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IEI3K2 – SISTEM PRODUKSI DAN OTOMASI INDUSTRI

Load Oriented
Manufacturing Control
(LOMC)
Teknik Industri – Fakultas Rekayasa Industri

Referensi: Wiendahl, H. P. (1995): Load-Oriented Manufacturing Control, Springer-Verlag Berlin Heidelberg, New York
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This chapter is organized around three topics:

• Manufacturing Lead Time

• Throughput Diagram
• Load Oriented Order Release

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Introduction of Lead Time

• Planning, measuring, and monitoring lead time is one of the essential tasks of
production scheduling and control.
• It has not yet been possible to find an equally accepted classification of
manufacturing lead time, despite numerous attempts.
• It becomes absolutely necessary first of all to give a clear and uniform definition
of manufacturing lead time and its components, in order, first, to standardize
the methods of data recording and enable the data evaluation to be programmed,
and, second, to permit a comparison between different factories and job shops.

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Lead Time Components

• Using the term 'lead time', we have to distinguish between planned and actual
values.
• Planned lead time as allowance and actual lead time as flow time.
• The time from the issue of materials to parts' or components' arrival at an
intermediate store or at the assembly department is commonly called the order
lead time (it should rather be called order lead time period or time interval or time
span)
• The time needed for one operation is the smallest unit, it is called the operation
lead time.

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By Heinemeyer, each
operation is split into five
more components on the
operational level:
• Waiting after processing
• Transportation
• Waiting before processing
(Queuing)
• Setup and
• Processing

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• The actual lead time (TL) is calculated from the

difference between the reported dates tPEU
and tPE.
• To calculate the interoperation time (TIO), the
operation time (TOP) must be known.
• It is calculated from the order time (TO)
multiplied by the efficiency rate (ER), and
divided by the daily capacity (CDAY) of the
work center concerned.
• If, for instance, the order time (in standard
hours) is 12 hours and the efficiency rate is
120%, then the work center will be used for
12/1.2 = 10 hours for this order.
• If, at this work center, the working day is eight
hours long, the operation time will be 10/8 =
1.25 days.
• The order time of a lot itself is composed of
setup time (TS) and process time per order
(TPO).
• TPO is the product of process time per unit
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(TPU) and lot size (Q).
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Simple and Weighted Mean Lead Time at a Work Center

(1/6)
• Mean lead times are the object of measurements, for example for problem solving
studies, as well as a prerequisite for planning purposes, e.g. for scheduling.
• Mean lead times can refer to work centers, operations, and orders.
• Normally, mean lead time values are determined by calculating the arithmetic
mean of the individual lead times of all orders reported leaving a work center
within a certain period (a reference or investigation period).
• This is called the simple mean lead time (TLm).
• This calculates how long, on average, an order (i.e. a lot) stays at a work center.

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Simple and Weighted Mean Lead Time at a Work Center

(2/6)

• The equation for this is:

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Simple and Weighted Mean Lead Time at a Work Center

(3/6)
• When capacity and output are given in hours, it makes sense to also give lot
inventories in hours instead of in items.
• From this it follows that each single lead time must be weighted by the order
time.
• The corresponding work center lead time will be called the weighted lead time
as opposed to simple lead time.
• It has the dimension days x hours.
• The mean value of weighted lead time is correspondingly called the weighted
mean lead time.

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Simple and Weighted Mean Lead Time at a Work Center

(4/6)
• As experience has shown that it is
very difficult to understand exactly
what is meant by this weighted
mean lead time, it is now explained
with a simple example.
• In Fig. 3.10 A, the lead times of
four orders are plotted on the
calendar time axis.
• The mean value for TL is 8.5 days.

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Simple and Weighted Mean Lead Time at a Work Center

(5/6)
• With weighted lead time, however, it is not the number of orders but the work (in
hours) put through the work center that is of interest here.
• So each lead time is multiplied (weighted) by the work content, i.e. order time
(TO), thus producing an area which represents the weighted lead time of this
operation.
• To find the mean value, one consequently has to divide the sum of these areas
by the number of processed hours:

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Simple and Weighted Mean Lead Time at a Work Center

(6/6)
• The value of TLmw (10.7 days) is more than
two days greater than the simple mean value
TLm (8.5 days).
• The weighted mean lead time states how
long, on average, a unit of work (e.g. 1
hour) takes to pass through the work center
in question.
• Weighted mean lead time can be greater
than, equal to, or less than simple mean lead
time.
• Equal simple and weighted mean lead times
are possible in two cases: either all order
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times (TO) or all lead times (TL) are equal.
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Order Lead Times

• Order lead time consists of the sum of

the individual operation lead times at all
work centers passed by this order.
• Now the order lead time (period) can be
calculated as follows:

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Throughput Diagram

• The throughput diagram is the basis for describing the input and output events
of a work center.
• It is shown that the four objectives of production control - inventory, lead time,
utilization and lateness - can be graphically represented over time in this
diagram.
• The basic relationship between mean lead time, mean inventory and mean
utilization is derived from this diagram.
• The flow of orders through a whole shop is also represented by means of the
throughput diagram.

