Marco Semini

Applications of discrete-event simulation to support manufacturing logistics decision-making: a survey

This paper presents a literature survey on recent use of discrete-event simulation in real-world manufacturing logistics decision-making. The sample of the survey consists of 52 relevant application papers from recent Winter Simulation Conference proceedings. We investigated what decisions were supported by the applications, case company characteristics, some methodological issues, and the software tools used. We found that the majority of applications has been reported in production plant design and in the evaluation of production policies, lot sizes, WIP levels and production plans/schedules. Findings also suggest that general-purpose DES software tools are suitable in most of these cases. For different possible reasons, few applications for multi-echelon supply chain decision-making have been reported. Software requirements for supply chain simulations also seem to differ slightly from those for established application areas. The applications described were carried out in a variety of different industries, with a clear predominance in the semiconductor and automotive industries

The Application of Lean Production Control Methods within a Process-Type Industry: The Case of Hydro Automotive Structures

Lean production has lead to substantial improvements in performance across many industries and is widely implemented today. Certain aspects of lean such as the focus on workplace organisation (5S) and total productive maintenance (TPM) have been applied to all types of industrial processes, while lean production control methods have mostly been applied in discrete and repetitive, assembly-type production. We believe that the real benefits of lean, for example throughput time and inventory reduction, are only realised when lean production control methods are implemented effectively. Therefore, we investigate the traditional lean production control methods of Heijunka and Kanban, and evaluate the concept of every product every (EPE) as an alternative lean production control method for the process-type industries.

Strategies for customized shipbuilding with different customer order decoupling points

The ship design and construction industry serves a considerable range of market segments, with different levels of required customization, different demand volumes, and other product and market variations. In order to effectively respond to various market requirements, strategies and related work processes need to be differentiated. An important strategic concept to make distinctions among strategies is the customer order decoupling point, that is, the point in the value chain where the product is linked to a specific customer order. This article aims to analyse and compare strategies for customized, low-volume ship design and construction from the perspective of the customer order decoupling point and to link them to product and market characteristics. It is based on a case study at the Ulstein Group, an established Norwegian ship designer and builder. The study allowed us to define ‘customized design’ and ‘standardized design’ as two different strategies that fundamentally differ in terms of the customer order decoupling point. In the former, customized ships are offered in a process where most activities are driven by the expectations and requirements of a particular customer. In the latter, the customer is given only a limited choice of predefined, standardized, and well-proved options. We conclude that customer order decoupling point positions upstream in the value chain imply high levels of flexibility and customization, while downstream positions allow short lead times, high delivery precision, and lower prices. The customer order decoupling point perspective provides a useful framework in which to analyse the ship design and construction industry.

Integration Alternatives for Ship Designers and Shipyards

The offshore oil industry in Norway has for decades required advanced special purpose equipment for its operations. Norwegian shipbuilders have supplied the offshore industry and specialized in producing customized and technologically advanced ships. Shipbuilding is a typical Engineer-to-Order (ETO) industry. While the ship concept and design continues to be developed in Norway, ship production is increasingly performed at foreign yards. This characteristic makes the industry an interesting case for studying integration between actors. This paper presents a typology of different integration alternatives for ship designers and shipyards. The three alternatives presented are ownership, partner yard and market yard. The paper also identifies and discusses industry-relevant business factors that are affected by the choice of integration level.

Detecting Early Warning Signs of Delays in Shipbuilding Projects

Ship design and construction involves numerous activities that have to be effectively performed, coordinated and integrated. Various elements can influence the effectiveness of the process due to projects’ large number of stakeholders and the high level of uncertainty. One of the most challenging issues is the delay in product delivery. However, the elements which might result to delay do not develop overnight and there might be early warning signals addressing that the delay, is likely to happen. This paper discusses that by following an early warning procedure, it will be possible to identify possible early warning signs of potential problems which might cause delay. These signs can provide an aid for the project team to take actions before the problem reaches its full impact, thus delaying the project delivery.

