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Manufacturing Systems Design and Analysis Past Successes and Future Research Stanley B. Gershwin Massachusetts Institute of Technology [email protected] web.mit.edu/manuf-sys EURANDOM, Eindhoven, The Netherlands Performance analysis of manufacturing systems June 19–20, 2006 Copyright c 2006 Stanley B. Gershwin. All rights reserved.

Manufacturing Systems Design and Analysis

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Page 1: Manufacturing Systems Design and Analysis

Manufacturing Systems Design and AnalysisPast Successes and Future Research

Stanley B. GershwinMassachusetts Institute of Technology

[email protected]

web.mit.edu/manuf-sys

EURANDOM, Eindhoven, The Netherlands

Performance analysis of manufacturing systems

June 19–20, 2006

Copyright c©2006 Stanley B. Gershwin. All rights reserved.

Page 2: Manufacturing Systems Design and Analysis

Introduction

Summary of research in Manufacturing SystemsDesign and Analysis

•Motivation

⋆ Economic⋆ Technical

•Specific MIT research areas

•Successes

•Current and future research

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 2

Page 3: Manufacturing Systems Design and Analysis

MotivationEconomic

•Frequent new product introductions.⋆ Short product lifetimes.

⋆ Short process lifetimes.

This leads to frequent building, rebuilding, and reconfiguration

of manufacturing systems, and this is expensive and

time-consuming .

•Huge capital costs.⋆ The time required to bring factory to optimal performance is

expensive .

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 3

Page 4: Manufacturing Systems Design and Analysis

MotivationEconomic

Industry Needs

•Tools to predict performance of proposed factorydesigns.

•Tools for optimal real-time management (control) offactories.

•Manufacturing Systems Engineering professionalswho understand factories as complex systems.

⋆ They must have systems expertise and intuition.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 4

Page 5: Manufacturing Systems Design and Analysis

MotivationEconomic

Industry Needs

•These tools must be fast as well as accurate.

⋆ Optimization for system design requires many evaluations.The more evaluations, the better the outcome can be.

⋆ Real-time scheduling in response to random events must befast. The factory cannot be idle, and should not be followingan obsolete schedule, while a new one is being constructed.

•Simulation is typically not fast enough. We usemathematical modeling and analysis to develop ourtools.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 5

Page 6: Manufacturing Systems Design and Analysis

MotivationTechnical Challenges

Complexity

•Collections of things often have properties that areunexpected functions of the properties of the thingscollected.

•Some kinds of production (e.g., semiconductorfabrication) have hundreds of operations, hundredsof part types, and/or complicated material flows.

• In many practical situations, infinite buffers are notgood approximations for real buffers.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 6

Page 7: Manufacturing Systems Design and Analysis

MotivationTechnical Challenges

Randomness, Variability, Uncertainty

•Factories are full of random events:⋆ machine failures⋆ changes in orders⋆ quality failures⋆ human variability

•The economic environment is uncertain:⋆ demand variations⋆ supplier unreliability⋆ changes in costs and prices

Factories must be built and operated to minimize thedamage that such phenomena can cause.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 7

Page 8: Manufacturing Systems Design and Analysis

MotivationTechnical Challenges

Quantity, Quality, and Variability

•Quantity – how much and when.

•Quality – how well.

General Statement: Variability is the enemy ofmanufacturing.

Variability in processes reduces quality; variability inevent times decreases production rates and increasesinventories and lead times.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 8

Page 9: Manufacturing Systems Design and Analysis

FundamentalProblems

•The first fundamental problem of manufacturingsystems engineering is: design the best possiblesystem that meets specified requirements.

•The second problem is: operate a system in the bestpossible way to meet specified requirements.

The criterion for “best” and the requirements aredefined in terms of the performance measures andfinancial considerations.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 9

Page 10: Manufacturing Systems Design and Analysis

FundamentalProblems

Practical Challenges

The challenge is to predict the performance measuresof the system before it is built or operated. This isdifficult because:

•Most people lack good intuition for complex systems.

•Good computational tools are challenging to develop.

•The data needed is hard to obtain.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 10

Page 11: Manufacturing Systems Design and Analysis

FundamentalProblems

State of the field

• Most factories are built with simple rules by people withexperience.

• Often factories are built and then modified.• Widely-used quantitative tools are either simple and crude

⋆ spreadsheet estimates of capacity

or excessively detailed⋆ simulation or real-time scheduling optimization.

This was tolerable in the past. However, such approaches are

now inadequate due to reduced factory lifetimes and intensifying

global competition.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 11

Page 12: Manufacturing Systems Design and Analysis

ResearchMethodologies

Manufacturing systems research is concerned with the modelingof systems for the purpose of computing quantity- andquality-related performance measures. It makes heavy use of

• stochastic processes,

• approximation methods,

• nonlinear analysis and optimization,

• statistics,

• and other mathematical fields.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 12

Page 13: Manufacturing Systems Design and Analysis

Earlier ResearchFlow Line

... or Flow shop , Transfer line , or Production line.

