Simulation Approach to Optimize Production Costs Through Value Stream Mapping

This paper describes an approach to measure and optmise production performance parameters to generate productivity improvements in a manufacturing system. The main action has been focused on the reduction of the production costs through Value Stream Mapping principles, spotting out those commonly called "hidden costs". The case study has highlighted some basic problems that are related to work-in-progress, waiting time, and number of parts in the buffers. Optimizing these elements through a simulation model using a Taboo Search Algorithm has led to a reduction of wastes in terms of materials, time and resources, and by the way to lower costs

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