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

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.