Optimal and Heuristic Lead-Time Quotation For an Integrated Steel Mill With a Minimum Batch Size

This paper presents a model of lead-time policies for a production system, such as an integrated steel mill, in which the bottleneck process requires a minimum batch size. An accurate understanding of internal lead-time quotations is necessary for making good customer delivery-date promises, which must take into account processing time, queueing time and time for arrival of the requisite volume of orders to complete the minimum batch size requirement. The problem is modeled as a stochastic dynamic program with a large state space. A computational study demonstrates that lead time for an arriving order should generally be a decreasing function of the amount of that product already on order (and waiting for minimum batch size to accumulate), which leads to a very fast and accurate heuristic. The computational study also provides insights into the relationship between lead-time quotation, arrival rate, and the sensitivity of customers to the length of delivery promises

Lot sizing and furnace scheduling in small foundries

A lot sizing and scheduling problem prevalent in small market-driven foundries is studied. There are two related decision levels: (1) the furnace scheduling of metal alloy production, and (2) moulding machine planning which specifies the type and size of production lots. A mixed integer programming (MIP) formulation of the problem is proposed, but is impractical to solve in reasonable computing time for non-small instances. As a result, a faster relax-and-fix (RF) approach is developed that can also be used on a rolling horizon basis where only immediate-term schedules are implemented. As well as a MIP method to solve the basic RF approach, three variants of a local search method are also developed and tested using instances based on the literature. Finally, foundry-based tests with a real-order book resulted in a very substantial reduction of delivery delays and finished inventory, better use of capacity, and much faster schedule definition compared to the foundry's own practice. © 2006 Elsevier Ltd. All rights reserved

Production Scheduling in Integrated Steel Manufacturing

Steel manufacturing is both energy and capital intensive, and it includes multiple production stages, such as iron-making, steelmaking, and rolling. This dissertation investigates the order schedule coordination problem in a multi-stage manufacturing context. A mixed-integer linear programming model is proposed to generate operational (up to the minute) schedules for the steelmaking and rolling stages simultaneously. The proposed multi-stage scheduling model in integrated steel manufacturing can provide a broader view of the cost impact on the individual stages. It also extends the current order scheduling literature in steel manufacturing from a single-stage focus to the coordinated multi-stage focus. Experiments are introduced to study the impact of problem size (number of order batches), order due time and demand pattern on solution performance. Preliminary results from small data instances are reported. A novel heuristic algorithm, Wind Driven Algorithm (WDO), is explained in detail, and numerical parameter study is presented. Another well-known and effective heuristic approach based on Particle Swarm Optimization (PSO) is used as a benchmark for performance comparison. Both algorithms are implemented to solve the scheduling model. Results show that WDO outperforms PSO for the proposed model on solving large sample data instances. Novel contributions and future research areas are highlighted in the conclusion

Concept Development to Control Non-value Added Logistical Costs in a Primary Aluminium Casthouse by Interfacing Linear Optimization and Simulation

After the financial crisis in 2008, demand reduction especially from the automotive in-dustry and changes in CO2 tax regulations which increased the energy prices the alu-minium industry forced to review and reduce its operational expenditure. High energy consumption in the production of primary aluminium dedicates most of the efforts on technological development onto the electrolysis unit. However, other units of a smelter also have the potential to improve their operational efficiency. In this thesis, the focus is on the casthouse unit of the smelter. The aim of this research is to quantify and reduce the non-value added logistical costs in the aluminium industry’s supply chain. This re-search attempts to simulate the internal supply chain of a primary aluminium casthouse and identify the wastes by implementing a lean thinking approach. After highlighting the possible improvements, optimization models attempt to reduce these wastes which create non-value added costs to the system. This concept is further developed by inter-facing the simulation model with the optimization model to validate the improvements. The success of the concept is tested by measuring the reduction in redundant logistical costs of a case study founded on the real casthouse specifications. Scenarios are defined to analyze the casthouse supply chain under different perspectives. The potential gain of the new concept is verified by applying it to these scenarios. In conclusion, the results analysis of the scenarios indicates the success of the main objective of this research; to develop a new concept that controls the non-value added logistical costs in the primary aluminium casthouse supply chain

Entwicklung und Einführung von Produktionssteuerungsverbesserungen für die kundenorientierte Halbleiterfertigung

