — 1 1 1(3), 1(12) 0 0 1(2) 0 0 — 1 n+1

t+9 0 1(7) 0 1 1(1), 1(10) 0 0 — 1 0 1(5) 0 n+1

t + 10 0 1(6) 0 0 1(16), 1(9) 0 0 1(6) 0 0 1(4) 0 n+1

t + 14 0 1(2) 0 0 1(12), 1(5) 0 0 1(2) 0 0 — 1 n+2

t + 16 0 1(7) 0 1 1(10), 1(3) 0 0 — 1 0 1(5) 0 n+2

is no part being processed, that the corresponding worker is idle. For example, “1(7),” shows that
one part is being processed and it will finish after 7 time units.
The numbers and symbols in the first row of the state transition table, given in Table 1.1, can
be interpreted as follows. At time t, there is no available card in the card buffer C (C = 0). One part
is being processed at p1, which will finish after 7 time units. Since a part is being processed at p1,
the corresponding worker w1 is busy and is not available (w1 = 0). There is one part in the first out-
put buffer (b1 = 1), and two parts are being processed at p2, one will finish after 10 time units and
the other after 3 time units. Hence, none of the respective workers is available (w2 = 0). No part is
in the output buffer of the second and third stations (b2 = b3 = 0), also no part is being processed at
p3. Therefore, the respective worker is idle (w3 = 1). One part is being processed in p4 with a remain-
ing time of 5 time units causing its worker to be busy (w4 = 0). In the last output buffer b4 waiting
to be delivered to the customer, n finished products are available.
After 3 time units (which is the smallest remaining time at time t), p2 finishes one part. This
means that the current time is now t + 3, as shown in the second row of the table. At this point,
the finished part in p2 moves to its output buffer b2, but it is then immediately taken by the down-
stream station p3, since it was idle. Therefore, p3 starts its new job and will continue the process for
6 ◾ Production Management

the next 6 time units. In turn, p2 takes a new part, while the other part still needs 7 time units to
finish. Then, the next event is on p4. It finishes its current job after 2 time units. This finished good
will move to the final buffer b4 by adding one to its inventory. Now, the numbers are updated, as
shown in the next row, at time t + 5 in the table.
The state of the system will evolve in the same way such that after a certain period all numbers
in a row will be repeated. In this example, this happens every 16 [(t + 16) – t] time units.
The system WIP can be calculated for a period using the state transition table. As it is seen in
Table 1.1, at time t, six tokens (four of them are being processed at p1, p2 and p4, one is in output buffer b1,
and one representing the idle worker) remain in the system for 3 time units [(t + 3) – t = 3]. At the next
event time (i.e., t + 3), five tokens remain in the system, but for 2 time units [(t + 5) –(t + 3) = 2]. Similarly,
5, 6, 6, 5, and 5 tokens remain in the system for the next 2, 2, 1, 4, and 2 time units, respectively.
This yields (6 × 3) + (5 × 2) + (5 × 2) + (6 × 2) + (6 × 1) + (5 × 4) + (5 × 2) = 86 (tokens × time units) as
the total holding and waiting times for a period. Since the period is 16 time units, the system WIP
is 5.375 (=86/16) tokens.

1.2.1 Analytical Comparisons

Khojasteh-Ghamari and Sato (2011) characterized the comparison between Kanban and
CONWIP control systems in serial production lines. They proved that a CONWIP system out-
performs a Kanban if and only if the total number of cards circulated in the CONWIP is less than
in the Kanban. Additionally, they have an identical performance if and only if the same number
of cards is employed in both systems. It should be noted that the total number of cards here refers
to the optimum number of cards employed in the system; in other words, the least number of
cards that enables the system to attain the maximum throughput. The proofs also are supported
by numerical examples. In another study, Khojasteh and Sato (2015) formulated a comparison
between the three control systems, Kanban, CONWIP, and Base-stock, in both serial and assem-
bly production processes. They provided supportive numerical examples as well.
In the following section, we show the controversy on the superiority of pull production control
systems through a simple example.

