IIE Transactions (1999) 31, 99±111 CONWIP-based production lines with multiple bottlenecks: performance and design implications E.M. DAR-EL1 , Y.T. HERER2 and M. MASIN 2 1 Faculty of Industrial Engineering and Management, Technion ± Israel Institute of Technology, Haifa 32000, Israel Department of Industrial Engineering, Tel-Aviv University, Ramat-Aviv 69978, Israel E-mail: yale@eng.tau.ac.il 2 Received June 1996 and accepted January 1998 This research focuses on CONWIP, a closed production control system where all containers traverse a circuit incorporating the entire production line. We develop estimates, for an important level of work in process inventory, for four important performance measures: the means and variances of time between departures and ¯owtime. We develop our estimates through the concept of a ``conceptual bottleneck machine''. This concept enables us to develop an analogy between deterministic and stochastic systems. This concept also allows us to handle migrating bottlenecks, an issue generally neglected. The model is widely applicable, assuming only ®nite means and variances of the processing time distributions. We test our model computationally, both against existing models and on a wide range of randomly generated problems. Finally we detail insights, obtained from our analytical model, into how CONWIP production systems operate. These insights enable us to explain the sources of the values of our performance measures, thus aiding system design and modi®cation. 1. Introduction An important aspect for operating any manufacturing system is to predict the system's performance. The best performance measure, the one every company is concerned with, is Net Present Value (NPV). However, NPV is dicult to measure directly. Thus, on a day-to-day basis one normally uses surrogate operational measures such as throughput rate, ¯owtime, and inventory levels, for evaluating system performance. The correct de®nition and accurate estimation of these operational parameters are important for estimating the behavior of monetary criteria. In addition to monetary considerations, accurate estimates of operational measures of system performance can aid management in the level of service they provide to customers. In this work we: (1) develop estimates for four important performance measures: the means and variances of time between departures and ¯owtime; (2) computationally test our model, both against existing models and on a wide range of randomly generated problems; and (3) provide insights, derived from our model, into how the production system operates. We show how these insights can aid management in system design and modi®cation. Most papers which address the performance of systems concentrate on ®rst order performance measures (means). However, to fully understand how any system operates 0740-817X Ó 1999 ``IIE'' one needs estimates of the second order performance measures (variances). This information can be used in models such as the one developed by Hopp et al. [1] which help determine production quotas in pull manufacturing systems. Variances are important because they describe uncertainty in the system and the presence of large variances is sometimes more costly than sub-optimal mean values. A detailed example demonstrating that control of variances is sometimes more important than reducing mean values is discussed in Section 5. Analytical models for predicting mean and variance parameters are useful for planning purposes and are superior to simulation models (as used by Hendricks and McClain [2] for buered production lines). Both analytical and simulation models can describe the system's behavior, but only analytical models can explain and highlight the sources of this behavior. The knowledge thus gained can aid management in system design and modi®cation (discussed in Section 5). Analytical models for estimating the variances of system performance measures are considered by some authors. These models can be separated into two groups. The ®rst group addresses buered serial production lines. Miltenberg [3] has estimated the variance of the number of units produced on a serial line; however his computational times are prohibitively large. Hendricks [4,5] has studied serial lines in which machines have exponential distributions. 100 The second group addresses CONWIP (CONstant Work In Process inventory) production systems. Duenyas and Hopp [6] have estimated the system throughput variance assuming exponential processing times. Duenyas et al. [7] have considered the throughput variance assuming constant processing times on unreliable machines (down and up times are again exponential). Our research belongs to this category. Performance means in CONWIP lines have also received attention in the literature. Hopp and Spearman [8] have estimated the mean throughput assuming constant processing times on unreliable machines (exponential failures). Duenyas and Hopp [9] have extended this estimate to CONWIP assembly systems (i.e., an assembly station fed by multiple CONWIP lines). The problems considered by Duenyas et al. [7] and Hopp and Spearman [8] are very similar to ours, and we compare our method to theirs in Section 4. 1.1. The system CONWIP is a new production management technique, proposed by Spearman et al. [10] and Spearman and Zazanis [11]. CONWIP is a closed production management system in which a ®xed number of containers (or cards) traverse a circuit that includes the entire production line (see Fig. 1). When a container reaches the end of the line the ®nished product is removed. The container is then sent back to the beginning of the line where it waits in a queue to receive another batch of items. During each container's cycle all items in the container are of the same type. The amount of material put into the container is set by a predetermined transfer lot size. Since CONWIP systems are closed manufacturing systems, as is Kanban, they have the following advantages over open systems: easier control, smaller variances, and smaller average Work In Process (WIP) levels (and thus also shorter ¯owtimes) for the same throughput. They are also self-regulating. In addition, as described in Spearman and Zazanis [11], CONWIP systems have the following advantages over Kanban: (1) they are very robust regarding changes in the production environment and are easier to forecast; (2) they easily handle the introduction of new products and changes in the product mix; (3) they cope with ¯owshop operations with large Fig. 1. An illustration of a CONWIP system. Dar-El et al. set-up times and permit a large product mix; and (4) CONWIP systems also yield larger throughput than Kanban Systems for the same number of containers (maximum inventory) [12,13], even for systems with yield losses [14]. 