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About this book

The two volumes IFIP AICT 414 and 415 constitute the refereed proceedings of the International IFIP WG 5.7 Conference on Advances in Production Management Systems, APMS 2013, held in University Park, PA, USA, in September 2013. The 133 revised full papers were carefully reviewed and selected for inclusion in the two volumes. They are organized in 4 parts: sustainable production, sustainable supply chains, sustainable services, and ICT and emerging technologies.

Table of Contents


Sustainable Production


Towards an Approach to Identify the Optimal Instant of Time for Information Capturing in Supply Chains

Supply chains are becoming increasingly complex and with this development the challenges towards information management increase. The importance of capturing the right, most relevant information in order to avoid having too much information to handle is commonly accepted in industry and academia. But the question not yet sufficiently discussed by industry and academia is: What is the optimal instant of time to capture the relevant information along the process chain? With this paper the authors look into this issue by first analyzing two practical cases, from a transport and a manufacturing perspective. Afterwards, the elements of information captured are shortly elaborated and finally, constraints on the determination of the optimal instant of time for information capturing are elaborated in order to build a foundation for further research. This paper is a first step towards a methodological approach taking on these issues. A short conclusion and outlook summarizes the paper.

Thorsten Wuest, Dirk Werthmann, Klaus-Dieter Thoben

Exploring Different Faces of Mass Customization in Manufacturing

The present research aims at developing a framework to support MC companies in understanding different considerations and issues of mass customization manufacturing (MCM). It introduces crucial aspects of MCM by analyzing existing MC enablers and technologies as well as the trending ones which might be used in future of mass customization manufacturing. The framework is developed in two levels grounding on both literature and practical findings.

Golboo Pourabdollahian, Marco Taisch, Gamze Tepe

State-Oriented Productivity Analysis in One-of-a-Kind-Production

Traditional productivity analysis has emerged in mass production and cannot be adopted one-to-one on One-of-a-kind production (OKP). Due to the non-repetitive character of the processes in OKP, productivity improvements do not reproduce like in mass production. In addition, preparatory activities such as orientation, material handling and positioning usually consume a lot more time than the actual value-adding activities in OKP. Therefore, OKP requires analysis methods that deliver: 1) a generic working cycle to enable repetitive productivity improvements; 2) activities of personnel in production processes, which include the preparatory activities. We introduce a state-oriented approach for productivity measurement in OKP. With a case study we show how to capture, visualize and evaluate state data of an OKP.

Florian Tietze, Hermann Lödding

A Study on the Effect of Inspection Time on Defect Detection in Visual Inspection

In order to consider the visual inspection utilizing the peripheral vision, this paper examines the inspection times that affect defect detection. The fixation duration and the distance between defect and the fixation point are experimental factors in determining the inspection time. As the result, in case of a large sized defect, the detection rate is high regardless of the fixation duration and the distance between the defect and the fixation point. In case of a small sized defect, when the fixation duration is longer and the distance between the defect and the fixation point is closer, the defect detection rate is higher. Moreover, as the result of conducting multiple linear regression analysis about the experiment factors, it is obtained that judging from standardized partial regression coefficient of factors, higher defect size, less the distance between defect and the fixation point, the higher fixation duration, is proved to improve the defect detection.

Ryosuke Nakajima, Keisuke Shida, Toshiyuki Matsumoto

Toward Automated Design for Manufacturing Feedback

Iterative loops and rework between design, manufacturing, and testing delay the development lead time for complex products like vehicles. This research focuses on creating an automated design for manufacturing (DFM) feedback system (ADFS) framework that reduces these iterations by providing early, fast, and informative feedback on manufacturability to designers. The proposed ADFS analyzes manufacturability in terms of part geometry with respect to a given set of process capabilities based on DFM guidelines for vehicle manufacturing. In order to increase the fidelity of the search, a heuristic approach to obtain manufacturing process fitness with respect to a part design is introduced. The proposed system framework will help to identify suitable manufacturing processes more quickly as well as provide visual feedback for geometric advice at the feature level with regard to the selected processes.

Wonmo Kim, Timothy W. Simpson

Game Theoretical Approach to Supply Chain Microfinance

This paper considers a supply chain microfinance model in which a manufacturer acts as a lender and a raw material supplier as a borrower. Using a game theoretical analysis, the study investigates how investment levels, raw material prices, and profit margins are influenced by loan interest rates under two types of decentralized channel policies: manufacturer Stackelberg and vertical Nash game. In addition, the study shows how the profits of a manufacturer and a supplier are changed under each supply chain channel structure.

Jaehun Sim, Vittaldas V. Prabhu

Surplus Product Donation and Sustainability Strategy: Channels and Challenges for Corporate Product Donations

Sustainability addresses three aspects of corporate responsibility: economic, environmental and social. Over the years, the operations and supply chain literature has focused on economic and environmental objectives limiting the social agenda to ethical sourcing practices. Yet the disposition of surplus inventories in particular and charitable giving in general are key components of corporate social responsibility. We discuss the channels and challenges for companies’ surplus inventory donations and describe why companies should integrate product donations within their overall corporate sustainability strategy.

Md. M. Islam, John Vande Vate

Social Sustainability: Perspectives on the Role of Manufacturing

The notion of social sustainability has been developed aiming at global growth. Policy makers have elaborated on this concept at regional and country level. Institutions and associations representing the scientific and technological environment have proposed their visions. Enterprises have adopted Corporate Social Responsibility practices. In this context, the role of manufacturing may have appeared so far limited to the specific aspects related to the workplaces. However, a broader perspective can lead to an extended awareness on how manufacturing can contribute to the social sustainability.

