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2/19/2013 1 Manufacturing Output Variability and the Service Level Output variability occurs in manufacturing systems due to: Manual labor performance variability Machines failure and repair mechanisms Output Variability at Scania Engine Production Line 25 50 75 100 125 150 175 200 0 10 20 30 40 50 60 70 80 90 100 Number of parts produced Day

Chapter3 Output Variability

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Page 1: Chapter3 Output Variability

2/19/2013

1

Manufacturing Output Variabilityand the Service Level Output variability occurs in manufacturing systems

due to: Manual labor performance variability Machines failure and repair mechanisms

Output Variability at Scania EngineProduction Line

25

50

75

100

125

150

175

200

0 10 20 30 40 50 60 70 80 90 100

Nu

mb

er

of p

arts

pro

du

ced

Day

Page 2: Chapter3 Output Variability

2/19/2013

2

The main output variable of interest is the totalamount of parts produced by the system during thetime period [1,t]

This variable, denoted with Zt, is random withexpected value E[Zt] and variance var[Zt], which bothdepend on the time period of evaluation as they areincreasing functions in t.

The Service Level Zt approximately normally distributed

This enables calculating the Service Level (SL) whichis, the probability to meet a certain customer order(composed of x products) within a certain due time t.

t

Zv

tv

tRxxZPtxSL

t

t

pt

varlim

where,

1),(

Page 3: Chapter3 Output Variability

2/19/2013

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Example An industrial engineer collected and reported to you

the daily production quantities from a production lineover a period of two weeks. Estimate the SL of thesystem for orders 350, 940 and 1012 products to bedelivered within 8 days?

Day 1 2 3 4 5 6 7 8 9 10

Q(daily) 122 165 95 135 88 126 177 125 78 93

Example Daily Rp = avg [122, 165, … 93] = 120.4 product/day

v var[122,165 ,… 93] / 10 = 107.8 product2 /day

188.107

84.1203501)8,350(

SL

785.088.107

84.1209401)8,940(

SL

05.088.107

84.12010121)8,1012(

SL

Page 4: Chapter3 Output Variability

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SL vs. order size (x) for due date = 8days

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

850 900 950 1000 1050 1100Order size

SL vs due date (t) for an order of900 products

0

0.1

0.2

0.3

0.4

0.5

0.6

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0.8

0.9

1

5 5.5 6 6.5 7 7.5 8 8.5due date

Page 5: Chapter3 Output Variability

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SL as a function of (x,t)

4

6

8

10

12

0

0.2

0.4

0.6

0.8

1

900

940

980

1020

1060

1100

1140

1180

1220

1260

1300

1340

1380

1420

1460

1500

1540

1580

1620

1660

1700

1740

1780

1820

1860

1900

1940

1980

2020

2060

2100

0.8-1

0.6-0.8

0.4-0.6

0.2-0.4

0-0.2