1. Field of the Invention
This invention relates generally to manufacturing resource allocation, and more particularly, to risk management in the procurement of unfinished goods by estimation of component gating and shortage risk.
2. Description of the Related Art
An assemble-to-order (ATO) manufacturing process is one in which products are manufactured from raw components only as orders are received. While ATO processes are more efficient than manufacture-to-stock (MTS) operations, in which products are produced before demand is known, they are not without significant risks. If component availability is below what is required to meet product demand, then fulfillment of orders is either delayed or fails. Conversely, if excess component inventory remains after demand is met, the excess is either returned to the supplier, usually at a loss, or held until future need. Thus any component inventory that does not exactly meet demand incurs some financial loss for the manufacturer. Being able to predict the risk of component shortage for each component allows a manufacturer to make more informed business decisions.
In one embodiment, a method for estimation of component gating risk in manufacturing operations is disclosed. The method includes generating an altered component plan by altering a component plan for a component, computing a mean production value using the altered component plan, and computing the component gating risk using the mean production value.
In another embodiment, a method for estimation of component gating risk in manufacturing operations is disclosed. The method includes generating an increased component plan by increasing a component plan for a component, computing a first mean production value using the increased component plan, generating a decreased component plan by decreasing the component plan for the component, computing a second mean production value using the decreased component plan, and computing the component gating risk using the first and the second mean production values.
In still another embodiment, a method for estimation of component shortage risk in manufacturing operations is disclosed. The method includes identifying a component and computing r. In this embodiment, r is the component shortage risk, and is defined by
where d is a maximum expeditable level of the component, N (x, μ, σ) is a normal density function having a mean equal to μ and a variance equal to σ, a is a vector of connect rates for the component, μ is a mean demand, and Σ represents demand covariance.
The foregoing is a summary and thus contains, by necessity, simplifications, generalizations and omissions of detail; consequently, those skilled in the art will appreciate that the summary is illustrative only and is not intended to be in any way limiting. As will also be apparent to one of skill in the art, the operations disclosed herein may be implemented in a number of ways, and such changes and modifications may be made without departing from this invention and its broader aspects. Other aspects, inventive features, and advantages of the present invention, as defined solely by the claims, will become apparent in the non-limiting detailed description set forth below.
The present invention may be better understood, and its numerous objects, features, and advantages made apparent to those skilled in the art by referencing the accompanying drawings.
The use of the same reference symbols in different drawings indicates similar or identical items.
The following is intended to provide a detailed description of examples of the invention and should not be taken to be limiting of the invention itself. Rather, any number of variations may fall within the scope of the invention which is defined in the claims following the description.
Introduction
Described herein are methods and systems that may be usable for estimating component shortage risk and component gating risk. A gating component is one that is the most short and therefore determines the allowable level of production. Gating risk for a particular component is the risk that the component will be the gating component. Estimation of component shortage and gating risks is particularly complicated when a large number of products are made from a large number of the same components, and thus the techniques described herein may be advantageous under such conditions.
When possible, manufacturing operations may find it beneficial to produce their outputs in an ATO fashion. While MTS operations produce outputs before demand for them is revealed, ATO operations generally produce outputs only as orders arrive.
In an ATO operation, the availability of components is a significant variable that controls ability to produce. If component availability is limited (e.g., because inventory is limited, or because supplier commitments to ship the component on demand are insufficient), then fulfillment of demand either fails or is delayed.
If component planners must negotiate component supply contracts (which specify the number of each component to ship in a planning period) before demand is realized, there is a residual risk that some components will be in short supply. Estimating this risk may help inform supply contract negotiation.
Component Shortage Risk quantifies the risk that in a planning period there will be more need than availability for a particular component. In other words, Component Shortage Risk for a particular component is the risk that there will be a shortage of that particular component.
Component Gating Risk quantifies the risk that a particular component will be the cause of a failure to fulfill an order. In many situations more than one component may be short. But one of the short components—the one that is the most short—is the “gating component.” That is, the gating component is the component that determines the level of production. Component Gating Risk for a particular component is the risk that that particular component will be the gating component.
The behavior of model 10 is further described in the graph of
The graph 20 includes four regions 23, 24, 25, and 26, which are separated by a vertical line 21 and a sloped line 22. The vertical line 21 is shown as separating situations of no component shortages from situations where production is restricted by a shortage of Component 1. The sloped line 22 is shown as separating situations of no component shortages from situations where production is restricted by a shortage of Component 2.
