Goal Programming
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Transcript of Goal Programming
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GOAL PROGRAMMINGGOAL PROGRAMMING
Serhat OumlKSUumlZSerhat OumlKSUumlZAhmet TATIŞAhmet TATIŞ
Mehmet YILMAZMehmet YILMAZ
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THE VIEW OF THE PRESENTATIONTHE VIEW OF THE PRESENTATION
IntroductionIntroduction System approach to concurrent engineeringSystem approach to concurrent engineering
Goal ProgrammingGoal Programming Application AreasApplication Areas Weighting Method and Preemptive MethodWeighting Method and Preemptive Method The Case Study and The ExampleThe Case Study and The Example Demonstration of The Model By Using SetsDemonstration of The Model By Using Sets Managerial implications for the companyManagerial implications for the company Conclusions and assessmentConclusions and assessment
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INTRODUCTIONINTRODUCTION
Life-Cycle Costing (LCC)Life-Cycle Costing (LCC)
Time-Based Competition (TBC)Time-Based Competition (TBC)
TThe three planning-horizon levelshe three planning-horizon levels
SStrategictrategic
IIntermediatentermediate
TTacticalactical
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Concurrent EngineeringConcurrent Engineering Is the collaboration amongIs the collaboration among functional functional
areasareas Product design design for Product design design for
quality process designquality process design design for design for manufacturing and planning logistic manufacturing and planning logistic design etc design etc
In the early phases of product designIn the early phases of product design CE requiresCE requires fast adaptation fast adaptation product innovationproduct innovation short product delivery time to market short product delivery time to market for a firm to remain competitivefor a firm to remain competitive
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GOAL PROGRAMMINGGOAL PROGRAMMING
Introduced by Charnes and Cooper in 1960rsquos Provides a method of dealing with a collection of goals rather than an explicit objective function Objective is to minimize the deviation from each
of the goals that have been established Constraints are ldquosoftrdquo in that you may violate one (ie not meet one goal) if it means you can make better progress toward one of the other goals
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Goal Programming Versus Linear Goal Programming Versus Linear ProgrammingProgramming
Multiple Goals (instead of one goal)Multiple Goals (instead of one goal)
Deviational Variables Minimized (instead of Deviational Variables Minimized (instead of
maximizing profit or minimizing cost of LP)maximizing profit or minimizing cost of LP)
ldquoldquo SatisficingSatisficing rdquo (instead of optimizing)rdquo (instead of optimizing)
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APPLICATION AREASAPPLICATION AREAS
Accounting Accounting Agriculture Agriculture Economics Economics Engineering Engineering Finance Finance Government Government IInternational Context nternational Context Management Management Marketing Marketing
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Types Of Goal Programming
1048709Weights method the single objective function is the weighted sum of the of the
functions representing the goals of the problem
MIN Z= w1d1+w2d2+hellip+wndn
1048709Preemptive method prioritizes the goals in order of importance then optimizes one
goal at a time
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CASE STUDY AND THE EXAMPLECASE STUDY AND THE EXAMPLE
COMPANY PROFILECOMPANY PROFILE
Medical manufacturing company Medical manufacturing company producing skin prepping applicatorsproducing skin prepping applicators
10 years in the Industry 10 years in the Industry
Hospitals first aid users and industHospitals first aid users and industrialrialcompanies are the customerscompanies are the customers
125 employees125 employees
17 million $17 million $ annual salesannual sales
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Aim of the studyAim of the study
Minimized life cycle cost and timeMinimized life cycle cost and time
Timely introduction of products to marketTimely introduction of products to market
Increased deliver reliabilityIncreased deliver reliability
Measurable improvement in supplier performanceMeasurable improvement in supplier performance
Improvements in changeover and setup Improvements in changeover and setup technologiestechnologies
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CE TEAMCE TEAM Product designerProduct designer Manufacturing engineerManufacturing engineer Quality control managerQuality control manager Marketing managerMarketing manager Purchasing managerPurchasing manager
Product design activities and Product design activities and practices are coordinated and practices are coordinated and accomplished concurrentlyaccomplished concurrently
Suppliers inputs and assistance is in Suppliers inputs and assistance is in terms of part and product is taken into terms of part and product is taken into considerationconsideration
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STRATEGIC GOALS (P1)
COST OF PRODUDUCTSTO MARKET (P11)
TIME OF PRODUDUCTSTO MARKET (P12)
Products research and development cost Engineering design costProduct investment costProduct investment and developing costCost of quality
Speed of response to customersProduct time to market Design lead timeOrder-to-delivery cycleTotal product delivery time
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INTERMEDIATE GOALS (P2)
THROUGHPUT COST (P21) THROUGHPUT TIME (P22)
Procurement cost Non-recurring manufacturing costsRecurring manufacturing costsFacilities cost Initial logisticssupport costsCost of quality
