Research Overview Christian Hicks http www staff ncl

Research Overview Christian Hicks http: //www. staff. ncl. ac. uk/chris. hicks/presentations/presin. htm HICKS/1 © C. Hicks, University of Newcastle

Research Interests Main areas: • Simulation / modelling of manufacturing systems • Scheduling / planning and control • Supply chain management • Manufacturing Layout Other areas include: • IT implementation • Company classification • Manufacturing strategy • Web-based teaching • Data / statistical analysis • Business Process Analysis • Benchmarking in the semiconductor industry HICKS/2 © C. Hicks, University of Newcastle

Capital Goods Companies: Generic Issues • Products are highly customised and are produced on a make, or engineer to order basis. • Production facilities include jobbing, batch, flow and assembly systems as well as construction. • Lead time reduction increasingly important. • International competition: effective and efficient use of resources is very important. • Complex and dynamic supply chains. • Product offering broadening to include service elements. • Involves civil, mechanical and electrical engineering. HICKS/3 © C. Hicks, University of Newcastle

Simulation of Manufacturing Systems HICKS/6 © C. Hicks, University of Newcastle

HICKS/7 © C. Hicks, University of Newcastle

Key Features • Large scale model allows whole manufacturing facilities to be represented. • Models facilities, products, processes, layout and planning and control systems. • Many product families can be represented with shallow, medium or deep product structure. • Hierarchical description of products and resources. • Allows variety of planning and control methods to meet local requirements. • Integrated with scheduling and layout optimisation tools. • Comprehensive stochastic modelling. HICKS/8 © C. Hicks, University of Newcastle

Schedule Optimisation HICKS/9 © C. Hicks, University of Newcastle

Schedule optimisation using Genetic Algorithms HICKS/10 © C. Hicks, University of Newcastle

Initial Schedule Component Product 1 st Operation Assembly HICKS/11 © C. Hicks, University of Newcastle

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New schedule from GA HICKS/13 © C. Hicks, University of Newcastle

Stochastic Planning Methods • Developed methods that either meet a service target or minimise the combination of earliness and tardiness costs. • Investigated approaches for infinite capacity, finite capacity and dynamic scheduling cases. • Planning methods investigated and validated through simulation modelling. HICKS/14 © C. Hicks, University of Newcastle

Manufacturing Layout • Clustering – Matrix-based methods – Similarity coefficient methods • Optimisation – Genetic Algorithm – Simulated Annealing HICKS/15 © C. Hicks, University of Newcastle

Dendogram based upon Similarity Coefficients

Genetic Algorithm Procedure HICKS/17 © C. Hicks, University of Newcastle

Placement Algorithm HICKS/18 © C. Hicks, University of Newcastle

Initial Layout HICKS/19 © C. Hicks, University of Newcastle

Resultant Brown-field layout HICKS/20 © C. Hicks, University of Newcastle

Total rectilinear distance travelled vs. generation (brown field) HICKS/21 © C. Hicks, University of Newcastle

Supply Chain Management HICKS/22 © C. Hicks, University of Newcastle

Supply Chain Management • Modelled business processes using SSADM • Company structures range from vertically integrated to project integrators that outsource all manufacturing. • Important factors include: available capital, risk, potential utilisation of plant, capabilities, flexibility. • Three stages of interaction with customers: marketing, tendering and contract execution • “Normal” / “radical” design • Functional vs. technical specifications • Procurement decisions made by: customers, designers, procurement departments HICKS/23 © C. Hicks, University of Newcastle

Summary of contributions • Planning, control and layout problems in capital goods companies. Outcome: first large-scale simulation model of manufacturing in capital goods companies • Scheduling complex products in deterministic and stochastic environments. Developed first optimisation techniques. • Layout analysis and optimisation. Developed integrated tool. • Supply chain management in capital goods companies. New models proposed and linked to strategic issues. HICKS/24 © C. Hicks, University of Newcastle

Classification HICKS/25 © C. Hicks, University of Newcastle

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Simulation HICKS/27 © C. Hicks, University of Newcastle

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Representation of Resources HICKS/30 © C. Hicks, University of Newcastle

Representation of Products HICKS/31 © C. Hicks, University of Newcastle

Stochastic Simulation • Several random number generators: Knuth, Wichman & Hill, Sun. Os. • Normal [polar form of Box-Muller (Marsaglia and Bray 1964); Beta (Press, et al. 1989, p 188), Gamma (Press, et al. 1989, p 228), Poisson (Press, et al. 1989, p 230) as well as Log normal, Multi-modal, Exponential, and empirical (based on historical data). • Full / fractional factorial designs • ANOVA / Regression analysis HICKS/32 © C. Hicks, University of Newcastle

