Optimization for Hierarchical Production Planning of Industrial Processes

Abstract

In this paper, a generalized mathematical model formulation for Cellular Manufacturing System (CMS) using Hierarchical Production Planning (HPP) approach, which is a methodology to introduce the planning process by a series of mathematical models, is proposed. Particularly, the main objective of the CMS is to obtain the optimum method and this optimum method helps to solve the problem of minimizing the variable production costs (production cost, cells setup cost, inventory holding cost and regular capacity cost). Subsequently, the model is applied to two different real case studies and is solved by using operation research optimization software (Lingo-12.0 program). The model is divided into three main steps as follows: data collection, mathematical model formula, and results. The proposed mathematical model of the optimization can solve the problems of the system under utilizing the limited resources in a production plan. To prove the applicability of the proposed model, two real case studies are introduced. The results show generally that the proposed mathematical model can be used to minimize manufacturing total costs of products for similar cases. Specifically, for the first case (Electric Water Heater with capacity 50 liter (EWH1)); the results show that the total cost decreases by 8.46 % for the optimum conditions. In addition, for the second case, (Electric Water Heater with capacity 80 liter (EWH2)); the results indicate that the total cost decreases by 3.7% for the optimum conditions.

Cost and Benefit Analysis of Newly Installed Digital Printing Department by Using System Dynamics Modeling Technique

“…The productivity of a machine is measured by Overall Equipment Effectiveness (OEE); in which the performance of the machine is multiplied by its quality and availability [35]. The final result in percentage is the representation of its properly scheduled run.…”

Resource Overall Equipment Cost Loss indicator to assess equipment performance and product cost

“…OEE is characterised by equivalent weights in its components, and this might lead to not appropriately prioritise problematic equipment or machine (Raouf, 1994;Wudhikarn, 2010Wudhikarn, , 2012Wudhikarn, , 2016Wudhikarn et al, 2010). Therefore, it is not suitable to compare differences in machine type, capacity, and production cost (Mahmoud et al, 2019;Wudhikarn, 2012Wudhikarn, , 2016Wudhikarn et al, 2010). To solve this weakness, Wudhikarn et al (2010) and Wudhikarn (2016) propose Overall Equipment Cost Loss (OECL) based on the traditional three elements of OEE, but in which the loss in each element is dissimilar and depends on resource usage.…”

“…, 2010). Therefore, it is not suitable to compare differences in machine type, capacity, and production cost (Mahmoud et al. , 2019; Wudhikarn, 2012, 2016; Wudhikarn et al.…”

“…Among the existing KPIs, Overall Equipment Effectiveness (OEE) has been widely used in the industry (Bougain et al, 2015;Kumar and Kumar, 2019), and the interest towards it has recently increased (Ng Corrales et al, 2020). Nowadays, it is considered as one of the most important performance metrics (Mahmoud et al, 2019). It provides a simple and comprehensive metric for equipment performance (De Ron and Rooda, 2006;Wudhikarn, 2012), measuring the effectiveness of a machine or equipment (Nota et al, 2020;Singh et al, 2013;Wudhikarn, 2016;Zhou et al, 2020).…”

“…, 2020). Nowadays, it is considered as one of the most important performance metrics (Mahmoud et al. , 2019).…”