Manufacturing lead timeSet-up time Producrtion cycle timeChangeover timeDelay timeDistribution lead timeManufacturing response timeProcurement lead time
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TACTICAL GOALS (P3)
OPERATIONAL ANDMATERIAL COST (P31)
DELIVERY TIMES (P32)
Operations cost Maintenance costProduct modification costFacilities cost Product phase-out and disposal cost
Delivery reliabilityDelivery speed
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
Slide 21
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
Slide 22
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
Slide 23
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
Slide 24
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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THE VIEW OF THE PRESENTATIONTHE VIEW OF THE PRESENTATION
IntroductionIntroduction System approach to concurrent engineeringSystem approach to concurrent engineering
Goal ProgrammingGoal Programming Application AreasApplication Areas Weighting Method and Preemptive MethodWeighting Method and Preemptive Method The Case Study and The ExampleThe Case Study and The Example Demonstration of The Model By Using SetsDemonstration of The Model By Using Sets Managerial implications for the companyManagerial implications for the company Conclusions and assessmentConclusions and assessment
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INTRODUCTIONINTRODUCTION
Life-Cycle Costing (LCC)Life-Cycle Costing (LCC)
Time-Based Competition (TBC)Time-Based Competition (TBC)
TThe three planning-horizon levelshe three planning-horizon levels
SStrategictrategic
IIntermediatentermediate
TTacticalactical
Slide 4
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Concurrent EngineeringConcurrent Engineering Is the collaboration amongIs the collaboration among functional functional
areasareas Product design design for Product design design for
quality process designquality process design design for design for manufacturing and planning logistic manufacturing and planning logistic design etc design etc
In the early phases of product designIn the early phases of product design CE requiresCE requires fast adaptation fast adaptation product innovationproduct innovation short product delivery time to market short product delivery time to market for a firm to remain competitivefor a firm to remain competitive
Slide 5
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GOAL PROGRAMMINGGOAL PROGRAMMING
Introduced by Charnes and Cooper in 1960rsquos Provides a method of dealing with a collection of goals rather than an explicit objective function Objective is to minimize the deviation from each
of the goals that have been established Constraints are ldquosoftrdquo in that you may violate one (ie not meet one goal) if it means you can make better progress toward one of the other goals
Slide 7
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Goal Programming Versus Linear Goal Programming Versus Linear ProgrammingProgramming
Multiple Goals (instead of one goal)Multiple Goals (instead of one goal)
Deviational Variables Minimized (instead of Deviational Variables Minimized (instead of
maximizing profit or minimizing cost of LP)maximizing profit or minimizing cost of LP)
ldquoldquo SatisficingSatisficing rdquo (instead of optimizing)rdquo (instead of optimizing)
Slide 8
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APPLICATION AREASAPPLICATION AREAS
Accounting Accounting Agriculture Agriculture Economics Economics Engineering Engineering Finance Finance Government Government IInternational Context nternational Context Management Management Marketing Marketing
Slide 9
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Types Of Goal Programming
1048709Weights method the single objective function is the weighted sum of the of the
functions representing the goals of the problem
MIN Z= w1d1+w2d2+hellip+wndn
1048709Preemptive method prioritizes the goals in order of importance then optimizes one
goal at a time
Slide 10
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copy 2003 By Default
CASE STUDY AND THE EXAMPLECASE STUDY AND THE EXAMPLE
COMPANY PROFILECOMPANY PROFILE
Medical manufacturing company Medical manufacturing company producing skin prepping applicatorsproducing skin prepping applicators
10 years in the Industry 10 years in the Industry
Hospitals first aid users and industHospitals first aid users and industrialrialcompanies are the customerscompanies are the customers
125 employees125 employees
17 million $17 million $ annual salesannual sales
Slide 11
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Aim of the studyAim of the study
Minimized life cycle cost and timeMinimized life cycle cost and time
Timely introduction of products to marketTimely introduction of products to market
Increased deliver reliabilityIncreased deliver reliability
Measurable improvement in supplier performanceMeasurable improvement in supplier performance
Improvements in changeover and setup Improvements in changeover and setup technologiestechnologies
Slide 12
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CE TEAMCE TEAM Product designerProduct designer Manufacturing engineerManufacturing engineer Quality control managerQuality control manager Marketing managerMarketing manager Purchasing managerPurchasing manager
Product design activities and Product design activities and practices are coordinated and practices are coordinated and accomplished concurrentlyaccomplished concurrently
Suppliers inputs and assistance is in Suppliers inputs and assistance is in terms of part and product is taken into terms of part and product is taken into considerationconsideration
Slide 13
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STRATEGIC GOALS (P1)
COST OF PRODUDUCTSTO MARKET (P11)
TIME OF PRODUDUCTSTO MARKET (P12)
Products research and development cost Engineering design costProduct investment costProduct investment and developing costCost of quality