Machine Buffer

Traditionally used for high volume, low varietyproduction.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 13

Page 14: Manufacturing Systems Design and Analysis

Earlier ResearchFlow Line

Reference

Manufacturing Systems Engineering

by Stanley B. Gershwin

http://home.comcast.net/~hierarchy/MSE/mse.html

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 14

Page 15: Manufacturing Systems Design and Analysis

Earlier ResearchFlow Line

Two-Machine Line

M1 M2B

• The machines are unreliable — they fail at random times andare repaired at random times.

• As a consequence, machines cause each other to be forcedidle at random times for random durations. This reducesproduction.

• Goal of analysis: calculate production rate, in-processinventory.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 15

Page 16: Manufacturing Systems Design and Analysis

Earlier ResearchFlow Line

Two-Machine Line

Method of analysis:

1. Construct Markov chain model.

2. Determine steady-state probability distribution.

3. Calculate average production rate and averageinventory from steady-state probability distribution.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 16

Page 17: Manufacturing Systems Design and Analysis

Earlier ResearchFlow Line

Two-Machine Line

out of transient states

transitions

out of non−transient states

to increasing buffer level

to decreasing buffer level

unchanging buffer level

states

transient

non−transient

boundary

internal

n=2 n=3

1 2

(0,0)

(0,1)

(1,1)

(1,0)

n=4 n=5 n=6n=0 n=1 n=7 n=8 n=9 n=10 n=11 n=13

(α ,α )=N

n=12=N−1

key

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 17

Page 18: Manufacturing Systems Design and Analysis

Earlier ResearchQuantity

M1 M2B

• We vary the buffer size N andobserve its effect on theproduction rate P .

• Observation: the productionrate increases monotonicallyup to a limit.

• However, increasing N

increases inventory and othercosts.

20 40 60 80 100 120 140 160 180 2000.6

0.7

0.8

N

P

Zero buffer

Infinite buffer

Note: The upper limit is what would be estimated by a simple

capacity formula.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 18

Page 19: Manufacturing Systems Design and Analysis

Earlier ResearchQuantity

Long Lines

•Problem: Longer lines have larger state spaces. Thestate space grows exponentially in the length of theline.

•Dealing with large state spaces is the fundamentaltechnical problem of manufacturing systemsanalysis.

•Solution: Approximate one long line by many smalllines.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 19

Page 20: Manufacturing Systems Design and Analysis

Earlier ResearchDecomposition

Long Lines

• Decomposition breaks up systems and then reunites them.

• Conceptually: put an observer in a buffer, and tell him that he isin the buffer of a two-machine line.

• Question: What would the observer see, and how can he beconvinced he is in a two-machine line? Construct thetwo-machine line. Construct all the two-machine lines.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 20

Page 21: Manufacturing Systems Design and Analysis

Earlier ResearchDecomposition

Long Lines

• Consider an observer in Buffer Bi. Mi Mi+1Bi−1 Bi+1Bi

⋆ Imagine the material flow process that the observer sees entering andthe material flow process that the observer sees leaving the buffer.

• We construct a two-machine line L(i)

⋆ ie, we find machines Mu(i) and Md(i) M (i)u M (i)dB(i)

such that an observer in its buffer will see almost the sameprocesses.

• The parameters are chosen as functions of the parameters ofthe long line and of the parameters of the other two-machinelines.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 21

Page 22: Manufacturing Systems Design and Analysis

Earlier ResearchDecomposition

Long Lines

•The number of equations is now linear in the lengthof the line.

•An iterative algorithm works well.

•Results have been extensively compared withsimulation, and they are very accurate.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 22

Page 23: Manufacturing Systems Design and Analysis

Earlier ResearchSuccesses

• A Hewlett Packard ink jet printer factory was built using MITtechniques. The estimated economic impact was hundreds ofmillions of US dollars.

• General Motors has used similar tools and claims a savings oftwo billion US dollars.

• Peugeot is also using, and further developing, such methodsfor designing automobile factories.

• These tools have also been used in frozen food and medicaldevice production.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 23

Page 24: Manufacturing Systems Design and Analysis

Earlier ResearchDecomposition

Extensions

• Optimization: evaluation embedded in gradient search.

⋆ Primal Minimize buffer space subject to production rateconstraint.

⋆ Dual Maximize production rate subject to buffer spaceconstraint.

• Acyclic A/D (tree-structured) systems

• Single- and multiple-loop systems

⋆ Pallets and kanbans

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 24

Page 25: Manufacturing Systems Design and Analysis

ExampleOptimal buffer space distribution

•Design the buffers for a 20-machine production line.

