This research determines the optimal investment timing using real options valuation to support decision-making for economic sustainability assessment. This paper illustrates an option pricing model using the Black-Scholes model applied to a case project to understand the model performance. Applicability of the project to the model requires two Monte Carlo simulations to satisfy a Markov process and a Wiener process. The position of project developers is not only the seller of products, but it is also the buyer of raw materials. Real options valuation can be influenced by the volatility of cash outflow, as well as the volatility of cash inflow. This study suggests two-color rainbow options valuation to overcome this issue, which is demonstrated for a steel plant project. The asymmetric results of the case study show that cash outflow (put option) influences the value of the steel plant project more than cash inflow (call option) does of which the discussion of the results is referred to a sensitivity analysis. The real options valuation method proposed in this study contributes to the literature on applying the new model, taking into consideration that investors maximize project profitability for economic sustainable development.
Manufacturing Execution System(MES) is in charge of manufacturing execution based on the inputs given by high level information such as ERP(Enterprise Resource Planning) and shop floor dat. MES implemented in modern factories is focusing on helping people to manage production activities based on collected shop floor data. Since not only men but also other factors such as machines can affect productivity, managing machine activity based on shop floor situation real‐time is important if the number of skilled workers isn't enough, which is brought up in the advanced country. Smart factory system in the paradigm of Industry 4.0 tries to solve the problems via CPS (Cyber Physical System) technology.
In this paper, we conducted Systems Engineering Approach to design an advanced MES (namely Smart MES) that can accommodate CPS concept. Specifically, we tailored Systems Engineering Process (SEP) based on an International Standard formalized as ISO/IEC 15288 to develop Stakeholders’ Requirements (StR), System Requirements (SyR). The results of the research can provide a conceptual framework for future MES that can play a crucial role in the Smart Factory.
Recently, global market competition of iron and steel products is ever increasing due to over-supply from increased number of industries in rapidly growing countries, such as China, Brazil, and Indonesia. To occupy the big market, major industries are trying to develop high quality, high performance steel products via developing a new iron and steel making process. In other words, development of a new and innovative steel plant is a key to cope with the tough situation. Design and development for the life cycle of iron and steel making plant is very much complex and multi-disciplinary. In this paper, Plant Systems Engineering (PSE), a tailored SE process for industrial plant based on ISO/IEC 15288 is used for the design of Continuous Casting Process (CCP) Plant system. The CCP is a crucial process in steel making plant, whose design technology is occupied by the advanced foreign companies. For the sake of increasing engineering capability for the design of CCP, we applied PSE Process for the renovation of the existing CCP Process. Through the study, we were convinced that the applied method can be used for other plant systems, and SE is really the way of thinking, design, and development of modern complex and multi-disciplinary systems where high risk factors are present throughout the whole life cycle.
Middleware system in Industrial Plant System is important for offering independence of platform complexity and transparency, reusability, and flexibility in terms of moving one control system to the others. This paper presents a Real-time Open Middleware System (AROMS) for controlling industrial plant system. AROMS is a middleware integrated with general-purpose real-time platforms for industrial plant control and automation and operates on standard hardware and operating systems. Moreover, AROMS adopts a classical modular and layered design consisting dynamically-loaded processes and threads. For the purpose of performance evaluation of AROMS, we first implemented AROMS in HP-UX systems and evaluated AROMS in terms of asynchronous message communication speed in real pilot-test field. The performance evaluation results show that AROMS provides very reliable message transportation mechanism and it can be easily expanded into real industrial plant systems.
Manufacturing Execution System(MES) is in charge of manufacturing execution in the shop floor based on the inputs given by high level information such as ERP, etc. The typical MES implemented is not tightly interconnected with shop floor control system including real (or near real) time monitoring and control devices such as PLC. The lack of real-time interfaces is one of the major obstacles to achieve accurate and optimization of the total performance index of the shop floor system. Smart factory system in the paradigm of Industry 4.0 tries to solve the problems via CPS (Cyber Physical System) technology and FILS (Factory In-the-Loop System). In this paper, we conducted Systems Engineering Approach to design an advanced MES (namely Smart MES) that can accommodate CPS and FILS concept. Specifically, we tailored Systems Engineering Process (SEP) based on an International Standard formalized as ISO/IEC 15288 to develop Stakeholders' Requirements (StR), System Requirements (SyR). The deliverables of each process are modeled and represented by the SysML, UML customized to Systems Engineering. The results of the research can provide a conceptual framework for future MES that can play a crucial role in the Smart Factory.
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