Region 23 is located to the left of the vertical line 21 and below the sloped line 22. Thus, region 23 has values of the demands x1 and x2 that are feasible: in this region there is enough of Component 1 and of Component 2 to meet the demands for Product 1 and Product 2. Thus, in this region 23 the demanded number of units (x1) of Product 1 does not exceed the amount that can be made from the available supply of Component 1, which is needed for Product 1. Also, in this region 23 the demanded number of units of Product 1 combined with the demanded number of units of Product 2 (x1+x2) does not exceed the amount that can be made from the available supply of Component 2, which is needed both for Product 1 and for Product 2.
Region 24 is located to the right of the vertical line 21 and below the sloped line 22. Thus, region 24 has values of the demands x1 and x2 that would result in a shortage of Component 1: in this region there is enough of Component 2 but not enough of Component 1 to meet the demands for Product 1 and Product 2.
Region 25 is located to the left of the vertical line 21 and above the sloped line 22. Thus, region 25 has values of the demands x1 and x2 that would result in a shortage of Component 2: in this region there is enough of Component 1 but not enough of Component 2 to meet the demands for Product 1 and Product 2.
Region 26 is located to the right of the vertical line 21 and above the sloped line 22. Thus, region 26 has values of the demands x1 and x2 that would result in a shortage of both Component 1 and Component 2: in this region there is not enough of Component 1 and not enough of Component 2 to meet the demands for Product 1 and Product 2.
Production is feasible if the demands x1 and x2 fall in the feasible region 23. In those situations, the demands x1 and x2 can be met by the available supply of components. The feasible region may be denoted by the symbol Ω. In the model 10 depicted in
Ω={{right arrow over (a)}i·{right arrow over (x)}≦di∀i} (1).
In Eq. 1, vector {right arrow over (x)} in Eq. 1 represents the demand for products. The quantity di in Eq. 1 represents the maximum component availability or the maximum expeditable level of component i. The vector {right arrow over (a)}i are the “connect rates” for component i. Connect rates between products and components represent the number of components required for the manufacture of one unit of product. Connect rates may be used to describe the consumption of components for each unit of the various products. The vector {right arrow over (a)}i represents the bill of materials needed to make one unit of product i.
In the two-product model 10 discussed above, {right arrow over (x)} could be written as (x1,x2). The quantity di would be d1 for Component 1 (i=1), and d2 for Component 2 (i=2).
A shortage event occurs if the realized demand {right arrow over (x)} is such that {right arrow over (a)}i·{right arrow over (x)}>di.
A forecasted set of demands may be represented by the vector variable {right arrow over (x)}=(x1, x2, . . . ), which includes a scalar value for each of the products in a production scheme. This demand vector may be understood as having an expected value that is represented by μ=(μ1, μ2, . . . ) and a probability distribution that allows for the occurrence of other values of the demand vector. The probability distribution of the demand vector {right arrow over (x)} may be modeled as a normal distribution with a mean value of {right arrow over (μ)} and a distribution that is represented by a covariance matrix denoted as Σ.
The vector notation may also be generalized to describe a general number of components. For example, the vector quantity {right arrow over (d)}=(d1, d2, . . . ) may be used to indicate the component availability. This vector includes a scalar value for each of the components in a production scheme.
As illustrated in
In Eq. 2, it may be seen that x is an integration variable that runs through the non-feasible values of component i: from di to infinity. The function N(x,μ,σ) is the normal density distribution of a variable x with mean of μ and a variance of σ2.
Region 35 represents situations in which Component 1 would completely run out if an attempt were made to produce the demanded amounts x1 and x2 of Products 1 and 2. That is, Component 1 is the gating component in region 35. Similarly, region 34 represents situations in which Component 2 would completely run out if an attempt were made to produce the demanded amounts x1 and x2 of Products 1 and 2. That is, Component 2 is the gating component in region 34. Since the demand is met by the components in region 23, neither Component 1 nor Component 2 is gating in region 23.
The regions of gating risk 34 and 35 are illustrated in
{right arrow over (a)}i·{right arrow over (q)}({right arrow over (x)},{right arrow over (d)})=di (3)
For a production policy such as depicted in
Gating risk may also be understood as: given a demand {right arrow over (x)}, whichever component actually runs out completely upon producing the production amount {right arrow over (q)}({right arrow over (x)},{right arrow over (d)}) is the gating component.
