1. © C.Hicks, University of Newcastle HICKS/1 Research Overview Christian Hicks

2. © C.Hicks, University of Newcastle HICKS/2 Main Research Areas Simulation / modelling of systems Scheduling / planning and control Manufacturing Layout Supply chain management IT implementation

3. © C.Hicks, University of Newcastle HICKS/3 Other areas Company classification Manufacturing strategy Business Process Analysis Benchmarking in the semiconductor industry Web-based teaching

4. © C.Hicks, University of Newcastle HICKS/4 Capital Goods Companies: Generic Issues Products are highly customised and are produced on a make, or engineer to order basis. Lead time reduction and cost increasingly important. International competition: effective and efficient use of resources is very important. Product offering broadened over recent years to include service elements. Complex and dynamic supply chains. Production facilities include jobbing, batch, flow and assembly systems as well as construction.

7. © C.Hicks, University of Newcastle HICKS/7 Simulation of Systems

8. © C.Hicks, University of Newcastle HICKS/8

9. © C.Hicks, University of Newcastle HICKS/9 Key Features Large scale model allows whole manufacturing facilities to be represented. Models facilities, products, processes, layout and planning and control systems. Many product families can be represented with shallow, medium or deep product structure. Hierarchical description of products and resources. Allows variety of planning and control methods to meet local requirements. Integrated with scheduling and layout optimisation tools. Comprehensive stochastic modelling.

10. © C.Hicks, University of Newcastle HICKS/10 Schedule Optimisation

11. © C.Hicks, University of Newcastle HICKS/11 Schedule optimisation using Genetic Algorithms

12. © C.Hicks, University of Newcastle HICKS/12 Product 1 st Operation Assembly Component Initial Schedule

13. © C.Hicks, University of Newcastle HICKS/13

14. © C.Hicks, University of Newcastle HICKS/14 New schedule from GA

15. © C.Hicks, University of Newcastle HICKS/15 Stochastic Planning Methods Risk management is an important issue in capital goods companies. Developed stochastic models of risk due to uncertainties in process times. Developed methods that either meet a service target or minimise the combination of earliness and tardiness costs. Investigated approaches for infinite capacity, finite capacity and dynamic scheduling cases. Planning methods investigated and validated through simulation modelling.

16. © C.Hicks, University of Newcastle HICKS/16 Manufacturing Layout Clustering –Matrix-based methods –Similarity coefficient methods Optimisation –Genetic Algorithm –Simulated Annealing

17. © C.Hicks, University of Newcastle HICKS/17 Genetic Algorithm Procedure

18. © C.Hicks, University of Newcastle HICKS/18 Placement Algorithm

19. © C.Hicks, University of Newcastle HICKS/19 Initial Layout

20. © C.Hicks, University of Newcastle HICKS/20 Total rectilinear distance travelled vs. generation (brown field)

21. © C.Hicks, University of Newcastle HICKS/21 Resultant Brown-field layout

22. © C.Hicks, University of Newcastle HICKS/22 Total rectilinear distance travelled vs. generation (green field)

23. © C.Hicks, University of Newcastle HICKS/23 Supply Chain Management

24. © C.Hicks, University of Newcastle HICKS/24 Supply Chain Management Modelled business processes using SSADM Company structures range from vertically integrated to project integrators that outsource all manufacturing. Important factors include: available capital, risk, potential utilisation of plant, capabilities, flexibility. Three stages of interaction with customers: marketing, tendering and contract execution ‘Normal’ / ‘radical’ design Functional vs. technical specifications Procurement decisions made by: customers, designers, procurement departments

25. © C.Hicks, University of Newcastle HICKS/25 Summary of contributions Planning, control and layout problems in capital goods companies. Outcome: first large-scale simulation model of manufacturing in capital goods companies Scheduling complex products in deterministic and stochastic environments. Developed first optimisation techniques. Layout analysis and optimisation. Developed integrated tool. Supply chain management in capital goods companies. New models proposed and linked to strategic issues.

26. © C.Hicks, University of Newcastle HICKS/26 Classification

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28. © C.Hicks, University of Newcastle HICKS/28 Simulation

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31. © C.Hicks, University of Newcastle HICKS/31 Representation of Resources

32. © C.Hicks, University of Newcastle HICKS/32 Representation of Products

33. © C.Hicks, University of Newcastle HICKS/33 Stochastic Simulation Several random number generators: Knuth, Wichman & Hill, SunOs. Normal [polar form of Box-Muller (Marsaglia and Bray 1964); Beta (Press, et al. 1989, p188), Gamma (Press, et al. 1989, p228), Poisson (Press, et al. 1989, p230) as well as Log normal, Multi-modal, Exponential, and empirical (based on historical data). Full / fractional factorial designs ANOVA / Regression analysis

