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Gershwin, Curtis Suyematsu Reviewed work(s): Source: Interfaces, Vol. 28, No. 1, Franz Edelman Award Papers (Jan. - Feb., 1998), pp. 24-36 Published by: INFORMS Stable URL: http://www.jstor.org/stable/25062336 . Accessed: 13/02/2012 11:57
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Hewlett-Packard Improve
Uses
the Design
BURMAN
Operations of a Printer
Inc.
Research Production
to
Line
MITCHELL Analytics, 101 Rogers Street, Suite 216 Cambridge, Massachusetts 02142 STANLEY B. GERSHWIN Massachusetts
77 Massachusetts
Institute of Technology
Avenue, Room 35-331
02139
As Hewlett-Packard
Corporation
installed
system
for manu
in 1993, it facturing ink-jet printers in Vancouver, Washington, realized that the system would not be fast enough or reliable enough tomeet its production goals. At the time, the market
for ink-jet shipments printers would was exploding, translate directly and any incremental into market share printer and reve
nue gains. The company undertook a simulation project to de for design changes to improve the sys velop recommendations tem performance but concluded that that project would take too long to be useful. MIT researchers used analytical methods to predict capacity and to determine the sizes and locations of
buffers crease that would in inventory. increase HP's capacity implementation at the cost of of a minor in this work yielded
in printer sales and incremental revenues of about $280 million ink additional revenues from ancillary products, replacement increased jet cartridges, media, and related items. Productivity the assembly of the print engine cost about 50 percent, making a method of creating rapid competitive. Finally, HP developed and effective system designs in the future.
FACILITIES/EQUIPMENT PLANNING?CAPACITY EXPANSION MANUFACTURING?AUTOMATED SYSTEMS
Copyright ? 1998, Institute forOperations Research and theManagement Sciences 0092-2102/98/2801 /0024/$5.00
INTERFACES
28:1
January-February
HEWLETT-PACKARD
The ration ment Massachusetts Institute of Tech Corpo tight project schedule. The best time to is always early in a pro change a design re Later ject. redesign often requires more sources ported. adapted ysis and expense In this case, than can be sup the project team the anal the tools and performed
project. This work revenues of approximately incremental in printer shipments and ad $280 million revenues due to ancillary prod
ditional ucts,
ink-jet cartridges, media, replacement so labor productiv and forth, (2) increased to the assem 50 percent, making ity by up and bly of print engines cost competitive, for designing (3) gave HP a method sys tems rapidly and effectively. The last bene in the long fit is potentially the greatest ro term. It could improve predictability, and system implementation. bustness, to establish This project has helped of these analytical methods. usefulness inMIT The technology is described courses been and the OR research commercialized the
so that HP could incor early enough into the system porate the improvements development. The technology was but not
necessary
is The efficiency of a machine the ratio of the working time to the total time available
sufficient. Most ness and important was the willing to structure, sponsor, of HP managers
business
then implement design recommenda on this unproven tions based technology. a took risk when pressure was high They schedule. an aggressive product-ramp They had to manage changes the hardware, and people information, to meet to realize the busi in
Reasons
for Success
systems concurrently ness benefits. Technology The technology rithms duction rithms
performance
This project was particularly successful this phase of because of its timing. During life cycle, demand the ink-jet-technology the for ink-jet printers greatly exceeded HP its all from and of major com supply petitors. Any incremental units produced during mental this time period resulted in incre revenue and market share. The in this project helped the to of HP Division (VCD) greatly used
consists
measures
technology Vancouver
is very easy to this technology However, use and very fast: it reduces the multi time and the multi month development hour run time of simulations to minutes or over is its major advantage us to It simulation. recommend enabled less. This design window The changes within of opportunity. the development
costs and, most lower production impor at a to increase printer shipments tant, time when market share was up for grabs. A key factor in the success of the project was the university participants' ability to on a innovate and to adapt technology
technology was successful because it allowed the joint HP/MIT team design
January-February
1998 25
design. of
Business HP
is a multinational
manufacturer
electronic
LaserJet DeskJet products, VCD is and computer systems. products, one of two divisions in Vancouver, Wash is one of three manufacturing ington, hubs for the DeskJet series printers. Ink-jet and
includes
the quality, production, and management constraints. HP approximately automated system $25 million
dollar as well
industry as the
the for assembling out mechanism that would printer bring put to 300,000 per month while satisfying the other constraints. This automated sys
tem was code-named Eclipse.
for it, has grown rapidly since competition HP introduced the DeskJet product a de
cade ago.
