Joint production, quality control and maintenance policies subject to quality-dependant demand

This thesis is a strive to find a proper solution, using the stochastic optimal control means for an unreliable production system with product quality control and quality-dependent demand. The system consists of a single machine producing a single product type (M1P1) subject to breakdowns and random repairs and must satisfy a non-constant rate of customer demand, which response to the quality of parts received. Since the machine produces with a rate of noncompliant products, an inspection of the products is made to reduce the number of bad parts that would deliver to the customer. It is done continuously and consists of controlling a fraction of the production. Approved products are put back on the production line, while bad products are discarded. The intended objective of this study is to provide optimal quality control and production policy, which maximize the net revenue consisting of the gross revenue, the cost of inventory, the cost of shortage, the cost of the inspection, the cost of maintenance and the cost of no-quality parts. Main decision variables are the sampling rate of the quality control system as well as the threshold of finished product inventory. The demand function reacts to the average outgoing quality level (AOQ) of finished products. In the third chapter of this study, preventive maintenance and dynamic pricing policies are added up to the optimal policy, cited above. To achieve the optimal points of the policy, which maximize our net production revenue, a simulation approach is implemented as an experimental design and its results were used in response surface methodology. To implement the experiment design (simulation approach) which thoroughly reflects model considerations such as its continuous nature and the variety, first, a continuous variable for the probability of defectiveness was introduced, functioning with the age of machine up until its next breakdown maintenance. Second, so as to reflect the effect of quality control process that results in Average Outgoing Quality rather than simple defectiveness possibility, this function (AOQ) was built based on instant behavior of mentioned function above as its independent variable. Third, due to the use of prospect theory assumptions in building a demand function that responds to the level of client delivered defectiveness (AOQ), a responsive continuous function was created for the demand, reacting to the level of product quality by determining it's needed per time amount. Finally. To illustrate the machine’s manufacturing policy based on Hedging Point, finished product inventory variable was introduced in the experiment design. In a nutshell, we have a production system that has been designed in a way that by raising its age (At), leads to more possibility of defectiveness and less demand in time units. This manner continuous up until the next maintenance action of the system, which restores all factors to their initial conditions. By use of the simulation approach of optimization an experiment is designed and implemented to control decision variables of the policy and maximize the objective function of average net revenue (ANR). Decision variables are statistically and practically in the matter of consideration such as finished product inventory threshold (Z), the proportion of inspection (F) and PM thresholds (Mk or Pk)

Study on New Sampling Plans and Optimal Integration with Proactive Maintenance in Production Systems

Sampling plans are statistical process control (SPC) tools used mainly in production processes. They are employed to control processes by monitoring the quality of produced products and alerting for necessary adjustments or maintenance. Sampling is used when an undesirable change (shift) in a process is unobservable and needs time to discover. Basically, the shift occurs when an assignable cause affects the process. Wrong setups, defective raw materials, degraded components are examples of assignable causes. The assignable cause causes a variable (or attribute) quality characteristic to shift from the desired state to an undesired state. The main concern of sampling is to observe a process shift quickly by signaling a true alarm, at which, maintenance is performed to restore the process to its normal operating conditions. While responsive maintenance is performed if a shift is detected, proactive maintenance such as age-replacement is integrated with the design of sampling. A sampling plan is designed economically or economically-statistically. An economical design does not assess the system performance, whereas the economic-statistical design includes constraints on system performance such as the average outgoing quality and the effective production rate. The objective of this dissertation is to study sampling plans by attributes. Two studies are conducted in this dissertation. In the first study, a sampling model is developed for attribute inspection in a multistage system with multiple assignable causes that could propagate downstream. In the second study, an integrated model of sampling and maintenance with maintenance at the time of the false alarm is proposed. Most of the sampling plans are designed based on the occurrence of one assignable cause. Therefore, a sampling plan that allows two assignable causes to occur is developed in the first study. A multistage serial system of two unreliable machines with one assignable cause that could occur on each machine is assumed where the joint occurrence of assignable causes propagates the process\u27s shift to a higher value. As a result, the system state at any time is described by one in-control and three out-of-control states where the evolution from a state to another depends on the competencies between shifts. A stochastic methodology to model all competing scenarios is developed. This methodology forms a base that could be used if the number of machines and/or states increase. In the second study, an integrated model of sampling and scheduled maintenance is proposed. In addition to the two opportunities for maintenance at the true alarm and scheduled maintenance, an additional opportunity for preventive maintenance at the time of a false alarm is suggested. Since a false alarm could occur at any sampling time, preventive maintenance is assumed to increase with time. The effectiveness of the proposed model is compared to the effectiveness of separate models of scheduled maintenance and sampling. Inspired by the conducted studies, different topics of sampling and maintenance are proposed for future research. Two topics are suggested for integrating sampling with selective maintenance. The third topic is an extension of the first study where more than two shifts can occur simultaneously

Integrated optimization of maintenance interventions and spare part selection for a partially observable multi-component system