1.3 Numerical Experiments

The following example shows the complexity in comparing Kanban and CONWIP as two pull
production control systems.

1.3.1 An Example
Consider an assembly production process where the finished product is assembled from two dis-
tinctive subassemblies, and each subassembly is made up of two distinctive parts. The product is
assembled from one unit of each subassembly, and each of the subassemblies is fabricated by using
one unit of each part. A schematic figure is depicted in Figure 1.2, where pij (i = 1,2 and j = 1,2),
pi (i = 1,2), and p are the processes, bij (i = 1,2 and j = 1,2) and bi (i = 1,2) are the output buffers for
the corresponding process, and b is the final buffer for the finished goods. The AIDs for these
production processes, controlled by Kanban and CONWIP, are depicted in Figures 1.3 and 1.4,
respectively. In the Kanban system, Kij, Ki, and K are card buffers that contain the kanban cards.
Card buffers in CONWIP system are shown by Cij (Figure 1.4).
 Pull Production Control Systems: Selection and Implementation Issues ◾ 7

Stage 1 Stage 2 Stage 3

Fabrications Subassemblies Assembly

p11 b11

p1 b1

p12 b12

p b pd

p21 b21

p2 b2
Process
p22 b22
Output buffer

Raw material buffer

Figure 1.2 A simple assembly production process with three stages (Khojasteh, 2016).

K11 K1

p11 b11

p1 b1

p12 b12
K

K12
p b pd
K21

p21 b21

p2 b2

p22 b22

K22 K2

Figure 1.3 The assembly production process controlled by Kanban (Khojasteh and Sato, 2015).

1.3.1.1 Scenario 1
In Figure 1.2, assume that the processing times of p11, p12, p21, p22, p1, p2, and p are set to 10, 11,
12, 20, 10, 10, and 1 time units, respectively. The process p22 has two operators/machines/workers,
while each of the others has only one. Also, initial inventory for every part is set to zero, and
assume that enough raw materials are always available.
8 ◾ Production Management

C12

C11

p11 b11

p1 b1

p12 b12

p b pd
p21 b21

p2 b2

p22 b22

C22

C21

Figure 1.4 The assembly production process controlled by CONWIP (Khojasteh and Sato,
2015).

In the Kanban control system, one card is assigned to each card buffer, therefore the total
number of cards circulating in the entire system becomes eight. Assigning one card to each
station allows the system to attain the maximum throughput with having the least WIP in
the system. In fact, this is the optimum number of cards in the system because allocating
more cards in any station will cause an increase in the system WIP without changing the
throughput.
The simulation is run until the system reaches a steady state, at which time the system
begins to show a periodic behavior. The system shows a periodic behavior every 12 time units.
The throughput is 1/12 products per time unit, and the system WIP is equal to 10.833. It
can be verified that the amount of system WIP is minimum to attain the throughput 1/12.
Table 1.2 shows the state transition table for a period of the production process with Kanban
control.
In the CONWIP control system, nine cards in total are needed in order for the system to
attain the maximum throughput of 1/12 products per time unit (as in the Kanban system). The
optimal card distribution is to assign two cards to each of C11, C12, and C21, and three cards to
C22. That is, nine cards in total, which is the minimum number of cards to attain the maximum
possible throughput. The system shows a periodic behavior every 12 time units. However, the
system WIP is equal to 9.750, which is the minimum value to attain the throughput. The state
transition table for a period of the production process controlled by CONWIP system is given
in Table 1.3.
The CONWIP control system is superior to Kanban system here because it attains the same
system throughput, but with a lower amount of the WIP (9.750 vs. 10.833).
Table 1.2 State Transition Table of Kanban for a Period in Scenario 1

