Using ERP-driven flow analysis to optimize a constrained facility layout problem

Enterprise Resource Planning (ERP) systems are nowadays widely used in large companies and even starting to appear in small and medium sized businesses. These systems hold many enterprise specific aspects and store them in a machine readable format. In this paper we will show how to use job dependency and demand information extracted from the data of a certain ERP system to simulate the process and material flows in a given production scenario. Material flows are among the most expensive processes in manufacturing businesses since they do not increase the value of the manufactured goods. We will show how to use the simulated flow information to optimize the arrangement of work centers. This problem is defined as a constrained facility layout problem using several realworld constraints in order to find realistic solutions that are close to implementation. The goal is to reduce traffic and increase efficiency on the shop floor.