Now consider the function gi({right arrow over (x)},{right arrow over (d)}), where:
In the above definition, {tilde over (g)}i is a function that depends on the problem details. Its region of definition Ψi is the intersection of the infeasible region
For a production policy such as depicted in
A corollary is that a production policy is gate mapping if and only if
For gate mapping production policies, by definition gi is independent of di unless component i is actually gating. This observation relates to the first and third conditions in the second line of Eq. 4. Conversely, if i is gating then ∂gi({right arrow over (x)},{right arrow over (d)})/∂di=1 according to the second condition in the second line of Eq. 4. Hence the gating component can easily be identified by examining the derivatives of the gi.
The gating risk Gi for component i may be understood as the probability under the distribution of
While a ∂ {right arrow over (q)}({right arrow over (x)},{right arrow over (d)})/∂ di may not be differentiable, the above integral may be seen as uniformly convergent in the Lebesgue sense. The order of integration and differentiation can be reversed, to yield the following expression for Gi:
The above equation provides the following expression for the gating risk Gi for component i.
Where {right arrow over ({circumflex over (q)}({right arrow over (d)}) is the mean production given component availability {right arrow over (d)}.
The mean production {right arrow over ({circumflex over (q)}({right arrow over (d)}) may be understood in comparison to the mean demand value {right arrow over (μ)} 28 discussed above and depicted in
In block 44a-46, a numerical derivative is calculated of production with respect to the available or expeditable quantity of the component under consideration. As illustrated, a first order difference is used to model the derivative. Other techniques for finding numerical derivatives may be used in addition or instead.
In block 44a, the component plan is reset to its original vale at the maximum expeditable or available plan. The availability of the component under consideration (component i) is then increased by a small increment epsilon. A typical value for epsilon is, for example, 1% of the component plan for component i. In block 44b, the mean production vector qi+ is calculated for the increased component plan. The mean production may be calculated using multidimensional integrals over the product space spanned by the demand vector. The integration may be performed, for example, using Monte Carlo simulations, quadratures, or other techniques. Additional information on the integration may be found for example, in U.S. Provisional Patent Application No. 60/213,189, referenced above.
In block 45a, the component plan is reset to its original vale at the maximum expeditable or available plan. The availability of the component under consideration (component i) is then decreased by a small increment epsilon. In block 44b, the mean production vector qi− is calculated for the decreased component plan.
In block 46, the gating risk is calculated through an application of Eq. 8 to the mean productions qi+ and qi− for the increased and decreased component plan. Block 46 evaluates ai* (qi++qi−)/(2*epsilon), where ai is the vector of connect rates for component i. In block 48 the looping from block 43 ends, and the procedure returns to block 43 to calculate gating risk for the next component (if any). The results of the calculation may be reported to a user in block 49.
The shortage risk for a given component is evaluated in block 56. The evaluation applies Eq. 2 to calculate the shortage risk ri for a component i under consideration. In block 58 the looping from block 53 ends, and the procedure returns to block 53 to calculate gating risk for the next component (if any). The results of the calculation may be reported to a user in block 59.
An Example Computing and Network Environment
One or more of client computers 120(1)-(N) and/or one or more of servers 110(1)-(N) may be, for example, a computer system of any appropriate design, in general, including a mainframe, a mini-computer or a personal computer system. Such a computer system typically includes a system unit having a system processor and associated volatile and non-volatile memory, one or more display monitors and keyboards, one or more diskette drives, one or more fixed disk storage devices and one or more printers. These computer systems are typically information handling systems which are designed to provide computing power to one or more users, either locally or remotely. Such a computer system may also include one or a plurality of I/O devices (i.e., peripheral devices) which are coupled to the system processor and which perform specialized functions. Examples of I/O devices include modems, sound and video devices and specialized communication devices. Mass storage devices such as hard disks, CD-ROM drives and magneto-optical drives may also be provided, either as an integrated or peripheral device. One such example computer system, discussed in terms of client computers 120(1)-(N) is shown in detail in
It will be noted that the variable identifier “N” is used in several instances in
Bus 212 allows data communication between central processor 214 and system memory 216, which may include both read only memory (ROM) or flash memory (neither shown), and random access memory (RAM) (not shown), as previously noted. The RAM is generally the main memory into which the operating system and application programs are loaded and typically affords at least 16 megabytes of memory space. The ROM or flash memory may contain, among other code, the Basic Input-Output system (BIOS) which controls basic hardware operation such as the interaction with peripheral components. Applications resident with computer system 210 are generally stored on and accessed via a computer readable medium, such as a hard disk drive (e.g., fixed disk 244), an optical drive (e.g., CD-ROM drive 240), floppy disk unit 236 or other storage medium. Additionally, applications may be in the form of electronic signals modulated in accordance with the application and data communication technology when accessed via network modem 247 or interface 248.