Speed of response to customersProduct time to market Design lead timeOrder-to-delivery cycleTotal product delivery time
Slide 14
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INTERMEDIATE GOALS (P2)
THROUGHPUT COST (P21) THROUGHPUT TIME (P22)
Procurement cost Non-recurring manufacturing costsRecurring manufacturing costsFacilities cost Initial logisticssupport costsCost of quality
Manufacturing lead timeSet-up time Producrtion cycle timeChangeover timeDelay timeDistribution lead timeManufacturing response timeProcurement lead time
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TACTICAL GOALS (P3)
OPERATIONAL ANDMATERIAL COST (P31)
DELIVERY TIMES (P32)
Operations cost Maintenance costProduct modification costFacilities cost Product phase-out and disposal cost
Delivery reliabilityDelivery speed
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
Slide 21
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
Slide 22
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
Slide 23
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
Slide 24
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
Slide 25
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
Slide 27
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
Slide 28
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
Slide 29
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
Slide 30
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
Slide 31
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
Slide 32
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
Slide 33
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
Slide 34
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
Slide 35
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
Slide 36
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
Slide 37
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
Slide 38
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
Slide 39
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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THANKSTHANKS
Slide 3
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INTRODUCTIONINTRODUCTION
Life-Cycle Costing (LCC)Life-Cycle Costing (LCC)
Time-Based Competition (TBC)Time-Based Competition (TBC)
TThe three planning-horizon levelshe three planning-horizon levels
SStrategictrategic
IIntermediatentermediate
TTacticalactical
Slide 4
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Concurrent EngineeringConcurrent Engineering Is the collaboration amongIs the collaboration among functional functional
areasareas Product design design for Product design design for
quality process designquality process design design for design for manufacturing and planning logistic manufacturing and planning logistic design etc design etc
In the early phases of product designIn the early phases of product design CE requiresCE requires fast adaptation fast adaptation product innovationproduct innovation short product delivery time to market short product delivery time to market for a firm to remain competitivefor a firm to remain competitive
Slide 5
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Slide 6
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GOAL PROGRAMMINGGOAL PROGRAMMING
Introduced by Charnes and Cooper in 1960rsquos Provides a method of dealing with a collection of goals rather than an explicit objective function Objective is to minimize the deviation from each
of the goals that have been established Constraints are ldquosoftrdquo in that you may violate one (ie not meet one goal) if it means you can make better progress toward one of the other goals
Slide 7
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Goal Programming Versus Linear Goal Programming Versus Linear ProgrammingProgramming
Multiple Goals (instead of one goal)Multiple Goals (instead of one goal)
Deviational Variables Minimized (instead of Deviational Variables Minimized (instead of
maximizing profit or minimizing cost of LP)maximizing profit or minimizing cost of LP)
ldquoldquo SatisficingSatisficing rdquo (instead of optimizing)rdquo (instead of optimizing)
Slide 8
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APPLICATION AREASAPPLICATION AREAS
Accounting Accounting Agriculture Agriculture Economics Economics Engineering Engineering Finance Finance Government Government IInternational Context nternational Context Management Management Marketing Marketing
Slide 9
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Types Of Goal Programming
1048709Weights method the single objective function is the weighted sum of the of the
functions representing the goals of the problem
MIN Z= w1d1+w2d2+hellip+wndn
1048709Preemptive method prioritizes the goals in order of importance then optimizes one
goal at a time
Slide 10
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CASE STUDY AND THE EXAMPLECASE STUDY AND THE EXAMPLE
COMPANY PROFILECOMPANY PROFILE
Medical manufacturing company Medical manufacturing company producing skin prepping applicatorsproducing skin prepping applicators
10 years in the Industry 10 years in the Industry
Hospitals first aid users and industHospitals first aid users and industrialrialcompanies are the customerscompanies are the customers
125 employees125 employees
17 million $17 million $ annual salesannual sales
Slide 11
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Aim of the studyAim of the study
Minimized life cycle cost and timeMinimized life cycle cost and time
Timely introduction of products to marketTimely introduction of products to market
Increased deliver reliabilityIncreased deliver reliability
Measurable improvement in supplier performanceMeasurable improvement in supplier performance
Improvements in changeover and setup Improvements in changeover and setup technologiestechnologies
Slide 12
