Comparing TOC with MRP and JIT: a literature review

Since the early 1980s, manufacturing philosophies such as manufacturing resource planning (MRP), just-in-time (JIT), and theory of constraints (TOC) have emerged as distinct, viable, and competitive planning and control systems for improving the organisational performance. Comparative literature outlines many similarities and differences among these philosophies and attempts to answer the question: what is the best choice? With this question in mind, this paper reviewed the journal articles comparing TOC with MRP and JIT and provided specific future research directions. Although TOC is shown to compete effectively against MRP and JIT and thereby, holds promise, the results are still inconclusive primarily because the majority of journal articles lack in one respect or the other in terms of realistic examples modelled, breadth of characteristics considered, rigorous methodology employed, and depth of statistical analysis performed. In terms of future research directions, we develop a comprehensive list of characteristics by drawing on the literature reviewed and suggest some specific empirical as well as analytical research streams.     

Integration of production planning,project management and logistics systems for supply chain management

The objective of this research was to develop an integrated framework to handle application modules in enterprise resource planning (ERP) and supply chain management (SCM) systems that traditionally needs to be interfaced on a case-by-case basis. This paper presents a framework integrating various modules in both systems, for planning, control and execution of materials, resources and operations. The framework enables planning and execution over a range of areas, from flow to project-based manufacturing and distribution from suppliers to customers. This document presents the conceptual framework development along with algorithms for scheduling paths, and illustrated numerical examples in the supply chain environment. The numerical evaluation of scheduling paths and planning of components, in the integrated networks, shows that the developed framework could cater for ERP/SCM application modules. The framework also facilitates simultaneous planning of many components, and eliminates the need for separate modules in ERPSCM systems. It enhances planning, control and execution, and simplifies the vendor follow-up system by integrating supplier components into the integrated network. The framework therefore becomes a new production planning (PP) module in integrated ERP/SCM systems and can provide links to other manufacturing philosophies, such as just-in-time (JIT).     

Managing system constraints: a cost/utilization approach

Modern management philosophies, such as just in time (JIT), the theory of constraints (TOC) and total quality management (TQM), place a strong emphasis on operations management. These approaches create techniques and procedures for effective flow of materials, but do not provide sufficient tools to consider the economic outcomes of the various alternatives. This paper applies the cost/utilization model to the analysis of production lines and materials flow. The model combines the Pareto approach with the TOC approach. The Pareto approach concentrates on the important and costly elements of the organization. TOC focuses on the organization's constraints. It is presented in a simple graphic display aimed to allow managers to locate better constraint resources, detect faults in the planning of the production line, examine improper fluctuations in the process and pinpoint their sources. The model is a top-management decision-support tool that may be applied in areas such as buffer policy, assessment of protective capacity, investment in production resources and identification and priorization of areas for improvement.     

Strategic Thrust of Manufacturing Automation Decisions: A Conceptual Framework

American manufacturing firms increasingly consider automation as the means to increase productivity and improve their competitiveness. However, decisions to automate do not always produce the expected results and lead to further frustration. The so called “islands of automation” are often blamed for such failures and other technological alternatives such as computer integrated manufacturing (CIM) are adopted on a piece-meal fashion. This paper examines the adoption of new technology in general, and die decision to automate in particular, from a strategic perspective. In order to deal with the underlying complexities of automation, a conceptual framework is developed that can guide decision makers through a step-by-step process. Within an experimental analysis context, a decision support system is built that uses the “Expert Choice” cell to test the effectiveness of the introduced framework. The results indicate that the study's method can greatly enhance the decision making capabilities of firms contemplating automation     

A CBFSA approach to resolve the distributed manufacturing process planning problem in a supply chain environment

In this competitive world cost and lead time reduction are of prime concern for manufacturing firms. To achieve this objective manufacturing entities are adopting several management philosophies such as Total Quality Management (TQM), just-in-time (JIT), and theory of constraints (TOC). The present paper addresses the advanced computer-aided process planning (ACAPP) problem in a distributed manufacturing supply chain environment and aims at cost and lead times reduction under several technological constraints. To deal with the complexity of the problem the constraint based fast simulated annealing (CBFSA) algorithm has been explored in this article. Extensive computations have been performed over the well-known benchmarks of advanced planning problems and the results obtained prove the superiority of the proposed algorithm over the prior approaches.     

