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A stochastic analysis of static complexity

A stochastic analysis of static complexity

This paper presents static complexity in manufacturing systems. Static complexity can be viewed as a function of the structure of the system, connective patterns, variety of components and the strengths of interactions. We seek the acceptable static complexity levels for different types of manufacturing systems by means of their system performances.

H. Kemal İlter

June 25, 2014
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  1. A STOCHASTIC ANALYSIS OF STATIC COMPLEXITY
    in Manufacturing Systems
    Akif A. Bulgak, Ph.D., P.Eng.
    Department of Mechanical and Industrial Engineering, ENCS, Concordia University
    H. Kemal İlter, Ph.D.
    Department of Management Information Systems, SB, Yildirim Beyazit University
    YAEM
    June 2014

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  2. CONTENTS
    Introduction
    The Problem
    Theoretical Systems vs Real Systems
    Complexity in Operations Management
    Brief Literature
    Types of Complexity in OM
    Measuring Complexity
    Critical Factors
    Entropical Measurement
    Simulation and Results
    Simulation
    Results
    References
    Discussion Questions

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  3. INTRODUCTION
    The Problem
    This paper presents static complexity in manufacturing systems. Static complexity can be viewed as a
    function of the structure of the system, connective patterns, variety of components and the strengths
    of interactions. We seek the acceptable static complexity levels for different types of manufacturing
    systems by means of their system performances.
    In general, deterministic processing times or expected values of processing times are considered to
    measure the complexity and related system performance in the production and operations
    management field.
    We consider stochastic processing requirements with a number of different processing distributions
    and levels of variability on the static complexity measurements. The objective of this paper is to reveal
    characteristics of the static complexity by making observations about the behavior of different
    systems in a hypothetical manufacturing environment. This would help in analyzing the properties in
    different manufacturing systems due to static complexity and system performance.

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  4. INTRODUCTION
    The Problem
    Mass Customization Product Variation
    Complex
    Manufacturing
    Systems
    Less initial investment
    Relatively low demand irregularities

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  5. INTRODUCTION
    Theoretical Systems
    Non-modular Assembly Modular Assembly

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  6. INTRODUCTION
    Real Systems
    BMW 7 Series
    1017
    Complex

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  7. INTRODUCTION
    Real Systems
    Airbus A380
    1021
    Over-Complex

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  8. COMPLEXITY IN OPERATIONS MANAGEMENT
    Brief Literature
    Supply chain complexity (Frizelle and Woodcock, 1995)
    Product variation complexity (MacDuffie et al., 1996)
    Entropic complexity (Deshmukh et al., 1998)
    Complexity interactions of different processes (Fujimoto et al., 2003)
    Complexity measurement (ElMaraghya et al., 2005)
    Supply Chain
    Complexity
    Manufacturing System
    Complexity
    Product Variation
    Complexity

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  9. COMPLEXITY IN OPERATIONS MANAGEMENT
    Types of Complexity in OM
    The complexity of a physical system can be characterized in terms of its static structure or time
    dependent behavior. Static complexity can be viewed as a function of the structure of the system,
    connective patterns, variety of components, and the strengths of interactions. Dynamic complexity is
    concerned with unpredictability in the behavior of the system over a time period.
    The manufacturing environment consists of physical systems in which a series of sequential decisions
    need to be made in order to produce finished parts. The sequence and nature of these decisions are not
    only dependent on the system capabilities but also on the products being manufactured in the system.
    Any measure of system complexity should be dependent on both the system and the product
    information.
    Static Complexity
    (Structural)
    Dynamic Complexity
    (Operational)
    Associated with
    the variety
    embedded in the
    static system
    Associated with
    the uncertainty of
    the dynamic
    system

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  10. MEASURING COMPLEXITY
    Critical Factors
    •  Number of suppliers
    •  Variety of interchangable parts
    •  Number of work stations
    •  Structure of the assembly line
    •  Structure of the manufacturing system

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  11. MEASURING COMPLEXITY
    Entropical Measurement
    Supplier A
    Supplier B
    Station 1 Station 2
    A1
    , A2
    , A3
    B1
    , B2
    A1
    B1
    A1
    B2
    A2
    B1
    A2
    B2
    A3
    B1
    A3
    B2
    Assembly Line

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  12. MEASURING COMPLEXITY
    Entropic Measurement
    Station 1 j-1
    H0 j j+1 Station n
    H1
    Hj-1
    Hj
    Hj+1
    Hn
    C0,j
    C1,j Cj-1,j
    Cj,j+1
    Cj,n