Production control in a semiconductor production facility is a very complex and timeconsuming task. Different demands regarding facility performance parameters are defined by customer and facility management. These requirements are usually opponents, and an efficient strategy is not simple to define. In semiconductor manufacturing, the available production control systems often use priorities to define the importance of each production lot. The production lots are ranked according to the defined priorities. This process is called dispatching. The priority allocation is carried out by special algorithms. In literature, a huge variety of different strategies and rules is available. For the semiconductor foundry business, there is a need for a very flexible and adaptable policy taking the facility state and the defined requirements into account. At our case the production processes are characterized by a low-volume high-mix product portfolio. This portfolio causes additional stability problems and performance lags. The unstable characteristic increases the influence of reasonable production control logic. This thesis offers a very flexible and adaptable production control policy. This policy is based on a detailed facility model with real-life production data. The data is extracted from a real high-mix low-volume semiconductor facility. The dispatching strategy combines several dispatching rules. Different requirements like line balance, throughput optimization and on-time delivery targets can be taken into account. An automated detailed facility model calculates a semi-optimal combination of the different dispatching rules under a defined objective function. The objective function includes different demands from the management and the customer. The optimization is realized by a genetic heuristic for a fast and efficient finding of a close-to-optimal solution. The strategy is evaluated with real-life production data. The analysis with the detailed facility model of this fab shows an average improvement of 5% to 8% for several facility performance parameters like cycle time per mask layer. Finally the approach is realized and applied at a typical high-mix low-volume semiconductor facility. The system realization bases on a JAVA implementation. This implementation includes common state-of-the-art technologies such as web services. The system replaces the older production control solution. Besides the dispatching algorithm, the production policy includes the possibility to skip several metrology operations under defined boundary conditions. In a real-life production process, not all metrology operations are necessary for each lot. The thesis evaluates the influence of the sampling mechanism to the production process. The solution is included into the system implementation as a framework to assign different sampling rules to different metrology operations. Evaluations show greater improvements at bottleneck situations. After the productive introduction and usage of both systems, the practical results are evaluated. The staff survey offers good acceptance and response to the system. Furthermore positive effects on the performance measures are visible. The implemented system became part of the daily tools of a real semiconductor facility.Produktionssteuerung im Bereich der kundenorientierten Halbleiterfertigung ist heutzutage eine sehr komplexe und zeitintensive Aufgabe. Verschiedene Anforderungen bezüglich der Fabrikperformance werden seitens der Kunden als auch des Fabrikmanagements definiert. Diese Anforderungen stehen oftmals in Konkurrenz. Dadurch ist eine effiziente Strategie zur Kompromissfindung nicht einfach zu definieren. Heutige Halbleiterfabriken mit ihren verfügbaren Produktionssteuerungssystemen nutzen oft prioritätsbasierte Lösungen zur Definition der Wichtigkeit eines jeden Produktionsloses. Anhand dieser Prioritäten werden die Produktionslose sortiert und bearbeitet. In der Literatur existiert eine große Bandbreite verschiedener Algorithmen. Im Bereich der kundenorientierten Halbleiterfertigung wird eine sehr flexible und anpassbare Strategie benötigt, die auch den aktuellen Fabrikzustand als auch die wechselnden Kundenanforderungen berücksichtigt. Dies gilt insbesondere für den hochvariablen geringvolumigen Produktionsfall. Diese Arbeit behandelt eine flexible Strategie für den hochvariablen Produktionsfall einer solchen Produktionsstätte. Der Algorithmus basiert auf einem detaillierten Fabriksimulationsmodell mit Rückgriff auf Realdaten. Neben synthetischen Testdaten wurde der Algorithmus auch anhand einer realen Fertigungsumgebung geprüft. Verschiedene Steuerungsregeln werden hierbei sinnvoll kombiniert und gewichtet. Wechselnde Anforderungen wie Linienbalance, Durchsatz oder Liefertermintreue können adressiert und optimiert werden. Mittels einer definierten Zielfunktion erlaubt die automatische Modellgenerierung eine Optimierung anhand des aktuellen Fabrikzustandes. Die Optimierung basiert auf einen genetischen Algorithmus für eine flexible und effiziente Lösungssuche. Die Strategie wurde mit Realdaten aus der Fertigung einer typischen hochvariablen geringvolumigen Halbleiterfertigung geprüft und analysiert. Die Analyse zeigt ein Verbesserungspotential von 5% bis 8% für die bekannten Performancekriterien wie Cycletime im Vergleich zu gewöhnlichen statischen Steuerungspolitiken. Eine prototypische Implementierung realisiert diesen Ansatz zur Nutzung in der realen Fabrikumgebung. Die Implementierung basiert auf der JAVA-Programmiersprache. Aktuelle Implementierungsmethoden erlauben den flexiblen Einsatz in der Produktionsumgebung. Neben der Fabriksteuerung wurde die Möglichkeit der Reduktion von Messoperationszeit (auch bekannt unter Sampling) unter gegebenen Randbedingungen einer hochvariablen geringvolumigen Fertigung untersucht und geprüft. Oftmals ist aufgrund stabiler Prozesse in der Fertigung die Messung aller Lose an einem bestimmten Produktionsschritt nicht notwendig. Diese Arbeit untersucht den Einfluss dieses gängigen Verfahrens aus der Massenfertigung für die spezielle geringvolumige Produktionsumgebung. Die Analysen zeigen insbesondere in Ausnahmesituationen wie Anlagenausfällen und Kapazitätsengpässe einen positiven Effekt, während der Einfluss unter normalen Produktionsbedingungen aufgrund der hohen Produktvariabilität als gering angesehen werden kann. Nach produktiver Einführung in einem typischen Vertreter dieser Halbleiterfabriken zeigten sich schnell positive Effekte auf die Fabrikperformance als auch eine breite Nutzerakzeptanz. Das implementierte System wurde Bestandteil der täglichen genutzten Werkzeuglandschaft an diesem Standort