1.2. Performance measures Operational parameters need to be estimated to enable us to predict job completion times in order to aid management in the optimization of monetary criteria, customer service, and system design. In this work we estimate two operational parameters: Time Between Departures (TBD) and ¯owtime. We use TBD since it allows us to calculate completion times and ®x realistic due dates. Mean TBD is the inverse of the mean throughput rate and therefore may be used in its place. Flowtime is another important parameter that characterizes the system's performance and is thus of interest to management. The variance of TBD and the variance of ¯owtime are included in our measures of system performance. It is worth noting that the measure, mean TBD, is `equivalent' to the criterion of mean ¯owtime for a given average WIP level (Little's Law, Little [15]). However, the TBD variance and ¯owtime variance are only correlated; one variance value does not determine the other. 1.3. The desired level of WIP What is the role of WIP in a manufacturing system? WIP ensures continuity of production by buering the bottleneck resources. As WIP increases so does throughput, up to the maximum capacity of the manufacturing system. But WIP has a cost and too much of it is simply wasteful. For example, WIP increases the mean and variance of ¯owtime resulting in long lead times, poor forecasting, and late feedback. Generally, we want as small a WIP as possible that allows us to approach the maximum throughput of the system. In other words the desired level of WIP is somewhere just past the ``knee'' of the TBD versus WIP curve. That is, the mean TBD decreases quickly until the WIP is raised to the desired level and decreases much more slowly afterwards. In this paper we ®nd such a WIP level and estimate the system performance for this WIP level. Our model is based on an analogy to the deterministic system (with no machine breakdowns). In Section 2 we examine how the deterministic system operates, and then use these results to de®ne a conceptual bottleneck machine. The concepts are then used in Section 3 to explain the behavior of, and to gain insights into, stochastic systems. In Section 3 we also develop our estimates of the performance measures. We describe and present the results of our computational tests in Section 4. Finally we present design implications of our model in Section 5 and our conclusions in Section 6. CONWIP-based production lines with multiple bottlenecks 2. Production environment: a deterministic analogy Eective operation of a closed manufacturing system requires the selection of an appropriate WIP level (number of containers). The CONWIP system is no exception to this requirement [10]. Choosing a WIP level determines both the TBD and ¯owtime. From Little's law [15] we know that for a given mean WIP level, the criterion of mean TBD is equivalent to the criterion of mean ¯owtime. However, when selecting a WIP level, there is a trade o between TBD and ¯owtime. A low WIP level yields short ¯owtimes and high TBD (insucient throughput) whereas a high WIP level yields short TBD (sucient throughput), but enormously long ¯owtimes (resulting in high inventory holding costs). For a CONWIP production system with in®nite demand, the average WIP level is equal to the maximum WIP level. To gain insights into the system and establish a desirable WIP level we ®rst consider the amount of WIP (containers) needed in a deterministic system. In such systems we can achieve the ideal situation: the bottleneck machine works continuously, without a queue before it or in any other part of the system. The bottleneck machine is the machine with the largest (deterministic) processing time. Since the bottleneck machine works continuously the WIP level needed to achieve the ideal situation would also give us maximal throughput. For deterministic production lines these conditions are satis®ed when the number of containers n^ is equal to: n^ M X X^i =X^BN ; 1 i1 where M is the number of machines, X^i is the processing time on machine i, and X^BN ÿ is the processing time on the bottleneck machine X^BN maxi2f1;...;Mg X^i [8]. Throughout this paper we use the symbol ^ to indicate values associated system. We note P with the deterministic PM ^ ^ ^ ^ here that n^ M i1 Xi =XBN i1 XBN =XBN M. In general, n^ will not be integral, whereas in practice the number of containers must be an integer. For WIP levels above n^ there is only one queue in the system: the one in front of the bottleneck machine. For such WIP levels (say n^), a container arriving at the bottleneck machine waits n^ ÿ n^ X^BN units of time in the queue in front of the bottleneck machine. If the number of containers is n e, then equal to the smallest integer greater than n^ , d^ the bottleneck machine works continuously and there are minimal queues in the system. We now turn to estimating our performance measures in deterministic systems in order to use the insights gained in stochastic systems. We ®rst estimate TBD. Consider two containers, one immediately following the other 101 through a CONWIP production line in the ideal situation. Start a stopwatch when the ®rst container leaves the bottleneck machine. Since, by assumption, queues form only in front of the bottleneck machine, this ®rst container proceeds to the end of the production line without waiting in queues. Hence, the time when the ®rst container exits the system is equal to the sum of its processing times on all of the machines following the bottleneck machine. Since the bottleneck machine works continuously the second container begins processing on the bottleneck machine immediately after the ®rst container leaves. Therefore, the time when the second container exits the system is equal to the sum of its processing time on the bottleneck machine and on all subsequent machines. Since TBD is by de®nition equal to the completion time of the second container minus the completion time of the ®rst container we have, ! ! M M X X 00 00 0 ^ ^ ^ ^ X X ; ÿ 2 T X BN jBN1 j jBN1 j where X^ represents the processing times for the second 0 container, and X^ represents the processing times for the ®rst container. Since processing times are deterministic, Equation (2), and thus TBD, are equal to a deterministic X^BN . Now consider the ¯owtime in our deterministic setting. obtainable, then the ¯owtime If the WIP level of n^ is P ^ ^ X^BN (from Equawould be a deterministic M i1 Xi n tion 1). This expression can be generalized to WIP levels above n^ . The derivation which follows can be simpli®ed for the deterministic setting; however, since we will use it in the next section when analyzing the stochastic environment, we present the derivation in a form appropriate to the stochastic setting. Consider the `th part through the production line, and de®ne X^i` to be its processing time on machine i. The ¯owtime of the `th part is comprised of: (1) its processing time before the bottleneck machine; (2) its waiting time before the bottleneck machine; and (3) its processing time on the bottleneck machine and on all machines thereafter. PMThe `sum of the ®rst and third components is ^ clearly j1 Xj . To calculate the second component consider starting a stopwatch when part ` ÿ n^ leaves the bottleneck machine. Note that part ` ÿ n^ is the part that previously occupied the container now carrying part `. The