Paola Fantini, Marco Taisch, Claudio Palasciano

Information Flows in Future Advanced Manufacturing Ecosystems

Manufacturing is the backbone of each and every society, and in order for society to sustain in long run the manufacturing has to be sustainable as well. The sustainability in the field of manufacturing has traditionally been discussed in a sense of operational efficiency and environmental metrics. Rarely the link between individuals working in the company and the efficiency of operations has been established and discussed deeply. This link is information flow that combines both tacit and formal information in a dynamically changing socio-technical environment. In this paper the information flow between individuals in different levels of company hierarchy is utilized as the observation baseline. This paper discusses the information flow within a company and outlines socio-technical challenges needed to solve in order to realize future Advanced Manufacturing Ecosystems.

Minna Lanz, Matti Majuri, Reijo Tuokko

Social Sustainability Challenges for European Manufacturing Industry: Attract, Recruit and Sustain

The purpose of this paper is to link social sustainability challenges to manufacturing companies, focusing on the upcoming recruitment crisis caused by demographic changes in Europe. The findings are based on literature studies that were validated and reflected upon as the study progressed. The conclusion is that diversity within the manufacturing industry has to be increased in order to expand the pool of possible employees by focusing on three main improvements: providing interesting jobs, work flexibility and an improved image of the industry.

Cecilia Berlin, Caroline Dedering, Guðbjörg Rist Jónsdóttir, Johan Stahre

Energy-Efficiency Concept for the Manufacturing Industry

Depletion of fossil energy sources, rising energy prices and government regulation coerces manufacturing companies to foster their energy-efficiency. Among others, Information and communication technologies (ICT) are considered to be major enablers for improving the energy-efficiency. In this paper a concept for energy-efficiency based on an Event-driven Architecture (EDA) using Complex-Event-Processing (CEP) is presented that supports the integration of sensor data from the shop-floor level into the company’s decision support systems. Finally, a use-case for implementing the proposed concept in a real production environment is presented.

Volker Stich, Niklas Hering, Christian Paul Starick, Ulrich Brandenburg

Attacking the Critical Parts in Product Development

Marin Platform - Building Flexible Structural Elements for Boats

The product cycle is changing, where time legs are shorter, high volume- and cash cow-phases fading. Rapid product introduction and customization are keywords, and often associated with modularization. The objective is to create a flexible product design, not requiring changes in the overall product design every time a new variant is introduced. This has been a feasible strategy for manufacturers of small boats in high-cost countries where an incremental development process is well suited for modularization. However, also more radical innovations are needed, not only change modules and product configurations but also have to develop new product platforms. We then have to deal with the critical, resource demanding processes. This conceptual paper describes how boat builders take modularization to a higher lever by attacking the critical parts in product development, i.e. the structural elements of boats.

Bjørnar Henriksen, Carl Christian Røstad

Chance Constrained Programming Model for Stochastic Profit–Oriented Disassembly Line Balancing in the Presence of Hazardous Parts

A Stochastic Partial profit–oriented Disassembly Line Balancing Problem (SP–DLBP) in the presence of hazardous parts is considered. The goal is to assign disassembly tasks of the best selected disassembly alternative to a sequence of workstations while respecting precedence and cycle time constraints. An AND/OR graph is used to model the disassembly alternatives and the precedence relations among tasks. Task times are assumed independent random variables with known normal probability distributions. Cycle time constraints are to be satisfied with at least a certain probability level fixed by the decision maker. The objective is to maximize the profit produced by the line. It is computed as the difference between the positive revenue generated by retrieved parts and the line operation cost considered as negative revenue. The line cost includes the workstations operation costs as well as additional costs of workstations handling hazardous parts of End of Life (EOL) product. To deal with uncertainties, a Chance Constrained Programming formulation is developed.

Mohand Lounes Bentaha, Olga Battaïa, Alexandre Dolgui

From EcoDesign to Industrial Metabolism: Redefinition of Sustainable Innovation and Competitive Sustainability

Successful enterprises are distinguished by their sustainable development reliant on their ability to learn and develop innovative solutions. Recyclability (material and product design) and recycling (process design) emerge as new paradigm for sustainable competitiveness.

The paper makes a critical evaluation of the most commonly tools and techniques in use and suggests a redefinition of the concept of EcoDesign by integrating End-of-Life activities to gain industrial metabolism. This approach takes a broader innovation perspective, necessary to construct a sustainable innovation community with material balance of the system. The paper suggests a modular approach as generator for integrating embedded firm specific elements into a renewal networked supply chain.

Stig Brink Taps, Thomas Ditlev Brunø, Kjeld Nielsen

Resource-Efficient Production Planning through Flexibility Measurements in Value Creation Systems

For years, manufacturing companies have faced an increasingly complex and rapidly changing market environment which is the result of, if nothing else, higher customer individualization. This particularly concerns SME’s, whose competitiveness is increasingly dependent on the early identification of new customer and market requirements and their ability to dynamically respond to these in an adequate fashion. In order to meet the high standards demanded of the planning quality and planning safety with ever increasing complexity and the continuous reduction of the planning time available, SME-compatible IT technologies are needed for the simulation of complex manufacturing relations. The following article addresses this problem and in-troduces the method set ecoFLEX, which enables the simulation of targeted and dynamic alignment of existing plant structures, resources and value-added processes with new production requirements. Unlike digital factory planning tools, a complete picture of the specific plant situation is not required, as will be illustrated by selected case studies from the medium sized production sector.