Storage interface 234, as with the other storage interfaces of computer system 210, may connect to a standard computer readable medium for storage and/or retrieval of information, such as a fixed disk drive 244. Fixed disk drive 244 may be a part of computer system 210 or may be separate and accessed through other interface systems. Many other devices can be connected such as a mouse 246 connected to bus 212 via serial port 228, a modem 247 connected to bus 212 via serial port 230 and a network interface 248 connected directly to bus 212. Modem 247 may provide a direct connection to a remote server via a telephone link or to the Internet via an internet service provider (ISP). Network interface 248 may provide a direct connection to a remote server via a direct network link to the Internet via a POP (point of presence). Network interface 248 may provide such connection using wireless techniques, including digital cellular telephone connection, Cellular Digital Packet Data (CDPD) connection, digital satellite data connection or the like.
Many other devices or subsystems (not shown) may be connected in a similar manner (e.g., bar code readers, document scanners, digital cameras and so on). Conversely, it is not necessary for all of the devices shown in
Moreover, regarding the signals described herein, those skilled in the art will recognize that a signal may be directly transmitted from a first block to a second block, or a signal may be modified (e.g., amplified, attenuated, delayed, latched, buffered, inverted, filtered or otherwise modified) between the blocks. Although the signals of the above described embodiment are characterized as transmitted from one block to the next, other embodiments of the present invention may include modified signals in place of such directly transmitted signals as long as the informational and/or functional aspect of the signal is transmitted between blocks. To some extent, a signal input at a second block may be conceptualized as a second signal derived from a first signal output from a first block due to physical limitations of the circuitry involved (e.g., there will inevitably be some attenuation and delay). Therefore, as used herein, a second signal derived from a first signal includes the first signal or any modifications to the first signal, whether due to circuit limitations or due to passage through other circuit elements which do not change the informational and/or final functional aspect of the first signal.
The foregoing described embodiment wherein the different components are contained within different other components (e.g., the various elements shown as components of computer system 210). It is to be understood that such depicted architectures are merely examples, and that in fact many other architectures can be implemented which achieve the same functionality. In an abstract, but still definite sense, any arrangement of components to achieve the same functionality is effectively “associated” such that the desired functionality is achieved. Hence, any two components herein combined to achieve a particular functionality can be seen as “associated with” each other such that the desired functionality is achieved, irrespective of architectures or intermediate components. Likewise, any two components so associated can also be viewed as being “operably connected”, or “operably coupled”, to each other to achieve the desired functionality.
Referring to
Various processes according to embodiments of the present invention are discussed herein. It is appreciated that operations discussed herein may consist of directly entered commands by a computer system user or by steps executed by application specific hardware modules, but the preferred embodiment includes steps executed by software modules. The functionality of steps referred to herein may correspond to the functionality of modules or portions of modules.
The operations referred to herein may be modules or portions of modules (e.g., software, firmware or hardware modules). For example, although the described embodiment includes software modules and/or includes manually entered user commands, the various example modules may be application specific hardware modules. The software modules discussed herein may include script, batch or other executable files, or combinations and/or portions of such files. The software modules may include a computer program or subroutines thereof encoded on computer-readable media.
Additionally, those skilled in the art will recognize that the boundaries between modules are merely illustrative and alternative embodiments may merge modules or impose an alternative decomposition of functionality of modules. For example, the modules discussed herein may be decomposed into submodules to be executed as multiple computer processes, and, optionally, on multiple computers. Moreover, alternative embodiments may combine multiple instances of a particular module or submodule. Furthermore, those skilled in the art will recognize that the operations described in example embodiment are for illustration only. Operations may be combined or the functionality of the operations may be distributed in additional operations in accordance with the invention.
Alternatively, such actions may be embodied in the structure of circuitry that implements such functionality, such as the micro-code of a complex instruction set computer (CISC), firmware programmed into programmable or erasable/programmable devices, the configuration of a field-programmable gate array (FPGA), the design of a gate array or full-custom application-specific integrated circuit (ASIC), or the like.
