19th International Conference on Production Research

METHOD OF BUFFERING CRITICAL RESOURCES IN MAKE-TO-ORDER SHOP

FLOOR CONTROL IN MANUFACTURING COMPLEX PRODUCTS

Lukasz Hadas, Piotr Cyplik, Marek Fertsch

Institute of Engineering Management
Poznan University of Technology
Strzelecka 11 St, 60-966 Poznan, POLAND

Abstract
This paper presents a method for buffering critical resources in make-to-order shop floor control in manufacturing
complex products. The research was done in Marine Diesel Engines Factory, HCP S.A. Poznan conditions. HCP
S.A. Poznan is the biggest producer of high- power marine engines in Europe. These methods of buffering critical
resources include procedures of buffers management, (buffers configuration and optimization), a system of
disruptions compensation and feedback protecting from destructive influence of wandering bottlenecks. The flow
simulations show that this method is more effective than classical drum-buffer-rope production solution, according
to TOC, using FIFO rule. Finally, the lead-time and the level of work-in-process were about 20% lower than the
solution recommended to TOC.

Keywords:
TOC (Theory of Constraints), Make-to-order company, A-plant (V-A-T analysis)

1 INTRODUCTION flow of material complexity, the level of interior and exterior

The conditions of make-to-order manufacturing of complex
products with a long lead time have a specific character for
manufacturing environment. Such a manufacturing
environment is characterized by a high organization
complexity which influences the way it operates, the
detailed solutions that are adopted and the tendency to
cumulate negative phenomena affecting the system
efficiency strongly.
The basic features of make-to-order manufacturing of
complex products include [2]:
low production stability,
high capital consumption of production,
problems in scheduling and planning tasks on the
operation level.
The research carried on in Marine Diesel Engines Factory,
HCP S.A. Poznan confirms this characteristic. The
production environment of HCP S.A. Poznan has an
extremely complex material flow. The lead time of a
finished product lasts form 9 months to one year, and the
total work consumption is about 40 000 hours. The main
problem of this shop floor control environment is too long
lead time and too high production costs. The flow of
material presents the most complicated A-plant topology
(V-A-T analysis) and has the constant capacity constraints
(bottlenecks).
One of the main problems is the efficient utilization of
bottlenecks of the production system. The high level of
process disruptions both interior and exterior (supplier) is
the reason of the fact that work scheduling requires a lot of
effort. The high schedule changeability is, in turn, the
reason of the high level of work-in-process and of
additional complication of the flow of production.
2 SEARCHING THE BEST METHOD OF SHOP FLOOR
PLANNING AND CONTROL
The purpose of the work was to find the best possible
solution for the analyzed productions conditions. The main
factors in choosing the system of shop floor planning and
control included such features as: product complexity, the
disruptions and the existence of strong interior constraints.
MRP JIT
TOC
Kanban
Material St 1 St 2 St 3 Shipping
Figure 1: The localization of schedules for MRP, JIT, TOC
in the flow simulations.
Systems MRP, JIT and TOC and their efficiency were
analyzed in these particular production environments. The
numerous flow of material simulations which were carried
out enabled evaluating the efficiency of flow of material
logic of push, pull, hybrids, push/pull and the idea of
global and local buffering [3]. The analyzed parameters
were: the level of work-in-process and the length of lead-
times. The achieved results along with the existing
conditions of production led to the conclusion that the best
would be creating the system based on the TOC
philosophy.
3 METHOD OF BUFFERING CRITICAL RESOURCES
The reference model Drum-Buffer-Rope Solution [1] is
based on the shop floor control according to the FIFO rule.
It is an efficient and simple solution to the problem of the
sequence of task completion by non-critical resources, for
the production flow aiming at constraint. However,
effectiveness of the solution is limited to comparatively
simple material flows and decreases drastically for more
complex production flows.
In real company conditions the effectiveness of FIFO rule
is not sufficient. What is crucial for the effectiveness of
implementation of FIFO rule in the system with critical
resources is the amount and laboriousness of works
competing for resources.
On the strategic level the developed method is based on
TOC tools as well as the V-A-T analysis [6 pp. 55-60, 7 pp.
211-255] and the method of five focusing steps [4,5].
These tools are responsible for positioning global buffers
in the production system and for the final choice of
constraint.
The next step of the method is DBR configuration of the

