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Production planning for products with complex product structure
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Industrial Organisation.
2002 (English)In: Preprints, International Working Seminar on Production Economics, 2002Conference paper (Refereed)
Abstract [en]

The major difficulties when dealing with complex products are long lead times that require long planning horizons and also that there are dependent demands and multiplicative effects on the ingoing items in the products. Small disturbances on high level can in the end give considerable problems on low level. This paper shows an example of the difficulties with handling complex products with long lead times and suggests a four step decision model to get smoother production planning, mainly by simplifying the product structure. The decision model includes the following steps:1. The first step is to re-design the product in order to simplify it. 2. Next step is to identify the critical path and the cumulative lead-time by sketching a dynamic bill of material. 3. After the dynamic bill of material is sketched, the possibilities to shorten some lead times on the critical path should be analysed. Outsourcing of parts of the production or creating a "plant within a plant" configuration can reduce lead times. Reduced batch-sizes on specific items along the critical path can also be a way to do this. 4. When all possible lead times are reduced it is time to decide which planning method to use.

Place, publisher, year, edition, pages
Research subject
Industrial Logistics
URN: urn:nbn:se:ltu:diva-35112Local ID: 985488c0-77e3-11db-962b-000ea68e967bOAI: diva2:1008364
International Working Seminar on Production Economics : 18/02/2002 - 22/02/2002
Godkänd; 2002; Bibliografisk uppgift: Publicerad i serien Arbetsrapporter, Luleå tekniska universitet, Avd. för industriell organisation. AR 2002:49; 20061119 (ysko)Available from: 2016-09-30 Created: 2016-09-30Bibliographically approved

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