Each of the blocks of the flow diagram may be executed by a module (e.g., a software module) or a portion of a module or a computer system user using, for example, a computer system such as the storage router previously mentioned, or a similar network element, as well as a computer system such as computer system 210. Thus, the above described method, the operations thereof and modules thereof may be executed on a computer system configured to execute the operations of the method and/or may be executed from computer-readable media. The method may be embodied in a machine-readable and/or computer-readable medium for configuring a computer system to execute the method. Thus, the software modules may be stored within and/or transmitted to a computer system memory to configure the computer system to perform the functions of the module.
Such a computer system normally processes information according to a program (a list of internally stored instructions such as a particular application program and/or an operating system) and produces resultant output information via I/O devices. A computer process typically includes an executing (running) program or portion of a program, current program values and state information, and the resources used by the operating system to manage the execution of the process. A parent process may spawn other, child processes to help perform the overall functionality of the parent process. Because the parent process specifically spawns the child processes to perform a portion of the overall functionality of the parent process, the functions performed by child processes (and grandchild processes, etc.) may sometimes be described as being performed by the parent process.
Such a computer system typically includes multiple computer processes executing “concurrently.” Often, a computer system includes a single processing unit which is capable of supporting many active processes alternately. Although multiple processes may appear to be executing concurrently, at any given point in time only one process is actually executed by the single processing unit. By rapidly changing the process executing, a computer system gives the appearance of concurrent process execution. The ability of a computer system to multiplex the computer system's resources among multiple processes in various stages of execution is called multitasking. Systems with multiple processing units, which by definition can support true concurrent processing, are called multiprocessing systems. Active processes are often referred to as executing concurrently when such processes are executed in a multitasking and/or a multiprocessing environment.
The software modules described herein may be received by such a computer system, for example, from computer readable media. The computer readable media may be permanently, removably or remotely coupled to the computer system. The computer readable media may non-exclusively include, for example, any number of the following: magnetic storage media including disk and tape storage media; optical storage media such as compact disk media (e.g., CD-ROM, CD-R, etc.) and digital video disk storage media; nonvolatile memory storage memory including semiconductor-based memory units such as FLASH memory, EEPROM, EPROM, ROM or application specific integrated circuits, volatile storage media including registers, buffers or caches, main memory, RAM, and the like; and data transmission media including computer network, point-to-point telecommunication, and carrier wave transmission media. In a UNIX-based embodiment, the software modules may be embodied in a file which may be a device, a terminal, a local or remote file, a socket, a network connection, a signal, or other expedient of communication or state change. Other new and various types of computer-readable media may be used to store and/or transmit the software modules discussed herein.
While particular embodiments of the present invention have been shown and described, it will be obvious to those skilled in the art that, based upon the teachings herein, changes and modifications may be made without departing from this invention and its broader aspects and, therefore, the appended claims are to encompass within their scope all such changes and modifications as are within the true spirit and scope of this invention. Furthermore, it is to be understood that the invention is solely defined by the appended claims.
This application is a divisional application of U.S. patent application Ser. No. 09/942,249, entitled “Method and apparatus for estimation of component gating and shortage risk in manufacturing operations,” filed Aug. 29, 2001 now abandoned, and naming Balazs Kralik, Michael Goldbach, and Paul Dagum as inventors, which claims the benefit of U.S. Provisional Application No. 60/229,840, entitled “Method and business process for estimation of component gating and shortage risks in assemble-to-order manufacturing operations,” filed Aug. 31, 2000, and naming Balazs Kralik, Michael Goldbach, and Paul Dagum as inventors. The above-mentioned applications are hereby incorporated by reference herein in their entirety and for all purposes. This application is also related to U.S. Provisional Patent Application No. 60/213,189, filed Jun. 21, 2000, which is hereby incorporated by reference herein in its entirety and for all purposes. It is also related to U.S. patent application Ser. No. 09/412,560, filed Oct. 5, 1999, now U.S. Pat. No. 6,684,193 issued Jan. 27, 2004, and 09/491,461, filed Jan. 26, 2000, now U.S. Pat. No. 7,584,112 issued Sep. 1, 2009, both of which are hereby incorporated by reference herein in their entirety and for all purposes.
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Number | Date | Country | |
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60229840 | Aug 2000 | US |
Number | Date | Country | |
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Parent | 09942249 | Aug 2001 | US |
Child | 11952740 | US |