Advanced technical systems are typically composed of multiple critical components whose failure cause a system failure. Often, it is not technically or economically possible to install sensors dedicated to each component, which means that the exact condition of each component cannot be monitored, but a system level failure or defect can be observed. The service provider then needs to implement a condition based maintenance policy that is based on partial information on the systems condition. Furthermore, when the service provider decides to service the system, (s)he also needs to decide which spare part(s) to bring along in order to avoid emergency shipments and part returns. We model this problem as an infinite horizon partially observable Markov decision process. In a set of numerical experiments, we first compare the optimal policy with preventive and corrective maintenance policies: The optimal policy leads on average to a 28% and 15% cost decrease, respectively. Second, we investigate the value of having full information, i.e., sensors dedicated to each component: This leads on average to a 13% cost decrease compared to the case with partial information. Interestingly, having full information is more valuable for cheaper, less reliable components than for more expensive, more reliable components

A survey of the machine interference problem

This paper surveys the research published on the machine interference problem since the 1985 review by Stecke & Aronson. After introducing the basic model, we discuss the literature along several dimensions. We then note how research has evolved since the 1985 review, including a trend towards the modelling of stochastic (rather than deterministic) systems and the corresponding use of more advanced queuing methods for analysis. We conclude with some suggestions for areas holding particular promise for future studies.Natural Sciences and Engineering Research Council (NSERC) Discovery Grant 238294-200

Simulation based optimization of joint maintenance and inventory for multi-components manufacturing systems

Maintenance and spare parts management are interrelated and the literature shows the significance of optimizing them jointly. Simulation is an efficient tool in modeling such a complex and stochastic problem. In this paper, we optimize preventive maintenance and spare provision policy under continuous review in a non-identical multi-component manufacturing system through a combined discrete event and continuous simulation model coupled with an optimization engine. The study shows that production dynamics and labor availability have a significant impact on maintenance performance. Optimization results of Simulated Annealing, Hill Climb and Random solutions are compared. The experiments show that Simulated annealing achieved the best results although the computation time was relatively high. Investigating multi-objective optimization might provide interesting results as well as more flexibility to the decision maker

A review of simulation-based optimisation in maintenance operations

This paper aims to report the state of the art of research in simulation-based optimisation of maintenance operations by systematically classifying the published literature and outlining various tools and techniques used by researchers to model and optimise maintenance operations. The authors investigate the critical elements and aspects of maintenance systems and how well they are represented in the literature as well as various approaches to problem formulation. On this basis, the paper identifies the current gaps and discusses future prospects. It is observed that discrete event is the most widely used simulation technique while non-traditional optimisation algorithms such as genetic algorithms and simulated annealing are the most reported optimisation techniques. Little attention has been paid to the discussion and analysis of different elements in the maintenance environment and their effect on the maintenance system behaviour. There is a need for verifying suggested models through real life case studies

Performance Evaluation of Remanufacturing Systems

Implementation of new environmental legislation and public awareness has increased the responsibility on manufacturers. These responsibilities have forced manufacturers to begin remanufacturing and recycling of their goods after they are disposed or returned by customers. Ever since the introduction of remanufacturing, it has been applied in many industries and sectors. The remanufacturing process involves many uncertainties like time, quantity, and quality of returned products. Returned products are time sensitive products and their value drops with time. Thus, the returned products need to be remanufactured quickly to generate the maximum revenue. Every year millions of electronic products return to the manufacturer. However, only 10% to 20% of the returned products pass through the remanufacturing process, and the remaining products are disposed in the landfills. Uncertainties like failure rate of the servers, buffer capacity and inappropriate preventive maintenance policy would be highly responsible the delays in remanufacturing. In this thesis, a simulation based experimental methodology is used to determine the optimal preventive maintenance frequency and buffer allocation in a remanufacturing line, which will help to reduce the cycle time and increase the profit of the firm. Moreover, an estimated relationship between preventive maintenance frequency and MTBF (Mean Time Between Failure) is presented to determine the best preventive maintenance frequency for any industry. The solution approach is applied to a computer remanufacturing and a cell phone remanufacturing industry. Analysis of variance and regression analysis are performed to denote the influential factors in the remanufacturing line, and optimization is done by using the regression techniques and ANOVA results

A hierarchical framework for discrete event scheduling in manufacturing systems

Cover title. "Presented at the IIASA Workshop on Discrete Event Systems: Models and Applications. August 3-7, 1987. Sopron, Hungary."Includes bibliographical references.Supported by the Defense Advanced Research Projects Agency. N00014-85-K-0213by Stanley B. Gershwin

On the design of a flow line with intermediate buffers and mixed corrective maintenance

We considered a mixed corrective maintenance policy for machines in a two-machine one-buffer flow line. The machines had stochastic processing times and suffered from unexpected failures. In the case of a failure, the machines were either minimally repaired or their failing components were replaced by spare parts. While the replacement strategy is rapid and the system can be considered new thereafter, spare parts provisioning and storage costs are very high. Thus, we additionally considered minimal repairs, which are less expensive and restore the system to a working condition at a minimum. We modeled the system as a continuous-time Markov chain. This approach was used to measure the performance of the flow line and the mixed corrective maintenance policy employed. To facilitate design decisions for the flow line, we considered both the cost of an interstage buffer and the maintenance costs for machines in line. We formulated an optimization problem based on a profit function that enables the simultaneous optimization of the buffer size and maintenance strategy. Our numerical analyses reveal useful insights into the performance and optimal design of the flow line depending on the utilized maintenance strategy