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CE TEAMCE TEAM Product designerProduct designer Manufacturing engineerManufacturing engineer Quality control managerQuality control manager Marketing managerMarketing manager Purchasing managerPurchasing manager
Product design activities and Product design activities and practices are coordinated and practices are coordinated and accomplished concurrentlyaccomplished concurrently
Suppliers inputs and assistance is in Suppliers inputs and assistance is in terms of part and product is taken into terms of part and product is taken into considerationconsideration
Slide 13
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STRATEGIC GOALS (P1)
COST OF PRODUDUCTSTO MARKET (P11)
TIME OF PRODUDUCTSTO MARKET (P12)
Products research and development cost Engineering design costProduct investment costProduct investment and developing costCost of quality
Speed of response to customersProduct time to market Design lead timeOrder-to-delivery cycleTotal product delivery time
Slide 14
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INTERMEDIATE GOALS (P2)
THROUGHPUT COST (P21) THROUGHPUT TIME (P22)
Procurement cost Non-recurring manufacturing costsRecurring manufacturing costsFacilities cost Initial logisticssupport costsCost of quality
Manufacturing lead timeSet-up time Producrtion cycle timeChangeover timeDelay timeDistribution lead timeManufacturing response timeProcurement lead time
Slide 15
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TACTICAL GOALS (P3)
OPERATIONAL ANDMATERIAL COST (P31)
DELIVERY TIMES (P32)
Operations cost Maintenance costProduct modification costFacilities cost Product phase-out and disposal cost
Delivery reliabilityDelivery speed
Slide 16
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Slide 17
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
Slide 18
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
Slide 19
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
Slide 20
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
Slide 21
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
Slide 22
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
Slide 23
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
Slide 24
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
Slide 25
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The ModelThe Model
Slide 26
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
Slide 27
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
Slide 28
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
Slide 29
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
Slide 30
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
Slide 31
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
Slide 32
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
Slide 33
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
Slide 34
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
Slide 35
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
Slide 36
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
Slide 37
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
Slide 38
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
Slide 39
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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copy 2003 By Default
THANKSTHANKS
Slide 4
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copy 2003 By Default
Concurrent EngineeringConcurrent Engineering Is the collaboration amongIs the collaboration among functional functional
areasareas Product design design for Product design design for
quality process designquality process design design for design for manufacturing and planning logistic manufacturing and planning logistic design etc design etc
In the early phases of product designIn the early phases of product design CE requiresCE requires fast adaptation fast adaptation product innovationproduct innovation short product delivery time to market short product delivery time to market for a firm to remain competitivefor a firm to remain competitive
Slide 5
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Slide 6
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GOAL PROGRAMMINGGOAL PROGRAMMING
Introduced by Charnes and Cooper in 1960rsquos Provides a method of dealing with a collection of goals rather than an explicit objective function Objective is to minimize the deviation from each
of the goals that have been established Constraints are ldquosoftrdquo in that you may violate one (ie not meet one goal) if it means you can make better progress toward one of the other goals
Slide 7
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copy 2003 By Default
Goal Programming Versus Linear Goal Programming Versus Linear ProgrammingProgramming
Multiple Goals (instead of one goal)Multiple Goals (instead of one goal)
Deviational Variables Minimized (instead of Deviational Variables Minimized (instead of
maximizing profit or minimizing cost of LP)maximizing profit or minimizing cost of LP)
ldquoldquo SatisficingSatisficing rdquo (instead of optimizing)rdquo (instead of optimizing)
Slide 8
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copy 2003 By Default
APPLICATION AREASAPPLICATION AREAS
Accounting Accounting Agriculture Agriculture Economics Economics Engineering Engineering Finance Finance Government Government IInternational Context nternational Context Management Management Marketing Marketing
Slide 9
A Free sample background from wwwpowerpointbackgroundscom
copy 2003 By Default
Types Of Goal Programming
1048709Weights method the single objective function is the weighted sum of the of the
functions representing the goals of the problem
MIN Z= w1d1+w2d2+hellip+wndn
1048709Preemptive method prioritizes the goals in order of importance then optimizes one
goal at a time
Slide 10
A Free sample background from wwwpowerpointbackgroundscom
copy 2003 By Default
