Pipeline information survey: a UK perspective

Experiential and analytical research output from a number of sources suggests that the inclusion of 'pipeline' information in an inventory and production (or supply) ordering rule leads to a reduction in production and supply on-costs and improved customer service levels. The evidence is provided by consideration of the dynamics induced in an ordering system due to existence of delays between an order being placed and receipt of that order, namely, the 'pipeline'. While the utilisation of pipeline information in such Decision Support Systems as the 'To-Make' model is admirable the resource implications to a manufacturing enterprise have to be considered. This paper outlines a sur,eg undertaken of a sample of UK companies in order to determine their understanding of the pipeline, their practices in acquiring pipeline information and their application of such pipeline information. The survey concentrated on interviews with master production schedulers, but also included discussions with 'logistics' managers, and was supported by plant visits. Clustering analysis of the survey data gathered provides evidence that industry realises the importance of monitoring pipeline states, such as the level of orders in the pipeline or the pipeline lead-time, particularly where long and variable lead-times are encountered. The particular pipeline of interest to a given enterprise may be internal (production) or external (supply) or both. It is noted that where the pipeline is monitored there is often an unfulfilled opportunity for utilising the pipeline information within a robust ordering strategy. (C) 1998 Elsevier Science Ltd. All rights reserved.