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Smart manufacturing operating systems considering parts utilization for engineer-to-order production with make-to-stock parts

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  • Weng, Jiahua
  • Mizoguchi, Shota
  • Akasaka, Shingo
  • Onari, Hisashi

Abstract

The fourth industrial revolution is expected to be powered by emerging technology breakthroughs in fields including robotics and artificial intelligence. Consequently, companies and countries are exploring smart, autonomous factories that can handle various customer requirements. However, 99.5% of Japanese manufacturers are small and medium-sized enterprises. Most of them lack digital connections even among internal departments, and their average labor productivity is only 43% that of large manufacturers. To realize a smart factory that can provide customized products over tight deadlines with high productivity, this study focuses on small and medium-sized engineer-to-order firms that fabricate parts before orders for final products are placed. Inventories suffering from both a lack and excess of parts are a major issue for such firms. To ensure such firms operate efficiently, we propose a novel production operating system that can link different types of information obtained by the sales, production, and procurement departments. Parts preparation is conducted by using future inquiry information, and the available parts are used through a predetermined order-receiving plan. The order-receiving plan is developed as an integer linear programming problem with constraints of parts inventory and short-term inquiry information. The efficacy of the proposed operating system in both increasing orders and reducing parts inventory is validated. We believe that our findings can significantly aid in the realization of future smart factories.

Suggested Citation

  • Weng, Jiahua & Mizoguchi, Shota & Akasaka, Shingo & Onari, Hisashi, 2020. "Smart manufacturing operating systems considering parts utilization for engineer-to-order production with make-to-stock parts," International Journal of Production Economics, Elsevier, vol. 220(C).
    • Handle: RePEc:eee:proeco:v:220:y:2020:i:c:s0925527319302695
    DOI: 10.1016/j.ijpe.2019.07.032
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    References listed on IDEAS

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    1. Yongxin Liao & Fernando Deschamps & Eduardo de Freitas Rocha Loures & Luiz Felipe Pierin Ramos, 2017. "Past, present and future of Industry 4.0 - a systematic literature review and research agenda proposal," International Journal of Production Research, Taylor & Francis Journals, vol. 55(12), pages 3609-3629, June.
    2. Tamura, Takayoshi & Fujita, Seiichi, 1995. "Designing customer oriented production planning system (COPPS)," International Journal of Production Economics, Elsevier, vol. 41(1-3), pages 377-385, October.
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    Cited by:

    1. Akhtar, Pervaiz & Ghouri, Arsalan Mujahid & Ashraf, Aniqa & Lim, Jia Jia & Khan, Naveed R & Ma, Shuang, 2024. "Smart product platforming powered by AI and generative AI: Personalization for the circular economy," International Journal of Production Economics, Elsevier, vol. 273(C).
    2. Yunus Zengin & Serkan Naktiyok & Erdoğan Kaygın & Onur Kavak & Ethem Topçuoğlu, 2021. "An Investigation upon Industry 4.0 and Society 5.0 within the Context of Sustainable Development Goals," Sustainability, MDPI, vol. 13(5), pages 1-16, March.
    3. Cannas, Violetta Giada & Gosling, Jonathan, 2021. "A decade of engineering-to-order (2010–2020): Progress and emerging themes," International Journal of Production Economics, Elsevier, vol. 241(C).

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