Activity-Based Throughput Management in a manufacturing company

This paper presents an Activity-Based Throughput Management (ABTM) framework that is based on the premise that attaining the goal of making money through activity analysis must be the main focus of manufacturing businesses. The proposed framework integrates the basic concepts of evolving management philosophies of Activity-Based Management and the Theory of Constraints into a cohesive model. The paper explains the concepts and conventions related to building a visual- (i.e. a process map) and spreadsheet-based ABTM model and thereby provides an operational decision-making framework for manufacturing managers in the modern manufacturing environment. The usefulness of the framework and its underlying model are then demonstrated by developing a number of product and process improvement scenarios, e.g. focused quality improvement, cycle time management, technological investment justification, and optimal product mix.     

New integrated model to estimate the manufacturing cost and production system performance at the conceptual design stage of helicopter blade assembly

This paper describes a new integrated model development to estimate the manufacturing cost and production system performance at the conceptual design stage. A fully automated conceptual framework for design for manufacturing (DFM) has been developed. An integrated product process design concept using activity based costing is applied in this paper. The new integrated model consists of four sub-modules: the geometric parameters generation module, processing time estimation module, activity based costing (ABC) module and production system performance module. All of the input-output data flows of developed modules are fully integrated for automated manufacturing cost analysis and production system performance. A developed integrated model is very useful for designers or integrated product development team to make a decision for evaluating the design alternatives and trade-offs between design and manufacturing phases at the conceptual design stage. A case study for a composite helicopter rotor blade is included.     

A framework for decision-making in investment alternatives selection

Investment alternatives selection involves a variety of criteria that should be evaluated to provide a solid basis for decision-making. Some prior research has proposed methodologies and frameworks to support such alternatives selection. However, many of them present intrinsic limitations related to their applicability and complexity. Thus, this paper presents a framework for decision-making concerning investment alternatives that are usually related to equipment selection for a manufacturing process, technology selection for product development, product portfolio selection, and production strategy selection, among others. The framework is based on a multi-criteria approach that considers three main criteria: (i) strategy, which considers company market competitiveness; (ii) quality, which considers client requirements; and (iii) economic aspects, considering the overall financial benefits of the investment. These criteria are evaluated with the support of well-known tools from traditional management engineering such as SWOT, QFD, NPV and Payback. The results obtained through the use of these tools are rated using the MAUT method. Two major contributions are offered by this framework: (i) the integration of three key criteria for decision-making that enables to obtain a balanced analysis of the investment alternatives and (ii) the intrinsic easy-to-implement characteristic of the framework – based on the use of traditional tools. The proposed framework was applied in a tailor-made furniture company to support a make-or-buy decision, and the obtained results are discussed.     

Integrative process plan model and representation for intelligent distributed manufacturing planning

Process planning is one of the key functions for product design and manufacturing. Process plans have very great impact on all phases of product design and manufacture. Therefore, it is necessary to establish a high level of interaction between different product design activities and their tight integration into a coherent system. In this paper we describe a process plan model that allows for such integration. The framework for integration is briefly described and the process plan model that considers three dimensions of planning is explained. The manufacturing process plan model is defined as a three-dimensional model with the following dimensions: time/order, variability/alternatives, and aggregation. All three dimensions are defined and explained as they relate to overall manufacturing planning. The nature of these dimensions is illustrated with several examples. The implementation of the framework and the model within the distributed system IMPlanner is presented. The prototype has been implemented in the Java language and the model for data storage has been implemented in XML. The benefits of integrated consideration are described for several currently implemented applications such as feature modelling, process visualization, process network generation, cell formation, and scheduling.     

