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Integrated product specifications and productivity decision making in unreliable manufacturing systems

Author

Listed:
  • Hajji, A.
  • Mhada, F.
  • Gharbi, A.
  • Pellerin, R.
  • Malhamé, R.

Abstract

This paper considers joint production control and product specifications decision making in a failure prone manufacturing system. This is with the knowledge that tight process specifications, while leading to a product of more reliable quality and higher market value, are at the same time associated with higher levels of non-conforming parts, a higher rate of parts rejection and thus a lowering of overall plant productivity. The decision making is further complicated by the lack of reliability of the production process, which imposes that an adequate, also to be designed, level of inventory of finished parts be maintained. The overall optimal decision policy is defined here as one that maximizes the long term average per unit time profit of a combined measure of quality and quantity dependent sales revenue, minus inventory and backlog costs, in the presence of random plant failures and random repair durations. Policy optimization is achieved via a revisited model of the Bielecki-Kumar theory for Markovian machines and a simulation and experimental design based methodology for the more general cases.

Suggested Citation

  • Hajji, A. & Mhada, F. & Gharbi, A. & Pellerin, R. & Malhamé, R., 2011. "Integrated product specifications and productivity decision making in unreliable manufacturing systems," International Journal of Production Economics, Elsevier, vol. 129(1), pages 32-42, January.
  • Handle: RePEc:eee:proeco:v:129:y:2011:i:1:p:32-42
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    References listed on IDEAS

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    1. T. Bielecki & P. R. Kumar, 1988. "Optimality of Zero-Inventory Policies for Unreliable Manufacturing Systems," Operations Research, INFORMS, vol. 36(4), pages 532-541, August.
    2. Ben-Daya, Mohamed, 2002. "The economic production lot-sizing problem with imperfect production processes and imperfect maintenance," International Journal of Production Economics, Elsevier, vol. 76(3), pages 257-264, April.
    3. Pellerin, Robert & Sadr, Javad & Gharbi, Ali & Malhamé, Roland, 2009. "A production rate control policy for stochastic repair and remanufacturing systems," International Journal of Production Economics, Elsevier, vol. 121(1), pages 39-48, September.
    4. Gharbi, A. & Kenne, J. P., 2000. "Production and preventive maintenance rates control for a manufacturing system: An experimental design approach," International Journal of Production Economics, Elsevier, vol. 65(3), pages 275-287, May.
    5. Ben-Daya, M. & Rahim, M. A., 2000. "Effect of maintenance on the economic design of -control chart," European Journal of Operational Research, Elsevier, vol. 120(1), pages 131-143, January.
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    Cited by:

    1. Li, Yan-Lai & Tang, Jia-Fu & Chin, Kwai-Sang & Jiang, Yu-Shi & Han, Yi & Pu, Yun, 2011. "Estimating the final priority ratings of engineering characteristics in mature-period product improvement by MDBA and AHP," International Journal of Production Economics, Elsevier, vol. 131(2), pages 575-586, June.
    2. Bouslah, B. & Gharbi, A. & Pellerin, R., 2016. "Integrated production, sampling quality control and maintenance of deteriorating production systems with AOQL constraint," Omega, Elsevier, vol. 61(C), pages 110-126.
    3. Rivera-Gómez, Héctor & Gharbi, Ali & Kenné, Jean Pierre, 2013. "Joint production and major maintenance planning policy of a manufacturing system with deteriorating quality," International Journal of Production Economics, Elsevier, vol. 146(2), pages 575-587.

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