Sven Rogalski, Hendro Wicaksono, Konstantin Krahtov

Modeling Energy Performance of Manufacturing Systems Using Gi/M/1 Queues

Energy expended in a discrete manufacturing system can be saved by turning idle machines off. Utilizing this idea, previous research has contributed preliminary models in which mainly M/M/1 machines are considered. To generalize existing approaches, this paper proposes a new energy model based on a Gi/M/1 queueing network. To start, a simulation model is built with Gi/M/1 machines. The proposed model is then built by fitting each GED (Generalized Erlang Distribution) to the observed first two moments of simulated interarrival times of all machines. Consumed energy is calculated separately by the proposed and simulation models, and, in the comparison between two estimations, the proposed method shows at most 4% different energy estimation from simulated values, suggesting that the proposed approach is promising for the energy analysis about a Gi/M/1 queueing network.

Hyun Woo Jeon, Vittaldas V. Prabhu

Modeling of Energy-Efficient Factories with Flow System Theory

Energy and resource efficiency have become important objectives for industrial processes. They are taking more and more impact on the competitiveness of companies. Therefore, energy-efficient factory systems are needed in terms of sustainable production. Thus, new or improved models, methods and tools focusing energy efficiency are necessary. In this paper, the “Flow System Theory”, as a tool for modeling technical systems and processes, is presented. It is extended in order to describe the energy flow systems of factories. This is supposed to be the basis for systematic modeling of energy-efficient factory systems.

Hendrik Hopf, Egon Müller

Agile Planning Processes

The paper explores the requirements and support systems for agile planning processes. It reviews therefore traditional planning processes and proposes a new model based on agile principles. The novel planning model is employed to frame a component-based planning approach and its application in a planning manual.

Ralph Riedel, David Jentsch, Sebastian Horbach, Joerg Ackermann, Egon Müller

Multi-stage Parallel Machines and Lot-Streaming Scheduling Problems – A Case Study for Solar Cell Industry

This research focuses on a parallel machines scheduling problem considering lot streaming which is similar to the traditional hybrid flow shop scheduling (HFS). In a typical HFS with parallel machines problem, the allocation of machine resources for each order should be determined in advance. In addition, the size of each sublot is splited by parallel machines configuration. However, allocation of machine resources, sublot size and lot sequence are highly mutual influence. If allocation of machine resources has been determined, adjustment on production sequence is unable to reduce production makespan. Without splitting a given job into sublots, the production scheduling cannot have overlapping of successive operations in multi-stage parallel machines environment thereby contributing to the best production scheduling. Therefore, this research motivated from a solar cell industry is going to explore these issues. The multi-stage and parallel-machines scheduling problem in the solar cell industry simultaneously considers the optimal sublot size, sublot sequence, parallel machines sublot scheduling and machine configurations through dynamically allocating all sublot to parallel machines. We formulate this problem as a mixed integer linear programming (MILP) model considering the practical characteristics including parallel machines, dedicated machines, sequence-independent setup time, and sequence-dependent setup time. A hybrid-coded particle swarm optimization (HCPSO) is developed to find a near-optimal solution. At the end of this study, the result of this research will compare with the optimization method of mixed integer linear programming and case study.

Hi-Shih Wang, Li-Chih Wang, Tzu-Li Chen, Yin-Yann Chen, Chen-Yang Cheng

An Exact Method for the Assembly Line Re-balancing Problem

In this paper, we propose a mathematical optimisation model to solve the simple assembly line rebalancing problem. This problem arises when an existing assembly line has to be rebalanced in order to meet new production requirements. In this paper, a Mixed Integer Program is proposed for solving this problem with the objective to minimize the number of changes in the initial line. The computational experiments show the efficacy of the proposed method.

Fatme Makssoud, Olga Battaïa, Alexandre Dolgui

Green Factory Planning

Framework and Modules for a Flexible Approach

Planning green factories implies increased complexity depending on specific planning requirements and contradictory planning targets; these aspects challenge present methods and tool for factory planning. To properly face these challenges with limited time and resources (typical of planning projects) , a factory planning approach that particularly addresses green has to be adaptable to specific cases and aligned with the green vision of the factory. This paper proposes a modular Green Factory Planning and describes its main components. The conceptual elements for a framework and a planning process are presented and differences in methods and tool applications are described in comparison to established approaches. The method and tools are combined to planning modules, linked with a clear information flow as well as responsibility definition. A use case for a typical module that specifically considers energy consumption shows the potential of green as integrated vision for factory planning.

Florian Mueller, Alessandro Cannata, Bojan Stahl, Marco Taisch, Sebastian Thiede, Christoph Herrmann

Sustainability Evaluation of Mass Customization

This paper addresses the issue whether the concepts mass customization and sustainability are fundamentally compatible by asking the question: can a mass customized product be sustainable? Some factors indicate that mass customized products are less sustainable than standardized products; however other factors suggest the opposite. This paper explores these factors during three life cycle phases for a product: Production, Use and End of Life. It is concluded that there is not an unambiguous causal relationship between mass customization and sustainability; however several factors unique to mass customized products are essential to consider during product development.

Thomas Ditlev Brunø, Kjeld Nielsen, Stig Brink Taps, Kaj A. Jørgensen

Methodology for Internal Traceability Support in Foundry Manufacturing

Appropriate description and implementation of internal part traceability in manufacturing is a complex task. Accurate and real-time traceability from a part, or a part feature, to a manufacture, storage, or transport issue is essential to efficient and high-quality operations. With the increasing amount of machine status and product quality information coming from the manufacturing lines, certain questions arise. When there is a problem with the process or product quality what information can be utilized to enable effective traceability to the foundry batch lot? Also, what aggregate information values are needed to enable real-time problem solutions? In this paper a systems-based approach is used to propose a method to define and implement internal part traceability in two participating foundries.