container (now carrying part `) arrives at the queue in the bottleneck machine at time PM front`ÿ^n of PBNÿ1 ^ ^` X BN1 j j1 Xj ; however, before the bottleneck machine can work on this part it must process all of the parts in the n^ ÿ 1 remaining containers, (i.e., parts P`ÿ1 ^k ` ÿ n^ 1; . . . ; ` ÿ 1) taking k`ÿ^ n1 XBN time units. Hence, the queue of the bottleneck ÿP P machine P`ÿ1 time ink front M ^ ÿ ^ `ÿ^n BNÿ1 X^ ` . X X for part ` is k`ÿ^ j n1 BN BN1 j j1 Adding all there parts together we obtain a total ¯owtime of 00 102 L^ Dar-El et al. M X j1 X^j` X̀ k`ÿ^ n1 `ÿ1 X k`ÿ^ n1 k X^BN k X^BN ÿ M X jBN1 M X BN1 X^j` ÿ X^j`ÿ^n M X jBN1 BNÿ1 X X^j`ÿ^n : j1 ! X^j` 3 Since processing times are deterministic, Equation (3) is equal to n^X^BN . Thus far, the analysis is valid for deterministic processing times only; however, processing times may not be deterministic for any number of reasons. For example, machines may breakdown from time to time, many parts may be produced on the same line, and/or the processing time for the parts may be truly stochastic. All these situations can be modeled (jointly or separately) as a single part having a stochastic processing time. In this stochastic situation, the problem of identifying the bottleneck machine arises. The question, ``What is the bottleneck machine for this stochastic environment?'' does not have a clear answer. The naive choice, the machine with maximum mean processing time, could be a poor one. Generally the bottleneck ``¯oats'' dynamically from machine to machine; the machine with maximum mean processing time would be the unique bottleneck machine only with extremely large WIP levels. To deal with the question, ``What is the bottleneck machine?'' we de®ne a conceptual machine that constrains the system's performance. We will think of this conceptual machine as corresponding to the bottleneck machine in the deterministic case and we call it the conceptual BottleNeck machine (BN). Using this analogy we forecast the production system's behavior without making assumptions about the form of the processing time distributions (except ®nite mean and variance). In a stochastic environment we view all machines as potentially contributing to the BN. We de®ne the distribution of the processing time on the BN to be the distribution of the maximum processing time taken over all machines. We must remember that the BN represents a concept, i.e., a virtual, not real, machine. The BN can be thought of as the machine that currently constrains the system's operation, in the same way that the real and unique bottleneck machine constrains the system's operation in the deterministic environment. Of course the BN is not a machine, but our model is built on the insights obtained by considering it to be a machine. Hence we write about `the queue in front of the BN', when we actually mean `the queue in front of the machine that corresponds to the conceptual bottleneck machine'. We realize that the BN concept is simplistic. However, it is our opinion that simple models are better than complicated ones. Furthermore, we feel that the contribution of a model should be judged on its performance compared to other existing models (Section 4) and on its contribution to aiding our understanding of the system (Section 5). We now rede®ne X^i to be the random variable representing the processing time on machine i, and denote it by Xi . In mathematical terms we de®ne the processing time on the BN as: XBN max i2f1;...;Mg Xi : If we say that Xi is distributed with cumulative distribution function Fi t, then the Q cumulative distribution function of XBN is FBN t M i1 Fi t. Machine i will be considered the BN with probability equal to the probability that machine i has the longest processing time for a given part. That is, with probability ! Z1 Y Fj t fi tdt; ai P fXj < Xi for all j 6 ig 0 j6i where fi t represents the probability density function of the processing time on machine i. We now draw a direct analogy to the deterministic system discussed above. Just as in the deterministic environment, we want the ideal situation: the BN works continuously, without a queue before it or in any other part of the system. We also assume that as WIP grows, containers accumulate only in front of the BN, just as they accumulate only in front of the bottleneck machine in the deterministic case. We recognize that in stochastic systems queues may occur simultaneously before more than one machine, thus contradicting this assumption; however, this probability is small for our choice of WIP level. 3. The CBN (Conceptual BottleNeck) model In this section we develop an analytical model for predicting our performance measures: mean TBD, variance of TBD, mean ¯owtime, and variance of ¯owtime. In developing this model we assume only a ®nite mean and variance of the processing time distributions; we make no other assumptions of their form. Our analytical model, which we call the Conceptual BottleNeck (CBN) model, is a straightforward consequence of our assumptions from the previous section: (1) there is a conceptual bottleneck machine called the BN that works continuously; and (2) queues form only in front of the BN. We use the following notation (recall that we have already de®ned Xi , XBN , ai , M, and n): T = true steady-state TBD of the system; T = estimate of T based on an analogy with the deterministic system; Ti = estimate of T when considering machine i to be the BN; CONWIP-based production lines with multiple bottlenecks L = true steady-state ¯owtime of the system; L = estimate of L based on an analogy with the deterministic system; Li = estimate of L when considering machine i to be the BN; XBNi , X:BNi = processing time on machine i when it is (respectively, is not) considered the BN; n = number of containers needed to approximate the ideal situation in our model. In addition the following quantities are also de®ned: li , r2i = mean and variance of Xi ; lBN , r2BN = mean and variance of XBN ; l:BNi , r2:BNi = mean and variance of X:BNi . F:BNi t P fXi < t jXi is not the BNg ! , Zt Y Fk s ds 1 ÿ ai : fi s 1 ÿ k6i Having de®ned the cumulative distribution functions, the probability density functions areQ fBNi t Q fi t k6i Fk t =ai and f:BNi t fi t 1 ÿ k6i Fk t = Q M d F t i1 i d FBN t dt dt ! M M Y X X fi t Fk t ai fBNi t: fBN t i1 k6i M X i1 2 r2BN EXBN ÿ l2BN M X i1 Put into words, Equation (4) says that the density of the processing time distribution on the BN is simply the sum of the densities of the processing times of each machine when they are considered the BN, multiplied by the probability that they are considered the BN. Recall that M X i1 2 ai EXBN ÿ l2BN i We ®rst analyze the time between departures in the stochastic environment. In the deterministic environment we saw that T^ X^BN . This expression was derived from Equation (2); this derivation does not hold here because the processing times on the machines are stochastic. However, we can use the same argument that was used to derive Equation (2) to obtain our estimate T of T which is based on an analogy with the deterministic