System Life-Cycle Planning

Abstract

This chapter introduces a computational model to support the system user along the decision making process regarding the type and timing of system configurations to be acquired and the appropriate flexibility degree. Based on the empirical evidence described in Chap. 2, Focused Flexibility Manufacturing Systems (FFMS) seem to be a viable alternative to solve the classical dichotomy between rigid and fully flexible systems. This focused flexibility concept, as introduced in Chap. 3, can be a valuable solution for manufacturing firms to satisfy the market needs. Previous chapters tackled the system flexibility design process from the machine tool builder standpoint. Once the potential system configurations have been defined and the capital outlays required for acquiring and/or transitioning among them have been quantified, the machine tool builder makes an offer to the system user. The latter needs to select the most profitable solution by evaluating the performance generated by each configuration under different demand profiles from a financial point of view. This decision is supported by two optimization models, one static – i.e. not affected by the time dimension – and one dynamic, wrapped up in a valuation model which simulates a profit function on different variable values over a multi-period time horizon, matching the user’s expected demand levels with his manufacturing strategies.