Cost analysis of capacity flexibility in a hybrid multiple-line production system at Siemens AG

This paper studies an operational challenge recently faced by a high-tech manufacturing company that is specialized on both rapid prototyping (ETO: engineer-to-order) and serial manufacturing (MTO: make-to-order) of the printed circuit boards. We focused is on tactical-level process capacity management which refers to the determination of in-house workforce production capacity while the dynamic capacity allocation between rapid prototyping and serial production on the operative level is executed in an optimal cost-efficient manner in a multi-period mode. We present a linear programming approach for a single work station case. Subsequently, we extend the analysis towards multiple-line case and describe a concept of an agent-based simulation. Copyright (C) 2016 IFAC