Time K11 p11 b11 K12 p12 b12 K1 p1 b1 K21 p21 b21 K22 p22 b22 K2 p2 b2 K p b pd

t 0 1(10) 0 0 1(11) 0 0 1(10) 0 0 1(2) 0 0 —, 1 1 — 0 0 1(1) 0 1(1)

1(10)

t+1 0 1(9) 0 0 1(10) 0 0 1(9) 0 0 1(1) 0 0 —, 1 1 — 0 1 — 0 1(12)

1(9)

t+2 0 1(8) 0 0 1(9) 0 0 1(8) 0 0 1(12) 0 0 1(20), 0 0 1(10) 0 1 — 0 1(11)

1(8)

t + 10 0 — 1 0 1(1) 0 0 — 1 0 1(4) 0 0 1(12), 1 0 1(2) 0 1 — 0 1(3)

—

t + 11 0 — 1 0 — 1 0 — 1 0 1(3) 0 0 1(11), 1 0 1(1) 0 1 — 0 1(2)

—

t + 12 0 1(10) 0 0 1(11) 0 0 1(10) 0 0 1(2) 0 0 1(10), 1 1 — 0 0 1(1) 0 1(1)

—
Pull Production Control Systems: Selection and Implementation Issues ◾ 9
 10
◾

Table 1.3 State Transition Table of CONWIP for a Period in Scenario 1

Time C11 p11 b11 C12 p12 b12 p1 b1 C21 p21 b21 C22 p22 b22 p2 b2 p b pd
Production Management

t 0 1(10) 0 0 1(11) 0 1(9) 0 1 1(1) 0 0 1(20), 1(8) 1 — 0 — 0 1(12)

t+1 0 1(9) 0 0 1(10) 0 1(8) 0 0 1(12) 0 0 1(19), 1(7) 0 1(10) 0 — 0 1(11)

t+8 0 1(2) 0 0 1(3) 0 1(1) 0 0 1(5) 0 0 1(12), — 1 1(3) 0 — 0 1(4)

t+9 0 1(1) 0 0 1(2) 0 — 1 0 1(4) 0 0 1(11), — 1 1(2) 0 — 0 1(3)

t + 10 0 — 1 0 1(1) 0 — 1 0 1(3) 0 0 1(10), — 1 1(1) 0 — 0 1(2)

t + 11 0 — 0 0 — 0 1(10) 0 0 1(2) 0 0 1(9), — 1 — 0 1(1) 0 1(1)

t + 12 0 1(10) 0 0 1(11) 0 1(9) 0 1 1(1) 0 0 1(8), 1(20) 1 — 0 — 0 1(12)

 Pull Production Control Systems: Selection and Implementation Issues ◾ 11

1.3.1.2 Scenario 2
In the example above, we apply a small change in processing time of a process. We only change
the processing time at p from 1 to 6 time units, while all the other processing times remain
unchanged. That is, the processing times at p11, p12, p21, p22, p1, p2, and p is 10, 11, 12, 20, 10, 10,
and 6 time units, respectively. Also, as before, the process p22 has two workers, while each of the
others have only one, and the initial inventory for every part is set to zero.
In the Kanban control system, assigning one card to each card buffer enables the system to
attain the maximum throughput with the least system WIP. Therefore, the total number of cards
in the entire system is eight. The simulation is run until the system begins to show a periodic
behavior. The system shows a periodic behavior every 12 time units with the throughput rate of
1/12 products per time unit, but the system WIP drops to 10.417. A part of its state transition table
for a period is shown in Table 1.4.
However, in the CONWIP control system, at least 13 cards in total are needed in order
for the system to attain the maximum throughput of 1/12 products per time unit (same
throughput rate in the Kanban system). In other words, the maximum throughput cannot
be achieved by the same card distribution. In order to attain the maximum throughput, the
minimum number of additional cards should be added into the appropriate card buffers in the
system. To do so, three cards are needed in each of C11, C12 , and C21, and four cards in C22 ,
that is, 13 cards in total. This card distribution increases the system WIP to 11.50, which is
more than that in the Kanban system. This makes the CONWIP an inferior control system.
Therefore, the Kanban system outperforms the CONWIP. The state transition table for this
case is given in Table 1.5.
In fact, changing only one processing time in the system requires a different card distribu-
tion for the CONWIP, which causes an increase in the total number of cards in the system,
hence an increase in the system WIP. One can see that a small change in the production struc-
ture (increasing processing time of one station from 1 to 6 time units) requires the CONWIP
system to have four more cards in total (13 compared to 9 in Scenario 1) to reach the maximum
throughput.
For more analyses and examples on Kanban, CONWIP, and Base-stock control systems in
different production structures, see Khojasteh and Sato (2011, 2015) and Khojasteh (2016).

