Assessing the Influence of Manufacturing Flexibility on Facility Construction Costs

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Date
2019-01-01
Authors
Bastias, A.
Madson, K.
Franz, B.
Potter, Leslie
Okudan Kremer, Gül
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Potter, Leslie
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Industrial and Manufacturing Systems Engineering
The Department of Industrial and Manufacturing Systems Engineering teaches the design, analysis, and improvement of the systems and processes in manufacturing, consulting, and service industries by application of the principles of engineering. The Department of General Engineering was formed in 1929. In 1956 its name changed to Department of Industrial Engineering. In 1989 its name changed to the Department of Industrial and Manufacturing Systems Engineering.
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Industrial and Manufacturing Systems Engineering
Abstract

Uncertainty in product development and market demand can affect facility design and construction. Adding flexibility in manufacturing processes can mitigate this uncertainty, but can also create costly solutions. This is particularly true when manufacturing facilities have long design and construction lead times. In these cases, manufacturers take risks by starting facility construction before the product development is complete to meet time-to-market needs. Similarly, uncertain market demand can create the need to build facilities with additional volume or the ability to expand. This paper presents an analysis of how manufacturing flexibility affects building system costs and proposes a solution for understanding the tradeoffs. The research method maps various types of manufacturing flexibility (e.g., process, routing, volume, etc.) to ASTM UNIFORMAT II building systems (e.g., substructures, shell, interiors, etc.). Based upon this mapping, initial cost models are proposed to explore the relationship between manufacturing flexibility and facility construction cost. The models are intended for use in the earliest stages of capital facility planning. These results will help manufacturing facility owners, designers, and constructors make informed decisions about how to build flexibility into their buildings at lower costs while mitigating for uncertainty and meeting time-to-market needs.

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This proceeding is published as Gregory S, Bastias A, Molenaar K, Madson K, Franz B, Potter L, and G Okudan Kremer, “Assessing the Influence of Manufacturing Flexibility on Facility Construction Costs,” IISE Annual Conference and Expo 2019. Proceedings of a meeting held May 18-21, 2019, Orlando, Florida, USA. Posted with permission.

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Tue Jan 01 00:00:00 UTC 2019