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Structured production planning using a push-pull hybrid approach

Maarleveld, P.J. (2015) Structured production planning using a push-pull hybrid approach.

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Abstract:The main problem addressed is production planning and control for a company engineering and manufacturing customer specific products for OEMs. The business is characterized by high uncertainty because the product mix is continuously changing and unknown for the future. While the production is demand driven, the current planning method used is MRP, a push strategy. This results in frequently infeasible schedules. A pure pull strategy on the other hand seems to lack the ability to handle the complex information associated with multiple customer specific products which change over time. An approach to production planning and control is discussed where a push strategy (MRP) is combined with a pull strategy based on POLCA and adapted to fit the characteristics of the company. The resulting method applies an order release mechanism based on both the MRP schedule and available production capacity. The method is compared to the current order release based on the MRP schedule alone using a simulation study. Unfortunately, because the products change frequently, there is no such thing as a standard mix. The simulation study is therefore used as a proof of concept, rather than to predict the actual improvement potential. The new approach outperforms the current one.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:50 technical science in general, 85 business administration, organizational science
Programme:Industrial Engineering and Management MSc (60029)
Link to this item:http://purl.utwente.nl/essays/68794
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