1.4 Conclusions
Selecting and implementing a suitable, and best, pull production control system has been a chal-
lenge for managers. By using numerical experiments and comparing Kanban and CONWIP as
two pull control systems in different scenarios, we showed that the superiority of a control system
may change, if the structure of the production system changes. In the example provided, we saw
that by changing only the processing time of a station, the superiority between CONWIP and
Kanban switched.
Therefore, we can conclude that none of the Kanban or CONWIP controls are always the
superior system. In fact, a configuration of parameters, such as processing time of activities, num-
ber of workers, and number of cards employed in the whole process decides the superior system in
each situation (Khojasteh and Sato, 2015; Khojasteh, 2016).
The other chapters in this book will present more cases and analyses on pull production con-
trol systems.
Table 1.4 State Transition Table of Kanban for a Period in Scenario 2

Time K11 p11 b11 K12 p12 b12 K1 p1 b1 K21 p21 b21 K22 p22 b22 K2 p2 b2 K p b pd

t 0 1(10) 0 0 1(11) 0 0 1(10) 0 0 1(2) 0 0 —, 1 1 — 0 0 1(6) 0 1(6)

12 ◾ Production Management

1(10)

t+2 0 1(8) 0 0 1(9) 0 0 1(8) 0 0 1(12) 0 0 1(20), 0 0 1(10) 0 0 1(4) 0 1(4)

1(8)

t+6 0 1(4) 0 0 1(5) 0 0 1(4) 0 0 1(8) 0 0 1(16), 0 0 1(6) 0 1 — 0 1(12)

1(4)

t + 10 0 — 1 0 1(1) 0 0 — 1 0 1(4) 0 0 1(12), 1 0 1(2) 0 1 — 0 1(8)

—

t + 11 0 — 1 0 — 1 0 — 1 0 1(3) 0 0 1(11), 1 0 1(1) 0 1 — 0 1(7)

—

t + 12 0 1(10) 0 0 1(11) 0 0 1(10) 0 0 1(2) 0 0 —, 1 1 — 0 0 1(6) 0 1(6)

1(10)
Table 1.5 State Transition Table of CONWIP for a Period in Scenario 2

Time C11 p11 b11 C12 p12 b12 p1 b1 C21 p21 b21 C22 p22 b22 p2 b2 p b pd

t 0 1(10) 0 0 1(11) 0 1(9) 1 1 1(8) 0 0 1(20), 1 1(6) 0 — 0 1(12)

1(8)

t+6 0 1(4) 0 0 1(5) 0 1(3) 0 1 1(2) 0 0 1(14), 1 — 0 1(6) 0 1(6)

1(2)

t+8 0 1(2) 0 0 1(3) 0 1(1) 0 0 1(12) 0 0 1(12), 1 1(10) 0 1(4) 0 1(4)

—

t+9 0 1(1) 0 0 1(2) 0 — 1 0 1(11) 0 0 1(11), 1 1(9) 0 1(3) 0 1(3)

—

t + 10 0 — 1 0 1(1) 0 — 1 0 1(10) 0 0 1(10), 1 1(8) 0 1(2) 0 1(2)

—

t + 11 0 — 0 0 — 0 1(10) 1 0 1(9) 0 0 1(9), 1 1(7) 0 1(1) 0 1(1)