•The machines have been selected, and the onlydecision remaining is the amount of space toallocate for in-process inventory.

• The goal is to determine the smallest amount ofin-process inventory space so that the line meets aproduction rate target.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 25

Page 26: Manufacturing Systems Design and Analysis

ExampleOptimal buffer space distribution

•The common operation time is one operation perminute.

•The target production rate is .88 parts per minute.

Machine Reliability ParametersCase MTTF MTTR MTTF MTTR P∞, parts/min

Most machines, min Machine 5, min1 200 10.5 200 10.5 .952 200 10.5 100 10.5 .9053 200 10.5 200 21 .905

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 26

Page 27: Manufacturing Systems Design and Analysis

ExampleOptimal buffer space distribution

First question: are buffers really needed?

Line Production rate with no buffers,parts per minute

Case 1 .487Case 2 .475Case 3 .475

Yes.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 27

Page 28: Manufacturing Systems Design and Analysis

ExampleOptimal buffer space distribution

Solution

0

10

20

30

40

50

60

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Buffer

Buf

fer

Siz

e

Case 1 −− All Machines Identical

Case 2 −− Machine 5 Bottleneck −− MTTF = 100

Case 3 −− Machine 5 Bottleneck −− MTTR = 21

Bottleneck

Line SpaceCase 1 430Case 2 485Case 3 523

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 28

Page 29: Manufacturing Systems Design and Analysis

ExampleOptimal buffer space distribution

•Observation from studying buffer space allocationproblems:

⋆ Buffer space is needed most where buffer levelvariability is greatest!

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 29

Page 30: Manufacturing Systems Design and Analysis

Earlier ResearchAcyclic A/D

Acyclic A/D (tree-structured) systems

• Straightforward extension of line equations and algorithm

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 30

Page 31: Manufacturing Systems Design and Analysis

Earlier ResearchSingle-loop systems

M1

B1 M2 M3

M6B6 M5B5

B3

M4

B4

B2

• Finite buffers (0 ≤ ni(t) ≤ Ni).

• Fixed population invariant:∑

ini(t) = N .

• Motivation:⋆ Limited pallets/fixtures.⋆ CONWIP (or hybrid) flow control.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 31

Page 32: Manufacturing Systems Design and Analysis

Earlier ResearchLoops

•The invariant creates complications for thedecomposition.

•Multiple-loop systems have one invariant per loop.

•More loops create more opportunities for control.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 32

Page 33: Manufacturing Systems Design and Analysis

Earlier ResearchLoops

MachineBufferMaterial flowToken (information) flow

FG

Raw Material

Raw Material

Raw Material

Raw Material

Demand

CONWIP loop

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 33

Page 34: Manufacturing Systems Design and Analysis

CurrentResearch

Multiple part types and reentrant flow

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 34

Page 35: Manufacturing Systems Design and Analysis

CurrentResearch

Multiple part types and reentrant flow

Type 1 Type 2

Type 1

Type 2

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 35

Page 36: Manufacturing Systems Design and Analysis

CurrentResearch

Multiple part types and reentrant flow

•We assume strict priority.⋆ This assumption will be extended.

•Two-part type decomposition has been done.⋆ Extension to three part types is next;

⋆ extension to more than three should be easy.

•Reentrant flow is modeled as an extension tomultiple-part types.⋆ Part reenters system as a new part type.

⋆ Parts with fewer remaining operations can be given priority.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 36

Page 37: Manufacturing Systems Design and Analysis

CurrentResearch

Quality/Quantity Modeling

Quality Dynamics

• Definition: How the quality of a machine changes over time.

• The quality literature distinguishes between common causesand special causes . (Other terms are also used.)

⋆ Common cause: successive failures are equally likely,regardless of past history.GGGGGBGGGBGGGGGGGBGGBGGGGBBGGGGGGGG.....

⋆ Special cause: something happens to the machine, andfailures become much more likely.GGGGBGGGGGBGGGGGGGGBBBBBBGBBBBGBBGB.....

• We use this concept to extend quantity models.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 37

Page 38: Manufacturing Systems Design and Analysis

CurrentResearch

Quality/Quantity Modeling

Simplest model

Versions:

• The Good state has 100%yield and the Bad state has0% yield.

• The Good state has high yieldand the Bad state has lowyield.

DOWN

UP/Good UP/Bad

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 38

Page 39: Manufacturing Systems Design and Analysis

CurrentResearch

Quality/Quantity Modeling

Simplest model

The relationship between quality dynamics and statistical processcontrol:

G B

Note: The operator does not know when the machine is in thebad state until it has been detected.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 39

Page 40: Manufacturing Systems Design and Analysis

CurrentResearch

Quality/Quantity Modeling

Inspection in long lines

I

• The transition from UP/BAD to DOWN is signaled from adownstream inspection.

