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A. Azadeh, M. Haghnevis and Y. KhodadadeganDepartment of Industrial Engineering and

Research Institute of Energy Management and PlanningFaculty of Engineering, University of Tehran

DESIGN AND ASSESSMENT OF THE INTEGRATED DESIGN AND ASSESSMENT OF THE INTEGRATED INFORMATION, BUSINESS PROCESS AND INFORMATION, BUSINESS PROCESS AND PRODUCTION SYSTEM BY SIMULATIONPRODUCTION SYSTEM BY SIMULATION

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Objectives and FeaturesObjectives and Features

The objectives :Integrated information, business and production systems of a powder coating manufacturing via computer simulation Capable of evaluating customer lead-times in six different dimensions

The unique features :Identifies major bottlenecks of production and information system and business process concurrentlyProduces several dimensions of customer satisfactionsAllows the effects of famous concept such as business process re-engineering and information technology to be evaluated before actual implementationPrevious studies consider only conventional customer lead-time, which is defined as customer lead-times to receive goods or services

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IntroductionIntroduction

By integrated modeling The hidden and concurrent effect of business and production processes are identified and improvedHigh expenditure and risks of changes in organizations are the main reasons most managers avoid organizational changes and put the dynamical and evolutional changes asideComputer simulation has excellent capabilities such as proper description of system behavior, scenario analysis and forecasting capabilitiesThe behavior of both tangible (i.e. materials and machines) and intangible (i.e. information, policies, and roles) components of an organization can be incorporated in a simulation modelThis is the first study to model consolidated performance of production, business and information systems as a whole in a manufacturing organization via computer simulation

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Entities InEntities In Integrated ModelIntegrated Model

Information entities :Arrival of orders entityBusiness process entity which is the result of arrival entity transformation or an information entity into another information entityTransformation of production entity into information entity

Production entities: Are only formed by transformation of information entities

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Transformation of Entities in the Integrated ModelTransformation of Entities in the Integrated Model

IE: Information entityPE: Production entity

: Arrival of orders entity.

: Information entity formed by information processing

: Information entity formed by production processing

: Production entity formed by information processing

IEInformation

Processing

PE

IE

IE

Production Processing

Final information entity

Final information entity

Information Processing

Information Processing

1

2

3

4

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General Logical ChartGeneral Logical Chart

Customer places a request to the

system(arrival entity)

Information processing

Is it necessary to convert to

production entity?(necessary condition)

Is production permitted? (sufficient condition)

Information entity transforms into other forms of information

entity.

No

No

Start

Yes

A

B

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General logical chartGeneral logical chart

Finish

Yes

The entity is changed into production entity

Production processor

Production entity change to the form of information entity

The required information is

collected

Customer order is ready to be delivered

A

B

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Integrated ModelIntegrated Model

Consider the following suggestions:The integrated model requires a conceptual model to be converted into simulation model

Random variables and activity durations should be distinctly computed for production, business and information processes

It is quite important to foresee the concurrent interactions of business process and production process with respect to occupying resources

Transient period of the integrated simulation model must be identified and removed by distinguishing between steady states of production, business and information processes

When information entities are transformed to production entities and vise versa, their attributes and properties must be kept and acknowledged by the integrated model

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The Case StudyThe Case StudyThe system being studied is a small order-based powder coating manufacturerThe company produces eight different coatings by three parallel machines The customers contact the company to either:

1. Place orders2. Request samples or3. Make complaints

Customer

Production Manager

Lab Manager

Supplies Department

Installations

Financial Manager

Sales Supervisor

Warehouse Supervisor

Production order, sample request or

complaintsMonthly production report & machine

request

Human resource & technical reports

Allowance issue & production order

Warehouse inventory information & permission to

deliver to customer

Returned forms from warehouse

General Manager

PlantManager

Assistant to GM

Returned forms from warehouse

Accepting thereturns of itemsfrom customers

Return of ordersTo customers

Human resource

identificationTechnical information

request & repair reports

Technical information

Material request

Customer complaints & new sample

request

Human resource request & confirmation

Human resource identification

Production instructions

Material request for warehouse

Complaint assessment

report

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Performance MeasuresPerformance Measures

1. Customer lead-time due to customer being rejected2. Customer lead-time given the order is available in

inventory3. Customer lead-time given order is not available in

inventory4. Customer lead-time due to accepted after sales services5. Customer lead-time given customer complaint is not

accepted6. Customer lead-time for a particular product sample

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: Arrival of orders entity.

