This paper presents a simulation study on production and inventory control at the supply chain (SC) level and examines through a series of experiments the potential impact of the Hybrid Kanban-CONWIP production control strategy on the trade-off between the conflicting objectives of maximising customer service level and minimising Work-In-Process (WIP). Simulation based optimisation is computationally expensive approach to determining an optimal configuration of operational parameters for any stochastic system. In this paper we demonstrate an optimisation framework that will yield solutions with an accuracy that is reasonable for decision makers and computationally less expensive than simulation based optimisation. A simulation model for a centralised serial SC adopting Hybrid Kanban-CONWIP to process a single product was developed in order to explore the impact of some essential input factors on customer service level and average WIP through Design of Experiments (DOE), Gaussian Process Modelling (GP) and Metamodel-Based Optimisation using the Desirability Function. The precision of the results from this approach was determined by comparison to results from Simulation-Based Optimisation by means of Genetic Algorithms (GA). It has been shown that this framework will address the trade-off between accuracy and computational efficiency requirements of the decision maker.
The quality of products in the industry can be improved by monitoring the manufacturing process and adjusting/optimizing the process input variables based on the output deviation from the target. SPC stands for statistical process control, and it is used to monitor processes in order to identify any assignable causes of variation. EPC stands for engineering process control, and it is concerned with adjusting systems inputs to keep the system output on target using different types of controllers such as integral controllers and PID controllers. Combining SPC and EPC as a unified framework proved to be effective in reducing production disruption in manufacturing industries. The main objective of this project is to redesign the production and quality control system in a chemical batch processing company, anonymous company, by developing an engineering process controller (EPC) in order to adjust the chemical process inputs to keep the output chemical concentration on best optimized target while monitoring the system using the sensitive time weighted control charts (SPC), in order to eliminate the process assignable causes of variation, improve system elements life, and reduce overall system wide costs.
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