Scheduling HICKS/33 © C. Hicks, University of Newcastle

Chromosome representation HICKS/34 © C. Hicks, University of Newcastle

Crossover Operations HICKS/35 © C. Hicks, University of Newcastle

Mutation Operations HICKS/36 © C. Hicks, University of Newcastle

Fitness function Minimise : Pe(Ec+Ep) + Pt(Tp) Where Ec = max (0, Dc - Fc) Ep = max (0, Dp - Fp) Tp = max (0, Fp - Dp) HICKS/37 © C. Hicks, University of Newcastle

An Example of Production Plan HICKS/38 © C. Hicks, University of Newcastle

Layout HICKS/39 © C. Hicks, University of Newcastle

Rank Order Clustering (King 1980) HICKS/40 © C. Hicks, University of Newcastle

Case Study • • • 52 Machine tools 3408 complex components 734 part types Complex product structures Total distance travelled – Direct distance 232 Km – Rectilinear distance 642 Km HICKS/41 © C. Hicks, University of Newcastle

Total rectilinear distance travelled vs. generation (green field) HICKS/42 © C. Hicks, University of Newcastle

Resultant green field layout Note that brown field constraints, such as walls have been ignored. HICKS/43 © C. Hicks, University of Newcastle

Supply Chain Management HICKS/44 © C. Hicks, University of Newcastle

Collaborating Companies • • NEI Parsons AMEC Offshore NEI International Combustion Clarke Chapman Wellman Booth Control Systems Reyrolle (VA Tech) HICKS/45 © C. Hicks, University of Newcastle

Supply Chain Management • Identified the characteristics of the companies in terms of products, processes, markets, level of outsourcing etc. • Investigated buyer/supplier relationships in terms of supplier base, strategic alliances, partnership and single sourcing agreements etc. • 3 stages: marketing, tendering, contract execution • Physical / non-physical processes, • Differing levels of vertical integration • Procurement often reactive rather than strategic HICKS/46 © C. Hicks, University of Newcastle

SCM (continued) • Majority of controllable cost committed at the design stage. • Normal / Radical design • Established / ad-hoc business processes • Product offering broadening – shift from just hardware to retrofit, service and operations. • There are high levels of uncertainty and sparse knowledge, particularly at the tendering stage. • Tendering is often subject to severe time pressure and resource constraints. HICKS/47 © C. Hicks, University of Newcastle

HICKS/48 © C. Hicks, University of Newcastle

Company X - Context Diagram a Customer ITT Contract Awarded Progress Report Tender Company X ITT Quote b Supplier © C. Hicks, University of Newcastle Order b Supplier HICKS/49

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IT Implementation in Small Companies • Selection and implementation of Accounting, planning and control systems and EDI in surgical shoe manufacturing company. • Selection and implementation of a cost estimating system in a precision machining company. • Selection and implementation of accounting and order processing systems in an electrical cable manufacturing company. HICKS/51 © C. Hicks, University of Newcastle

Benchmarking in the semiconductor industry • Benchmarking survey of four Siemens plants: White. Oak (USA), Pro. Mos (Taiwan), Siemec (Germany) and NTS (England). • The design, construction, and operation of the plants are different leading to different consequences in terms of capital and operating costs, quality, etc. • The research aims to establish the relationship between capital cost, construction lead-time and operating costs and performance. HICKS/52 © C. Hicks, University of Newcastle

Postgraduate Students • Dong Ping Song “Stochastic Models in Planning Complex Engineer-to-Order Products” • Pupong Pongcharoen “Genetic Algorithms for Scheduling in the Capital Goods Industry” • Tony Wells “Benchmarking in the Semiconductor Industry” • Fouzi Hossen “Risk Management in Capital Goods Companies” • Thanawat Muangman “Supply Chain Management in the Capital Goods Industry” HICKS/53 © C. Hicks, University of Newcastle

Research Grants • “An investigation into the design change management process and the relationship to resultant cost of change for capital equipment at BNFL”, £ 160, 000, 2003, (CH/PMB/WO) • “Harris & Sheldon TCS”, 2000 -2, £ 81, 408, discontinued, (RID/CH/PMB) • “Haani Cables TCS”, 98 -2000, £ 141, 760, (CH/TMc. G/MG/PMB) • “SCM at Wellman Booth”, 1997, £ 2, 000, (CH/TMc. G) • “Mectonics Instruments TCS”, 95 -7, £ 65, 000 (CH, CFE, WH) • “Innovation in Design”, 1996 -9, £ 10, 000 (JNF/CH) • JC Peacocks & Sons TCS, 91 -5 £ 122, 552 (GRJ/CH) Total income: £ 490, 000 Principle investigator: £ 368, 000 HICKS/54 © C. Hicks, University of Newcastle