The dynamics of capacity planning for flexible manufacturing system startup

The introduction of Advanced Manufacturing Technology (AMT) can result in an extended startup phase long after the completion and commissioning of a new installation. Within the startup period the equipment may not achieve its desired utilisation due to: (a) the complexity of the technology, (b) the ability of the company to operate the equipment efficiently, and (c) the attitude of the personnel within the company towards the introduction of new technology. A consequence of these factors taken either separately or in combination, is to deny the manufacturing system a significant portion of its planned capacity. This paper illustrates the ability of the Industrial Dynamics type Learning Curve Model to assess the efficiency of startup in terms of the cost of lost production. An outline is given of the application of the technique to industrial data for a typical Flexible Manufacturing System (FMS) and an analysis is conducted to show the versatility of the model in startup assessment. The paper concludes that the use of the model provides system managers with an accurate indication of the likely production capacity during startup, and the financial losses to be expected if no corrective action is taken.