system: 00 T XBN M X jBN1 00 X:BN ÿ j M X jBN1 0 X:BN : j 5 If we condition on machine i being considered the BN, we obtain the following formula for our estimate of T when considering machine i to be the BN: M X ji1 00 X:BN ÿ j M X ji1 0 X:BN : j 6 When developing our formulas for the mean and variance of Ti we assume that all random variables in Equations (5) and (6) are independent. This assumption is not completely justi®ed for XBNi and X:BNj (i 6 j); however, if we consider the BN as an independent machine currently placed at the location of machine i this assumption seems reasonable. In any case the dependency is small. We can now determine the mean and variance of Ti . M M X X l:BNj ÿ l:BNj lBNi ; lTi lBNi ji1 4 ai lBNi ai r2BNi l2BNi ÿ l2BN : 00 Ti XBN i k6i 1 ÿ ai . Note that lBN i1 FBNi t P fXi < t jXi is the BNg ! , Zt Y Fk s ds ai ; fi s 0 the BN is not a machine, rather an idea. Hence, this result and the other results that follow should be viewed as a means of developing a meaningful analogy to the deterministic system so as to obtain accurate estimates of our performance measures. We present here expressions for lBN and r2BN that will be used below. In addition to what is de®ned above, we use the symbols l and r2 to indicate the mean and variance of particular quantities. Thus, lT and r2T represent the mean and variance of T . In the CBN model we use processing time distributions consistent with the concept of the virtual bottleneck machine. We de®ne the conditional distributions FBNi t and F:BNi t, respectively, as the cumulative distribution function of the processing time on machine i given that machine i is the BN, and the cumulative distribution function of the processing time on machine i given that machine i is not the BN. Thus, 0 103 r2Ti r2BNi ji1 M X ji1 r2BNi 2 r2:BNj M X ji1 M X ji1 r2:BNj r2:BNj : Using the law of total probability we determine the mean and the variance of our estimate of T as follows: 104 Dar-El et al. lT r2T " M X i1 M X i1 M X i1 ai lTi M X i1 # ai ETi2 ai r2BNi ÿ lT M X ai 2 i1 j2 r2:BNj M X i1 M X ji1 M X i1 r2BN 2 " 2 M X ai lBNi lBN ; ! M X i1 # ai l2Ti ÿ l2T r2:BNj ai l2BNi jÿ1 X ai r2Ti 7 ÿ Whereas both of the methods given above for developing an estimate for TBD yield the same expressions for lT and r2T , they yield dierent expressions for r2L (they yield the same expressions for lL ). After computationally comparing the expressions resulting from both methods we found that the second method of derivation yields a more accurate estimate. Hence, we derive the expressions directly from Equation (10) lL nlBN : l2BN r2L nr2BN 2 ! ai : 8 M X jBN1 11 r2:BNj r2T n ÿ 1r2BN : i1 12 13 As expected, our estimate of the mean TBD is equal to the mean processing time on the BN. This result strengthens our analogy to the deterministic case. The mean of our estimate of the TBD in the deterministic environment (respectively, stochastic environment), is equal to the processing time on the bottleneck machine (respectively, the BN). Our estimate Pjÿ1of the variance of TBD is very interesting. ai can be interpreted as the probability Note that i1 that machine j follows the BN. Hence, we see that our model predicts that the machines following the BN impact on the TBD variance twice as much as the BN itself, while machines before the BN have no impact. Hence, if we want to reduce the TBD variance, our model suggests reducing the processing time variance on the post-BN machines. We will consider this point in detail in Section 5. In retrospect we could have used a more direct method to derive Equations (7) and (8). If we consider Equation (5) directly we see that lT lBN as in Equation (7) and we obtain M X r2:BNj : 9 r2T r2BN 2 Equation (13) is obtained directly from Equation (12) by using Equation (9). Equation (13) explicitly describes how our model views the relationship between TBD and ¯owtime variance. In particular we see that our model predicts that the ¯owtime variance will be strictly larger than the TBD variance. This relationship also shows us that, as was the case with TBD variance, we predict that the ¯owtime variance will depend on machines after the BN and not on machines before the BN. But unlike the TBD variance our model predicts that the ¯owtime variance will depend heavily on the variance of the BN itself. Using Little's law [15] and our analogy to the deterministic system, we can calculate the number of containers, n , needed to approximate the ideal situation (i.e., the BN works continuously with no queues in the system) in our model. If the ideal situation were truly obtained (an impossible situation in a stochastic P environment) then our estimate of the ¯owtime is simply M j1 Xj , which can be shown to be equal to Since the BN is not an actual machine the last term of Equation (9) must be modi®ed. Instead of summing over all machines after the BN, we must sum over all machines at all stages, multiplying each term by the probability that the machine is after the BN; this is Equation (8). We now turn our attention to estimating the ¯owtime. Again, we use the analysis from Section 2 and extend it to the stochastic environment. In the deterministic environment we found that L^ n^X^BN . This expression was derived from Equation (3), but since processing times here are stochastic, this derivation, as well, no longer holds. Following the same argument that was used to derive Equation (3) we obtain our estimate L of L which is based on an analogy with the deterministic system: and therefore, XBN X̀ k`ÿn1 k XBN M X jBN1 Xj` ÿ M X jBN1 Xj`ÿn : 10 1 ÿ ai X:BNi ; 14 i1 jBN1 L M X lL lBN M X i1 1 ÿ ai l:BNi : 15 Equation (15), and not Equation (11), is used when applying Little's law because when trying to calculate n we cannot use an expression containing n . Equation (14) can be interpreted as saying that our estimate of the ¯owtime is the processing time on the BN plus the processing time on all other machines when they are not the BN. Finally, computing n we obtain: P lBN M 1 j1 1 ÿ aj l:BNj n lL lBN lT PM ÿ lBN j1 1 ÿ aj lBN M: 16 lBN CONWIP-based production lines with multiple bottlenecks We feel that it is uninformative to examine the case where the actual number of containers is less than n . In such a system our model predicts that the BN would not work continuously, and thus the system would be underutilized. On the other hand, if the number of containers, n, would be greater than n , then our model predicts, as we explained with respect to the deterministic system, a queue of n ÿ n containers would form in front of the conceptual bottleneck machine. Clearly this queue will not be a constant physical presence, but it is a useful component of our estimates. Any inaccuracy in our model is likely to be caused by the system's WIP level. When the number of containers is equal to one, P the mean TBD is equal to its upper bound, which is M i1 li . As the number of containers is increased the mean TBD decreases to its lower bound, which is maxi li . This lower bound is achieved when the WIP (the number of containers) is in®nite. Our