Rhythm Suren Wadhwa

Assessment of Process Robustness for Mass Customization

In mass customization, the capability Robust Process Design defined as the ability to reuse or recombine existing organizational and value-chain resources is essential to deliver a high variety cost effectively. We argue that there is a need for methods which can assess a company’s process robustness and their capability to develop it. Through literature study and analysis of robust process design characteristics a number of metrics are described which can be used for assessment. The metrics are evaluated and analyzed to be applied as KPI’s to help MC companies prioritize efforts in business improvement.

Kjeld Nielsen, Thomas Ditlev Brunø

Conception of Technology Chains in Battery Production

Mainly activated by the ambitious global political targets in terms of electrification of transport, the demand for lithium-ion cells will rise strongly in the coming years. Currently, the request is slowed down by the high prices of battery cells. The production process of battery cells is characterized by very heterogeneous areas of expertise in the various process steps. This complicates the economic design of the whole production process considerably and leads to a focusing of the plant engineers to their original core issues. Therefore this article engages at this point and provides a methodology to support the production planner along the entire production planning process. After defining the requirements for the production line, the singular performance of technological alternatives, their suitability for the product as well as the interplay of alternatives are checked. Within in the focus of this paper, all steps are shown in context to lithium-ion-cells. Nevertheless, the presented methodology has a generic approach and can therefore also been used for other production processes.

Achim Kampker, Heiner Hans Heimes, Christian Sesterheim, Marc Schmidt

Towards a Knowledge-Intensive Framework for Top-Down Design Context Definition

This paper presents a skeleton-based modeling approach enabling the definition of a knowledge-intensive design context at the beginning of the embodiment design stage. The research introduces an analogy to the incubator concept by creating a suitable support along the design phase including CAD modeling. The main objective of the proposed approach is to integrate engineering information and knowledge in the early phases of the product development process in a top-down and seamless manner so as to provide a knowledge-based design context for designers. The fact of including a design context in the embodiment design phase will assist designers to make better-informed decisions and therefore linking


(technical entities and engineering data),


(rationale) and


(processes and functions). The concept of design incubator will be defined according to its function, behavior and structure (i.e. skeleton entities, functional surfaces, design spaces, parameters, knowledge and design requirements). The proposed design incubator ensures the knowledge delivery and engineering support at the right time. A case study has been carried out to demonstrate the developed method.

Nicolas Petrazoller, Frédéric Demoly, Samuel Deniaud, Samuel Gomes

A Novel Framework for Technological Evolution within Product Architecture

Nowadays, products are increasingly complex mostly in the area of high value-added products such as airplanes, oil rigs, digger or central power generation. More generally, these products are more complex due to successive and concatenation of innovations introductions while products constraints needs a capitalization of all developed technologies. This paper introduces a novel framework for technological evolution/introduction within product architecture in order to assess and manage product family and modular architecture to personalize and customize products. This framework is based on a medical analogy to walk through customer need recognition, product portfolio, and new technological introduction in all product lifecycle. To be proactive, this challenge highlight the need to capitalize knowledge and lesson learned on the past, present and future of the product architecture and technology used in today’s products based on innovative processes. More than one part, a technology is characterized by resources needed by this artifact in order to answer to an added function, new requirements, or added services. So a methodology will be proposed to tackle this challenge to be innovative in product design.

Yannick Chapuis, Frédéric Demoly, Samuel Gomes

A Production-State Based Approach for Energy Flow Simulation in Manufacturing Systems

Energy Efficiency plays a major role in manufacturing being one of the largest consumers and offering opportunities for cost-savings and improvements. Simulation is an established tool for optimizing manufacturing systems. The paper shows a new production-state based approach for integrating material flow and energy consumption in commercial discrete-event simulation software. Besides typical investigation of production assets, also technical building services as one potential major source for energy consumption are taken into account. The approach considers TBS as energy demand requirements from assets and does not require modeling the behavior of TBS systems. Hence, robust simulation results can be achieved by much faster modeling time.

Marco Taisch, Bojan Stahl, Federica Vaccari, Andrea Cataldo

Sustainability Enhancement through Environmental Impacts Evaluation

The work is aimed to propose an approach toward the evaluation of environmental impacts enhancing sustainability and the process of environmental assessment in an optic of sustainable development. A set of environmental aspects applicable to a firm activity to define the overall environmental impact are selected and processed through a fuzzy approach aimed to reduce subjective judgments. The procedure is based on a vectorial graph allowing to organize data and define a structured data analysis. An action research conducted in a genetic research center is conducted to evaluate the effectiveness of the proposed approach.

Matteo Mario Savino, Antonio Mazza

A Queuing Approach for Energy Supply in Manufacturing Facilities

Nowadays increasing energy efficiency is one of the main objectives of manufacturing systems so as to remain competitive despite of the foreseen increase in energy prices for the next years. We propose a novel queuing-based model for the appreciation of the energy consumption on a company base, so as to optimize the total energy costs due to electricity utilization.

We propose an analytical model based on the extension of the M


/M/∞ model where arrivals of the queuing model represent the statistical distribution of switch-on of a generic set of machines and departures represent statistical distribution of the resources switch-off. This model can be easily used to assess and establish the contract with the energy supplier under optimal parameters of contractual power, based on its tariff components. Numerical examples are offered to show the applicability of the proposed model.

Lucio Zavanella, Ivan Ferretti, Simone Zanoni, Laura Bettoni

Efficient Energy Performance Indicators for Different Level of Production Organizations in Manufacturing Companies

Demands for lower CO2 emissions due to the climate change and the rising of energy prices force manufacturing companies to deal with the energy issue. Energy management, where one of the tasks is energy efficiency evaluation, can help the companies to overcome the issue. This paper presents holistic metric to evaluate the energy efficiency in manufacturing companies, which considers the different organization level of production, such as machine or equipment level, production line level, and factory level. As the size of the scope and the number of observed factors vary, the metric provide flexible criteria to select relevant variables. The developed metric could be used to simulate and to compare energy efficiency of different production facilities, lines, and factories in a single company. The metric is an instrument to recognize how energy (in) efficient is a production system, so that adjustments may be made in the planning and management to achieve the energy savings.