TOC-based performance measures and five focusing steps in a job-shop manufacturing environment

Theory of constraints (TOC) views a company as a set of interdependent processes working in harmony to achieve the profit goal of the company as a whole, and thus it emphasizes total system performance over localized measures to guide operational decisions. This paper demonstrates the usefulness of employing TOCbased global performance measures to make operational-decisions (e.g. product mix, continuous improvement, inventory management, production planning and scheduling) to strengthen the internal supply chain in a relatively complex manufacturing environment, i.e. a job shop. An ARENA-based simulation model is presented and a number of scenarios are discussed that provide insights regarding the characteristic features of TOC, such as goals and necessary conditions, performance measures, five-focusing steps for continuous improvement, and drumbuffer-rope scheduling. These insights will assist managers in making important decisions regarding approaches to successful TOC implementations, and will provide academics with a broad range of future research opportunities.     

复杂网络理论在离散车间生产过程的应用研究综述

目前复杂网络的理论基础已得到深入研究,但其在生产领域的应用状况和趋势分析尚不明确。为此,提出了一个面向离散制造过程的复杂网络理论应用研究框架;通过分析国内外相关文献资料,围绕与制造过程密切相关的产品族/产品设计、零部件制造、产品装配和效能评价4个方面进行综述,对当前取得的成果进行了总结和分析。并通过与Petri网等复杂系统建模方法比较,发现采用复杂网络理论重新定义当前的生产过程,可为生产研究提供新的视角和思路。最后对未来的研究趋势作了进一步展望。     

Measuring manufacturing competence: a fuzzy approach

Over the last decade a large body of literature has pointed out the crucial role played by manufacturing in the achievement of the overall goals of a company. Some authors have attempted to summarise this role by introducing the concept of production competence: it measures a manufacturer's ability to support and implement a product-market specific business strategy and is calculated on the basis of current manufacturing performances. Such a measure of production competence can be associated with a short term perspective, as it disregards the future evolution of manufacturing performance. In fact, in many of today's industries, characterised by high turbulence, the current manufacturing performances could not be representative of the future ones and, consequently, of the manufacturing's overall ability to support the company's strategy in the long term. The purpose of this article is twofold: (1) to propose a new framework of production competence (which we will refer to as manufacturing competence), based on manufacturing critical capabilities and infrastructural resources, that considers also the potential of manufacturing for improving the company's performance in the future; and (2) to suggest a consistent measurement framework, derived from the fuzzy ses theory.     

Metallic Nanowire‐Based Transparent Electrodes for Next Generation Flexible Devices: a Review

Transparent electrodes attract intense attention in many technological fields, including optoelectronic devices, transparent film heaters and electromagnetic applications. New generation transparent electrodes are expected to have three main physical properties: high electrical conductivity, high transparency and mechanical flexibility. The most efficient and widely used transparent conducting material is currently indium tin oxide (ITO). However the scarcity of indium associated with ITO's lack of flexibility and the relatively high manufacturing costs have a prompted search into alternative materials. With their outstanding physical properties, metallic nanowire (MNW)‐based percolating networks appear to be one of the most promising alternatives to ITO. They also have several other advantages, such as solution‐based processing, and are compatible with large area deposition techniques. Estimations of cost of the technology are lower, in particular thanks to the small quantities of nanomaterials needed to reach industrial performance criteria. The present review investigates recent progress on the main applications reported for MNW networks of any sort (silver, copper, gold, core‐shell nanowires) and points out some of the most impressive outcomes. Insights into processing MNW into high‐performance transparent conducting thin films are also discussed according to each specific application. Finally, strategies for improving both their stability and integration into real devices are presented.     

Towards theory building in manufacturing flexibility

This study consolidates and extends previous research to propose a theoretical framework of manufacturing flexibility. The framework proposes antecedent roles for manufacturing flexibilities in supporting a range of agility-related manufacturing priorities; suggests how such manufacturing flexibilities can be developed; and relates the effects of alignment between flexibility-facilitated manufacturing outcomes and business strategy on firm performance. A questionnaire was administered to 1700 senior level managers in manufacturing firms, with 322 valid surveys returned for data analysis. The results support the framework, and suggest that different manufacturing priorities can be facilitated through the development of specific manufacturing flexibilities. The results also indicate that these manufacturing flexibilities can be acquired through the development of purchasing competence in a firm. The data provide partial support for a relationship between congruity in manufacturing and business goals, and firm performance.     