: Information entity formed by information processing

: Information entity formed by production processing

: Production entity formed by information processing

: Final information entity

The General OverviewThe General Overview Rejection of complaints

Transformation of production to

information entity

Customer orders

Customer complaints

Production request

Sample request

Shortage of raw materials

Final production available in inventory

Production process

Business process

Acceptance of complaints

Information processing

Information processing

Information processing

Information processing

Final information Entity

Availability of raw materials

Transformation of information to

production entity

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Attributes and VariablesAttributes and Variables

Variable Description of variable

ATRIB[1] Arrival time

ATRIB[2] Type of message received: General manager or his assistant

ATRIB[3] Message serial number

ATRIB[4] Message location

ATRIB[5] Message type: order1, sample2, complaint3

ATRIB[6] Order type (8 types)

ATRIB[7] Order size

ATRIB[8] Manufacturing priority

LTRIB[1] Utilized machine in production line a

LTRIB[2] Utilized machine in production line b

LTRIB[3] Utilized machine in production line c

Variable Description of variable

XX(1) Message serial number

XX(4) Order priority variable in line a of production

XX(5) Order priority variable in line b of production

XX(6) Order priority variable in line c of production

XX(7) Order code variable produced in line a

XX(8) Previous order produced in line a

XX(9) Maximum allotted time to a specific order type in line a

XX(10) Production time of machine a

XX(11) Order code variable produced in line b

XX(12) Previous order produced in line b

XX(13) Maximum allotted time to a specific order type in line b

XX(14) Production time of machine b

XX(15) Order code variable produced in line c

XX(16) Previous order produced in line c

XX(17) Maximum allotted time to a specific order type in line c

XX(18) Production time of machine c

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Integrated SimulationIntegrated Simulation Run for 6.5 months (68640 minute), 2.5 months was recognized as transient stateSimulation transient period is identified by maximum transient periods of all resources by batch method which is evaluated at ts = 25000 minutesSteady state simulation starts at 26400 minutes (equivalent of 2.5 months) in order to collect data properly

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

20004000

60008000

1000012000

1400016000

1800020000

2200024000

2600028000

3000032000

34000

Entities in queue

Time

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Modules Used in ModelModules Used in Model Modules Activities Attributes Output to Output data

Arrival of orders and general classification

Entity arrivalRouting of entity to moduleResource identification

Arrival time: ATRIB[1]Arrival method: ATRIB[2]Serial number: ATRIB[3]Arrival origin: ATRIB[4]

Production requestCustomer complainSample request

-----

Production request Production capability checkInformation process before production

Entity type: ATRIB[5]Color type: ATRIB[6]Order quantity: ATRIB[7]Color priority: ATRIB[8] virtual

Production process

Rejection of ordersAvailability of order and immediate delivery

Production process Production processSolving queue complexity

Machine no. of every line:LTRIB[1], LTRIB[2], LTRIB[3]

End of production ----

End of production Data recording & distribution of production resultsInformation process after production

----- ----- Product delivery

Customer complaints and defects evaluation process

Information process before error checkInformation process after error check

Entity type: ATRIB[5]Project size: ATRIB[7]

----- Rejection ofcomplaintsAcceptance of complaints

Sample request process

Information process before sample products.Information process after sample products.

