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THE VALIDITY OF THE INDEPENDENT INCREMENTS ASSUMPTION FOR PRODUCTION: AN EMPIRICAL STUDY OF AN AUTOMOTIVE ASSEMBLY PLANT

Production and Operations Management 1993
In assembly plants, random line stoppages cause production variability. For analytic tractability and data availability, researchers commonly assume that the production process possesses the independent increments property (necessary for a process to be Poisson). If the production process has independent increments, then the production in any interval is independent of the production in any other nonoverlapping interval. This property means, for one thing, that the current period's production is never influenced by previous production periods. Intuition, however, suggests that current production could be correlated to past production‐violating this assumption of independence. If production problems persist from one period to the next, then one would expect the production in adjacent time periods to be correlated. Although the independent increments property is oflen assumed, its validity has not been demonstrated in practice. We analyze data from an automotive assembly plant to assess the validity of the independent increments assumption for its production.

TRACKING PRODUCT‐PROCESS INTERACTIONS: A RESEARCH PARADIGM*

Production and Operations Management 1993
To design (or redesign) a competitive product, it is imperative that both the sales and manufacturing cost implications are assessed in a structured way. That is, the interactive (multidimensional) aspects of manufacturing and marketing variables need to be positioned in a proper perspective so that the system impact of variation in one or more variables may be ascertained quickly. In this paper we show how some of the system‐related paradigms can be used as foundations for developing quantitative and qualitative models for tracking such interactive ímpacts. The emphasis is not on building complex mathematical models to solve specific problems but on providing a framework where system properties expressed as simple postulates can be used in an intelligent way to assess the impact of improvements in specific product‐process scenarios.

A COMPARISON OF ORDER‐RELEASE AND DISPATCH RULES FOR THE DYNAMIC WEIGHTED EARLY/TARDY PROBLEM

Production and Operations Management 1993
The early/tardy problem is one of the most vexing pieces of the complex production scheduling decision process. So far most of the research has been on single‐machine environments. Hence, we considered the weighted early/tardy scheduling problem in a simulated dynamic multimachine job shop. We analyzed controlled job‐release and dispatch rules using time and cost information at a variety of stationary and nonstationary utilization rates, due‐date allowances, and early/tardy cost levels. We found a newly developed method for controlling the release for all job operations using early/tardy cost information, superior to other release mechanisms overall in both our stationary and nonstationary analyses. We found immediate release useful at many high utilization conditions and a gateway‐only release method best in many low utilization conditions. A modified version of a single‐machine early/tardy dispatch method was clearly superior to the dispatch rules for almost all the simulated shop conditions.

AN AUTOMATIC MODELING APPROACH TO THE STRATEGIC ANALYSIS OF SEMICONDUCTOR FABRICATION FACILITIES

Production and Operations Management 1993
We developed a framework for analyzing semiconductor fabrication facilities where each processing step of each product can use a collection of resources. The interaction of these resources is not prespecified by the analysis system but is described by the modeler. Our framework includes three types of modeling approaches: analytic approximation, simulation, and a hybrid analytic/simulation technique. All models are automatically generated from a data description of the facility and the products produced, along with the resource interaction models provided by the user. The novel feature of our approach is that the data description language includes a simple but quite flexible simulation‐like modeling language for expressing resource interactions. Our analytic modeling approach is an extension of the standard decomposition method used for studying networks of queues. In our hybrid analytic/simulation technique we use simulation to estimate processing step flow times to improve the performance of the analytic model.

ALLOCATING AND SCHEDULING MOBILE DIAGNOSTIC IMAGING EQUIPMENT AMONG HOSPITALS

Production and Operations Management 1993
The allocation and weekly scheduling of mobile magnetic resonance imaging (MRI) units leased to a group of hospitals that share the equipment can be a complex problem. Similar problems occur in other domains where expensive equipment or facilities such as video conference facilities, aircraft, and supercomputers are leased. The crux of the problem was determining the number of days and which days of the week various types of equipment types should be leased to hospitals, so as to maximize the rental revenues and satisfy client preferences for days of the week and equipment types. We found rental revenues were a decreasing function of the number of days allocated to a hospital. We considered two sub‐problems linked by a set of variables to model the problem. We show that one of these subproblems is a minimum cost network flow problem and the other is an integer multi‐commodity transportation problem. We developed a procedure for solving the latter problem by exploiting earlier results for specialized networks. We conducted a computational study to evaluate the performance of this procedure and showed that it generally provides near‐optimal integer solutions. We describe the development and implementation of a spreadsheet‐based decision support system based on this model. This system was successfully implemented by a small firm with no expertise or prior experience using models.

CONFORMANCE QUALITY AND REPLACEMENT COSTS UNDER WARRANTY

Production and Operations Management 1993
In this paper, I investigate the impact of the conformance quality of a durable product on manufacturer's and user's replacement costs while the product is under warranty. I first relate conformance quality to reliability and then examine its effects on warranty costs to manufacturer and customer under both pro‐rata and free‐replacement warranties. In particular, I show that the reduction in customer's cost is generally contingent on more stringent quality improvement than the reduction in manufacturer's costs. I also discuss the value of inspection, and I present an application based on real data.

A DECISION THEORY APPROACH TO PRIORITY DISPATCHING FOR JOB SHOP SCHEDULING

Production and Operations Management 1993
Recent developments in the design of job shop scheduling systems have inspired a new approach to priority dispatching. The basis for the approach is in elementary decision theory: at each decision juncture define the alternative courses of action, evaluate the consequences of each alternative according to a given criterion, and choose the best alternative. The experimental results of a simulated single machine queueing system reinforce earlier findings that a decision theory approach represents a significant advance over conventional priority dispatching.

SOLVING A COMBINED PART‐SELECTION, MACHINE‐LOADING, AND TOOL‐CONFIGURATION PROBLEM IN FLEXIBLE MANUFACTURING SYSTEMS*

Production and Operations Management 1993
Loading too many or too few copies of tools may result in waste of tool magazine slots and unnecessary machine shutdowns. This is a consequence of not integrating the tool‐configuration problem with other flexible manufacturing system (FMS) planning problems. Solving part‐selection, machine‐loading and tool‐configuration problems independently may cause entire solutions to be infeasible. We propose both an approach to the explicit formulation of tool configuration problems and the simultaneous solution of part‐selection, machine‐loading and tool‐configuration problems. We developed and solved sequentially some associated bicriteria models sequentially. We also discussed the effects of considering some secondary objectives on system performance and described the concepts of critical magazine size and critical machining time using an example problem. Unnecessary allocation and under‐use of tool magazine capacity and machining time could be reduced by considering the critical magazine size and machining time. Finally, we suggest using a method based on Lagrangian relaxation for solving large size problems.

COMMON DUE‐WINDOW SCHEDULING

Production and Operations Management 1993
In this paper, we solve common due‐window scheduling problems within the just‐in‐time window concept, i.e., scheduling problems including both earliness and tardiness penalties. We assume that jobs share the same due window and incur no penalty as long as they are completed within the due window. We further assume that the earliness and tardiness penalty factors are constant and that the size of the window is a given parameter. For cases where the location of the due window is a decision variable, we provide a polynomial algorithm with complexity O( n * log ( n)) to solve the problem. For cases where the location of the due window is a given parameter, we use dynamic programming with pseudopolynomial complexity to solve the problem.