Perspective: a review of lifecycle management research on complex products in smart-connected environments

Smart-connected technologies, such as the Internet of things and cloud computing, are transforming how industries and enterprises do business by improving the lifecycle management of their product. Therefore, to study the lifecycle management of complex products under smart-connected environment, many studies have been published outlining new methods for smart development, intelligent manufacturing, and data-driven services. This paper first proposes the concept and architecture of smart-connected products and then systematically reviews the current research about new paradigms of product development, manufacturing and services. The paper also summarises the conceptual framework, research issues and opportunities of each phase of the product lifecycle management.     

Developing environmental and social performance: the role of suppliers’ sustainability and buyer–supplier trust

We explore how environmental and social performance of manufacturing firms can be improved as sustainable supply chain management (SSCM) develops and evolves within a firm from internal to external practices. Importantly, this study considers how key suppliers’ sustainability performance and buyer–supplier trust mediate and moderate such a development. A conceptual framework is developed which relies on resource-based theories and emerging empirical evidence. Then, partial least square methodology is applied on survey data from a sample of Italian manufacturing firms. Results show that manufacturing firms’ sustainability performance improves as SSCM develops; however, while internal practices have a direct impact on performance, the effect of external practices on a manufacturing firm’s sustainability performance is fully mediated by key suppliers’ sustainability performance. Yet, buyer–supplier trust significantly influences the scope of such gains. Since evidence suggests that manufacturing firms are still struggling with how to leverage supply chain innovation potential for sustainable development, this study provides a timely and valuable contribution.     

How Can Lean Manufacturing Lead the Manufacturing Sector during Health Pandemics Such as COVID 19: A Multi Response Optimization Framework

Lean manufacturing has been used for the last few decades as a process and performance improvement tool. Initially known as Toyota production system (TPS), lean is now used in almost all service and manufacturing sectors to deliver favorable results such as decreased operational cost, increased customer satisfaction, decreased cycle time, and enhanced profits. During the coronavirus disease (COVID 19) pandemic, the manufacturing sector struggled immensely and could not function well even after lockdown was eased in many countries. Many companies found out there are not ready to conform with new regulations made by authorities in many countries. This paper proposes the use of simulation and multi response optimization in addition to other typical lean tools in order to arrive at optimum performance at the end of each project through an established optimization framework. The framework is used in a real case study performed at an aluminum extrusion factory. Lean manufacturing helps organizations to operate with smaller number of resources. It standardizes all processes so that most of the jobs can be done by most of the workers, but this is not enough to create a healthy, sanitized work place. Our framework utilizes the strengths of lean tools and adds pandemic readiness factor to them to ensure improvement in performance and health pandemic readiness. Implementation of the framework in the case company resulted in 50% reduction in labor, $730000 in expected annual cost savings, reduction in inventory levels, improved employee morale and the achievement of pandemic ready status.     

Development of a decision-support system for the formulation of manufacturing strategy

Corporate strategy can be divided into various substrategies, such as marketing, manufacturing, research and development, etc. In the current enterprise environment, products are highly varied and product life-cycles are shortening owing to customers' changing needs and market competition. In such an environment, the formulation of a good manufacturing strategy is critical for the success of manufacturing enterprises. In this research, for the establishment of good manufacturing strategy, we propose a framework enabling a decision-support system for the modelling and analysis of the manufacturing system. For this task, we have constructed a single integrated object model that contains information about products, processes and resources in the manufacturing system. The model is flexible, allowing the objects in the model to be defined according to the levels of detail required by analysis. The process model can then be transformed to a generalized stochastic Petri net (GSPN). Furthermore, a Petri net separation procedure is presented to relieve the complexity of the analytic method. By using the analytic analysis of GSPN, the system throughput is easily obtainable. An example is included to demonstrate the applicability of this framework. The proposed decision-support system for manufacturing strategy formulation enables (1) the analysis of the relationship between strategic input variables and performance measures, (2) the scenario evaluation for coordination between the manufacturing department and other departments, and (3) the formulation of manufacturing strategy using what-if analysis against dynamic manufacturing environments.