Hendro Wicaksono, Tim Belzner, Jivka Ovtcharova

Energy Related Key Performance Indicators – State of the Art, Gaps and Industrial Needs

Better monitoring and control of energy consumption and effective use of performance indicators are of utmost important for achieving improved energy efficiency performance in manufacturing for current and future enterprises. This paper aims at analyzing the current state of the art on energy related production performance indicators to derive research gaps and industrial needs in the area. The research has been conducted as preliminary step before a comprehensive effort in which the authors suggest a new methodology to develop energy related key performance indicators. Therefore, the study resulted in a clearer understanding and synthesis of the research field, gaps in scientific literature and industrial needs, hence guiding further research.

Gökan May, Marco Taisch, Vittaldas V. Prabhu, Ilaria Barletta

A Model Based Continuous Improvement Methodology for Sustainable Manufacturing

This paper proposes a model based continuous improvement methodology to support efforts to achieve sustainable manufacturing, i.e., to increase efficiency and reduce environmental impact of manufacturing systems. Past efforts have provided guidance at a high level or with a focus on products. This paper focuses on supporting efforts for manufacturing, in particular, at the factory level. A framework is proposed to support the methodology by facilitating application of optimization and simulation models for sustainable manufacturing.

Sanjay Jain, Gordon Shao, Alexander Brodsky, Frank Riddick

Sustainable Supply Chains


An Information Reporting Web Service Framework for Integration of Gate-to-Gate Process-to-Energy Metrics

Modern day manufacturing is required to respond to many facets of dynamic change including consumer and technological trending, increasing levels of legislation, fluctuation of competitor market strategy and total available market based on domestic and international trading conditions amongst others. High up on the supply chain agenda and a topic of continually increasing importance is energy efficiency. This paper presents an information reporting service framework for gate-to-gate (G2G) process-to-energy (P2E) metrics. Our use case focuses on obtaining energy performance information associated with welding robots used in assembly process.

Lewis John McGibbney, Mark Peng, Kincho Law

The Reverse Logistics Technology and Development Trend of Retired Home Appliances

This paper has introduced the status of retired home appliances reverse logistics industry in China , elaborated the key technologies which need to be focused on to enhance the development level of reverse logistics industry, including product life cycle information tracing technology , retired product quality detection technology , inventory optimization control technology, to build efficient reverse logistics information system and lead the industry to develop in the direction of informationization and standardization.

Xin Zhao, Yonggao Fu, Jiaqi Hu, Ling Wang, Meiling Deng

Warehousing Sustainability Standards Development

Warehousing, traditionally, is concerned only with the storage and distribution of products or work-in-process (WIP). However, the role of warehouses has evolved to also provide manufacturing, assembly, and other value-added services. In that sense, warehouses and their operations play an important role in sustainable supply chain. However, sustainability improvement in warehousing has not been receiving much attention. This paper describes the motivations to develop sustainability standards for warehousing and introduces an effort recently started by industry to develop these standards. The paper is a starting point to define uniform sustainability metrics, measurements, and guidelines for the warehouse industry. It discusses future development directions and existing works that can form the basis for expanding the warehousing sustainability standards. Although there are no specific metrics and guidelines for warehousing operations in the existing works, we discuss they may be the basis for further development of such warehousing sustainability standards.

Richard Bank, Richard Murphy

Energy Savings Opportunities and Energy Efficiency Performance Indicators for a Serial Production Line

Modern manufacturing facilities waste various energy savings opportunities (ESO) and lack proper performance indicators to measure energy efficiency on the production line. The ESO is an opportunity window calculated from on-line production data, such as production count, machine downtime records, buffer levels, and machine idle status, allowing certain machines to be turned off for energy savings without negatively affecting throughput. New energy efficiency performance indicators are presented that use real time production data to identify the least energy efficiency machine on the line. The energy savings opportunity strategy utilizes the Energy Efficiency Performance Indicators (EEPI) to take the opportunity window for the least energy efficient machine at opportune times, allowing for improvements to be made to the machine, increasing the overall energy efficiency of the line.

Michael Brundage, Qing Chang, Shiyao Wang, Shaw Feng, Guoxian Xiao, Jorge Arinez

Integration of Energy Information for Product Assembly and Logistics Processes

This paper presents an on-going effort at NIST to model the energy information in assembly and logistics processes as a part of a larger sustainability improvement goal. Energy information comprises energy input, baseline energy consumption, and energy performance. An information model in this paper is developed for enabling integration of energy information in assembly and logistics processes. Based on this information model, industry will be able to share energy-related data on the overall plant level which is traceable to individual processes, equipment, and suppliers. This will enable manufacturers to identify energy saving opportunities in their assembly processes and supply chains.

Shaw Feng, Senthilkumaran Kumaraguru, Kincho Law, Kyeongrim Ahn

Supply Chain Interoperability Efforts Missing Key Data

True manufacturing supply chain interoperability—where the assembly, reconfiguration and reconstitution of supply chains are done with minimal effort, time or cost—can dramatically alter the way that business is done today. Much of the existing research on supply chain interoperability focuses on established trading partners. However, we must consider both the sourcing and connecting processes in order to create true, dynamic supplier networks that can be easily assembled, reconfigured or reconstituted. This paper identifies why this is important, presents key challenges and proposes additional research that is needed to fill in the gaps.

