MIT 2.853/2.854 Introduction to Manufacturing Systems. Multi-Stage Control and Scheduling. Lecturer: Stanley B. Gershwin

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MIT 2.853/2.854 Introduction to Manufacturing Systems Multi-Stage Control and Scheduling Lecturer: Stanley B. Gershwin Copyright c 2002-2016 Stanley B. Gershwin.

Definitions Events may be controllable or not, and predictable or not. controllable uncontrollable predictable loading a part lunch unpredictable??? machine failure Copyright c 2002-2016 Stanley B. Gershwin. 2

Definitions Scheduling is the selection of times for future controllable events. Ideally, scheduling systems should deal with all controllable events, and not just production. That is, they should select times for operations, set-up changes, preventive maintenance, etc. They should at least be aware of set-up changes, preventive maintenance, etc.when they select times for operations. Copyright c 2002-2016 Stanley B. Gershwin. 3

Definitions Because of recurring random events, scheduling is an on-going process, and not a one-time calculation. Scheduling, or shop floor control, is the bottom of the scheduling/planning hierarchy. It translates plans into events. Copyright c 2002-2016 Stanley B. Gershwin. 4

Definitions Control Paradigm Noise Actuation System State Control Observations This is the general paradigm for control theory and engineering. Copyright c 2002-2016 Stanley B. Gershwin. 5

Definitions Control Paradigm In a factory, State: distribution of inventory, repair/failure states of machines, etc. Control: move a part to a machine and start operation; begin preventive maintenance, etc. Noise: machine failures, change in demand, etc. Copyright c 2002-2016 Stanley B. Gershwin. 6

Definitions Release and Dispatch Release: Authorizing a job for production, or allowing a raw part onto the factory floor. Dispatch: Moving a part into a workstation or machine. Release is more important than dispatch. That is, improving release has more impact than improving dispatch, if both are reasonable. Copyright c 2002-2016 Stanley B. Gershwin. 7

Definitions Requirements Scheduling systems or methods should... deliver good factory performance. compute decisions quickly, in response to changing conditions. Copyright c 2002-2016 Stanley B. Gershwin. 8

Performance Goals To minimize inventory and backlog. To maximize probability that customers are satisfied. To maximize predictability (ie, minimize performance variability). Copyright c 2002-2016 Stanley B. Gershwin. 9

Performance Goals For MTO (Make to Order) To meet delivery promises. To make delivery promises that are both soon and reliable. For MTS (Make to Stock) to have FG (finished goods) available when customers arrive; and to have minimal FG inventory. Copyright c 2002-2016 Stanley B. Gershwin. 10

Performance Goals Objective of Scheduling Cumulative Production and Demand production P(t) earliness surplus/backlog x(t) Objective is to keep cumulative production close to cumulative demand. demand D(t) t Copyright c 2002-2016 Stanley B. Gershwin. 11

Performance Goals Difficulties Complex factories Unpredictable demand (ie D uncertainty) Factory unreliability (ie P uncontrollability) Copyright c 2002-2016 Stanley B. Gershwin. 12

Basic approaches Simple rules heuristics Dangers: Too simple may ignore important features. Rule proliferation. Detailed calculations Dangers: Too complex impossible to develop intuition. Rigid had to modify may have to lie in data. Copyright c 2002-2016 Stanley B. Gershwin. 13

Basic approaches Detailed calculations Deterministic optimization. Large linear or mixed integer program. Re-optimize periodically or after important event. Scheduling by simulation. Copyright c 2002-2016 Stanley B. Gershwin. 14

Basic approaches Detailed calculations Dangers Nervousness or scheduling volatility (fast but inaccurate response): The optimum may be very flat. That is, many very different schedule alternatives may produce similar performance. A small change of conditions may therefore cause the optimal schedule to change substantially. Copyright c 2002-2016 Stanley B. Gershwin. 15

Basic approaches Detailed calculations Dangers f (x ) 2 f(x ) 1 f (x ) 1 Perturbed cost function f (x) Original cost function f(x) x 1 x x 2 Original optimum performance was f(x 1 ). New optimum performance is f (x 2 ). If we did not change x, new performance would be f (x 1 ). Benefit from change: f (x 2 ) f (x 1 ), small. Cost of change: x 2 x 1, large. Copyright c 2002-2016 Stanley B. Gershwin. 16

Basic approaches Detailed calculations Dangers Slow response: Long computation time. Freezing. Bad data: Factory data is often very poor, especially when workers are required to collect it manually. GIGO Copyright c 2002-2016 Stanley B. Gershwin. 17