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Basic Form of the Throughput Diagram (1/2)

• A work center - be it a single work place, a

group of work places, a job shop, or a total
shop - can be compared with a funnel, at
which orders arrive (input), wait for
processing (inventory), and leave the
system (output).
• When the work center is observed over a
longer period of time (reference period),
the results can be plotted as curves.

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Basic Form of the Throughput Diagram (2/2)

• The throughput diagram turns out to be a

snapshot of the continuous description of a
work center.
• Assume the coordinate system is set up anew
at the end of each reference period; the input
and output curves then 'move' as if seen
through a window.
• The total of all inflowing order hours
recorded during the reference period is called
the input, and the total of all outflowing
orders is called the output.

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The Work Center Throughput Diagram and its Basic Data

(1/2)
• For plotting a throughput diagram we can make use of feedback data supplied by
the production data collecting (PDC) systems that are increasingly being used
today.
• These data from various work centers are collected by a central system and can be
represented, among other things, in the form of a list of events for each work
center, which can be considered as the protocol of events at the work center.

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The Work Center Throughput Diagram and its Basic Data

(2/2)

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Load Oriented Order Release (1/2)

• The term 'Load-oriented order release'

stands for a method that controls flow
times in a shop floor by controlling
the actual input of work versus the
planned output.
• Figure 6.1 shows an authentic
throughput diagram overlayed with the
ideal input and output lines.

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Load Oriented Order Release (2/2)

• Assuming that the ideal input and

output lines are parallel (steady-state
process), we can draw the hatched
triangle for which the following
geometrical equation applies:

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Procedure (1/6)

• On the figure we can see sections of the input and output curves from the recent
past, and the future ideal throughput diagram for the next period.
• Further, a medium-term scheduled performance (PEm ) was assumed, to which a
scheduled output (OUT) corresponds.
• Finally, an assumed scheduled mean lead time (TLM) must be achieved.
• Since, in the ideal throughput diagram, the input and output curves are parallel,
the scheduled mean inventory (Im) is constant over the entire schedule period
(P).

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Procedure (2/6)
• The real initial inventory, however (called the 'leftover inventory (lLO), in the figure),
deviates from the planned mean inventory: in the figure it is shown to be larger
than the latter.
• Thus, the work to be released is not the planned input INP but rather Load Limit
LL minus Leftover Inventory ILO.
• The sum of the planned mean inventory and the planned output is called the
load limit (LL); the difference between the load limit and the leftover inventory
is called the release (REL).
• The method developed from this is called load-oriented order release.
• Unlike conventional capacity scheduling methods, this method does not try to
schedule single orders along the scheduled output curve with an accuracy to the
day or the hour, but performs a period-by-period balance on the basis of the
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expected inputs and outputs.
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Procedure (3/6)

• One important characteristic of this method is obvious: only one account is kept
for each work center, and this is updated in every period.
• Thus, the conventional method of keeping several accounts for several future
periods is no longer necessary.
• The account corresponds exactly to the funnel, and observing the processes on
this account allows us to draw a precise throughput diagram for this work center.

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Procedure (4/6)

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Procedure (5/6)

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Procedure (6/6)
• The first step in the release process is the
backward scheduling of all issued shop
orders which have not yet been released.
• Finite loading, which is the next step, will
ensure that only those orders beyond the
present schedule period that use no more
than the remaining capacities up to the
load limit will be released.
• The next step in load-oriented order
release is to evaluate whether the urgent
orders will actually meet the scheduled
inventory conditions at the individual work
centers after their release.
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Conversion of the Orders to be Loaded (1/5)

• The aim of conversion is to answer the question of how probable it is that an

order will reach a certain work center in the next period if it first has to pass
other work centers.
• For this, we shall first look at one work center WCp (Fig. 6.6).
• In period P, the orders which are in the leftover inventory (ILO) or under release
(REL) are ready for processing.
• However, orders can only be processed up to a total order time equal to the
outputs (OUT) in the same period.
• Then, the probability POUTp for any order from ILO + R to be processed in the next
period is obviously:

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Conversion of the Orders to be Loaded (2/5)

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Conversion of the Orders to be Loaded (3/5)

• To simplify the calculation, let the loading

percentage of all four work centers be 200.
• Then CF1 obviously equals 1, because work
can be started at any time, since the order
is available with a probability of 100%.
• Operation 2 cannot, however, be started
before the next period, after Operation 1
has been completed.
• Since LPG is 200, this has a probability of
only 0.5, because the work center can only
complete half the available work.
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Conversion of the Orders to be Loaded (4/5)

• The conversion factor is thus 100/200 =

0.5.
• At the third work center, operations 1 and
2 must be completed before Operation 3
can be started in the next period (n).
• CF3 is therefore 0.5 x 0.5 = 0.25.
• Accordingly, CF4 equals 0.5 x 0.5 x 0.5 =
0.125.
• We now look at the period n + 1.
• Let us assume that Operation 1 is
completed and the order lies before Work
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Center 2.
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Conversion of the Orders to be Loaded (5/5)

• The conversion factor for Operation 2

is now 1.
• It is now called CF1 because the index
p describes the relative position of the
operation in the production progress.
• Accordingly, CF2 is now 0.5 and CF3 is
0.25.
• In a way, work content 'increases', the
nearer it gets to the work center
concerned.

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