The Evaluation and Improvement of the Production Processes of an Automotive Industry Company via Simulation and Optimization

Abstract

Production delays are significant problems for the loss of goodwill of the customers and the loss of profits associated with them. The delays may accrue as a result of insufficient resource planning and poorly designed unsatisfactory procedures. In this study, a new mathematical model is proposed to optimize the production processes by minimizing production delays, and a simulation model is developed to test the alternative facility designs. The purpose is to increase customer satisfaction by ensuring that the products are delivered timely and preventing lost sales in an automotive company that manufactures garbage collectors by using real data. The mixed-integer programming problem related to the minimization of production delays is solved by the GAMS CPLEX 24.1.3 software. In this way, the total delay in the production area is minimized by the mathematical model to prevent labor and time loss. Accordingly, the alternative designs are investigated for the improvement of the production processes by using discrete system simulation. A system analysis is performed to determine the bottlenecks in the production processes by developing a simulation model via the ARENA simulation software. With the proposed facility layout alternatives, the delays are eliminated, the total production time is reduced, and an increase in production efficiency is observed.