The key cost factors and most influential benefits of manufacturing execution systems determined by probabilistic risk assessment modeling

Jennifer L Ivey, Purdue University

Abstract

Well into the 21st century, American manufacturing companies are learning that in order to remain competitive they must become more cost-effective, efficient, and profit savvy. Strong competition surrounds them. From competing with companies within their industry to competing with international manufacturing companies, a company must maintain efficient manufacturing processes to have the competitive edge. Manufacturing Execution Systems are a tool that may allow companies to become more effective and efficient. Manufacturing Execution Systems, abbreviated MES, are systems that lie between business information systems and manufacturing shop floor systems. MES systems have been proven to show benefits such as increased productivity, cost reduction, and faster time to market. Although there are many benefits to MES systems they are quite costly and can require a re-engineering of current business practices to make their implementation successful. Before investing in MES an organization would be interested in understanding what types of benefits they would reap from the investment. This research involves developing a method and probabilistic risk assessment model to help a company determine their expected benefits of MES. By performing event analysis on a pharmaceutical manufacturing process, the unexpected incidents, and costs associated with these incidents, were revealed. These events were then used as input into a probabilistic risk assessment model. The model used the probability of the event and random numbers to simulate if an event occurred. The researcher performed experiments using the model to determine which type of events would experience the greatest reduction if an MES system were implemented. The results could be used to make suggestions to an organization on which modules of an MES system they should implement in their organization to receive the greatest benefits.

Degree

M.S.

Advisors

Kane, Purdue University.

Subject Area

Information Technology

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