The Assembly System enter the factory (Figure Raw materials an automated 1) through material-handling storage system that includes an automated and retrieval system (AS/RS). The AS/RS to one of two mechanism routes materials assembly systems (Eclipse). Each Eclipse in a modular is structured fashion
the ink-jet printer market grew dur the ing early 1990s, VCD faced the follow As ing conflicting objectives: the HP reputation (1) upholding ity and service; for qual
for the increasing demand (2) meeting share printers and improving HP's market position; (3) achieving enue growth; (4) sustaining its targets and for profit and rev
system with parts feeding into subassembly mod ules and subassemblies feeding onto the main assembly From the Eclipse system.
of manage
system, the products go to the mechanism buffer and then to final assembly. The last is testing. After test step in final assembly
Raw Materials
Assembly
Packaging
Cell (Eclipse)
material enters the factory assembly an automated material through area. Assembled mechanisms
& Shipping
Figure is then
1: Raw routed
to the mechanism
and stored
and shipping.
INTERFACES28:1
26
HEWLETT-PACKARD
Original System
100 Non-Buffered Processes Steps i
????????
00000000
su! E??B*;*?a0?e
I i I I
iDirection of
e*?i O
Material ?
iMovement
I
Empty Pallet Subassembly Cell Process ? Station
I
D Subassemblies A
Product
Base
i system design,
The and
in the upper
clockwise at on
the main
nism
operations is separated from are moved downstream. cell does approximately space was
added,
ventory
designed
in
stays system pallet completed contains 30 automated work stations. Each subassembly loop as four main no in stations. work loop Essentially in-process the system.
ing, the printers are automatically and shipping. packaging In the original Eclipse design a central automated
routed
to
pallet to move work from the primary method station to station. Pallets received an
and begin the assembly of the next mecha no in-process nism. There was essentially within the space Eclipse systems inventory
themselves.
product base from an off-line sub station. Subsequently, this base assembly empty traveled on the pallet clockwise around at each the conveyor, receiving processing station along the way. Every few stations, was added to another major subassembly until the the mechanism. This continued mechanism separate to await was buffer and stored completed for completed mechanisms into a finished to base in a
or manufac efficiency of a machine turing system is the ratio of the working time to the total time available. Alterna The tively, it is the ratio of the actual produc tion during a time period to what the pro duction would have been if none of the machines system machine machines.
random,
failed. The efficiency of a is less than that of its least efficient because Because
production
ever
and
is random.
final assembly This would free up the pallet printer. receive another product immediately
of efficiency
that we
January-February
1998 27
interactions.
absence,
to per hour. We thought it reasonable assume ex that the actual capacity would ceed 540 units achieve per hour and that the plant this if the main line assem
interactions
would
If there is no buf and blocking. a pair of machines fer between and the
had efficiencies of 99 percent bly machines and yields of 99.5 percent and if the subas sembly systems had seven-second cycle times and better efficiencies. Based on ap 685 hours of available pro proximately duction time per month, we estimated that the system could produce 369,900 units This exceeded per month. 300,000 units per month. the target of
Machines
they are
machine
of the Project History a simulation HP sponsored project in the system ther solidify confidence
to ei de
A manufacturing system may have none, one, or many buffers. If a produc tion line has buffers and a machine fails, the next buffer while downstream downstream loses material from it the machine
sign or provide specific recommendations for improvements. the scope of However, was much the simulation programming It greater than the vendor had anticipated. did not expect results until well after the to affect design changes had opportunity
passed.
to operate. If this condition per sists long enough, the buffer becomes and is starved. The machine that empty continues larger the buffer, fore it is starved. fer upstream terial while machine the longer the time be the next buf Conversely, a failed machine of gains ma the previous upstream
neers
this point, the HP development engi and managers sought help from aca demia. They chose MIT because it had ap
At
is still working. If this goes on the buffer fills up and the long enough, is blocked. Thus, buf upstream machine thereby rate. Larger buffers more effec production because they ab tively decouple machines but they do so at sorb larger disruptions; the cost of increased inventory. on the main Eclipse Each machine line fers defer idleness and increase
and the ability plicable analytic techniques to review the design and to propose to meet the objectives. changes Buzacott-Model Capacity Mitchell Estimate of Eclipse
Burman, an MIT PhD candi on this project. He based his date, worked first estimate of the efficiency system on Buzacott's (appendix). in an HP report. could He of the [1967] zero described It showed produce
was
designed
to have
a constant
cycle
just barely
INTERFACES28:1 28
HEWLETT-PACKARD
the targeted 300,000 the assumptions The Buzacott units if it per month of isolated cycle is based on a set HP and MIT formed a team to develop for correcting the prob on schedule and within and main
met
efficiencies. formula
of assumptions. The machines constant operation times. The chine blocked. is never starved Machines
equal, first ma
have
are working. system, so that when other machines it is repaired. as a function the mean
can fail only while they There are no buffers in the one machine fails, all
Inventory the system was already under con struction, the team could not change indi without disrupting the
vidual machines
are forced
to be idle until
system's development cycle. Consequently, the team could not easily change the effi ciencies of the components of the produc the tion system. Gershwin [1994] describes and between buffer space sys relationship tem efficiency when buffer 3): space (Figure is small, small increases in buffer space in crease system efficiency dramatically. Sys tem efficiency asymptotically approaches the efficiency of the least efficient machine in the system as the buffer This space ap is because buffers
time to repair. The basic design of the Eclipse system was sound, but its performance depended on its meeting some design and parameter Some were questionable: assumptions. ?That individual stations would achieve efficiencies ?That of 99 percent, station yields would
be 99.5
proaches prevent
others.