CASE STUDY AND THE EXAMPLECASE STUDY AND THE EXAMPLE
COMPANY PROFILECOMPANY PROFILE
Medical manufacturing company Medical manufacturing company producing skin prepping applicatorsproducing skin prepping applicators
10 years in the Industry 10 years in the Industry
Hospitals first aid users and industHospitals first aid users and industrialrialcompanies are the customerscompanies are the customers
125 employees125 employees
17 million $17 million $ annual salesannual sales
Slide 11
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copy 2003 By Default
Aim of the studyAim of the study
Minimized life cycle cost and timeMinimized life cycle cost and time
Timely introduction of products to marketTimely introduction of products to market
Increased deliver reliabilityIncreased deliver reliability
Measurable improvement in supplier performanceMeasurable improvement in supplier performance
Improvements in changeover and setup Improvements in changeover and setup technologiestechnologies
Slide 12
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CE TEAMCE TEAM Product designerProduct designer Manufacturing engineerManufacturing engineer Quality control managerQuality control manager Marketing managerMarketing manager Purchasing managerPurchasing manager
Product design activities and Product design activities and practices are coordinated and practices are coordinated and accomplished concurrentlyaccomplished concurrently
Suppliers inputs and assistance is in Suppliers inputs and assistance is in terms of part and product is taken into terms of part and product is taken into considerationconsideration
Slide 13
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copy 2003 By Default
STRATEGIC GOALS (P1)
COST OF PRODUDUCTSTO MARKET (P11)
TIME OF PRODUDUCTSTO MARKET (P12)
Products research and development cost Engineering design costProduct investment costProduct investment and developing costCost of quality
Speed of response to customersProduct time to market Design lead timeOrder-to-delivery cycleTotal product delivery time
Slide 14
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INTERMEDIATE GOALS (P2)
THROUGHPUT COST (P21) THROUGHPUT TIME (P22)
Procurement cost Non-recurring manufacturing costsRecurring manufacturing costsFacilities cost Initial logisticssupport costsCost of quality
Manufacturing lead timeSet-up time Producrtion cycle timeChangeover timeDelay timeDistribution lead timeManufacturing response timeProcurement lead time
Slide 15
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TACTICAL GOALS (P3)
OPERATIONAL ANDMATERIAL COST (P31)
DELIVERY TIMES (P32)
Operations cost Maintenance costProduct modification costFacilities cost Product phase-out and disposal cost
Delivery reliabilityDelivery speed
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
Slide 21
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
Slide 23
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
Slide 24
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
Slide 31
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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GOAL PROGRAMMINGGOAL PROGRAMMING
Introduced by Charnes and Cooper in 1960rsquos Provides a method of dealing with a collection of goals rather than an explicit objective function Objective is to minimize the deviation from each
of the goals that have been established Constraints are ldquosoftrdquo in that you may violate one (ie not meet one goal) if it means you can make better progress toward one of the other goals
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Goal Programming Versus Linear Goal Programming Versus Linear ProgrammingProgramming
Multiple Goals (instead of one goal)Multiple Goals (instead of one goal)
Deviational Variables Minimized (instead of Deviational Variables Minimized (instead of
maximizing profit or minimizing cost of LP)maximizing profit or minimizing cost of LP)
ldquoldquo SatisficingSatisficing rdquo (instead of optimizing)rdquo (instead of optimizing)
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APPLICATION AREASAPPLICATION AREAS
Accounting Accounting Agriculture Agriculture Economics Economics Engineering Engineering Finance Finance Government Government IInternational Context nternational Context Management Management Marketing Marketing
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Types Of Goal Programming
1048709Weights method the single objective function is the weighted sum of the of the
functions representing the goals of the problem
MIN Z= w1d1+w2d2+hellip+wndn
1048709Preemptive method prioritizes the goals in order of importance then optimizes one
goal at a time
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CASE STUDY AND THE EXAMPLECASE STUDY AND THE EXAMPLE
COMPANY PROFILECOMPANY PROFILE
Medical manufacturing company Medical manufacturing company producing skin prepping applicatorsproducing skin prepping applicators
10 years in the Industry 10 years in the Industry
Hospitals first aid users and industHospitals first aid users and industrialrialcompanies are the customerscompanies are the customers
125 employees125 employees
17 million $17 million $ annual salesannual sales
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Aim of the studyAim of the study
Minimized life cycle cost and timeMinimized life cycle cost and time
Timely introduction of products to marketTimely introduction of products to market
Increased deliver reliabilityIncreased deliver reliability
Measurable improvement in supplier performanceMeasurable improvement in supplier performance
Improvements in changeover and setup Improvements in changeover and setup technologiestechnologies
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CE TEAMCE TEAM Product designerProduct designer Manufacturing engineerManufacturing engineer Quality control managerQuality control manager Marketing managerMarketing manager Purchasing managerPurchasing manager