Heuristics Characteristics A heuristic is a proposed solution to a problem that seems reasonable but cannot be rigorously justified. In reentrant systems, heuristics tend to favor older parts. This keeps inventory low. Copyright c 2002-2016 Stanley B. Gershwin. 18

Heuristics Characteristics Desirable Characteristics Good heuristics deliver good performance. Heuristics tend to be simple and intuitive. People should be able to understand why choices are made, and anticipate what will happen. Relevant information should be simple and easy to get access to. Simplicity helps the development of simulations. Good heuristics are insensitive to small perturbations or errors in data. Copyright c 2002-2016 Stanley B. Gershwin. 19

Heuristics Characteristics Decentralization It is often desirable for people to make decisions on the basis of local, current information. Centralized decision-making is most often bureaucratic, slow, and inflexible. Most heuristics are naturally decentralized, or can be implemented in a decentralized fashion. Copyright c 2002-2016 Stanley B. Gershwin. 20

Heuristics Performance evaluation Machine Part Consumable Token Operator Operation Part Waste Token An operation cannot take place unless there is a token available. Tokens authorize production. These policies can often be implemented either with finite buffer space, or a finite number of tokens. Mixtures are also possible. Buffer space could be shelf space, or floor space indicated with paint or tape. Copyright c 2002-2016 Stanley B. Gershwin. 21

Heuristics Performance evaluation Delay better Tradeoff between service rate and average cycle time. 1.0 Service rate Copyright c 2002-2016 Stanley B. Gershwin. 22

Heuristics Finite buffer M1 B1 M2 B2 M3 B3 M4 B4 M B Buffers tend to be close to full. 5 5 M 6 Sizes of buffers should be related to magnitude of disruptions. Not practical for large systems, unless each box represents a set of machines. Copyright c 2002-2016 Stanley B. Gershwin. 23

Heuristics Kanban Production kanban movement Withdrawal kanban movement Material movement Performance slightly better than finite buffer. Sizes of buffers should be related to magnitude of disruptions. Copyright c 2002-2016 Stanley B. Gershwin. 24

Heuristics CONWIP Constant Work in Progress Variation on kanban in which the number of parts in an area is limited. When the limit is reached, no new part enters until a part leaves. Variations: When there are multiple part types, limit work hours or dollars rather than number of parts. Or establish individual limits for each part type. Copyright c 2002-2016 Stanley B. Gershwin. 25

Heuristics CONWIP If token buffer is not empty, attach a token to a part when M 1 starts working on it. If token buffer is empty, do not allow part into M 1. Token and part travel together until they reach last machine. When last machine completes work on a part, the part leaves and the token moves to the token buffer. Copyright c 2002-2016 Stanley B. Gershwin. 26

Heuristics CONWIP Infinite material buffers. Infinite token buffer. Limited material population at all times. Population limit should be related to magnitude of disruptions. Copyright c 2002-2016 Stanley B. Gershwin. 27

Heuristics CONWIP b M 1 n 1 M 2 n 2 M 3 n 3 M 4 n 4 M 5 n 5 M 6 Claim: n 1 + n 2 +... + n 5 + b is constant. Copyright c 2002-2016 Stanley B. Gershwin. 28

Heuristics CONWIP Proof b M 1 n 1 M 2 n 2 M 3 n 3 M 4 n 4 M 5 n 5 M 6 Define C = n 1 + n 2 +... + n 5 + b. Whenever M j does an operation, C is unchanged, j = 2,...,5.... because n j 1 goes down by 1 and n j goes up by 1, and nothing else changes. Whenever M 1 does an operation, C is unchanged.... because b goes down by 1 and n 1 goes up by 1, and nothing else changes. Copyright c 2002-2016 Stanley B. Gershwin. 29

Heuristics CONWIP Proof b M 1 n 1 M 2 n 2 M 3 n 3 M 4 n 4 M 5 n 5 M 6 Whenever M 6 does an operation, C is unchanged.... because n 5 goes down by 1 and b goes up by 1, and nothing else changes. Similarly for M 1. That is, whenever anything happens, C = n 1 + n 2 +... + n 5 + b is unchanged. C is an invariant. C is the maximum population of the material in the system. Copyright c 2002-2016 Stanley B. Gershwin. 30

Heuristics CONWIP/Kanban Hybrid Finite buffers Finite material population Limited material population at all times. Population and sizes of buffers should be related to magnitude of disruptions. Copyright c 2002-2016 Stanley B. Gershwin. 31

