Theory and Practice of Supply Chain Synchronization

In this dissertation, we develop strategies to synchronize component procurement in assemble-to-order (ATO) production and overhaul operations. We focus on the high-tech and mass customization industries which are not only considered to be very important to create or keep U.S. manufacturing jobs, but also suffer most from component inventory burden. In the second chapter, we address the deterministic joint replenishment inventory problem with batch size constraints (JRPB). We characterize system regeneration points, derive a closed-form expression of the average product inventory, and formulate the problem of finding the optimal joint reorder interval to minimize inventory and ordering costs per unit of time. Thereafter, we discuss exact solution approaches and the case of variable reorder intervals. Computational examples demonstrate the power of our methodology. In the third chapter, we incorporate stochastic demand to the JRPB. We propose a joint part replenishment policy that balances inventory and ordering costs while providing a desired service level. A case study and guided computational experiments show the magnitudes of savings that are possible using our methodology. In the fourth chapter, we show how lack of synchronization in assembly systems with long and highly variable component supply lead times can rapidly deteriorate system performance. We develop a full synchronization strategy through time buffering of component orders, which not only guarantees meeting planned production dates but also drastically reduces inventory holding costs. A case study has been carried out to prove the practical relevance, assess potential risks, and evaluate phased implementation policies. The fifth chapter explores the use of condition information from a large number of distributed working units in the field to improve the management of the inventory of spare parts required to maintain those units. Synchronization is again paramount here since spare part inventory needs to adapt to the condition of the engine fleet. All needed parts must be available to complete the overhaul of a unit. We develop a complex simulation environment to assess the performance of different inventory policies and the value of health monitoring. The sixth chapter concludes this dissertation and outlines future research plans as well as opportunities

Joint optimisation of inspection maintenance and spare parts provisioning: a comparative study of inventory policies using simulation and survey data

The demand for industrial plant spare parts is driven, at least in part, by maintenance requirements. It is therefore important to jointly optimise planned maintenance and the associated spare parts inventory using the most appropriate maintenance and replenishment policies. In this simulation-based study, we address this challenge in the context of the random failure of parts in service and the replacement of defective parts at inspections of period T. Inspections are modelled using the delay-time concept. A number of simultaneous periodic review and continuous review replenishment policies are compared. A paper making plant provides a real context for the presentation of our ideas. We survey practitioners working with such plant to collect real data that inform the values of parameters in the models. Our simulation results indicate that a periodic review policy with ordering that is twice as frequent as inspection is cost optimal in the context of the plant that we study. For the purpose of comparison, we also present and discuss the characteristics of the various policies considered

Modelling and simulation for the joint maintenance-inventory optimisation of production systems

Simulation methodologies are developed to model the joint optimization of preventive maintenance and spare parts inventory for a specific industrial plant under different production configurations. First, spare parts provisioning for a single-line system is considered, with the assumption that the demand is driven by maintenance requirements. The results indicate that a periodic review policy with replenishment as frequent as inspection is cost-optimal. Second, the joint optimization model for a multi-line (parallel) system is developed. It is found that a just-in-time review policy with inspection as frequent as replenishment produces the lowest cost policy. In this latter case, an implication of the proposed methodology is that, where mathematical modelling is intractable, or the use of certain assumptions make them impractical, simulation modelling is an appropriate solution tool. Under both production settings, the long-run average cost per unit time is used as the optimality criterion for the comparison of several policies

A review of asset management literature on multi-asset systems

This article gives an overview of the literature on asset management for multi-unit systems with an emphasis on two multi-asset categories: fleet (a system of homogeneous assets) and portfolio (a system of heterogeneous assets). As asset systems become more complicated, researchers have employed different terms to refer to their specific problems. With an objective to facilitate readers in searching conducive studies to their interests, this paper establishes a novel classification scheme for multi-unit systems in accordance with essential features such as diversity of assets and intervention options. Moreover, discerning differences in characteristics between cross-component and cross-asset interactions, we select three types of potential multi-component dependencies (performance, stochastic, and resource) and extend their notions to be applicable to multi-asset systems. The investigation into these dependencies enables the identification of problems that could exist in real industrial settings but are yet to be determined in academia. Ultimately, we delve into modelling approaches adopted by previous researchers. This comprehensive information allows us to offer the insights into the current trends in multi-asset maintenance. We expect that the output of this review paper will not only stress research gaps on multi-asset systems, but more importantly help systematise future studies on this aspect

A Prescriptive Maintenance Aligned Production Planning and Control Reference Process

Digital innovations can improve various business processes, such as production planning and control (PPC). In the last years, prescriptive maintenance (PxM) emerged as a strategy to increase overall production performance, but an alignment of the PPC process with PxM has not been examined yet. To tackle this problem, a PxM-aligned PPC process is designed and evaluated in this study using a reference model development methodology, including a narrative literature review, a multivocal literature review, and eight expert interviews. The reference model shows where process elements benefit from PxM alignment, how alignment can be achieved from a process and output, data, function, and organization view, and where fits and gaps between theory and practice are

Maintenance optimization in industry 4.0

This work reviews maintenance optimization from different and complementary points of view. Specifically, we systematically analyze the knowledge, information and data that can be exploited for maintenance optimization within the Industry 4.0 paradigm. Then, the possible objectives of the optimization are critically discussed, together with the maintenance features to be optimized, such as maintenance periods and degradation thresholds. The main challenges and trends of maintenance optimization are, then, highlighted and the need is identified for methods that do not require a-priori selection of a predefined maintenance strategy, are able to deal with large amounts of heterogeneous data collected from different sources, can properly treat all the uncertainties affecting the behavior of the systems and the environment, and can jointly consider multiple optimization objectives, including the emerging ones related to sustainability and resilience