Workload and Cycle Time in the Production Unit

Hubert Missbauer and Reha Uzsoy
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Hubert Missbauer: University of Innsbruck
Reha Uzsoy: North Carolina State University

Chapter Chapter 2 in Production Planning with Capacitated Resources and Congestion, 2020, pp 19-28 from Springer

Abstract: Abstract Our description of the PPC problem in Chap. 1 identified the effective management of cycle times as a critical link between the planning level and the realized performance of the production units it seeks to coordinate. Most of the PPC systems prevalent in industry today approach this issue through planned lead times and maximum capacity loading, assuming that as long as the capacity loading does not exceed the agreed-upon maximum level, the production units will be able to complete work within the planned lead time with high probability. This chapter argues that reliance on exogenous planned lead times represents a significant drawback of this approach because cycle times through a production unit are, in fact, an outcome of the work release decisions made by the PPC system. Since this dependence between cycle times and work release decisions lies at the center of the problems addressed in this volume, we now discuss the relationship between a production unit’s workload and cycle time in more detail.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-1-0716-0354-3_2

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DOI: 10.1007/978-1-0716-0354-3_2

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