model works best when the number of containers is n . When this is not the case (this happens frequently because the number of containers must be integral whereas n is an integer only in degenerate cases), we expect errors to occur. In particular, we would expect the mean TBD to be greater or smaller than the model's lT depending on whether the number of containers is smaller or greater than n . As stated previously, we are not interested in the case when n < n ; when the number of containers is only slightly greater than n , say dn e, we would expect the above mentioned deviation to be small. Even though the model is built around a single WIP level, we feel that this WIP level is of particular interest. We observed from our experiments that if the coecients of variation of the processing times are less than one, then n lies just past the ``knee'' of the TBD versus n curve. That is, the mean TBD decreases quickly until the number of containers is raised to n and decreases much more slowly when the number of containers is raised beyond n . For all of these reasons we focus our computational investigations, which are detailed in the next section, on CONWIP production systems using dn e containers. Also note that dn e is the unique WIP level that yields the minimum TBD (i.e., maximum throughput) with minimal WIP in deterministic systems. 4. Simulation experiments Our model for predicting the operational parameters of CONWIP production systems is based on the concept of BN and the corresponding analogy to deterministic systems. When developing our model we assumed that the BN works continuously and that queues form only in front of the BN. We now present the details of a simulation experiment designed to both test this concept and the usefulness of our model. 105 The experiment is divided into two parts. The ®rst part compares our model to existing models that compute similar operational parameters for CONWIP production lines with very speci®c processing time distributions. The second part is a wide-ranging test on randomly generated problems. In both parts we report the percentage error (our model's estimate minus the simulated value, divided by the simulated value) for all four of our operational parameters. Since the percentage error for mean TBD and mean ¯owtime are always identical, we report the number only once (under the heading l's). Since the units for mean and standard deviation are the same, the error in estimating the variance information is reported in terms of the standard deviation. Before detailing our experiments we note that another method for estimating the mean values of our operational parameters neither mentioned above nor tested below exists. This is Mean Value Analysis (MVA). MVA was developed by Reiser and Lavenberg [15] and it is a popular technique for ®nding mean values in tandem queuing networks. MVA gives exact values for CONWIP systems with machines that have exponentially distributed processing times. Our initial tests indicated that our method clearly out-performed MVA for estimating lT and lL when the machines had non-exponential processing time distributions. In addition, the results of Hopp and Spearman [8] also indicate that their method out-performed MVA. More importantly, MVA cannot be used to estimate the variance of the operational measures. 4.1. Comparison with existing models In this section, subject to the explanation below, we compare our method for estimating performance measures to two existing models, that of Duenyas et al. [7] and that of Hopp and Spearman [8]. The purpose of these experiments is to compare the quality of our model's estimates to existing models. Note that the existing models were developed for systems whose machines are characterized by deterministic processing times and random (exponential) breakdowns. In addition the models of Duenyas et al. [7] and Hopp and Spearman [8] estimate throughput information; our does not estimate throughput. Rather, we estimate time between departures and ¯owtime. We do not compare our model directly to the one found in Duenyas and Hopp [6] who consider CONWIP lines in which each machine has an exponential processing time distribution. However, we investigate these systems in Section 4.2. There are two ways to model the time between machine failures: (1) failures occur in relationship to the amount of clock time since the last failure (as used in Duenyas et al. [7] and Hopp and Spearman [8]); and (2) failures occur in relationship to the amount of time the machine has been working since the last failure (as used in this paper). The main dierence is that under the ®rst assumption, as 106 Dar-El et al. opposed to the second, machines can fail even when they are not working on a part. We feel both assumptions are reasonable for dierent types of machines. We estimate our performance measures by building the machine breakdown distribution into the processing time distributions. We took all nine problems investigated computationally in Hopp and Spearman [8] and tested our estimates on these problems. The results are given in Table 1. We do not repeat the descriptions of the CONWIP lines because of the space this would require. However, we note that the CONWIP lines associated with the ®rst two problems contain four machines, whereas in the remainder of the problems the CONWIP lines contain three machines. The ®rst column of Table 1 contains the abbreviation used in Hopp and Spearman [8] to describe the problems. The second column contains the number of containers used in the CONWIP line. The third, fourth, and ®fth columns are the percentage error of our model's estimates. The sixth column is the percentage error of Hopp and Spearman's [8] estimate of the mean throughput for the same number of containers. The values in this column were calculated based on the graphs that appear in Hopp and Spearman [8] and thus are likely to contain some error. For this reason as well we only report these errors to the closest whole number. The value for dn e was equal to the number of machines in all but four cases. For these cases dn e was equal to the number of machines minus one. Since the values of dn e were so small for these cases, we also report the results for dn e 1 in the last part of Table 1. Duenyas et al. [7] developed a model for estimating the throughput variance of a CONWIP line with deterministic processing times and random (exponential) breakdowns. We took all 13 problems they investigated Table 1. Percent error of our model's estimates and the estimates of Hopp and Spearman [8] Case n l's rT Comparison using dn e containers case I 3 )12.2 0.4 case II 3 )14.0 35.9 EE 3 )0.2 3.5 GE 3 0.2 5.7 GG1 3 )2.3 )9.8 GG2 3 1.0 6.7 BE 2 )6.2 )9.6 BG1 2 5.3 40.9 BG2 3 2.3 7.7 Comparison using dn e 1 containers in cases where n is small case I 4 1.2 2.4 case II 4 )1.2 3.3 BE 3 5.2 )1.3 BG1 3 3.5 1.8 rL lthroughput 5.2 28.4 3.7 5.7 )9.6 6.4 )7.5 34.4 4.5 )3 0 5 1 )6 )1 )20 )8 1 4.9 3.8 2.5 3.9 6 9 )8 1 computationally and tested our estimates on these problems. With the risk of comparing apples, oranges, and