Variable takt times in mixed-model assembly line balancing with random customisation

Abstract

In turbulent times featuring increased customisation, higher demand volatility, and shortened product life cycles, companies gain a competitive advantage by adopting a single yet highly flexible assembly line. A cornerstone of today's production systems is determining the optimal takt time (or cycle time) by aligning the assembly pace with the desired level of output. In practice, most companies rely on a fixed takt time, even when the work content between models varies considerably. We show that, in contrast to a fixed takt system, variable takt times reduce not only labour inefficiencies but also the complexity of the mixed-model assembly line balancing problem. Inspired by our industry partner Fendt, an innovation leader in the global agricultural machinery market and benchmark for a wide range of industries, we define a generalisable mixed-integer programming model that accounts for key conditions neglected in previous research – in particular, random customisation through configuration-specific task times and assembly quality by assigning operator workloads to ‘zones’. Introducing such operator work zones reveals that firms need not face a time–quality trade-off whereby takt time must be prioritised over how well work is performed. Our numerical study and takt time sensitivity analysis document the effectiveness of this approach when its results are compared with those under Fendt's current takt times.