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Abstract
The changing business environment in which manufacturers are acting creates the need for more effective
production processes planning and control methods that are able to deal with uncertainties inherent in
internal processes and external deliveries. The aim of the paper is to introduce the method for production
planning and control applicable in conditions of supply chain (SC) able to overcome the limitation of
standard MRP/ERP systems in changing environment. Conceptual framework for the method involves the
hybrid solutions combining the advantages of MRP simple logic and theory of constrains (TOC) ability to
synchronize all production and material flow in supply chain. Authors discuss how application of TOC
buffers monitoring procedures can help to improve the control of synchronized production and material
flow in supply chain. Finally paper presents application of elaborated method for creation of an agent-
based system that integrate the parties involved in supply chain.
Keywords:
production planning and control, theory of constrains, agent-based systems, supply chain
3 METHOD FOR PRODUCTION PLANNING AND Authors decided to refer to TOC control mechanism
CONTROL APPLICABLE IN CONDITIONS OF Drum-Buffer-Rope (DBR) [11]. This concept can be
SUPPLY CHAIN (SC) applied by elaboration distributed planning algorithm due
the fact that DBR allows to synchronize the use of
3.1 Synchronization approach resources without having to actively control each
The synchronized production planning and control resource. The purpose of drum is to exploit the constraint
requires the constant flows of information, materials, and of the closed loop supply chain. Buffers are time windows
funds across multiple functional areas both within and protecting the Supply Chain global constrain and
between chain members. bounded to it the critical path of PDP.
Due the fact that MPS is the main driver and information 3.2 Algorithm for distributed production planning
source for further material requirements planning and
details production schedules for production system The planning process can be presented as following
resources it can be assumed that in supply chain where algorithm:
exist a single manufacturer and a single 1-tier 1. Definition of chain goal and set of performance
supplier/limited number of 1-tier suppliers and the indicators
manufacturer has sufficient power over the others parties 2. Generate a initial MPS for manufacturer taking in
involved in supply chain a global MPS can be elaborated. consideration customer orders assign to planning
Taking in consideration following the distributed planning horizon plan and capacities constrains
can be described as a situation where in centralized 3. Negotiate the initial plan with supply and
process of preparing plans the distributed sub plans for distribution side and find a plan with lower
each supply chain’s participant are elaborated [9]. The number of constrains among them ( so called
sub-plans for supplier side and distribution side are feasible MPS for supply chain)
dependent on manufacturer capacities, so it can be 4. Decompose the feasible MPS for subplans for
treated as main constrain in planning process. supply, manufacturer and distribution side)
Authors decided to refer to Theory of Constrains [10] by 5. Insert synchronization among subplans based on
elaboration distributed planning algorithm due the fact TOC concept for time buffers and Drum-Buffer-
that entities in supply chain are bounded in long term Line concept where manufacturer sub-MPS is
cooperation and manufacturing side can be perceived as giving pace for supplies and distribution planning
a global (in given planning horizon) constrain. In TOC all activities
processes are set to the process of most constrained 6. Allocate subplans to agents using task-passing
conditions namely bottleneck. TOC is used as a mechanism, if failure come back to previous step
management technique for identification and exploitation or generate new global MPS (step 2)
of constrained condition that infected the goal 7. Initiate plan execution and monitoring when
achievement of the system. In MRP/ERP systems all plans are executed in TOC green buffer no
processes match to the speed of the production of final additional replanning needed when plans are
goods. In TOC all processes are set to the process of executed in yellow TOC buffer the replanning at
most constrained conditions namely bottleneck. So it can local level, if plans are executed in TOC red
be assumed that the improvement of productivity of all buffer go to step 2.
processes at the same speed pace as the improvement of The DBR buffers refers to time needed for deliveries of
constrained conditions can be expanded to the entire materials and component. The size of buffer in stable
supply chain. manufacturing system is as three times the average lead
time to the constraint form the raw material release point
The TOC is applied for: [11]. In SC where uncertainty in process and deliveries
– Definition of chain goal lead-times appears the buffer can be counted as defined
– Definition of goals measures as the multiplied minimum cumulative processing time for
– Identification of global constraints the individual part [12]
– Definition for rules for coordination between
global and local constraints management BSi=MULTI·∑j=1PTij
– Definition of rules for management of material Where BSi is the size of buffer for part i=(1,2,3,..,n), PTij
flow through the constrained conditions is the minimum processing time for operation j on part i.
