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Successful implementation of an order release mechanism based on workload control: a case study of a make-to-stock manufacturer

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  • Thomas Hutter
  • Stefan Haeussler
  • Hubert Missbauer

Abstract

This paper deals with improving the lead-time performance of a large crystal manufacturer that uses a state-of-the-art commercial Enterprise Resource Planning system. Since the company encountered some limitations of the standard production planning and control (PPC) system it sought for improvements by implementing an order release mechanism based on workload control (WLC). WLC employs certain rules for releasing orders in order to maintain a certain level of work in process to achieve a certain utilisation of the production system and thus control the flow times in order to meet the required due dates of the orders. We describe the successful implementation of an order release mechanism based on the WLC concept in this make-to-stock company. The paper describes the implemented order release mechanism, the implementation process and its impact on the company’s performance. We show that the core function of WLC – the order release mechanism – can be integrated successfully into an existing PPC system. Furthermore, this study highlights the applicability of WLC to a wider range of companies, especially to make-to-stock manufacturers.

Suggested Citation

  • Thomas Hutter & Stefan Haeussler & Hubert Missbauer, 2018. "Successful implementation of an order release mechanism based on workload control: a case study of a make-to-stock manufacturer," International Journal of Production Research, Taylor & Francis Journals, vol. 56(4), pages 1565-1580, February.
    • Handle: RePEc:taf:tprsxx:v:56:y:2018:i:4:p:1565-1580
    DOI: 10.1080/00207543.2017.1369598
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    Cited by:

    1. Matthias Thürer & Nuno O. Fernandes & Mark Stevenson, 2020. "Material Flow Control in High‐Variety Make‐to‐Order Shops: Combining COBACABANA and POLCA," Production and Operations Management, Production and Operations Management Society, vol. 29(9), pages 2138-2152, September.
    2. Federica Costa & Kaustav Kundu & Matteo Rossini & Alberto Portioli-Staudacher, 2023. "Comparative study of bottleneck-based release models and load-based ones in a hybrid MTO-MTS flow shop: an assessment by simulation," Operations Management Research, Springer, vol. 16(1), pages 33-48, March.
    3. Yarong Chen & Hongming Zhou & Peiyu Huang & FuhDer Chou & Shenquan Huang, 2022. "A refined order release method for achieving robustness of non-repetitive dynamic manufacturing system performance," Annals of Operations Research, Springer, vol. 311(1), pages 65-79, April.
    4. Onay, Anita & Stampfer, Christina & Missbauer, Hubert, 2023. "A behavioral perspective on workload control concepts: The influence of order release on operators’ reaction behavior," International Journal of Production Economics, Elsevier, vol. 264(C).
    5. Stefan Haeussler & Philipp Neuner & Matthias Thürer, 2023. "Balancing earliness and tardiness within workload control order release: an assessment by simulation," Flexible Services and Manufacturing Journal, Springer, vol. 35(2), pages 487-508, June.
    6. Matthias Thürer & Mark Stevenson, 2021. "Material handling and order release control in high-variety make-to-order shops: an assessment by simulation," Operations Management Research, Springer, vol. 14(3), pages 494-506, December.

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