Performance management in flexible manufacturing systems

This article treats several performance management decision problems in flexible manufacturing systems (FMSs). This work differs from a number of other studies in that we allow the processing rates at the machines to be varied, and the system has to meet a given throughput goal per unit time. The managerial decision options modeled here include part routing and allocation of tasks to machines, work-in-progress (WIP) levels, capacity expansions, tool-type selection, the setting of throughput goals, and multiperiod production planning. We discuss and explain the insights and implications, partly nonintuitive, gained from our investigations. Finally, extensive numerical evaluations are included to illustrate the economic and performance impact of the various performance management alternatives. These results demonstrate that substantial economic benefits can be achieved by careful tuning of the FMS operational parameters.