Setting WIP levels with statistical throughput control (STC) in CONWIP production lines

We develop a simple adaptive production control method for setting WIP levels to meet target production rates in a pull production operating under the CONWIP (Constant work in process) protocol. This method, termed Statistical Throughput Control (STC), uses real-time data to automatically adjust WIP levels (via kanban cards) in the face of noisy estimates of throughput. Because STC does not rely on a steady-state model, it is well-suited to systems subject to environmental changes such as those induced by continuous improvement efforts. Using simulation, we demonstrate the effectivness of STC under a variety of conditions, including single and multiple products, simple flow lines, routeings with shared resources and assembly systems.