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  13. SIMULATION AND RESULTS
    Simulation

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  14. SIMULATION AND RESULTS
    Simulation
    Modular
    Non Modular

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  15. SIMULATION AND RESULTS
    Results

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  16. SIMULATION AND RESULTS
    Results
    Modular
    Non Modular

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  17. REFERENCES
    Bernstein, F. and DeCroix, G. A., 2004, “Decentralized pricing and capacity
    decisions in a multi-tier system with modular assembly,” Management
    Science, 50(9), pp. 1293–1308.
    Calinescu, A et al. "Complexity in manufacturing: an information theoretic
    approach." Proceedings of the International Conference on Complex
    Systems and Complexity in Manufacturing 19 Sep. 2000.
    Deshmukh, A. V., Talavage, J. J., and Barash, M. M., 1998, “Complexity in
    manufacturing systems, part 1: Analysis of static complexity,” IIE
    Transactions, 30(7), pp. 645–655.
    ElMaraghy, HA, O Kuzgunkaya, and RJ Urbanic. "Manufacturing systems
    configuration complexity." CIRP Annals-Manufacturing Technology 54.1
    (2005): 445-450.
    Fisher, M. L. and Ittner, C. D., 1999, “The impact of product variety on
    automobile assembly operations: Empirical evidence and simulation,”
    Management Science, 45(6), pp. 771–786.
    Fredriksson, P., 2006, “Mechanisms and rationales for the coordination of a
    modular assembly system: the case of Volvo cars,” International Journal of
    Operations & Production Management, 26(4), pp. 350–370.
    Frizelle, G., 2004, “Complexity in the supply chain,” IEEE International
    Engineering Management Conference, vol. 3, pp. 1181–1184.
    Kuzgunkaya, Onur, and Hoda A ElMaraghy. "Assessing the structural
    complexity of manufacturing systems configurations." International Journal
    of Flexible Manufacturing Systems 18.2 (2006): 145-171.
    MacDuffie, J. P., Sethuraman, K., and Fisher, M. L., 1996, “Product variety and
    manufacturing performance: Evidence from the international automotive
    assembly plant study,” Management Science, 42(3), pp. 350–369.
    Randall, T. and Ulrich, K., 2001, “Product variety, supply chain structure, and
    firm performance: analysis of the U. S. bicycle industry,” Management
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    Rosling, K., 1989, “Optimal inventory policies for assembly systems under
    random demand,” Operations Research, 37(4), pp. 565–579.
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    Schmidt, C. P. and Nahmias, S., 1985, “Optimal policy for a two-stage
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    information-theoretic methodology for measuring the operational
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    Wang, H., Aydin, G., and Hu, S., 2009, “A complexity model for assembly
    supply chains in the presence of product variety and its relationship to
    cost,” Under Review.
    Wang, H., Zhu, X., Hu, S. J., and Koren, Y., 2008, “Complexity analysis of
    assembly supply chain configurations,” Proceedings of the 9th Biennial
    ASME Conference on Engineering Systems Design and Analysis, Haifa,
    Israel.
    Webbink, R. F. and Hu, S. J., 2005, “Automated generation of assembly system-
    design solutions,” IEEE Transactions on Automation Science and
    Engineering, 2(1), pp. 32–39.
    Whang, Y. and Gerchak., Y., 2003, “Capacity games in assembly systems with
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    5(3), pp. 252–267.
    Wiendahl, H-P, and Peter Scholtissek. "Management and control of
    complexity in manufacturing." CIRP Annals-Manufacturing Technology
    43.2 (1994): 533-540.
    Zhu, X., Hu, S. J., Koren, Y., and Marin, S. P., 2008, “Modeling of
    manufacturing complexity in mixed-model assembly lines,” Journal of
    Manufacturing Science and Engineering, 130(5).

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  18. DISCUSSION QUESTIONS

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  19. A STOCHASTIC ANALYSIS OF STATIC COMPLEXITY
    in Manufacturing Systems
    THANKS
    Akif A. Bulgak, Ph.D., P.Eng. [email protected]
    Department of Mechanical and Industrial Engineering, ENCS, Concordia University
    H. Kemal İlter, Ph.D. [email protected]
    Department of Management Information Systems, SB, Yildirim Beyazit University
    YAEM
    June 2014

    View Slide