Christopher Peters

A Framework for Developing Manufacturing Service Capability Information Model

Rapid formation and optimization of manufacturing production networks (MPN) requires manufacturing service capability (MSC) information of each party be accessible, understandable, and processible by all others in the network. However, at the present time, MSC information is typically encoded according to local proprietary models, and thus is not interoperable. Related existing works are primarily for integration in “isolated automation” of pair-wise or small size networks and thus are not adequate to deal with the high degree of diversity, dynamics, and scales typical for a MPN. In this paper, we propose a model development framework which enables to evolve a reference model for MSC information based on the inputs from proprietary models. The developed reference model can serve as a unified semantic basis supporting interoperability of MSC information across these local proprietary models. Methodology for resolving structural and other semantic conflicts between deferent models in model development is also presented.

Yunsu Lee, Yun Peng

A Consilience-Based Approach to Engineering Services in Global Supply Chains

Technology life cycles are becoming shorter as is the time for those technologies to become ubiquitous in the society. The Industrial Revolution took about 150 years; but the computer revolution took only 50 years. Cell phones, which hit the market in the early 1980s took only 25 years to become a global phenomenon. Computers and cell phones are two examples of a growing number of products that marry hardware, software, communications, and physical components into what are called cyber physical systems. Even though humans are, for the most part, only users of these systems, they are already having a considerable impact on the evolution of society. In this paper, we focus on the next stage of that evolution, cyber-physical systems. We also focus on changes in how these systems are engineered. Formally designed only by OEMs, these systems are now engineered across the supply chain. A number of companies now provide engineering services. We discussed a number of existing approaches to systems engineering and concluded that they are inadequate. Finally, we propose a new, consilience-based approach that draws on the disciplines and practices that can inform and help resolve those inadequacies.

Eswaran Subrahmanian, Albert Jones

Manufacturing Capability Inference and Supplier Classification Based on a Formal Thesaurus

Standard representation of manufacturing capability information is a necessity for efficient configuration of loosely-coupled supply chains. ManuTerms is a formal thesaurus that provides a set of standard vocabulary that can be used for description of manufacturing capabilities. In this paper, a method is proposed for supplier characterization and classification guided by ManuTerms. The tools developed in this work use the capability narrative of manufacturing suppliers as the input and extract key concepts that refer to certain aspects of manufacturing capabilities in order to characterize and classify manufacturing suppliers. Through an experimental study, the supplier classification method was validated with respect to the level of agreement with human judgment.

Farhad Ameri, Stan Thornhill

Excellent Manufacturer Scouting System (EMSS) for Korean Molding Industry

As up-to-date competitive environment of manufacturing business has accelerated global outsourcing, the selection of the right partners becomes more important than ever in securing competitiveness. To have the best partner selections, it is necessary to discover potential partners (either suppliers or buyers) located in all over the world and to evaluate their capability to produce eventual profits. e-marketplaces of manufacturing services are collaboration systems that support cooperation between suppliers and buyers. The objective of this paper is to present a web-based collaboration system, referred to as excellent manufacturer scouting system (EMSS). EMSS provides collaboration services for discovering, evaluating, negotiating and cooperating to ensure interoperability amongst manufacturing companies. EMSS employs an ontology-based mechanism for semantic interpretation, and it is equipped with an assessment model of core manufacturability. In this paper, a supply chain collaboration model using EMSS for molding industry is also proposed.

Moonsoo Shin, Sangil Lee, Kwangyeol Ryu, Hyunbo Cho

Use Case Analysis for Standard Manufacturing Service Capability Model

Manufacturing enterprises are becoming globally distributed production systems. Rigid supply chains are giving way to dynamic supply networks that are cost-efficient and can respond to change quickly. A key factor in the formation of dynamic supply networks is the communication of manufacturing capabilities – both production capabilities and information processing capabilities. These are collectively referred to as manufacturing service capability (MSC) information. Presently, MSC information is provided using many different, proprietary terminologies and representations. The lack of a standard model impedes communications of MSC information. We propose the development of a standard MSC model to enhance the MSC information communications. This paper motives such development by presenting a use case analysis that illustrates the current and a desirable future state of MSC information communication. The future state, which relies on a standard MSC model can advance the current practice and allow precise and computer-interpretable representation of MSC information.

Yunsu Lee, Boonserm (Serm) Kulvatunyou, Marko Vujasinovic, Nenad Ivezic

Governing and Managing Customer-Initiated Engineering Change: An In-Depth Case Study of a Global Industrial Supplier

Engineering change management is managing an alteration made to the technical system and/or its related value chain processes and documentation that have already been released during the product and process design process. The change can either emerge during the process or be initiated internally or externally by for instance customers. Managing initiated engineering changes is a vital source for improving product performance and radically reducing change costs. Customer-initiated engineering change is an area growing in importance decreasing product life cycles and increasing demand for customisation. Through an in-depth case study, this paper investigates which process and what governance setup is appropriate to manage customer initiated engineering changes, referred to as request management. The paper includes a proposal for a request management framework and a task-based iterative process model based on existing engineering change management theory and case study findings.

Anita Friis Sommer, Simon Haahr Storbjerg, Iskra Dukovska-Popovska, Kenn Steger-Jensen

Supplier Value of Customer-Initiated Product Development: An In-Depth Case Study of a European Industrial Mass-Producer

Increased market demand and shortened product life cycles generate industrial customer requests for collaborative product development. Manufacture-to-stock suppliers struggle to manage the request process to obtain profitability. The purpose of this paper is to investigate if request management is profitable for mass-producing suppliers, and to examine possible relations between profitability of requests and the requesting customer. Through a case study, request management is identified as a profitable process due to long-term accumulated profit from developed products. Request profitability is not identified as related to profitability or turnover of existing customers, and thus profitability of requests cannot be predicted based on these customer data. Results from a coupled interview study indicate that request management has a large potential for future exploitation, and an outline of the supplier value potential of collaborative product development is proposed.