• The detection of the failure can only occur when the first badpart reaches the inspection station.

• Thus the production rate of good parts depends on how muchinventory there is between the machine and the inspection.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 40

Page 41: Manufacturing Systems Design and Analysis

CurrentResearch

Quality/Quantity Modeling

Inspection in long lines

To analyze this system by decomposition, we must

• analyze two-machine lines with multiple up- anddown-states, and

• relate the transition rate from UP/BAD to DOWN tothe amount of inventory between the operation andthe inspection.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 41

Page 42: Manufacturing Systems Design and Analysis

CurrentResearch

Quality/Quantity Modeling

Separation of Operation and Inspection

Opinions:

•Quantity-oriented people tend to assume thatincreasing a buffer increases the production rate.

•Quality-oriented people tend to assume thatincreasing a buffer decreases the production rate ofgood items.

•However, we have found that the picture is not sosimple.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 42

Page 43: Manufacturing Systems Design and Analysis

CurrentResearch

Quality/Quantity Modeling

M1 M2B

Beneficial Buffer

0 5 10 15 20 25 30 35 40 45 500.65

0.7

0.75

0.8

Buffer Size

Effe

ctiv

e P

rodu

ctio

n R

ate

Effective production rate = production rate of good parts.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 43

Page 44: Manufacturing Systems Design and Analysis

CurrentResearch

Quality/Quantity Modeling

M1 M2B

Harmful Buffer

0 5 10 15 20 25 30 35 40 45 500

0.5

1

1.5

Buffer Size

Effe

ctiv

e P

rodu

ctio

n R

ate

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 44

Page 45: Manufacturing Systems Design and Analysis

CurrentResearch

Quality/Quantity Modeling

M1 M2B

Mixed-Benefit Buffer

0 5 10 15 20 25 30 35 40 45 500.37

0.375

0.38

0.385

0.39

0.395

0.4

Buffer Size

Effe

ctiv

e P

rodu

ctio

n R

ate

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 45

Page 46: Manufacturing Systems Design and Analysis

CurrentResearch

Quality/Quantity Modeling

Inspections

How many inspections should there be? And where?

• Intuition: more inspection improves quality.

•Reality: increasing inspection can actually reducequality, if it is not done well.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 46

Page 47: Manufacturing Systems Design and Analysis

CurrentResearch

Quality/Quantity Modeling

Inspections

• We simulated a 15-machine, 14-buffer line.

• All machines and buffers were identical.• We looked at all possible combinations of inspection stations in

which all operations were inspected.⋆ Example: Inspection stations just after Machines 6, 9, 13, and 15.⋆ The first inspection looks at the results from Machines 1 – 6; the second

looks at results from Machines 7 – 9; the third from 10 – 13; and the lastfrom 14 and 15.

⋆ There is always one inspection after Machine 15.

• A total of 214=16,384 cases were simulated.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 47

Page 48: Manufacturing Systems Design and Analysis

CurrentResearch

Quality/Quantity Modeling

Inspections

Range of Good Production Rates for Different Numbers of Inspection Stations

(15 five-state machines, 14 buffers, information feedback only)No inspection: 0.10040

0.295

0.305

0.315

0.325

0.335

0.345

0.355

0.365

0.375

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Number of Inspection Stations

Go

od

Pro

du

cti

on

Rate

Best locations

Worst locations

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 48

Page 49: Manufacturing Systems Design and Analysis

CurrentResearch

Quality/Quantity Modeling

Possible Extensions

•Design of inspection policies using Bayesiananalysis.

•Analysis of multiple-state machines.

•Analysis of lines with multiple-state machines.

•Control of material flow in systems with qualityissues.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 49

Page 50: Manufacturing Systems Design and Analysis

CurrentResearch

Analytic evaluation of long lines

Ubiquitous inspection:I I I I I I I I

Single remote inspection of a single machine:

I

Single remote inspection of multiple machines:

I

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 50

Page 51: Manufacturing Systems Design and Analysis

CurrentResearch

Machine quality dynamics

•The three-state machine model is much too simple.

•One extension is

QualityRepairUP/Good

DOWNDOWN G B

UP/Bad

• ... but even this leaves out important features.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 51

Page 52: Manufacturing Systems Design and Analysis

CurrentResearch

Machine quality dynamics

•Another extension is

G

D k−1

k−1 G

D 6

6 G

D 5

5 G

D 4

4 G

D 3

3 G

D 2

2G

D k

k

D

Repair

G

D 1

1

Quality

Distributionof measured parameter

B

•This allows more general wear or aging models.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 52

Page 53: Manufacturing Systems Design and Analysis

Conclusions

•Manufacturing systems engineering is valuableeconomically and intellectually.

•There are many interesting and important untreatedproblem areas.

Copyright c©2006 Stanley B. Gershwin. All rights reserved. 53