3-1-07 Impress_paper - IMPReSS:An Automated...

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IMPReSS: An Automated Production-Planning and Delivery-Quotation System at Harris Corporation-Semiconductor Sector Ronnnr C. LsacHveN Rospnr F. BENsoN CHrHwpr Lru Der-E J. Rean Ettgirteering Systems Research Center Uniaersity of California at Berkeley Berkeley, California 947 20 En girrc ering Sy st ems Re se arch Ce nt e r Uniuersity Tyecin Systems, lnc. Four Maitt Street Los Altos, California 94022 Aeon Decision Engirrcerirrg, 1.290 Oak Hantpton Road Holland, Michigan 49425 IMPReSS, an optimization-based production planning system at Harris Corporation's semiconductor sector, generates capac- ity-feasible production schedules for a worldwide manufactur- ing network and quotes product delivery dates in response to customer inquiries. The planning engine of IMPReSS is the Berkeley Planning System (BPS), which models the problem in a form that permits linear programming optimization. BPS embeds formulation techniques for planning the requirements of binning and substitutable products, for representing dynamic capacity consumption by reentrant process flows, and for de- veloping multiple optimization calculations that reflect market- ing priorities. It uses a heuristic decomposition strategy to break the overall problem into several manageable calculations. Its implementation raised on-time deliveries of line items from 75 to 95 percent without increasing inventories, enabled the sector to expand its markets and its market share, and helped move the sector from a loss of $75 million to profit of over $40 million annually. T-T urri, Corporation is an electronics based in Melbourne, Florida, with annual I Iand electronic systems company sales approaching $3.5 billion. The corpo- Copvright G 1996, Institute for Operations Research and thc Management Sciences ooe2-2102 /96 /260 /0006$0r.25 INDUSTRTES-ELECTRTC/ELECTRONTC PRODUCTION/SCHEDULINC-APPLICATIONS INTERFACES 262 | January-February 1,996 (pp. 6-37)
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HARRIS CORPORATION ration consists of several sectors in differ- ent lines of business. Harris's semiconduc- tor sector has annual sales of $670 million. Prior to 1989, the semiconductor sector enjoyed a profitable but much smaller business producing sophisticated niche products serving the military and aero- space markets. It was famous for its "rad- hard" (radiation-hardened) process tech- nology, which enables production of de- vices exceptionally resistant to solar radia- tion and thus preferred by designers of sat- ellites, spacecraft, missiles, high-flying aircraft, and so forth. A substantial portion of its sales were in components supplied to defense contractors or aerospace compa- nies who were prime government contrac- tors for weapons or space exploration pro- grams. Other products sold to commercial customers also tended to be proprietary, In late 1988, Harris purchased the GE Solid State (GESS) semiconductor product lines and manufacturing facilities from Ceneral Electric; they included both the former RCA Solid State as well as GE- proper semiconductor products and manu- facturing facilities. (Subsequent to its 1986 acquisition of RCA, GE had merged the
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3-1-07 Impress_paper - IMPReSS:An Automated...

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