Product design activities and Product design activities and practices are coordinated and practices are coordinated and accomplished concurrentlyaccomplished concurrently
Suppliers inputs and assistance is in Suppliers inputs and assistance is in terms of part and product is taken into terms of part and product is taken into considerationconsideration
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STRATEGIC GOALS (P1)
COST OF PRODUDUCTSTO MARKET (P11)
TIME OF PRODUDUCTSTO MARKET (P12)
Products research and development cost Engineering design costProduct investment costProduct investment and developing costCost of quality
Speed of response to customersProduct time to market Design lead timeOrder-to-delivery cycleTotal product delivery time
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INTERMEDIATE GOALS (P2)
THROUGHPUT COST (P21) THROUGHPUT TIME (P22)
Procurement cost Non-recurring manufacturing costsRecurring manufacturing costsFacilities cost Initial logisticssupport costsCost of quality
Manufacturing lead timeSet-up time Producrtion cycle timeChangeover timeDelay timeDistribution lead timeManufacturing response timeProcurement lead time
Slide 15
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TACTICAL GOALS (P3)
OPERATIONAL ANDMATERIAL COST (P31)
DELIVERY TIMES (P32)
Operations cost Maintenance costProduct modification costFacilities cost Product phase-out and disposal cost
Delivery reliabilityDelivery speed
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
Slide 21
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
Slide 22
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
Slide 23
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
Slide 26
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
Slide 36
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
Slide 37
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
Slide 38
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
Slide 39
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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THANKSTHANKS
Slide 6
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GOAL PROGRAMMINGGOAL PROGRAMMING
Introduced by Charnes and Cooper in 1960rsquos Provides a method of dealing with a collection of goals rather than an explicit objective function Objective is to minimize the deviation from each
of the goals that have been established Constraints are ldquosoftrdquo in that you may violate one (ie not meet one goal) if it means you can make better progress toward one of the other goals
Slide 7
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Goal Programming Versus Linear Goal Programming Versus Linear ProgrammingProgramming
Multiple Goals (instead of one goal)Multiple Goals (instead of one goal)
Deviational Variables Minimized (instead of Deviational Variables Minimized (instead of
maximizing profit or minimizing cost of LP)maximizing profit or minimizing cost of LP)
ldquoldquo SatisficingSatisficing rdquo (instead of optimizing)rdquo (instead of optimizing)
Slide 8
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APPLICATION AREASAPPLICATION AREAS
Accounting Accounting Agriculture Agriculture Economics Economics Engineering Engineering Finance Finance Government Government IInternational Context nternational Context Management Management Marketing Marketing
Slide 9
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Types Of Goal Programming
1048709Weights method the single objective function is the weighted sum of the of the
functions representing the goals of the problem
MIN Z= w1d1+w2d2+hellip+wndn
1048709Preemptive method prioritizes the goals in order of importance then optimizes one
goal at a time
Slide 10
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CASE STUDY AND THE EXAMPLECASE STUDY AND THE EXAMPLE
COMPANY PROFILECOMPANY PROFILE
Medical manufacturing company Medical manufacturing company producing skin prepping applicatorsproducing skin prepping applicators
10 years in the Industry 10 years in the Industry
Hospitals first aid users and industHospitals first aid users and industrialrialcompanies are the customerscompanies are the customers
125 employees125 employees
17 million $17 million $ annual salesannual sales
Slide 11
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Aim of the studyAim of the study
Minimized life cycle cost and timeMinimized life cycle cost and time
Timely introduction of products to marketTimely introduction of products to market
Increased deliver reliabilityIncreased deliver reliability
Measurable improvement in supplier performanceMeasurable improvement in supplier performance
Improvements in changeover and setup Improvements in changeover and setup technologiestechnologies
Slide 12
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CE TEAMCE TEAM Product designerProduct designer Manufacturing engineerManufacturing engineer Quality control managerQuality control manager Marketing managerMarketing manager Purchasing managerPurchasing manager
Product design activities and Product design activities and practices are coordinated and practices are coordinated and accomplished concurrentlyaccomplished concurrently
Suppliers inputs and assistance is in Suppliers inputs and assistance is in terms of part and product is taken into terms of part and product is taken into considerationconsideration
Slide 13
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STRATEGIC GOALS (P1)
COST OF PRODUDUCTSTO MARKET (P11)
TIME OF PRODUDUCTSTO MARKET (P12)
Products research and development cost Engineering design costProduct investment costProduct investment and developing costCost of quality
Speed of response to customersProduct time to market Design lead timeOrder-to-delivery cycleTotal product delivery time
Slide 14
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INTERMEDIATE GOALS (P2)
