Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Lean control for make-to-order companies
T2 - integrating customer enquiry management and order release
AU - Thurer, Matthias
AU - Stevenson, Mark
AU - Silva, Cristovao
AU - Land, Martin
AU - Fredendall, Lawrence
AU - Melnyk, Steven A.
PY - 2014/3
Y1 - 2014/3
N2 - A lead time that is short, predictable, and reliable is an increasingly important criterion in supplier selection. Although many companies may achieve this through lean implementation, high-variety manufacturers, for example, small and medium-sized make-to-order companies, have found that lean's planning and control techniques do not apply. This article outlines a planning and control concept known as workload control (WLC) that integrates customer enquiry management, including a due-date setting rule, with order release control. Simulation is then used to assess its impact on shop performance. Results demonstrate that an integrated WLC concept can reduce the percentage of tardy jobs—so short lead times can be realistically quoted—while also reducing and stabilizing workloads. WLC can level demand and production over time when work is not standardized and it is not possible to synchronize flows on the shop floor. Results are shown to be robust to changes in routing characteristics, the mix of orders with due dates specified by the customer and proposed internally, and the strike rate (or order-winning probability). Hence, an integrated approach to WLC represents an important step toward achieving lean in make-to-order companies.
AB - A lead time that is short, predictable, and reliable is an increasingly important criterion in supplier selection. Although many companies may achieve this through lean implementation, high-variety manufacturers, for example, small and medium-sized make-to-order companies, have found that lean's planning and control techniques do not apply. This article outlines a planning and control concept known as workload control (WLC) that integrates customer enquiry management, including a due-date setting rule, with order release control. Simulation is then used to assess its impact on shop performance. Results demonstrate that an integrated WLC concept can reduce the percentage of tardy jobs—so short lead times can be realistically quoted—while also reducing and stabilizing workloads. WLC can level demand and production over time when work is not standardized and it is not possible to synchronize flows on the shop floor. Results are shown to be robust to changes in routing characteristics, the mix of orders with due dates specified by the customer and proposed internally, and the strike rate (or order-winning probability). Hence, an integrated approach to WLC represents an important step toward achieving lean in make-to-order companies.
KW - workload control
KW - lean
KW - make-to-order
KW - customer enquiry management
KW - order review and release
U2 - 10.1111/poms.12058
DO - 10.1111/poms.12058
M3 - Journal article
VL - 23
SP - 463
EP - 476
JO - Production and Operations Management
JF - Production and Operations Management
SN - 1059-1478
IS - 3
ER -