Entity type: ATRIB[5] ----- sampling

Maintenance and repair process

Administrative activitiesMachine failure times

----- ----- ----

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Integrated Simulation NetworkIntegrated Simulation Network

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Verification and ValidationVerification and Validation The six performance measures Run for two working weeks and replicated 20 times20 replications are compared with 20 random samples of the actual system.Collect for both the simulation and actual systemIndependent t-test is used to test Ho: µ1 = µ

Performance measure

AlternativeMea

nStandard deviation

to P-value

1simulation 4.95 2.14

-0.74 0.47Actual system 5.45 2.06

2simulation 4.40 1.90

-0.89 0.38Actual system 4.95 1.57

3simulation 33.55 5.33

1.07 0.29Actual system 31.15 6.72

4simulation 13.45 2.67

0.23 0.82Actual system 13.30 2.75

5simulation 4.10 2.10

-0.78 0.44Actual system 4.55 1.82

6simulation 20.05 3.69

0.84 0.41Actual system 19.55 3.63

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Sensitivity AnalysisSensitivity Analysis

Without utilizing IT system addition of new personnel to the system were considered as follows:

Addition of a deputy general manager in addition to existing general manager, i.e. two individuals could handle general manager responsibilityAddition of a deputy warehouse supervisor in addition to the warehouse supervisorSimultaneous addition of a deputy general manager and a warehouse supervisorAddition of a deputy sales supervisorSimultaneous addition of a deputy general manager, a warehouse supervisor and a sales supervisor

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Results of non-IT ImplementationsResults of non-IT Implementations

Considered conditions a b c d e

Performance Measure

Existing system

Changes Percent improve

mentChanges

Percent improve

mentChanges

Percent improve

mentChanges

Percent improve

mentChanges

Percent improve

ment

1 87.6 65.2 25.62 79.9 8.82 50.0 42.99 86.4 1.38 46.5 46.99

2 121.7 88.8 27.02 86.3 29.10 54.9 54.91 111.4 8.43 50.5 58.53

3 5492.1 5037.6 8.27 5294.3 3.60 4852.9 11.64 5367.9 2.26 5002.4 8.92

4 365.5 316.0 13.55 357.6 2.16 303.7 16.92 343.7 5.99 309.0 15.47

5 405.5 383.0 5.57 398.5 1.73 337.2 16.86 395.9 2.39 330.9 18.39

6 997.3 732.0 26.60 850.8 14.68 787.7 21.02 813.9 18.39 745.8 25.22

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Ranking of non-IT AlternativeRanking of non-IT Alternative Cost of adding:

x = a warehouse supervisory = a sales supervisor z = a general manager

x, y and z are defined as follows (m and n are the coefficient cost) :y = mxz = nx

By a comprehensive analysis m and n are 3 and 6, respectivelyCost of adding

a warehouse supervisor unit = αa sales supervisor = 3α a general manager = 6α

Cost table is obtained for each alternative: a6αbαc7αd3αe10α

Performance measureRanking

1 2 3 4 5 6

1 e e c c e a

2 c c e e c e

3 a b a a a c

4 b a b d d d

5 d d d b b b

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IT Simulation AlternativeIT Simulation Alternative

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Performance of IT & non-IT AlternativesPerformance of IT & non-IT Alternatives

0%

10%

20%

30%

40%

50%

60%

70%

1 2 3 4 5 6

Performance measurements

Per

cen

tag

e im

pro

vem

ent a

b

c

d

e

IT

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PCA Rankings of IT & non-IT AlternativesPCA Rankings of IT & non-IT Alternatives

Existing system a b c d e IT

PCA score (2.89) (-0.33) (1.32) (-1.58) (1.49) (-1.65) (-2.14)

PCA rank 7 4 6 3 5 2 1

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Conclusion and ResultsConclusion and ResultsCan lead to acquire the required knowledge of existing information, business and production systems in order to design Test managerial and technological changes and its interactionCan examine the impact of electronic data interchange (EDI), information technology (IT) and management information systems (MIS) on production organizationsReal issues attached to the system may be identified and total rather than local optimizations are achieved because of the integrated approach

Considerable resultsPerformance measures

1 2 3 4 5 6

Integrated model * * * * * *

Production process model *

Business process model * *

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A. Azadeh, M. Haghnevis and Y. KhodadadeganDepartment of Industrial Engineering and

Research Institute of Energy Management and PlanningFaculty of Engineering, University of Tehran

DESIGN AND ASSESSMENT OF THE INTEGRATED DESIGN AND ASSESSMENT OF THE INTEGRATED INFORMATION, BUSINESS PROCESS AND INFORMATION, BUSINESS PROCESS AND PRODUCTION SYSTEM BY SIMULATIONPRODUCTION SYSTEM BY SIMULATION

FINISH