achieve
constant
infinity the variability of each machine's from production blocking or starving the
seconds, and the system was tightly coupled with little buffer space. HP collected performance data as soon as stalled two of the subassembly cells had been in This and run as isolated operations.
co-Buffer Limit-
"'
Production
ma early data indicated that the isolated chine efficiencies were closer to 97 percent In addition, than the needed 99 percent. station cycle times varied much and sometimes more than the exceeded
~ir
^- -_ O-Buffer Limit
anticipated nine-second
stations
3: The
production
rate
increases This
as in
in
to
fying many
space inventory at first is rapid and then small. The are easy and to calculate, lower limits rest of the curve the decomposi requires
increases.
up but
tion method.
January-February
1998 29
ment
Meanwhile, by using
limitations
included
break
inventory expanding a method We needed space excessively. curve what this determining actually looked like for the Eclipse system and, in turn, how much needed
target.
into two parts: esti ing up the problem the performance of the main mating loop, and determining the sizes of the buffers needed between and the main the subassembly loop. In analyzing systems the main
to meet
loop, we were able to ignore the subas faster and sembly cells because they were more reliable and would therefore only rarely affect production were installed between line. We once the buffers them and the main
space termined that the quick analytic models found in the flow-line literature [Dallery were and Gershwin for 1992] appropriate the task. He tions chose the decomposition equa Gershwin developed by
of within
10 percent
observations.
of the actual
decomposition algo rithm [Dallery, David, and Xie 1988]. this decomposition Gershwin developed
method under the assumption that ma
time was that of the slowest ma operation chine. In addition, we approximated the
loop as a line.
chines
have
equal, assumed
deterministic failures
We tween main
determined
be
independent of the time since any independent event. He assumed buffers to previous finite capacities. Except of equal operation sumption are reasonably for the as times, accurate these for
of each other,
the subassembly systems and the line by treating the material flow as out into and if it of each such buffer
in a two-machine continuous
were
have
material
transfer
the subassembly system and the main line.) This represented the need for a long-line decom it possible to treat the in the different the buffers to be sys line
because
itwas
the
one available
and made
INTERFACES28:1
30
HEWLETT-PACKARD
New
System i
??s?w
D D DD
ODD
AAAAAA
ODD
oooooo
I
Figure 4:We
inventory
recommended
the
the addition
between
subassembly
systems
chines
are
the number
produce the following ure 4) could between month: (1) Adding (2) Adding subassembly (3) Adding
stations.
system improvements (Fig to raise estimated throughput and 300,000 units per
empty pallet buffer) increases the produc it reduces blocking. We tion rate because and starvation by this blockage reduced area at the end of putting a pallet storage the system. This storage also served as a downstream buffer to decouple disrup from upstream part loading. system was designed with subas that ran faster than the sembly systems The
main line. However, since there were no
250,000
an empty pallet buffer, buffers between automated cells and buffers the main main line, and line
tions
between
The
system had about 103 locations was designed to contain pallets and pallets. But this many pallets would to congestion put because and would reduce
for 80 lead
buffers main
and
the
stopped,
through the Eclipse is a closed system. fewer parts than there are much When are spaces, the machines frequently the number of parts is starved. But when close to the number of spaces, the ma
ing subassembly 30 minutes of subassembly (approximately 200 units of in-process inventory), HP iso lated any disruptions cells from the main these buffers in the subassembly line. We expected of the time
to be full most
January-February
1998 31
this might appear to be a great Although deal of inventory, 30 minutes was needed to guarantee that subassembly failures (that have utes) would a mean rarely duration of several min interrupt main-line install three other
to determine which action sitivity analysis on would have the greatest system impact
performance.