—

t + 12 0 1(10) 0 0 1(11) 0 1(9) 1 1 1(8) 0 0 1(8), 1 1(6) 0 — 0 1(12)

1(20)
Pull Production Control Systems: Selection and Implementation Issues ◾ 13
14 ◾ Production Management

References
Bonvik, A.M., Couch, C.E., and Gershwin, S.B. (1997) A comparison of production-line control mecha-
nisms. International Journal of Production Research, 35(3), 789–804.
Duenyas, I. and Patana-anake, P. (1998) Base-stock control for single product tandem make-to-stock sys-
tems. IIE Transactions, 30, 31–39.
Framinan, J.M., Gonzalez, P.L., and Ruiz-Usano, R. (2003) The CONWIP production control system:
Review and research issues. Production Planning and Control, 14, 255–265.
Gaury, E.G.A., Pierreval, H., and Kleijnen, J.P.C. (2000) An evolutionary approach to select a pull system
among Kanban, Conwip and hybrid. Journal of Intelligent Manufacturing, 11, 157–167.
Geraghty, J. and Heavey, C. (2006). A review and comparison of hybrid and pull-type production control
strategies. In G. Liberopoulos, C.T. Papadopoulos, B. Tan, J. MacGregor Smith, and S.B. Gershwin
(Eds.), Stochastic Modeling of Manufacturing Systems, Springer: Berlin.
Ghrayeb, O., Phojanamongkolkij, N., and Tan, B.A. (2009) A hybrid push/pull system in assemble-to-
order manufacturing environment. Journal of Intelligent Manufacturing, 20(4), 379–387.
Gonzlez-R, P.L., Framinan, J.M., and Pierreval, H. (2012) Token-based pull production control systems:
An introductory overview. Journal of Intelligent Manufacturing, 23(1), 5–22.
Gstettner, S. and Kuhn, H. (1996) Analysis of production control systems Kanban and CONWIP.
International Journal of Production Research, 34(11), 3253–3274.
Khojasteh, Y. (2016) Production Control Systems: A Guide to Enhance Performance of Pull Production Systems,
Springer, Tokyo.
Khojasteh, Y. and Sato, R. (2015) Selection of a pull production control system in multi-stage production
processes. International Journal of Production Research, 53(14), 4363–4379.
Khojasteh-Ghamari, Y. (2009) A performance comparison between Kanban and CONWIP controlled
assembly systems. Journal of Intelligent Manufacturing, 20(6), 751–760.
Khojasteh-Ghamari, Y. (2012) Developing a framework for performance analysis of a production process
controlled by Kanban and CONWIP. Journal of Intelligent Manufacturing, 23(1), 61–71.
Khojasteh-Ghamari, Y. and Sato, R. (2011) Managing an assembly production process with a proper control
policy. International Journal of Manufacturing Technology and Management, 22(1), 2–25.
Paternina-Arboleda, C.D. and Das, T.K. (2001) Intelligent dynamic control policies for serial production
lines. IIE Transactions, 33(1), 65–77.
Pettersen, J.A. and Segerstedt, A. (2009) Restricted work-in-process: A study of differences between Kanban
and CONWIP. International Journal of Production Economics, 118(1), 199–207.
Sato, R. and Khojasteh-Ghamari, Y. (2012) An integrated framework for card-based production control
systems. Journal of Intelligent Manufacturing, 23(3), 717–731.
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mation systems analysis—Part 1. IEEE Transactions on Systems, Man, and Cybernetics, 27, 1–10.
Thürer, M., Stevenson, M., and Protzman, C.W. (2016) Card-based production control: A review of the
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Chapter 2

Kanban Allocation Policies

of Multi-product Production
Control Strategies
Oladipupo Olaitan, Paul Young, and John Geraghty