mangos we present the results in Table 2. We feel it is appropriate to present this table because no other method exists for computing TBD and ¯owtime variances. Again, because of the space it would require we do not repeat the descriptions of the CONWIP lines; we note that cases 1±12 are three-machine examples, whereas case 13 is a sixmachine example. The ®rst ®ve columns are as described above for Table 1. The last column is the percentage error as reported by Duenyas et al. [7]. For the ®rst 12 systems the value of dn e is always three (except in cases 3 and 6 where it is two). Since for these 12 problems Duenyas et al. [7] do not report the percentage error of their model for two containers, but do report the percentage error for three containers, we also report the results for three containers. For case 13 we report our results for dn e (i.e., ®ve containers) and we report the results of Duenyas et al. [7] for the lowest number of containers for which they reported a value (i.e., seven containers). We see from Tables 1 and 2 our model compares quite favorably to the existing models. In Table 1 our model's errors are greatest for case I, case II, and BG1. All three of these cases are characterized by small values of dn e, and in all four of the cases with small values of dn e our model signi®cantly improved when examining dn e 1 containers. Though the quality of our model's estimates, as compared to those of Duenyas et al. and Hopp and Spearman [8] are not uniformly superior, they are comparable. This is encouraging when we consider that their estimates were developed for very specialized systems, and our estimates are applicable to any processing time distributions. 4.2. Testing on random problems We tested our model on production lines having between two and 12 machines, several distribution types (uniform, Table 2. Percent error of the estimates of our model and that of Duenyas et al. [7] Case n l's 1 2 3 4 5 6 7 8 9 10 11 12 13 3 3 3 3 3 3 3 3 3 3 3 3 5 0.5 0.2 )0.9 )0.2 2.3 4.5 )0.2 )1.2 )2.2 0.1 1.4 2.8 )0.8 rT )14.1 )5.5 )3.1 12.7 )17.6 )10.4 0.1 )2.6 )2.2 19.2 )0.5 )2.0 4.9 rL )5.6 )2.9 )2.1 12.5 )10.2 )4.4 )0.1 )2.1 )1.8 8.3 2.0 0.9 14.6 rthroughput 1.0 3.6 4.3 1.3 )2.1 1.2 0.1 )2.7 )5.9 7.2 7.4 )2.0 )7.0 CONWIP-based production lines with multiple bottlenecks 107 Table 3(a and b). Description of the distributions used in the computational tests on random problems (a) Name Type U1 U2 N1 N2 Exp D1 Uniform Uniform Normal Normal Exponential Discrete D2 Discrete Parameter description Mean c.v. = r=l Low High Low High Low High U(0.65,1.35) U(0.5,1.5) N(1,0:22 ) N(1,0:32 ) E(1) 0.83 p = 0.5 1.00 p = 0.2 1.27 p = 0.3 0.80 p = 0.3 0.97 p = 0.5 1.36 p = 0.2 U(0.8,1.6) U(0.6,1.8) N(1.2,0:242 ) N(1.2,0:362 ) E(1.2) 1.00 p = 0.5 1.20 p = 0.2 1.54 p = 0.3 0.90 p = 0.2 1.00 p = 0.3 1.43 p = 0.5 1 1 1 1 1 1 1.2 1.2 1.2 1.2 1.2 1.2 0.2 0.3 0.2 0.3 1 0.2 0.2 0.3 0.2 0.3 1 0.2 1 1.2 0.2 0.2 (b) Name M1 M2 Type Mixed Mixed Machine 1 2 3 4 5 6 E N2 N1 N1 U2 U2 D1 D1 N2 E N1 N1 normal, exponential, discrete, and a mix of these), and many dierent con®gurations. In total we tested our algorithm on 56 random problems (in addition to the 22 problems examined in Section 1). The distributions used are detailed in Table 3(a and b). For the types of distributions with controllable coecient of variation (c.v.) we examine the eects of the distribution with a c.v. of both 0.2 and 0.3. For each distribution type and for each c.v. the mean processing time can take on one of two values, a low and a high value. When the distribution takes on its higher value it is termed a ``bottleneck''. We write ``bottleneck'' with quotation marks since a machine with a low form of the distribution may temporarily become the bottleneck machine, constraining the production system performance for a short period of time. For example, consider a line having machines with processing times of the U1 type. The actual processing time on a machine with a low form of the distribution may be greater than 1.2 for several parts, while the actual processing time on a machine with a high form of the distribution may be less than 0.9 for several parts. Thus the slower machine may become the bottleneck for a limited period of time. Our ®rst set of experiments is on CONWIP lines containing three machines. The results of this set of experiments are contained in Table 4. The ®rst column indicates the position of the ``bottleneck'' machine(s). A `?' indicates that we use the high form of the distribution and a `-' indicates that we use the low form of the distribution. The number of containers used in the CONWIP line as well as the error in our performance measures (our model's estimate minus the simulated value, divided by the simulated value) are reported for lines with a single ``bottleneck'' machine in each of the three possible positions. We also report these errors for CONWIP lines with two ``bottleneck'' machines and for lines where all three of the machines are ``bottlenecks''. These errors are reported for six dierent distribution families (two uniform, two normal, one discrete, and one exponential). The results for CONWIP lines with machines having exponentially distributed processing times are reported for lines both where the number of containers is equal to dn e and to dn e 1, because dn e was equal to three for all distribution families except the exponential family for which it was equal to two. The results are again quite encouraging. The percentage error in estimating the means of our performance measures is on average 4.6%. Furthermore, for lines having machines with a processing time c.v. of 0.2, the average is only 2.9% with a maximum value of 3.4%. For lines having machines with a processing time c.v. of 0.3 the average is 4.5% with a maximum value of 5.3%. These values increase for lines with machines that have exponential processing time distributions (c.v. equal to 1.0). Hence we see that our estimates of the means of our performance measures tend to deteriorate as the coecient of variation of the processing time distributions grow. The estimates of the variances of the performance measures do not seem to have the same trend. The average error in estimating the standard deviation of TBD (rT ) is 4.1% and the average error in )7.7 )7.9 )8.7 )7.5 )8.8 )12.9 )13.4 )14.6 )13.1 )14.3 )8.3 )8.1 )8.1 )8.2 )7.8 2 2 2 2 2 )3.1 )3.8 )3.8 )2.8 )3.4 )5.3 )6.4 )7.7 )4.8 )6.8 10.1 9.2 9.1 10.2 10.2 3 3 3 3 3 2.9 )1.9 )6.9 2.8 )5.2 )7.3 2.8 )2.3 )5.0 3.1 1.2 )2.1 2.6 11.8 1.2 3 3 3 3 3 4.8 6.7 )2.8 4.1 )1.0 )4.8 4.1 )2.1 )7.1 4.5 1.5 )4.1 5.3 5.2 )1.3 3 3 3 3 3 )5.6 )6.7 )7.8 )5.1 )8.0 2.7 )3.3 )2.0 )0.4 )2.6 2.8 2.5 2.7 3.3 3.0 3 3 3 3 3 4.2 4.8 )3.8 4.1 )4.2 )1.9 4.5 )8.3 )13.0 4.7 3.1 )4.4 5.0 3.6 )7.2 3 3 3 3 3 5.0 )4.6 )4.7 )8.7 )6.0 )9.7 )0.5 )6.6 )2.3 )10.2 2.8 2.8 2.8 3.4 3.1 3 3 3 3 3 ?--?