MULTI is a constant multiplier. The mentioned above
Synchronization approach buffer is divided in three area: green (no action needed),
yellow( prepare for actions) and red (react). The size of
each part of buffer can be equal, but it is recommended to
Synchronized manufacturing (SM) Seamless supply chain (SSC)
revise the performance of buffer’s green, yellow and read
zone on regular basis in order to tune their size to
Drum-Buffer-Rope (DBR) The SSC is defined by zero
(Shragenheim and Ronan defects in material flow statistical fluctuations appearing in material flows in
1990) (Towill 1997) there is: particular manufacturing environment.
drum
constraint
exploits the no raw material stock, Authors propose application of the elaborated method for
while raw materials arrive at
buffers are intended as the last moment
creation of the proposal of an agent-based system that
protection from no WIP due extreme integrate the parties involved in supply chain.
disturbances flexibility and speed
no finish goods because
rope is a mechanism products are in exact order
design to force all the sequence and of good 4 CONCEPT OF AGENT-BASED SYSTEM
parts of the system to quality.
work at pace set by drum Recently there is a number of researches regarding the
application of an agent-based systems for production
purpose [13, 14, 9]. Most of them are dedicated for
Figure 2: Synchronization approach project-oriented unit production. In following paper
authors refers to high stabilized production systems where
on assembly lines customized similar products (for
example cars) are manufactured. Agent-based system is information systems within each company at global
defined in following paper as a multi-agent system that’s supply chain level.
acts as a support tool to bigger Information System and At particular company level system will monitor MPS
utilized the databases of main system (ERP system). execution by existing productions management systems
Multi-agent system is a collection of heterogeneous, and will be responsible for replanning if needed, in order
encapsulated applications (agents) that participate in the to meet global supply chain goal, namely on time delivery
decision making process [15] gents communicate, of ordered by customer’s products with required quality
collaborate and negotiate in order to meet their own and price. The architecture of proposed tool (AIPPLUSC)
design objective but also a goal that is shared within the is based on the assumption that system will support the
community. In following paper authors apply Jennings MPS creation in ERP system and will be plug in to ERP
and Wooldridge’s definition: "an agent is a computer system database by for example java connector. Figure 1
system situated in some environment, and that is capable illustrates structure and the amount of agents which can
of autonomous action in this environment in order to meet be found in each layer. The graphical user interface agent
its design objectives. Agents have the following creates a graphical user interface (GUI) for the interaction
characteristic [15]: reactive, pro-activeness, social ability. of the MAS to production manager (direct users). The
4.1 System model GUI-Agent is able to initialize and sent behaviour
parameters and messages to the Master Planning Agent
The following assumptions have been made: (MP-Agent). The MP-Agent will be exactly one time in the
• Between time of MPS preparation and MPS system because the data from all the managing agents
execution within production system the (M-Agent) is fused at this agent to generate re-planning
disturbances will occur schedules for the production, distributors or supplier. The
MP-Agent is responsible for control of the logic of all
• The exchange of information allows to agents and creates the plans for the M-Agent following the
improve both activities planning and re- algorithm presented in previous section. M-Agents are
planning initialized by the MP-Agent they are responsible for
• While optimizing the performance function translation of the global plan into detail schedules. The
all have access to the same information (no agent is allowed to prepare the number of
information asymmetry) alternative(contingency) local plans as long as there are
not conflicting with global MPS. The local replanning
• The manufacturer has sufficient channel activities are allowed as long as their don’t influence the
power over the suppliers and others parties global MPS. When replanning activities affects the global
involved in supply chain. MPS (red buffer) it has to be passed to MP-Agent. The CI-
The planning problem will be described at three layers Agent is responsible for control of plans execution within
reflecting to: one company based on given performance indicators. It
reports to M-Agent in upper layer whether production
1. supply chain perspective so called global plans are executed according to given MPS or not and
planning; asses how big is the delay, if any (green, yellow or red
2. the entity level where global plan is divided buffer flag). The number of Ci-Agent in the AIPPLUSC can
to sub-plans which are executed by each vary and this fact is shown by the “*”.Improvement of
company and being transform for individual cooperation and information exchange for MPS creation
production schedule at company level and will achieved by cooperation of following agents, which
local re-planning activities takes place (the reflects to entities involved in supply chain:
entities represent supply side, manufacturer
− MP-Agent (master planning)- is responsible for
side and distribution side of supply chain)
creation of global supply chain’s Master
3. intra-company sub-layer where production Production Schedules on basis of negotiations
control activities are executed and with logistic agent, production agent and
information about disturbances are gathered distribution agent, if crisis appears on basis of
and passed to upper levels. information received from production agent it
changes MPS and inform logistic agent about it;
− M-Agent Logistic - responsible for coordinating
plans and suppliers, to achieve the best possible
results in terms of the goals of the supply chain,
including on-time delivery, it combines functions
of inventory management and purchasing;
[9] Shen, W., Xue, D., and Norrie, D.H., “An Agent-
Based Manufacturing Enterprise Infrastructure for
Distributed Integrated Intelligent Manufacturing
Systems”, Proceedings of PAAM'98, London, UK.
nd
[10] Goldratt E.:, “The goal (2 revised edition)”. North
River Press, 1992.
[11] Schragenheim E, Ronen B.. „Drum–buffer–rope shop
floor control“, Productions and Inventory Management
Journal, 31(3), 18–22.
[12] Guide Jr., V.D.R., “ Scheduling using DBR in a
remanufacturing environment”, Int. Journal of
Production Research, vol.34, 1996, pp. 1081-1091