Title of Document: SIMULATION AND OPTIMIZATION OF PRODUCTION CONTROL FOR LEAN MANUFACTURING TRANSITION

Lean manufacturing is an operations management philosophy that advocates eliminating waste, including work-in-process (WIP) inventory. A common mechanism for controlling WIP is “pull ” production control, which limits the amount of WIP at each stage. The process of transforming a system from push production control to pull is not well understood or studied. This dissertation explores the events of a production control transition, quantifies its costs and develops techniques to minimize them. Simulation models of systems undergoing transition from push to pull are used to study this transient behavior. The transition of a single stage system is modeled. An objective function is introduced that defines transition cost in terms of the holding cost of orders in backlog and material in inventory. It incorporates two techniques for mitigating cost: temporarily deferring orders and adding extra capacity. It is shown that, except when backlog costs are high, it is better to transform the system quickly. It is also demonstrated that simulation based optimization is a viable tool to find the optimal transition strategy. Transition of a two-stage system is also modeled. The performance of two simple multi