Contents
2.1 Introduction: Pull Production Control Strategies...............................................................16
2.1.1 Extended Kanban Control Strategy (EKCS)...........................................................16
2.1.2 Generalized Kanban Control Strategy (GKCS)......................................................16
2.1.3 Kanban Allocation Policies.....................................................................................18
2.2 Review of Related Works...................................................................................................18
2.3 Methodology......................................................................................................................19
2.3.1 Manufacturing System Optimization.................................................................... 20
2.3.2 Sensitivity Analysis for Robustness of Pull Production Control Strategies............. 20
2.3.3 Latin Hypercube Sampling for Design of Experiments for Sensitivity Analysis......21
2.3.3.1 Stochastic Dominance Test of Robustness................................................21
2.4 Set-up of Manufacturing System and Experiments........................................................... 23
2.4.1 System Description................................................................................................ 23
2.4.2 Simulation Modeling............................................................................................. 24
2.4.3 Logic of Operation of DKAP and SKAP under the EKCS and the GKCS.............25
2.4.3.1 DKAP and SKAP under the EKCS..........................................................25
2.4.3.2 DKAP and SKAP under the GKCS.........................................................25
2.4.4 System Optimization............................................................................................. 29
2.4.5 Design of Experiments for Sensitivity Analysis.......................................................31
2.5 Analyses and Discussion of Results................................................................................... 32
2.5.1 Robustness of SL and WIP under EKCS and GKCS............................................. 32
2.5.2 Robustness of SL and WIP under SKAP and DKAP............................................ 32
2.5.3 Impact of Demand and Kanban Synchronization Logic on Products’
SL Robustness.........................................................................................................33
2.5.4 Impact of Kanban Transmission Logic on SL and WIP......................................... 36

15
16 ◾ Production Management

2.6 Conclusions and Recommendations...................................................................................41

Acknowledgment....................................................................................................................... 42
References .................................................................................................................................. 42

2.1 Introduction: Pull Production Control Strategies

The aim of this chapter is to compare the performance of the shared and dedicated kanban allo-
cation policies under the application of the EKCS and the GKCS. The EKCS and the GKCS
are two of the many production control strategies that have been categorized as Pull Production
Control Strategies (PPCS). Other strategies that exist in this category are the traditional Kanban
Control Strategy (KCS) (Ohno 1982), the Base-Stock Control Strategy (BSCS) (Kimball 1988),
the Constant Work-in-Process (CONWIP) (Spearman et al. 1990), and others. These strategies
are so categorized because of the way they pull products through a manufacturing system in
response to customer orders.

2.1.1 Extended Kanban Control Strategy (EKCS)

The EKCS is a combination of the BSCS and the KCS, and described as combining the advan-
tage of immediate response to demands offered by the BSCS, with tight WIP control of the KCS
(Dallery and Liberopoulos 2000).
As shown in Figure 2.1 for a single product serial line, customer demands for finished prod-
ucts that arrive to the system are duplicated and transmitted as demand information to each of
the manufacturing stages. The demand information that arrives to each stage— except the last
stage— is then synchronized with a kanban before being used to authorize the release of a finished
part downstream. At the last stage, demand information is used to release a part from the finished
goods buffer to satisfy the customer demand.

2.1.2 Generalized Kanban Control Strategy (GKCS)

The GKCS (Zipkin 1989) requires setting the base-stock level and the number of kanbans per
manufacturing stage, similarly to the EKCS (Baynat et al. 2002). However, its own approach to
demand information transmission is not global, and the timing of its kanban detachment differs.
As shown in Figure 2.2 for a single product serial line, when demand information arrives, it is
duplicated and transmitted to the last and penultimate stages only. From the penultimate stage,
the demand information is transmitted locally upstream one stage at a time.

D
D
D
D1 K1 D2 K2 D3
D
A1 MP1 A2 MP2
P0 P + K1 P + K1 PA1 P + K2 P + K2 PA2
P P

Figure 2.1 The extended kanban control strategy (Baynat et al., 2002).

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