THROUGHPUT COST (P21) THROUGHPUT TIME (P22)
Procurement cost Non-recurring manufacturing costsRecurring manufacturing costsFacilities cost Initial logisticssupport costsCost of quality
Manufacturing lead timeSet-up time Producrtion cycle timeChangeover timeDelay timeDistribution lead timeManufacturing response timeProcurement lead time
Slide 15
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TACTICAL GOALS (P3)
OPERATIONAL ANDMATERIAL COST (P31)
DELIVERY TIMES (P32)
Operations cost Maintenance costProduct modification costFacilities cost Product phase-out and disposal cost
Delivery reliabilityDelivery speed
Slide 16
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Slide 17
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
Slide 18
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
Slide 19
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
Slide 20
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
Slide 21
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
Slide 22
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
Slide 23
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
Slide 24
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
Slide 25
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The ModelThe Model
Slide 26
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
Slide 27
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
Slide 28
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
Slide 29
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
Slide 30
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
Slide 31
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
Slide 32
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
Slide 33
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
Slide 34
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
Slide 35
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
Slide 36
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
Slide 37
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
Slide 38
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
Slide 39
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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copy 2003 By Default
THANKSTHANKS
Slide 7
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copy 2003 By Default
Goal Programming Versus Linear Goal Programming Versus Linear ProgrammingProgramming
Multiple Goals (instead of one goal)Multiple Goals (instead of one goal)
Deviational Variables Minimized (instead of Deviational Variables Minimized (instead of
maximizing profit or minimizing cost of LP)maximizing profit or minimizing cost of LP)
ldquoldquo SatisficingSatisficing rdquo (instead of optimizing)rdquo (instead of optimizing)
Slide 8
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copy 2003 By Default
APPLICATION AREASAPPLICATION AREAS
Accounting Accounting Agriculture Agriculture Economics Economics Engineering Engineering Finance Finance Government Government IInternational Context nternational Context Management Management Marketing Marketing
Slide 9
A Free sample background from wwwpowerpointbackgroundscom
copy 2003 By Default
Types Of Goal Programming
1048709Weights method the single objective function is the weighted sum of the of the
functions representing the goals of the problem
MIN Z= w1d1+w2d2+hellip+wndn
1048709Preemptive method prioritizes the goals in order of importance then optimizes one
goal at a time
Slide 10
A Free sample background from wwwpowerpointbackgroundscom
copy 2003 By Default
CASE STUDY AND THE EXAMPLECASE STUDY AND THE EXAMPLE
COMPANY PROFILECOMPANY PROFILE
Medical manufacturing company Medical manufacturing company producing skin prepping applicatorsproducing skin prepping applicators
10 years in the Industry 10 years in the Industry
Hospitals first aid users and industHospitals first aid users and industrialrialcompanies are the customerscompanies are the customers
125 employees125 employees
17 million $17 million $ annual salesannual sales
Slide 11
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copy 2003 By Default
Aim of the studyAim of the study
Minimized life cycle cost and timeMinimized life cycle cost and time
Timely introduction of products to marketTimely introduction of products to market
Increased deliver reliabilityIncreased deliver reliability
Measurable improvement in supplier performanceMeasurable improvement in supplier performance
Improvements in changeover and setup Improvements in changeover and setup technologiestechnologies
Slide 12
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copy 2003 By Default
CE TEAMCE TEAM Product designerProduct designer Manufacturing engineerManufacturing engineer Quality control managerQuality control manager Marketing managerMarketing manager Purchasing managerPurchasing manager
Product design activities and Product design activities and practices are coordinated and practices are coordinated and accomplished concurrentlyaccomplished concurrently
Suppliers inputs and assistance is in Suppliers inputs and assistance is in terms of part and product is taken into terms of part and product is taken into considerationconsideration
Slide 13
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copy 2003 By Default
STRATEGIC GOALS (P1)
COST OF PRODUDUCTSTO MARKET (P11)
TIME OF PRODUDUCTSTO MARKET (P12)
Products research and development cost Engineering design costProduct investment costProduct investment and developing costCost of quality
Speed of response to customersProduct time to market Design lead timeOrder-to-delivery cycleTotal product delivery time
Slide 14
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copy 2003 By Default
INTERMEDIATE GOALS (P2)
THROUGHPUT COST (P21) THROUGHPUT TIME (P22)
Procurement cost Non-recurring manufacturing costsRecurring manufacturing costsFacilities cost Initial logisticssupport costsCost of quality
