Process Management Principles for Increasing the Energy Efficiency

Based on equipment records the length of each run in

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Unformatted text preview: on equipment records, the length of each run (in hours) was a random variable, T, where T ~ N(21, 2). (5.7) With the amount of variation in the process, predicting the impact of different policies analytically is difficult. Instead, analysis was performed using a simple discrete event modeling and simulation in ProModel Silver. The framework and details are found in Appendix D. The results of the simulation indicated that with current levels of process variation the MTSA machine could be run in a stable manner at a minimum of four times a week. With this policy, however, average inventory increases by about 7 cards (or 38%) and average cycle time increases by about 80 hours (or 39%). While the increase in inventory was negligible in terms of required floor space (each card measures about one square foot), the increase in cycle time required the changes to be made during a lull in customer demand so as to avoid breaking short-term delivery commitments. According to simulation and real-world experience, the policy change resulted in a negligible increase in inventory cost due to increased floor space usage and holding costs. On the o...
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