Abstract
The evolving characteristic of changeable manufacturing systems requires design and assessment techniques that consider both the strategic and financial criteria and incorporate the reconfiguration aspects as well as fluctuations in the demand over the planned system life cycle. The economic evaluation approaches to reconfigurable and flexible manufacturing systems have been reviewed. A fuzzy multi-objective mixed integer optimization model for evaluating investments in reconfigurable manufacturing systems used in a multiple product demand environment is presented. The model incorporates in-house production and outsourcing options, machine acquisition and disposal costs, operational costs, and re-configuration cost and duration for modular machines. The resulting configurations are optimized by considering life-cycle costs, responsiveness performance, and system structural complexity simultaneously. The overall model is illustrated with a case study where FMS and RMS implementations were compared. System configurations generated from the proposed model are simulated to compare the life-cycle costs of FMS and RMS. The suitable conditions for RMS investments have been discussed.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Abdi MR, Labib AW (2004) Feasibility study of the tactical design justification for reconfigurable manufacturing systems using the fuzzy analytical hierarchical process. Int J Prod Res 42:3055–3076
Abdel-Malek L, Wolf C (1994) Measuring the impact of lifecycle costs, technological obsolescence, and flexibility in the selection of FMS design. J Manuf Syst 13(1):37–47
Amico M., Asl F., Pasek Z., Perrone G., 2003, Real Options: an application to RMS Investment Evaluation. CIRP 2nd Conference on RMS, Ann Arbor, MI, USA
Bellman RE, Zadeh LA (1970) Decision-making in a fuzzy environment. Manage Sci 17:141–164
ElMaraghy H.A., 2006, A~complexity code for manufacturing systems. In: Proceedings of 2006 ASME Int. Conf. on Manufacturing Science and Engineering (MSEC), Symposium on Advances in Process & System Planning, Ypsilani, MI, USA, 8--11 October 2006
ElMaraghy HA (2005) Flexible and reconfigurable manufacturing systems paradigms. International Journal of Flexible Manufacturing Systems, 17(4):261-276.
ElMaraghy HA, Kuzgunkaya O, Urbanic RJ (2005) Manufacturing systems configuration complexity. CIRP Annals 54(1):445–450
Gindy NN, Saad SM (1998) Flexibility and responsiveness of machining environments. Integrated Manufacturing Systems 9(4):218–227
Koren Y, Heisel U, Jovane F, Moriwaki T, Pritschow G, Ulsoy G, Van Brussel H (1999) Reconfigurable manufacturing systems. Ann CIRP 48(2):527–540
Kuzgunkaya O, ElMaraghy HA (2006) Assessing the structural complexity of manufacturing systems configurations. Int J Flex Manuf Syst 18(2):145–171
Lotfi V (1995) Implementing flexible automation: a multiple criteria decision making approach. Int J Prod Economics 38:255–268
Matson JB, McFarlane D (1999) Assessing the responsiveness of existing production operations. Int J Oper Prod Manage 19(8):765–784
Rajagopalan S, Singh MR, Morton TE (1998) Capacity expansion and replacement in growing markets with uncertain technological breakthroughs. Manage Sci 44(1):12–30
Spicer JP (2002) A design methodology for scalable machining systems. PhD dissertation, University of Michigan
Suresh NC (1992) A Generalized multimachine replacement model for flexible automation investments. IIE Trans 24(2):131–143
Van Hop N (2004) Approach to measure the mix response flexibility of manufacturing systems. Int J Prod Res 42(7):1407–1418
Visionary Manufacturing Challenges For 2020 (1998) National Academy Press Washington, DC
Wiendahl HP, ElMaraghy HA, Nyhuis P, Zah MF, Wiendahl H-H, Duffie N, Kolakowski M (2007) Changeable manufacturing—classification, design and operation. CIRP Annals, Manuf Technol 56(2):783-809
Wiendahl H.P., Heger C.L., 2003, Justifying Changeability. A Methodical approach to Achieving Cost Effectiveness. CIRP 2nd Conf on RMS, Ann Arbor, MI, USA
Yan P., Zhou M., Caudill R., 2000, A lifecycle engineering approach to FMS development. In: Proc. of IEEE Int. Conf. on Robotics and Automation. San Francisco, CA, pp 395--400
Zhang G., Glardon R., 2001, An Analytical Comparison on Cost and Performance among DMS, AMS, FMS, and RMS. 1st Conf. on Agile Reconfigurable Manufacturing 21.--22. May Ann Arbor, MI, USA
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2009 Springer London
About this chapter
Cite this chapter
Kuzgunkaya, O., ElMaraghy, H. (2009). Economic and Strategic Justification of Changeable, Reconfigurable and Flexible Manufacturing. In: ElMaraghy, H. (eds) Changeable and Reconfigurable Manufacturing Systems. Springer Series in Advanced Manufacturing. Springer, London. https://doi.org/10.1007/978-1-84882-067-8_17
Download citation
DOI: https://doi.org/10.1007/978-1-84882-067-8_17
Publisher Name: Springer, London
Print ISBN: 978-1-84882-066-1
Online ISBN: 978-1-84882-067-8
eBook Packages: EngineeringEngineering (R0)