Anita Friis Sommer, Iskra Dukovska-Popovska, Kenn Steger-Jensen

Long Term Analysis of Energy Payback Time for PV Systems

The energy payback performance of an energy generating technology such as PV, is usually based on a single system considering static parameters for its evaluation. However it is recognized that performances of an installed systems decrease over time, while, on the other hand, the performances of new systems is expected to slightly increase over time. Additionally the energy required for manufacturing a new system has decreased significantly in the last years and additional decrease is expected in the near future; moreover the opportunity to recycle materials from dismantled PV installations is becoming massively investigated and some technologies are already on industrial scale. These dynamic aspects inspired the present work that firstly consider the calculation of the energy payback of PV systems that should drive the most sustainable decision regarding the optimal timing for dismissing of an old PV system and replacement with a new one.

Simone Zanoni, Laura Mazzoldi

An Optimization Model for Advanced Biofuel Production Based on Bio-oil Gasification

Biomass can be converted to transportation fuels through gasification. However, commercialization of biomass gasification has been hampered by its high capital and operating costs, in addition to the difficulties of transporting bulky solid biomass over a long distance. A novel approach is to convert biomass to bio-oil at widely distributed small-scale fast pyrolysis plants, transport the bio-oil to a centralized location, gasify the bio-oil to syngas, and upgrade the syngas to transportation fuels. In this paper, a two-stage stochastic programming is formulated. The first-stage makes the capital investment decisions including the locations and capacities of the bio-facilities (fast pyrolysis and refining facility) while the second-stage determines the biomass and biofuels flows. This paper aims to find the optimal design of the supply chain for this certain path considering uncertainties in biomass yield, biofuel price and transportation costs.

Qi Li, Guiping Hu

A Sequential Fast Pyrolysis Facility Location-Allocation Model

The revised Renewable Fuel Standard (RFS2) mandates the U.S. consume16 billion gallons per year (BGY) of biofuels from cellulosic sources by the year 2022. Fast Pyrolysis of biomass is a renewable conversion process developed for producing liquid transportation fuels, such as gasoline and diesel.

The pathway investigated in this study is fast pyrolysis and hydroprocessing to produce transportation fuels from corn stover. A mathematical model is formulated to study the supply chain design problem. The objective is to optimize an orderly fast pyrolysis facility locations and capacities that maximize the net present value (NPV) of the total profit for the next 10 years (2013-2022). Numerical examples for Iowa are also presented.

Yihua Li, Guiping Hu

Potential Woody Biomass Supply Chain Scenarios: A Conceptual Study

The interconnectivity among various business entities and physical functions of woody biomass supply chains requires a system-wide perspective. Extant studies largely focus on individual business units or sets of activities. This paper takes a supply chain perspective to gain an understanding of potential woody biomass supply chains. The study draws insights from an extensive review of literature to conceptualize potential woody biomass supply chain scenarios. Three woody biomass supply chain scenarios and associated logistics activities were defined from the analysis of literature content. They are woody biomass sourcing from forest product manufacturers, forest landowners, and biomass pre-processers. Findings suggest that woody biomass as a marketable commodity creates business opportunities for loggers and forest product manufacturers. In moving forward, infrastructure and technological development is vital, encompassing logging capability and transportation and industrial infrastructure.

Evelyn A. Thomchick, Kusumal Ruamsook

Closed Loop Supply Chains for Sustainable Mass Customization

Closed loop supply chains reducing waste, energy consumption and natural resource depletion which all contribute to more sustainable production and products. For mass customization however, the challenges of closed loop supply chains are emphasized by the large variety of inbound end-of-life products from customers which complicates handling and forecasting. This paper analyses these challenges in the specific context mass customization using theoretical considerations and three case studies.

Kjeld Nielsen, Thomas Ditlev Brunø

Determination of the Spare Parts Demand for Maintenance, Repair and Overhaul Service Providers

Service providers for maintenance, repair and overhaul (MRO) of aircrafts and components face major challenges. The calculation of an optimal stock level for components is one of these. The optimal stock level is highly influenced by the customers demand. Furthermore the stock level influences the profitability of the processes. The challenge for MRO service provider is to respond to the changing customer base and to adapt the stock level for components dynamically. For this purpose, an approach for the determination of the spare parts demand is described in this paper. The approach consists of a hierarchical derivation of reliability parameters in the first step and finally an assessment of the derived reliability parameters. By this assessment the relevance of different impact factors can be determined. The determination of the spare parts demand and the optimal stock level can thereby be determined much more accurately.

Uwe Dombrowski, Sebastian Weckenborg

Using Cloud, Modularity, and Make-to-Upgrade Strategy for Integrating Customized-Oriented Supply Networks

In the current global business individual demand play crucial roles. Customized-oriented supply networks are being proliferated in manufacturing industries, yet integration of their members is still quite challenging. As a practical solution, in this paper a new collaborative approach out of modularity structure, cloud computing, and a novel production strategy, called Make-to-Upgrade (MTU), is suggested. The complementary aspects of these techniques are highlighted and briefly explained here. MTU is as a strategy for future products with new characteristics, e.g., upgradability.