--? ????? rT l's rT l's rT l's rT l's rT l's rT l's rT l's n U1(dn e) rL n U2(dn e) rL n N1(dn e) rL n N2(dn e) rL n D1(dn e) rL n E1(dne 1) rL n E1(dn e) rL Dar-El et al. Table 4. Percentage error of our model's estimates on randomly generated three machine CONWIP lines. ? indicates a high processing time (``bottleneck''), - indicates a low processing time 108 estimating the standard deviation of the ¯owtime (rL ) is 5.4%. Our second set of experiments was carried out on CONWIP lines containing six machines. The results of this set of experiments are contained in Table 5. The ®rst column again indicates the position of the ``bottleneck'' machine(s). The number of containers used in the CONWIP line as well as the errors in our performance measures are reported for two of the six con®gurations of lines with a single ``bottleneck'' machine. We also report these errors for two con®gurations of lines with three ``bottleneck'' machines and for lines where all six of the machines are ``bottlenecks''. These errors are reported for four dierent distribution families (one uniform, one discrete, and two mixed). The results for CONWIP lines in which the machines have processing time distributions from various distributions (mixed) are reported for lines both where the number of containers is equal to dn e and to dn e 1, because dn e was equal to ®ve for all distribution families except the mixed families for which it was equal to four. The results of this second set of experiments are similar to the results for CONWIP lines containing three machines. The percentage error in estimating the means of our performance measures is on average 3.2%. This is even better than the average for three machines. The average error in estimating the standard deviation of TBD (rT ) is 7.5% and the average error in estimating the standard deviation of the ¯owtime (rL ) is 6.4%. Our third and ®nal set of experiments was carried out on variable length CONWIP lines. We examined lines ranging in length from two to 15 machines. What remained constant was the number of ``bottlenecks''. All lines regardless of length had three ``bottlenecks'', one at the very beginning, one at the very end, and one in the middle. Of course, the CONWIP line with two machines had only two ``bottlenecks''. The results are contained in Table 6. The ®rst column again indicates the position of the ``bottleneck'' machines. The second column emphasizes the number of machines in the CONWIP line. The last four columns give the results for the U1 distribution family always using dn e containers. The results are at the same time encouraging and disappointing. The quality of our model's estimates of the mean of our performance measures and of the standard deviation of the ¯owtime (rL ) seems to be insensitive to the length of the CONWIP line. However, the quality of our model's estimate of the standard deviation of TBD (rT ) clearly deteriorates as the length of the CONWIP line grows. Before concluding this section it is important to make the following comments. First of all, while our estimates may not be as accurate as we would like, they are robust. Our estimates are eective on a wide variety of distributions (including machine breakdowns). The errors in the estimates of the means are accurate enough to be used for )16.1 0.3 )13.0 4.2 )13.7 0.1 )19.6 )1.6 )15.6 2.0 )9.8 )8.6 )10.0 )10.6 )10.7 4 4 4 4 4 2.2 0.8 3.0 0.4 1.1 4.8 4.4 4.6 4.1 3.6 8.3 7.8 7.1 6.0 8.4 ?--------??-?--? -???-?????? 5 5 5 5 5 )2.4 17.1 5.8 )2.4 )4.5 )9.6 )1.6 13.5 )2.7 )1.6 3.7 )4.8 )4.3 )0.5 )12.4 5 5 5 5 5 )1.1 14.7 )1.1 )10.4 )1.1 3.5 )0.3 3.8 )4.2 6.4 )0.5 )17.3 )13.2 )7.3 )9.5 5 5 5 5 5 4.7 4.6 5.3 3.9 3.8 10.0 11.4 13.4 9.5 11.2 4 4 4 4 4 )8.8 )9.6 )8.2 )10.6 )10.6 )6.0 )10.2 )5.8 )11.3 )8.0 5.2 2.7 4.6 )1.5 4.4 5 5 5 5 5 )0.7 )3.1 4.3 )6.1 )1.7 rL rT l's l's rL n l's rT rL n l's rT rL n l's rT n l's rT rL n rT rL n M2(dn e) M2(dn e 1) M1(dn e) M1(dn e 1) D2(dn e) U1(dn e) Table 5. Percentage error of our model's estimates on randomly generated six machine CONWIP lines. ? indicates a high processing time (``bottleneck''), - indicates a low processing time CONWIP-based production lines with multiple bottlenecks 109 Table 6. Percentage error of our model's estimates on randomly generated CONWIP lines of dierent lengths. ? indicates a high processing time (``bottleneck''), - indicates a low processing time U1(dn e) M ?? ??? ??-? ?-?-? ?-?--? ?---?---? ?----?-----? ?------?------? 2 3 4 5 6 9 12 15 n l's rT rL 2 3 4 4 5 7 9 11 )0.1 3.1 5.7 )6.0 )1.6 )3.9 )5.0 )5.8 )11.0 )2.3 16.7 )7.1 13.5 20.8 33.5 41.6 )7.2 )10.2 )7.5 )6.7 )2.7 )0.5 6.6 8.0 planning purposes and/or as a guide for a detailed simulation study of the system. This is also true of the estimates of the standard deviations. Even though they may not be as accurate as our estimates of the means, they do not need to be. A rough idea of the standard deviation is all that is needed for planning purposes. In addition, we concur with the view of Duenyas et al. [7] when they write, ``It is important to note that estimating second moments is considerably more dicult than estimating ®rst moments. Given that no other method for estimating r m exists, 8% error is not unreasonable.'' 5. Insights When management has to make a machine procurement/ replacement decision it can use the CBN concept as a guideline on where to invest money. For example, take the simple manufacturing environment detailed in the ®rst line of Table 7. The question facing management is one of machine replacement. We assume that management has enough funds to replace one of the existing machines with a machine having a deterministic processing time of nine. Traditional evaluation methods indicate the second machine should be replaced so as to achieve a balanced line. We ask ourselves, ``Does it make sense to have a line with two machines having deterministic processing times of respectively nine and ten, when we could have a line with both machines having an average processing time of nine?''. The answer is yes. This improves the BN's performance. Our model correctly identi®es (see Table 7) that a balanced line is sub-optimal. The reason for this is clear. With the unbalanced line the second machine works continuously because there is no variability in the system. With the balanced line, the ®rst machine's stochastic processing time introduces variability that causes the second machine to be starved from time to time. 110 Dar-El et al. Table 7. An example of a machine replacement decision and its consequences Machine 1 Machine 2 From CBN model lT lBN Original Option 1 Option 2 U(4,14) U(4,14) Deter. 9 Deter. 10 Deter. 9 Deter. 