that HP
of approximately 12 units each one quarter, half, and three quarters of the way through the line. Based on the performance improve ments we estimated with the analytic HP made these modifications. models, total capital Eclipse System During costs for the changes $1,400,000. Prioritization were
Simultaneously, extensions develop that composition handle (1) would tion times, (2) could handle
Burman
was
asked de
to
to the Gershwin
different
machine
opera
The
to both
very long lines, run in seconds, (4) had a better user interface, (3) would
systems
Improvement Ramp-Up
and (5) had simple data requirements, (6) converged more reliably. Burman completed this work successfully by March of 1995 and described PhD thesis [Burman 1995]. Validation system data from May and June Using of 1995, Burman compared actual system to the performance performance predicted he developed by the model estimates 1995]. The model's rates were within
observations.
HP had finished the hard By mid-1994, ware changes to the system. It set new tar levels for station based on efficiencies get more had realistic to achieve levels. It still performance these efficiencies and sus cycle
the
it in his
times.
changes, we
hardware
a more system
accu on
10 percent
was raised to production between 250,000 and 300,000 per month with the expected productivity. When called upon, the system has demonstrated Actual system the ability to sustain production than 300,000 per month. HP Impact This technology The contributed greater
greatly
to
HP.
technology
we
for
INTERFACES28:1 32
HEWLETT-PACKARD
ments during this period. dations took into account constraints sources. of schedule, The recommen the real-world tion achieved manual month. nues in excess of the predicted capacity of 200,000 per additional reve
The approach
Supply will exceed demand, prices will drop, and the focus will shift to cost control.
the rec had a great value to HP because on were ommendations based rigorous an This increased HP's will alytic methods. an enormous risk based on ingness to take the recommendations. sulted HP in substantial The changes re revenue. incremental to have an
was increased by productivity to 50 of the print en up percent, assembly This is a signifi gine was cost competitive. cant benefit business growth. has for the future, because the left the period Supply will exceed of explosive demand, shift
cartridges, Because
prices will drop, and the focus will from revenue to cost control. Other Commercial
Impacts of this project led Burman to found Analytics, Inc. Analytics provides manufacturing-systems design services The success that are, in part, based on the principles the work described has here. Analytics in a project for used this methodology of
The Vancouver Division and predictability has leveraged this design approach for systems. next-generation manufacturing can increase estimates that this method throughput automated of all its future manual and It the
Johnson and Johnson, a project for Boeing, and an unrelated project for Hewlett Packard Analytics technology in Corvalis, Oregon. to improve the has continued and has added features includ
systems. This project helped HP to design and im prove the Eclipse automated print-engine an im It had immediate system. assembly pact because of the timeliness of the solu tions. It also helped HP to set a clear man It agement focus for system improvement. made the issues comprehensible a useful tifiable, and it provided language for discussing and quan discipline
and a ing assembly modules (appendix) graphical user interface. The speed and it an of this technology make flexibility ideal complement to simulation. By using one can make robust this approach, decisions and fine-tune strategic-design with system simulation after solidifying architecture. the major
and
and evaluating ex
in
manufacturing-system designs. the when demand During period ceeded resulted million.
research
supply, the increased throughput revenue of $280 in incremental We base this figure on the produc
rectly at the HP printer factory. Some of these problems could be treated with methodology already in the literature, but
January-February
1998 33
were
APPENDIX?OPERATIONS TECHNOLOGY
Buzacotfs Assume
RESEARCH
Asbjoern
for other project has led to opportunities MIT personnel to visit and work with HP. MIT will use the new methods and soft ware^?as well as the HP case?in
courses, such as
Zero-Buffer Model a line has kmachines that have constant times. The first equal, operation is never starved and the last is machine never blocked. The time is cho operation sen to be the time unit. Machines can fail are while The only they working. proba bility of Machine Mz failing during a time unit when it is operating is pif and the of Machine M? being repaired probability it is down is r{. during a time unit when We define F{ = 1/f and Rf = l/ru the mean time to fail and the mean time to
repair.