Afshin Mehrsai, Hamid-Reza Karimi, Klaus-Dieter Thoben

Reverse Logistics: Network Design Based on Life Cycle Assessment

When aiming to a more sustainable world, enterprises such as aircraft and automobile industries are highly interested in light weight components and solutions. Of these solutions are aluminum wrought alloys that offer high potentials for dramatic weight reduction of structural parts. Nevertheless, the production of virgin aluminum is, however, highly energy consuming. Hence, and in SuPLight project, we are interested in recycled aluminum. The aim of this project is to address new industrial models for sustainable light weight solutions – with recycling in high-end structural components based on wrought alloys. In this article we address the issue of designing the reverse logistics chain assuring the needed volume of recycled aluminum for the production of L-shaped Front Lower Control Arms for personal cars.

Joanna Daaboul, Julien Le Duigou, Diana Penciuc, Benoît Eynard

Modeling and Simulation of Closed-Loop Supply Chains Considering Economic Efficiency

This study proposes a basic model of closed-loop supply chains which includes not only traditional forward supply chains for the generation of products but also reverse supply chains for the reuse of products in consideration of economic efficiency for MTO (Make to Order) companies. The model consists of four model components, i.e., clients, manufacturers, suppliers, and remanufacturers. A remanufacturer is added to the previous model of forward supply chains as a new model component which collects used products from clients and provides reusable parts to manufacturers. Remanufacturers as well as manufacturers and suppliers modify their schedules and negotiate with each other in order to determine suitable prices and delivery times of products. Remanufacturers stimulate clients to discard used products to meet the demand of reusable parts. They can increase the amount of reused products and reduce wastes by creating a balance between supply and demand of reusable parts.

Yoshitaka Tanimizu, Yusuke Shimizu, Koji Iwamura, Nobuhiro Sugimura

Development of a Strategic Model for Freight Transportation with a Case Study of the Far East

Developing a strategic model has become a major concern for decision-makers owing to free trade agreements (FTAs), environmental pollution and the risk of changing route conditions. The main purpose of this study is to evaluate the effect of these factors by measuring the performance of a complete transportation solution in terms of cost, delivery time and environmental impact. To solve the problem within reasonable time, the proposed model was linearized and solved by using the software ILOG OPL. This study also compared the optimal solutions under four different configurations. The proposed model may be useful for both exporting companies and government agencies as a tool for evaluating the benefits of new alternative routes.

Louis Coulet, Sungbum Jun, Jinwoo Park

Semantic Web-Based Supplier Discovery Framework

As companies move forward to source globally, supply chain management has gained attention more than ever before. In particular, the discovery and selection of capable suppliers has become a prerequisite for a global supply chain operation. Manufacturing e-marketplaces have helped companies discover new suppliers and/or buyers fast and effective for their products and services. Due to the description of requirements and capabilities in isolation, their true meanings may not be uniformly interpreted from each other. The issue of semantics between suppliers and buyers, then, remains an obstacle.

The main objective is to propose a semantic web-based supplier discovery framework for building a long-term strategic supply chain. Specifically, 1) a collaboration ontology is developed to represent the supplier’s capability information and the buyer’s requirements. 2) Supplier’s potential capability is reasoned. 3) Buyer’s requirements are semantically matched with supplier’s capability information. In addition, a prototype demonstrates the practicality of the framework.

Jaehun Lee, Kiwook Jung, Bo Hyun Kim, Hyunbo Cho

Simulating the Dominant Effect of a Few Critical Sites on Supply Chains Using the Inter-industry Relations Table

We study supply chain disruptions, particularly in the passenger vehicles sector, caused by the mass industrial shutdowns due to the Great East Japan Earthquake in March, 2011, along with the restoration process to assess supply chain resiliency. We first investigate the extent of damage using the inter-industry relations table and then analyze from the viewpoints of geography, time, and economy. Following this, the layered structure was derived and the rate-determining factors of the restoration process were identified. Using these factors, we simulate the disruptions in and restoration of the passenger vehicles sector. This method using the I-O table is effective for assessment of supply chain resiliency.

Sadao Suganuma, Masaru Nakano

Dependability a Key Element for Achieving Competitive Advantage: A Study of Information Service Firms

In the current economic climate and intense competitive environment achieving sustainable competitive advantage has become vital for any organisation’s survival. Organisations around the globe are seeking ways to distinguish themselves from their competitors and win customers. This paper attempts to study the significance of sustainable competitive advantage from the information service firms’ perspective. The paper argues that service firms can distinguish themselves and attain competitive advantage by performing well on operational performance elements that lead to customer satisfaction, loyalty and ultimately to profitability. Particularly, the paper empirically investigates the importance of dependability and quality in driving customer satisfaction and customer loyalty. The analysis shows that dependability is a key driver of customer satisfaction and customer loyalty. Thus, information service firms should focus more on improving the reliability of their services to achieve competitive advantage and later that may lead to a sustainable competitive advantage.

Vikas Kumar, Archana Kumari, Jose Arturo Garza-Reyes, Ming Lim

Selection and Ranking of Low Cost Countries for Outsourcing and Offshoring in the Manufacturing Sector

With the advent of globalisation, there is a need for companies to gain and sustain a competitive advantage. Outsourcing and offshoring are strategies often employed by organisations to sustain and gain such competitive advantage. This paper focuses on evaluating the factors that influence the selection of Low Cost Countries (LCCs) for outsourcing and offshoring. It also ranks a group of seven LCCs to determine the best locations to emigrate manufacturing operations. To do this, the most influential factors for outsourcing and offshoring are identified and weighted based on their importance. Then, these factors are evaluated based on the degree of development in the studied LCCs. The study indicates that Taiwan, Indian and China are the best top options for manufacturing organisations to outsource/offshore their operations.

Rahul Ulhas Pai, Sujit Banerji, Jose Arturo Garza-Reyes, Ming Lim, Vikas Kumar


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