Multiple-part-type systems in high volume manufacturing : long-term capacity planning & time-based production control

Abstract

This project examines a production station that faces fluctuating demand with seasonal pattern. The cumulative capacity exceeds the cumulative demand in a one year period; however, its weekly capacity is not able to meet the weekly demand during the peak season. In addition, a Kanban system has been employed at the station, and the management is concerned about the appropriateness of the Kanban bin levels as well as the efficiency of the resulting production flow. Having characterized the station as a multiple part type system with mixed low and high volume manufacturing, the lead strategy for long-term capacity planning was applied to fulfill excess demand. In the second stage of the project, the Setup-Enhanced Control-Point Policy was adapted to derive an effective scheduling policy, and ultimately the production control parameters were employed to design a suitable Kanban system. With a proper planning technique and Kanban system developed for the station, it achieved a 30% reduction in overall operation cost by avoiding extra workload during peak demand period, and its performance can be greatly improved with effective and automatic production scheduling, as well as better utilization of manufacturing resources at the station level. Key words: Capacity Planning, Control-Point Policy, Kanban Production System Disclaimer: The content of the thesis is modified to protect the real identity of the attachment company. Company name and confidential information are omitted.