manufacturing-systems
in the systems analysis" "Manufacturing mechanical and engineering department models and ap "Operations management in the Sloan School of Manage plications" ment. This work provides important re sults that will further research in systems design and operation. The success of this university-industry interaction demonstrates the benefits that can result, collaborative Impact and it should encourage of this sort. Research more
Lines with
buffers between
no
efforts
decoupling stages. Consequently, as soon as any machine fails, the whole line is forced to wait. Using these assump Buzacott that a good showed [1967] tions, of the approximation efficiency of the line is
" E_
from
benefit
k ~ k r: f. + + 1 2i = = 2^ i l ri i l ti
1_1
financial
and other In reality, each machine's work area acts we felt the like a buffer of size 1. However, was Buzacott approximation appropriate the operation time was small rela because tive to the failure time. The efficiency of the line is the ratio of the number of parts produced to the num ber that would have been produced if there were no failures. Here, it is the same as the rate since itmeasures production the average number of parts produced per time unit. Buzacott and Shanthikumar [1993] gen eralize the formula to include systems with different operation times. of Model Synchronous Decomposition of Line four Figure 5 shows a five-machine, buffer production line. For a system in which all the machines had constant,
(though challenging therefore add to the community's credibil as can serve a model for ity. This project interaction. industry-academia can Academia and the OR community to benefit by applying continue research to enable such business benefits. such technologies, cializing social and economic benefits. Acknowledgments We are grateful By commer we can realize
for all the support we The success received from HP personnel. was of the Eclipse project made possible dedication and hard work of many the by individuals
organization.
throughout
the HP
INTERFACES28:1 34
HEWLETT-PACKARD
-QO-D-OOOOOO
\ _
"~ ^
Machine
''
N \
Buffer
and the Figure 5: In this representation of a production line, the squares represent machines to temporary circles represent buffers. Material moves in the direction indicated from machine fail at random times and stay down for random lengths of storage buffer tomachine. Machines time. The buffers are finite, so disruptions are propagated in both directions in the form of
starvation ated only and by blockage. simulation Because or by a of the complexity of its behavior, this system can be evalu decomposition approximation.
times and geometrically equal operation distributed repair and failure times, that the produc Gershwin [1987] showed invento tion rate and average in-process ries could be approximated by those of a set of two-machine lines (Figure 6). lines is con Each of the two-machine structed with a buffer that is the same size as that of one of the buffers in the original are chosen so that an line. The machines sees only the in the buffer, who observer
processes
al ob
in the corresponding buffer of the line. Gershwin [1987] original developed that determined the parame the equations ters of the machines; and Dallery, David, an efficient algorithm [1988] provided for solving these equations (called the DDX algorithm). Gershwin [1994] de scribes this. in the early We used this algorithm the of stages Eclipse project. Its advantage in less is its speed. A line can be analyzed than a second on a personal computer; a simulation could take months, writing Xie and running it could take hours. Such awkward for simulation long times make analysis and design. is an approximation. This method The of material actual behavior entering and is subtly leaving buffers of larger systems in from the behavior different of material in two-machine lines. This difference creases for systems in which mean time to failure or mean time to repair are very dif ferent among the machines. of Continuous-Material Decomposition Model of Line Because the machines in the Eclipse sys tem do not have the same operation times, we needed a better approximation. How ever, extending Gershwin [1987] to sys tems with machines that have different,
server
QOO
Upstream PseudoMachine *
C, .-D-O? -DOD
a production for each form a two and a buf line, buf
6: In decomposing Figure we create two pseudomachines fer in the machine fer that original line with same line. We those size
machines as the
is the
corresponding
buffer
chines
in Figure 5.We
so that
choose
the pseudoma
behavior in
the material-flow
the buffer of each two-machine line is nearly the same as that in the corresponding buffer of the original line.
January-February
1998 35
Cliffs, New
Xie, X.-L. 1988,
Jersey.
"An
efficient algorithm for analysis of transfer lines with unreliable machines and finite buf
fers," HE Transactions, Vol. 20, No. 3 (Septem
similar
turing flow line systems: A review of models and analytical results," Queueing Systems The ory and Applications, Special Issue on Queueing Models of Manufacturing Systems,
Volume Di Masc?lo, 12, No. M.; 1-2 David, (December), R.; and of pp. Dallery, 3-94. Y 1991,
and "Modeling analysis with unreliable machines HE pp. Gershwin, Transactions, 315-331. S. B. 1987, for the "An Vol.
systems buffers,"
23, No.
(December),
efficient
tion method
approximate
decomposi evaluation
Cliffs,
1997, "De
composition
A/D working
equations
and algorithm
of equations,"
for
I. C. 1980, "Contin Schick, mate of an unreliable two-stage with a finite Institute Information buf interstage of Technology and Decision Sys
References
Bonvik, A. M. 1996, "Performance under analysis hybrid of control manufacturing of systems
LIDS-R-1039,
September.
for buffer
Insti
Institute
Burman, M.
analysis,"
Stochastic Models
ofManufacturing
Systems,
INTERFACES28:1 36