Capability Maturity Model Integrated for Ship Design and Construction

Project constraints are continuously growing in terms of time, cost, customer satisfaction, return on investment, quality. And also they are growing in terms of complexity, number of stakeholders, number of parameters to manage and number of interactions between these parameters. In this paper, we carry out literature study on capability maturity model integrated (CMMI) for Ship Design and Construction. The purpose is to understand, demonstrate and develop a structure for CMMI in Ship Design and Construction. Capability maturity models offer companies a simple but effective tool to organize, control and monitoring their processes. Emerged out of software engineering, the application fields have widened and maturity model research is becoming more important. So far, few limited studies exits on applicability of capability maturity models for Ship Design and Construction. The developed structure can be used as a structured matrix to assess the maturity levels of the company through measurable stages. In addition, the structured matrix can be used to assess and improve individual companies involved in the ship design and construction process, for example a yard and assess various value chain configurations, i.e., alternative configurations of actors to be performing a planned ship design and construction project.

What to Offshore, What to Produce at Home? A Methodology

Ever-increasing cost pressure and global competition has forced many Western manufacturing companies to offshore some or all of their production; i.e. to establish a manufacturing operation/facility in a low-cost country that replaces a facility in the country of origin. Literature concludes, however, that businesses do not make offshoring decisions in a systematic manner. This emphasizes the need for models, methodologies and tools supporting companies in making sound offshoring decisions. This paper proposes such a methodology for one of the crucial questions many offshoring companies face: For which products should production be offshored, for which should it be kept back? The proposed methodology consists of five steps: (1) Identify constants and variables (scoping); (2) Determine and characterize product groups; (3) Perform a strategic (qualitative) analysis; (4) Perform a financial (quantitative) analysis; and (5) Take a decision. The paper briefly describes each step, with a focus on the first three steps.

Engineering Change Management in the Engineer-to-Order Production Environment: Insights from Two Case Studies

Engineering changes (ECs) are part of any Engineer-to-order (ETO) project. The engineering change management (ECM) literature provides various tools, methods and best practices, and this study investigates ECM practices in the ETO production environment. Through two exploratory case studies, we identify five main ECM challenges; EC impact analysis, EC data management, internal and external collaboration and communication, and EC post-implementation review. Both companies have implemented the main ECM steps recommended in literature but there are considerable weaknesses in the execution of the post-implementation review process. More ETO cases are needed to confirm the findings and investigate how ECM tools and approaches vary by different dimensions.

Offshoring Strategies in Norwegian Ship Production

For the past several decades, Norwegian shipyards have focused on innovative, customized, and technologically advanced ships, often serving the offshore oil and gas industry. Usually, a significant part of the production of the ship is offshored, especially steel-related tasks. That is, such tasks are carried out in a country with lower factor costs. The Norwegian yards focus on the more advanced outfitting tasks, such as the installation and commissioning of machinery and deck equipment, electrical systems, and accommodation. Nevertheless, the amount of work performed abroad before the Norwegian yard takes over and continues production differs among the various yards. Some only offshore block construction, others construction of the entire hull. Yet others finish the ship to such a degree abroad that it does not need to be recovered from the water in Norway and all the remaining work can be done from the quayside. This paper introduces a typology of shipbuilding strategies that differ in how much of the steel and outfitting work is performed in a country with lower cost levels. The strategies are discussed and compared in terms of relevant build strategic elements, such as pre-outfitting, concurrent execution of engineering and production, yard capabilities, and vertical integration. The strategies’ likely effect on performance is also addressed, in terms of costs, quality, delivery dependability, delivery time, and flexibility. The results are based on a qualitative study of Norwegian yards and their offshoring strategies.

Investigating production planning and control challenges in the semi-process industry, the case of a metal parts producer

Production planning and control (PPC) plays a vital role for the competitiveness of every company. Its application in the process industries still faces major problems and limitations. The process industries are currently facing an increasing trend in demand variability and uncertainty. Too little is known about the link between industry specific characteristics and matching PPC approaches. In this paper, we investigate the characteristics that pose critical challenges when applying PPC concepts in the semi-process industry. The results of our study show a conflict between flexibility-requiring and flexibility-limiting characteristics. Through the use of a literature review and case study we demonstrate the limitations of material requirements planning to address this new situation.