Constraint batch sizing in a lean environment

The underlying research discussed in this paper is derived from a research programme along three tiers of an automotive steel supply network. The main objective of the initial research was to pinpoint wasteful activities in the supply chain, and in later stages, to develop solutions. The preliminary work involved mapping the dynamics of the supply chain focusing on how the demand information is passed from the final customer back to the material suppliers. Production scheduling approaches were found to be a main cause of distortion in the dynamics of supply chain, and the initial studies led to proposals for scheduling improvements both within and between companies. These proposals include changing the scheduling frequency in accordance to the specific demand patterns – coupled with the use of kanban, changeover reduction, and total preventive maintenance. Specifically, the scheduling of batch operations in first and second tier suppliers of the supply chain was identified as a key problem area in further supply chain dynamics analysis. Therefore, a new and holistic scheduling algorithm was developed, which will be presented and discussed in theory and application.