Prioritizing FIFO rule

Lengthening the

production batch
mechanism (Drum-Buffer-Rope) [figure 3]. The planning

and breaking
algorithms assume the creating critical resource work
The area of effective
cycle

self-control of FIFO

prioritizing FIFO schedule and connected with it non-critical resources. The

size of constraint buffer is determined on the basis of the
The need of

average workload of non-critical stations and the lead time

rule

which is the result of scheduling. The size of constraint

rule

buffer determined in this way is then the subject to further

optimizing configuration. The trend for buffer penetration
for subsequent orders was analyzed. On the basis on this
5,0 analysis the characteristic of production system was
defined. Two main types were distinguished. Type 1 with
The amount high planning changeability and low level of disruptions
3,0 and and type 2 with high planning stability and high level of
laboriousnes disruptions. Determining the planning characteristic of the
s of works system enables more effective configuration of the
1,0 competing constraint buffer. On the operation level the method
for resources focuses on the buffer management. Due to the high level
of disruptions of the production process and the lack of
repeatability of tasks in the make-to-order manufacturing
Figure 2: The effectiveness of applying FIFO rule of complex products it is crucial to establish an appropriate
in the materials flows in the critical resources. system of disruptions compensation [figure 4].
In the discussed method of buffering critical resources in
Along with the increase of the amount of works competing the system of disruption compensation the division of
for resources the lead-time lengthens. (figure 2). At the disruptions not the resources classification plays the key
same time when the lead-time becomes longer constraint role. The classification of disruption groups according to
buffer gets reduced. Due to the threat of breaking the work the method of their compensation assumes three groups
continuity there is a need for correcting the order of of disruptions (figure 4).
processed details. The first step is the need of prioritizing
the FIFO rule, the next one is the need of breaking the
production batch. It is one of the main reasons why the
methodics of flow cannot be applied in make-to-order Disruptions
manufacturing of complex products. compensated
by the logistic
Strategic
VAT Analysis 5 Focusing Steps procurement
level
system
A
Orders DBR Tactical
level
B C
Scheduling
Disruptions
compensated Disruptions
Data by constraint compensated Not
Feedback control by the compensated
buffer.
production disruptions.
system.
Buffer calibration
Buffers
Reconfig Operation
Buffer management level
-uration
Size of disruption
Control status
of buffers Figure 4: The classification of disruption groups according
to the methods of their compensation.
Feedback Data
Schedule correction control
Group A includes disruptions compensated by constraint
buffer or shipping buffer (sometimes assembly buffer).
Conpensation system This group comprises such typical disruptions as:
of disruption
deviation from the normative work capacity (statistical
process fluctuation)
minor, short breakdowns,
Figure 3: The idea and position of buffering critical temporary, not long shortages of tools or electricity.
resources in the production system concept according to
TOC.
 19th International Conference on Production Research