Heuristics CONWIP/Kanban Hybrid Thruput 0.8 0.6 0.4 0.2 0 Thruput vs Population 0 5 10 15 20 25 30 35 40 45 50 Production rate as a function of CONWIP population. In these graphs, total buffer space (including for tokens) is finite. Population Copyright c 2002-2016 Stanley B. Gershwin. 33

Heuristics CONWIP/Kanban Hybrid Thruput vs Population 0.5 Thruput 0.48 0.45 0.43 0.4 0.38 0.35 0.33 0.3 0.28 0.25 Maximum production rate occurs when population is half of total space. 0.23 0 2.5 5 7.5 10 12. 5 15 17. 5 20 22. 5 25 27. 5 30 32. 5 35 37. 5 Population Copyright c 2002-2016 Stanley B. Gershwin. 34

Heuristics CONWIP/Kanban Hybrid Thruput vs Population 0.65 Thruput 0.6 0.55 0.5 0.45 0.4 0.35 When total space is infinite, production rate increases only. 0.3 0.25 0 5 10 15 20 25 30 35 40 45 50 55 60 Population Copyright c 2002-2016 Stanley B. Gershwin. 34

Simple Policies Hedging point Cumulative Production and Demand production P(t) State: (x,α) earliness x = surplus = difference between cumulative production and demand. demand D(t) = dt surplus x(t) t α = machine state. α = 1 means machine is up; α = 0 means machine is down. Copyright c 2002-2016 Stanley B. Gershwin. 35

Simple Policies Hedging point Control: u u = short term production rate. if α = 1, 0 u µ; if α = 0, u = 0. Copyright c 2002-2016 Stanley B. Gershwin. 36

Simple Policies Hedging point g(x) Objective function: T mine g(x(t))dt 0 x where g(x) = { g+x, if x 0 g x, if x < 0 Copyright c 2002-2016 Stanley B. Gershwin. 37

Simple Policies Hedging point Dynamics: dx = u d dt α goes from 0 to 1 according to an exponential distribution with parameter r. α goes from 1 to 0 according to an exponential distribution with parameter p. Copyright c 2002-2016 Stanley B. Gershwin. 38

Simple Policies Hedging point Cumulative Production and Demand hedging point Z d t + Z production demand dt surplus x(t) Solution: if x(t) > Z, wait; if x(t) = Z, operate at demand rate d; if x(t) < Z, operate at maximum rate µ. t Copyright c 2002-2016 Stanley B. Gershwin. 39

Simple Policies Hedging point The hedging point Z is the single parameter. It represents a trade-off between costs of inventory and risk of disappointing customers. It is a function of d, µ, r, p, g +, g. Copyright c 2002-2016 Stanley B. Gershwin. 40

Simple Policies Hedging point 600 500 400 Z 300 200 100 0 0.5 0.55 0.6 0.65 0.7 0.75 0.8 0.85 0.9 d Copyright c 2002-2016 Stanley B. Gershwin. 41

Simple Policies Hedging point M FG B S Operating Machine M according to the hedging point policy is equivalent to operating this assembly system according to a finite buffer policy. D Copyright c 2002-2016 Stanley B. Gershwin. 42

Simple Policies Hedging point D is a demand generator. Whenever a demand arrives, D sends a token to B. S is a synchronization machine. S is perfectly reliable and infinitely fast. FG is a finite finished goods buffer. B is an infinite backlog buffer. Copyright c 2002-2016 Stanley B. Gershwin. 43

Simple Policies Basestock Base Stock: the amount of material and backlog between each machine and the customer is limited. Deviations from targets are adjusted locally. Copyright c 2002-2016 Stanley B. Gershwin. 44

Simple Policies Basestock Demand Infinite buffers. Finite initial levels of material and token buffers. Copyright c 2002-2016 Stanley B. Gershwin. 45

Simple Policies Basestock Proof M M n M n M n M n M 1 n 1 12 2 3 3 4 4 5 5 6 b 1 b 2 b 3 b 4 b 5 b 6 k=6 Demand Claim: b j + n j + n j+1 +... + n k 1 b k,1 j k remains constant at all times. Copyright c 2002-2016 Stanley B. Gershwin. 46

Simple Policies Basestock Proof Consider b 1 + n 1 + n 2 +... + n k 1 b k When M i does an operation (1 < i < k), n i 1 goes down by 1, b i goes down by 1, n i goes up by 1, and all other b j and n j are unchanged. That is, n i 1 + n i is constant, and b i + n i is constant. Therefore b 1 + n 1 + n 2 +... + n k 1 b k stays constant. When M 1 does an operation, b 1 + n 1 is constant. When M k does an operation, n i 1 b k is constant. Therefore, when any machine does an operation, b 1 + n 1 + n 2 +... + n k 1 b k remains constant. Copyright c 2002-2016 Stanley B. Gershwin. 47