10 10.8 10.25 10 From simulation rT rL 1.22 1.62 0 1.73 2.29 0 Often a manufacturing line does not sit in isolation, but rather is part of a larger manufacturing environment. Just as a machine processing time variance can cause a fast machine to become the BN from time to time, a high variance in the TBD can cause the CONWIP line to become the bottleneck in the overall system. Thus, our decision of machine replacement will be in¯uenced by the resulting variances in the CONWIP line. Using the same example as above, the preferred option of replacement based on mean TBD is also preferred based on TBD variance, and our model correctly identi®es this preference. The results regarding the mean ¯owtime are identical to those of the mean TBD [15]. The results for ¯owtime variance are also predicted by our model. Since CONWIP systems can be viewed as closed queuing networks, one may mistakenly view the system as a loop (having no beginning nor end). This allows one to `cut' the line at any point in order to evaluate its performance. This approach, as recognized by our model, is valid for mean performance measures (Equations (7) and (11)), but very mistaken for the variance of the performance measures (Equations (11) and (13)). Take as a simple example the two machine line labeled `original' in Table 7 with machine 1 having a processing time distributed uniformly between ®ve and ten. The time between departures is clearly a constant ten. If, however, the system is viewed as a loop and `cut' between machines 1 and 2, we see that the resulting production line would have a larger TBD variance. According to our model the TBD variance (Equation (8)) does not depend on machines before the BN. This is because, by assumption, the BN works continuously. The TBD variance does depend on the BN and the machines after the BN. In fact our model predicts that the machines after the BN contribute to the TBD variance twice as much as the BN itself. Our model's estimate of the ¯owtime variance (Equation (13)) also depends only on the variance of the processing time on the BN and the machines after the BN. The weighting is, however, different. The BN processing time variance has a weight of n and the machines following the BN have a weight of two. Furthermore, the CBN model predicts that the ¯owtime variance will never be less than the TBD variance. This was indeed the case in all our simulation runs. The CBN model thus indicates that when management wishes to reduce variances, the order of the machines mean TBD var. TBD var. ¯owtime 10.8 10.25 10 1.22 1.61 0 1.73 2.28 0 must be considered. In fact, simply changing the order of the machines can actually reduce the variances. A good rule of thumb is to put variable machines at the start of the line and `bottleneck' machines at the end. In addition, when management has a limited budget for machine replacement/improvement it should concentrate on variable machines at the end of the line. 6. Conclusion An analytical model (CBN) was developed for predicting the mean and variance of TBD and ¯owtime. We introduced the concept of a virtual bottleneck machine which allowed us to employ analogies between deterministic and stochastic systems. This concept enabled us to handle migrating bottlenecks, an issue that is generally neglected. The results of our simulation experiments show that our analytical model is very accurate for predicting the mean TBD and mean ¯owtime, and suciently accurate for predicting the standard deviations of TBD and ¯owtime. The simulation experiments also showed that the analytical models are much quicker than simulations. Since we did not constrain the type of the processing time distributions when we developed our models, the in¯uence of machine breakdowns was also considered by including them into the processing time distributions. Finally we used our model to gain insights into how the machine characteristics aect the values of our performance measures. Before concluding we wish to point out that some of the information that we estimate can be estimated by modeling our system as a closed queuing network and then using a general queuing network analyzer. However, we feel that this approach would be unsatisfactory. First, and most important, the insights obtained in Section 5 would be unavailable. Second, we feel that the unique way our model is developed is of interest. References [1] Hopp, W.J., Spearman, M.L. and Duenyas, I. (1993) Economic production quotas for pull manufacturing systems. IIE Transactions, 25, 71±79. 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[15] Reiser, M. and Lavenberg, S. (1980) Mean-value analysis of closed multichain queuing networks. Journal of the Association for Computing Machinery, 27, 313±322. [15] Little, J. (1961) A proof of the queuing formula L kW . Operations Research, 9, 383±387. [16] Burbidge, J. (1990) Production control: a universal conceptual framework. Production Planning and Control, 1, 3±16. [17] Kanet, J. (1988) MRP 96: time to rethink manufacturing logics. Production and Inventory Management Journal, 29, 57±61. 111 Biographies Ezey M. Dar-El, B.Mech.E. 1953, M.Sc. 1960, Ph.D. 1970 (University of Melbourne). Ezey Dar-El holds the Harry Lebensfeld Chair in Industrial Engineering. Prof. Dar-El is on the Editorial Board of the ®ve learned journals, is a fellow of the Institute of Industrial Engineers, an Executive Board Member of the IFPR (International Federation of Production Research), and Director of the Israeli branch of the world Council of Productivity Sciences. He is also a member of ORSIS, Human Factors Society, the Israel Ergonomics Society and the Society of Manufacturing Engineers. He has published extensively on Assembly Line Design; job shop and ¯ow shop scheduling; project control; project scheduling; FMS scheduling; industrial safety; work measurement; R&D Quality and Productivity; Gain Sharing; productivity development and industrial learning. Prof. Dar-El has written the de®nitive work on Gain Sharing and is recognized as the leading researcher in this area. Prof. Dar-El is an internationally known consultant, having worked with over 60 companies, variously located in : Australia, Israel, England, U.S.A., Italy, The Netherland Antilles and Peru. Yale T. Herer, B.Sc. (1986), M.Sc. (1990), Ph.D. (1990), - Cornell University. Yale joined the Faculty of Industrial Engineering and Management at the Technion ± Israel Institute of Technology in 1990 immediately after the completion of his graduate studies. Currently Yale is visiting the Department of Industrial Engineering at Tel-Aviv University. He has worked for several industrial concerns, both as a consultant and as an advisor to project groups. Yale is a member of the Institute for Operations Research and Management Sciences (INFORMS), Institute of Industrial Engineers (IIE), and the Operations Research Society of Israel (ORSIS). His research interests include inventory control, especially when integrated with routing and/or distribution. He is also interested in production control and production system design. Michael Masin, M.Sc. 1992, Ph.D. 1998 (Industrial Engineering, Technion, Israel), M.Sc. 1987 (Mechanical Engineering, Moscow State University of Railway Transport, Russia). Michael is visiting the Department of Industrial Engineering at Tel-Aviv University. During his Ph.D. studies he was employed by the Israeli Defense Forces for four years, working in the ®elds of Operations Research and Systems Analysis. Michael is a member of the Institute for Operations Research and the Management Sciences (INFORMS), and Institute of Industrial Engineers (IIE). His research interests include production control systems, advanced manufacturing systems, system analysis and integration.