Statistical process fluctuation will always be the type The studied parameters were: the length of lead-times, the
belonging to group A as this is the idea of TOC concept number of set-ups of production resources, resources
that it is the integral part of the production process. utilization and financial parameters such as net profit and
Group B includes disruptions compensated by the capacity and the level of works-in-process. The results
production system (exactly speaking the resources- were better by about 20% for the developed buffering
compensators existing in the system) and the system of method (Simulation 1) than for the reference TOC
procurement logistics. Group B comprises such (Simulation 2).
disruptions as:
long-lasting breakdowns of machines and Diagram 1. The results of simulation for the method of
appliances, buffering (Simulation 1) and the reference model TOC
employees absences, (Simulation 2).
deviations from the scheduled deliveries of materials
and subassemblies, The length of lead-time
temporary shortages of universal tools.
40
The third category of disruptions (group C) includes non- 35
Simulation
compensated disruptions. No system of compensation can 30
"1"
cover all possible kinds of disruptions. In the case of the 25
least frequent disruptions and the biggest ones as far as 20 Simulation
their length is concerned, any protection against their "2"
15
influence would be highly inefficient and unprofitable. In
10
this case the activities should be aimed at the limitation of
number their occurrences. 5
0
The last but not the least element of the method is the A D F
procedure of buffer reconfiguration. The assumed size of
the buffer in the process of its reconfiguration and There is also a very visible tendency to improve the results
calibration is the base for further planning of the flow of for the buffering method along with the level of flow
materials. The materials issues for production taking place complexity and the growth of disruptions level in the
ahead of time are not of permanent character and have to production system.
undergo changes. The implementation of buffer
reconfiguration should limit the possibility of wandering
bottlenecks that have a strong and destructive influence Initial capacity
Sales balancing for
on the constraint buffer. plan critical resources
The change of buffer size for new orders should take place
always when:
the average load of a post has increased, especially Final products Capacity
when the emergency level of particular non-critical schedule balancing
resources has been reached,
the disruption of flow has taken place (e.g. a
Production Final
breakdown) and it wasnt fully compensated by the Framework
schedule products
reserve resources (which means that the time Schedule of level
constraint buffer requires reconstruction) engine
the dynamic of production system has been changed building.
due to unknown in the particular moment reasons. Coope-
The analysis of buffer penetration trend for individual Strategic machines Components ration
orders showed the increasing trend. schedule schedule
Parts
The last element of buffer reconfiguration procedure is the level
Scheduling production
global feedback between the configuration loop of DBR
flow according to TOC.
and the loop of flow balancing. It is the feedback
procedure taking into consideration breakdowns, changes Operation
of dynamic due to the change of average load of positions Critical level
or the change of the trend which determines the size of resources
buffer penetration. The purpose of the feedback is creating
the possibility of the reconstruction of constraint buffer in
subsequent planning cycles and preventing the Work stations
occurrence of wandering bottlenecks. Suppliers Customers

4 VERIFICATION OF THE METHOD AND PLACING IT
IN THE PRODUCTION SYSTEM
The method was verified within the area of planning for
data acquired in the company. The second verification was
carried out in order to compare the effectiveness of the
developed model of planning to the reference model TOC
Drum-Buffer-Rope Solution, The simulations were done
with the use of Goldratt Simulator Version 1.0 Copyright
(C) 2002 application.
Figure 5: The planning system of HCP SA Marine Diesel
Engines Factory (W2) and the position of the suggested
method of buffering critical resources.
The next step in the studies is placing the developed
method in the system of production planning and
managing. The suggested method of buffering the critical
resources fills the existing gap in the planning system
(figure 5) On the level of elements it combines information
about the critical resources load with the planning level
according to operation. It is a combination of data from two
key documents in the planning system of the company: the
plan of engine building (framework schedule) and the
schedule of critical resources load.
Such a way of positioning the method in the planning
system enables solving the problem of the sequence of
tasks for non-critical resources and at the same time
ensuring the bottleneck work continuity. Therefore the
buffering method is a practical application of the step of
exploitation (step 2) and the step of subordination (step 3)
belonging to the 5 focusing steps. Since the existing
planning system of the company is the system of MRPII
class after positioning the buffering method in it a hybrid
MRP/TOC system was created.

5 CONCLUSIONS
For the make-to-order manufacturing complex products
the best system of planning and managing the production
flow is the hybrid system MRP/TOC. Developing of such a
system requires creating and implementation of buffering
method which is a sufficient tool of scheduling the
production flow and assuring the continuity of critical
resources flow. Such a method must include developed
methodics of constraint buffer configuration and an
appropriate system of disruption compensation which
allows keeping global buffers of correct size as well as
effective balancing the flow aiming at critical resource.

6 REFERENCES
[1] Encyclopedia of Production and Manufacturing
Management, Kluwer Academic Publisher,
Boston/Dordrecht/London 2000, 742-746.
[2] Hadas L., Domanski R., Identification of the
production-management problems in the production
enterprise of a long-cycle produce, Poznan University
of Technology Institute of Engineering Management,
Poznan 2005, 52-57.
[3] Hadas L., Global buffering in production systems
according to TOC, Poznan University of Technology
Institute of Engineering Management, Poznan 2006,
267-273.
[4] Goldratt E., Cox J., The Goal. Excellence in
production, WERBEL, Warsaw 2000, 216-218.
[5] Goldratt E., Critical Chain, WERBEL, Warsaw 2000,
102-112.
[6] Umble M., Analyzing Manufacturing Problems using
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