Simple Policies Basestock Proof Now consider b j + n j + n j+1 +... + n k 1 b k,1 < j < k When M i does an operation, i j, b j + n j + n j+1 +... + n k 1 b k remains constant, from the same reasoning as for j = 1. When M i does an operation, i < j, b j + n j + n j+1 +... + n k 1 b k remains constant, because it is unaffected. Copyright c 2002-2016 Stanley B. Gershwin. 48

Simple Policies Basestock Proof When a demand arrives, n j stays constant, for all j, and all b j increase by one. Therefore b j + n j + n j+1 +... + n k 1 b k remains constant for all j. Conclusion: whenever any event occurs, b j + n j +n j+1 +... +n k 1 b k remains constant, for all j. Copyright c 2002-2016 Stanley B. Gershwin. 49

Simple Policies Comparisons Simulation of simple Toyota feeder line. We simulated all possible kanban policies and all possible kanban/conwip hybrids. Copyright c 2002-2016 Stanley B. Gershwin. 50

Simple Policies Comparisons 20 Total Inventory 18 16 14 12 10 8 6 Best kanban Best hybrid The graph indicates the best of all kanbans and all hybrids. 4 0.99 0.991 0.992 0.993 0.994 0.995 0.996 0.997 0.998 0.999 1 Service Level Copyright c 2002-2016 Stanley B. Gershwin. 51

Simple Policies Comparisons More results of the comparison experiment: best parameters for service rate =.999. Policy Buffer sizes Base stocks Finite buffer 2 2 4 10 Kanban 2 2 4 9 Basestock 1 1 1 12 CONWIP 15 Hybrid 2 3 5 15 15 Copyright c 2002-2016 Stanley B. Gershwin. 52

Simple Policies Comparisons More results of the comparison experiment: performance. Policy Service level Inventory Finite buffer 0.99916 ±.00006 15.82 ±.05 Kanban 0.99909 ±.00005 15.62 ±.05 Basestock 0.99918 ±.00006 14.60 ±.02 CONWIP 0.99922 ±.00005 14.59 ±.02 Hybrid 0.99907 ±.00007 13.93 ±.03 Copyright c 2002-2016 Stanley B. Gershwin. 53

Simple Policies Other policies FIFO First-In, First Out. Simple conceptually, but you have to keep track of arrival times. Leaves out much important information: due date, value of part, current surplus/backlog state, etc. Copyright c 2002-2016 Stanley B. Gershwin. 54

Simple Policies Other policies EDD Earliest due date. Easy to implement. Does not consider work remaining on the item, value of the item, etc.. Copyright c 2002-2016 Stanley B. Gershwin. 55

Simple Policies Other policies SRPT Shortest Remaining Processing Time Whenever there is a choice of parts, load the one with least remaining work before it is finished. Variations: include waiting time with the work time. Use expected time if it is random. Copyright c 2002-2016 Stanley B. Gershwin. 56

Simple Policies Other policies Critical ratio Widely used, but many variations. One version: Processing time remaining until completion Define CR = Due date - Current time Choose the job with the highest ratio (provided it is positive). If a job is late, the ratio will be negative, or the denominator will be zero, and that job should be given highest priority. If there is more than one late job, schedule the late jobs in SRPT order. Copyright c 2002-2016 Stanley B. Gershwin. 57

Simple Policies Other policies Least Slack This policy considers a part s due date. Define slack = due date - remaining work time When there is a choice, select the part with the least slack. Variations involve different ways of estimating remaining time. Copyright c 2002-2016 Stanley B. Gershwin. 58

Simple Policies Other policies Drum-Buffer-Rope Due to Eli Goldratt. Based on the idea that every system has a bottleneck. Drum: the common production rate that the system operates at, which is the rate of flow of the bottleneck. Buffer: DBR establishes a CONWIP policy between the entrance of the system and the bottleneck. The buffer is the CONWIP population. Rope: the limit on the difference in production between different stages in the system. But: What if bottleneck is not well-defined? Copyright c 2002-2016 Stanley B. Gershwin. 59

Conclusions Many policies and approaches. No simple statement telling which is better. Policies are not all well-defined in the literature or in practice. My opinion: This is because policies are not derived from first principles. Instead, they are tested and compared. Currently, we have little intuition to guide policy development and choice. Copyright c 2002-2016 Stanley B. Gershwin. 60

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