Project Manufacture Scheduling Using Resource Constrained Multi Project Optimization Model (A Case Study in Machine Manufacturing Company Solo)

Abstract

The machine manufacturing company specialized in building customized (engineered-to-order) machines ordered for certain purposes. The company faces a problem in which it can not be able to finish the received orders within the estimated duration. In the last 5 years, the percentage of production delay in manufacturing the engineered-to-order machines is 80%. The inability to meet the production due date is caused by the company does not have the right scheduling mechanism to schedule every activity in production. Due to the similarity of characteristics, the production of customized machines can be considered as a project. This paper aims to find an efficient yet effective way to schedule project manufacture and allocate the resources for such projects. To serve this purpose, the resource constrained multi project optimization model was applied in a real case study. The objective function of the model is to minimize the completion time of the projects when run simultaneously. The resource constrained multi project optimization model was solved using LINGO 15.0 and shows that the projects can be completed in 133 days. This result will make the company to save IDR 17,200,000 compared to the existing project schedule.