A framework to engineer production control strategies and its application in electronics manufacturing

One of the most challenging tasks of companies with complex and discrete production systems is to determine an appropriate production control strategy (PCS). The PCS is crucial, as it influences inventory, costs, and service. We propose a framework to address the most important questions of PCS engineering: limiting work in process, positioning the order penetration point (OPP), and coping with demand uncertainty upstream the OPP. Thereby, uncertain advance demand information in the form of forecasts is considered and desirable characteristics of push and pull strategies are combined. A serial manufacturing system with multiple products, variable processing times, and uncertain advance demand information is examined. The model is formulated as a queuing network model and solved numerically by discrete-event simulation. The framework and a resulting hybrid control strategy are applied to a case study from electronics manufacturing, where a significant improvement potential is identified.