34. © C.Hicks, University of Newcastle HICKS/34 Scheduling

35. © C.Hicks, University of Newcastle HICKS/35 Chromosome representation

36. © C.Hicks, University of Newcastle HICKS/36 Crossover Operations

37. © C.Hicks, University of Newcastle HICKS/37 Mutation Operations

38. © C.Hicks, University of Newcastle HICKS/38 Fitness function Minimise :  P e (E c +E p ) +  P t (T p ) Where E c = max (0, D c - F c ) E p = max (0, D p - F p ) T p = max (0, F p - D p )

39. © C.Hicks, University of Newcastle HICKS/39 An Example of Production Plan

40. © C.Hicks, University of Newcastle HICKS/40 Layout

41. © C.Hicks, University of Newcastle HICKS/41 Rank Order Clustering (King 1980)

42. © C.Hicks, University of Newcastle HICKS/42 Case Study 52 Machine tools 3408 complex components 734 part types Complex product structures Total distance travelled –Direct distance 232Km –Rectilinear distance 642Km

43. © C.Hicks, University of Newcastle HICKS/43 Total rectilinear distance travelled vs. generation (green field)

44. © C.Hicks, University of Newcastle HICKS/44 Resultant green field layout Note that brown field constraints, such as walls have been ignored.

45. © C.Hicks, University of Newcastle HICKS/45 Supply Chain Management

46. © C.Hicks, University of Newcastle HICKS/46 Collaborating Companies NEI Parsons AMEC Offshore NEI International Combustion Clarke Chapman Wellman Booth Control Systems Reyrolle (VA Tech)

47. © C.Hicks, University of Newcastle HICKS/47 Supply Chain Management Identified the characteristics of the companies in terms of products, processes, markets, level of outsourcing etc. Investigated buyer/supplier relationships in terms of supplier base, strategic alliances, partnership and single sourcing agreements etc. 3 stages: marketing, tendering, contract execution Physical / non-physical processes, Differing levels of vertical integration Procurement often reactive rather than strategic

48. © C.Hicks, University of Newcastle HICKS/48 SCM (continued) Majority of controllable cost committed at the design stage. Normal / Radical design Established / ad-hoc business processes Product offering broadening – shift from just hardware to retrofit, service and operations. There are high levels of uncertainty and sparse knowledge, particularly at the tendering stage. Tendering is often subject to severe time pressure and resource constraints.

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50. © C.Hicks, University of Newcastle HICKS/50 Company X - Context Diagram Company X ITT Tender Contract Awarded a Customer a Progress Report b Supplier b Quote ITT Order

51. © C.Hicks, University of Newcastle HICKS/51

52. © C.Hicks, University of Newcastle HICKS/52 IT Implementation in Small Companies Selection and implementation of Accounting, planning and control systems and EDI in surgical shoe manufacturing company. Selection and implementation of a cost estimating system in a precision machining company. Selection and implementation of accounting and order processing systems in an electrical cable manufacturing company.

53. © C.Hicks, University of Newcastle HICKS/53 Benchmarking in the semiconductor industry Benchmarking survey of four Siemens plants: WhiteOak (USA), ProMos (Taiwan), Siemec (Germany) and NTS (England). The design, construction, and operation of the plants are different leading to different consequences in terms of capital and operating costs, quality, etc. The research aims to establish the relationship between capital cost, construction lead-time and operating costs and performance.

54. © C.Hicks, University of Newcastle HICKS/54 Postgraduate Students Dong Ping Song “Stochastic Models in Planning Complex Engineer-to-Order Products” Pupong Pongcharoen “Genetic Algorithms for Scheduling in the Capital Goods Industry” Tony Wells “Benchmarking in the Semiconductor Industry” Fouzi Hossen “Risk Management in Capital Goods Companies” Thanawat Muangman “Supply Chain Management in the Capital Goods Industry”

55. © C.Hicks, University of Newcastle HICKS/55 Research Grants “An investigation into the design change management process and the relationship to resultant cost of change for capital equipment at BNFL”, £160,000, 2003, (CH/PMB/WO) “Harris & Sheldon TCS”, 2000-2, £81,408, discontinued, (RID/CH/PMB) “Haani Cables TCS”, 98-2000, £141,760, (CH/TMcG/MG/PMB) “SCM at Wellman Booth”, 1997, £2,000, (CH/TMcG) “Mectonics Instruments TCS”, 95-7, £65,000 (CH,CFE,WH) “Innovation in Design”, 1996-9, £10,000 (JNF/CH) JC Peacocks & Sons TCS, 91-5 £122,552 (GRJ/CH) Total income: £490,000 Principle investigator: £368,000