The responsive reply chain: the influence of the positioning of decoupling points

Manufacturing supply chains have been challenged by high competition, dynamic, and stochastic conditions. They have to be constantly responsive in today’s ever-changing manufacturing environment. The proper positioning of decoupling points for material flow and information flow has a significant potential for increasing responsiveness in a supply chain. Positioning the material decoupling point as close to the end consumer as possible whilst the information decoupling point is positioned upstream is the key to the industries’ ability to reduce lead time and enhance performance in the dynamic behaviour of the supply chain. [Continues.

Analysis of production control methods for semiconductor research and development fabs using simulation

The importance of semiconductor device fabrication has been rising steadily over many years. Integrated circuit technology and innovation depends on successful research and development (R&D). R&D establishes the direction for prevailing technology in electronics and computers. To be a leader in the semiconductor industry, a company must bring technology to the market as soon as its application is deemed feasible. Using suitable production control methods for wafer fabrication in R&D fabs ensures reduction in cycle times and planned inventories, which in turn help to more quickly, transfer the new technology to the production fabs, where products are made on a commercial scale. This helps to minimize the time to market. The complex behavior of research fabs produces varying results when conventional production control methodologies are applied. Simulation modeling allows the study of the behavior of the research fab by providing statistical reports on performance measures. The goal of this research is to investigate production control methods in semiconductor R&D fabs. A representative R&D fab is modeled, where an appropriate production load is applied to the fab by using a representative product load. Simulation models are run with different levels of production volume, lot priorities, primary and secondary dispatching strategies and due date tightness as treatment combinations in a formally designed experiment. Fab performance is evaluated based on four performance measures, which include percent on time delivery, average cycle time, standard deviation of cycle time and average work-in-process. Statistical analyses are used to determine the best performing dispatching rules for given fab operating scenarios. Results indicate that the optimal combination of dispatching rules is dependent on specific fab characteristics. However, several dispatching rules are found to be robust across performance measures. A simulation study of the Semiconductor & Microsystems Fabrication Laboratory (SMFL) at the Rochester Institute of Technology (RIT) is used to verify the results

Supply chain inventory control for the iron and steel industry

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Online Simulation in Semiconductor Manufacturing

In semiconductor manufacturing discrete event simulation systems are quite established to support multiple planning decisions. During the recent years, the productivity is increasing by using simulation methods. The motivation for this thesis is to use online simulation not only for planning decisions, but also for a wide range of operational decisions. Therefore an integrated online simulation system for short term forecasting has been developed. The production environment is a mature high mix logic wafer fab. It has been selected because of its vast potential for performance improvement. In this thesis several aspects of online simulation will be addressed: The first aspect is the implementation of an online simulation system in semiconductor manufacturing. The general problem is to achieve a high speed, a high level of detail, and a high forecast accuracy. To resolve these problems, an online simulation system has been created. The simulation model has a high level of detail. It is created automatically from underling fab data. To create such a simulation model from fab data, additional problems related to the underlying data arise. The major parts are the data access, the data integration, and the data quality. These problems have been solved by using an integrated data model with several data extraction, data transformation, and data cleaning steps. The second aspect is related to the accuracy of online simulation. The overall problem is to increase the forecast horizon, increase the level of detail of the forecast and reduce the forecast error. To provide useful forecast results, the simulation model contains a high level of modeling details and a proper initialization. The influences on the forecast quality will be analyzed. The results show that the simulation forecast accuracy achieves good quality to predict future fab performance. The last aspect is to find ways to use simulation forecast results to improve the fab performance. Numerous applications have been identified. For each application a description is available. It contains the requirements of such a forecast, the decision variables, and background information. An application example shows, where a performance problem exists and how online simulation is able to resolve it. To further enhance the real time capability of online simulation, a major part is to investigate new ways to connect the simulation model with the wafer fab. For fab driven simulation, the simulation model and the real wafer fab run concurrently. The wafer fab provides several events to update the simulation during runtime. So the model is always synchronized with the real fab. It becomes possible to start a simulation run in real time. There is no further delay for data extraction, data transformation and model creation. A prototype for a single work center has been implemented to show the feasibility