Manufacturing lead timeSet-up time Producrtion cycle timeChangeover timeDelay timeDistribution lead timeManufacturing response timeProcurement lead time
Slide 15
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TACTICAL GOALS (P3)
OPERATIONAL ANDMATERIAL COST (P31)
DELIVERY TIMES (P32)
Operations cost Maintenance costProduct modification costFacilities cost Product phase-out and disposal cost
Delivery reliabilityDelivery speed
Slide 16
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Slide 17
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
Slide 18
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
Slide 19
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
Slide 20
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
Slide 21
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
Slide 22
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
Slide 23
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
Slide 24
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
Slide 25
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The ModelThe Model
Slide 26
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
Slide 27
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
Slide 28
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
Slide 29
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
Slide 30
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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APPLICATION AREASAPPLICATION AREAS
Accounting Accounting Agriculture Agriculture Economics Economics Engineering Engineering Finance Finance Government Government IInternational Context nternational Context Management Management Marketing Marketing
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Types Of Goal Programming
1048709Weights method the single objective function is the weighted sum of the of the
functions representing the goals of the problem
MIN Z= w1d1+w2d2+hellip+wndn
1048709Preemptive method prioritizes the goals in order of importance then optimizes one
goal at a time
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CASE STUDY AND THE EXAMPLECASE STUDY AND THE EXAMPLE
COMPANY PROFILECOMPANY PROFILE
Medical manufacturing company Medical manufacturing company producing skin prepping applicatorsproducing skin prepping applicators
10 years in the Industry 10 years in the Industry
Hospitals first aid users and industHospitals first aid users and industrialrialcompanies are the customerscompanies are the customers
125 employees125 employees
17 million $17 million $ annual salesannual sales
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Aim of the studyAim of the study
Minimized life cycle cost and timeMinimized life cycle cost and time
Timely introduction of products to marketTimely introduction of products to market
Increased deliver reliabilityIncreased deliver reliability
Measurable improvement in supplier performanceMeasurable improvement in supplier performance
Improvements in changeover and setup Improvements in changeover and setup technologiestechnologies
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CE TEAMCE TEAM Product designerProduct designer Manufacturing engineerManufacturing engineer Quality control managerQuality control manager Marketing managerMarketing manager Purchasing managerPurchasing manager
Product design activities and Product design activities and practices are coordinated and practices are coordinated and accomplished concurrentlyaccomplished concurrently
Suppliers inputs and assistance is in Suppliers inputs and assistance is in terms of part and product is taken into terms of part and product is taken into considerationconsideration
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STRATEGIC GOALS (P1)
COST OF PRODUDUCTSTO MARKET (P11)
TIME OF PRODUDUCTSTO MARKET (P12)
Products research and development cost Engineering design costProduct investment costProduct investment and developing costCost of quality
Speed of response to customersProduct time to market Design lead timeOrder-to-delivery cycleTotal product delivery time
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INTERMEDIATE GOALS (P2)
THROUGHPUT COST (P21) THROUGHPUT TIME (P22)
Procurement cost Non-recurring manufacturing costsRecurring manufacturing costsFacilities cost Initial logisticssupport costsCost of quality
Manufacturing lead timeSet-up time Producrtion cycle timeChangeover timeDelay timeDistribution lead timeManufacturing response timeProcurement lead time
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TACTICAL GOALS (P3)
OPERATIONAL ANDMATERIAL COST (P31)
DELIVERY TIMES (P32)
Operations cost Maintenance costProduct modification costFacilities cost Product phase-out and disposal cost
Delivery reliabilityDelivery speed
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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THANKSTHANKS
Slide 9
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Types Of Goal Programming
1048709Weights method the single objective function is the weighted sum of the of the
functions representing the goals of the problem
MIN Z= w1d1+w2d2+hellip+wndn
1048709Preemptive method prioritizes the goals in order of importance then optimizes one
goal at a time
Slide 10
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CASE STUDY AND THE EXAMPLECASE STUDY AND THE EXAMPLE
COMPANY PROFILECOMPANY PROFILE
Medical manufacturing company Medical manufacturing company producing skin prepping applicatorsproducing skin prepping applicators
10 years in the Industry 10 years in the Industry
Hospitals first aid users and industHospitals first aid users and industrialrialcompanies are the customerscompanies are the customers
125 employees125 employees
17 million $17 million $ annual salesannual sales
Slide 11
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Aim of the studyAim of the study
Minimized life cycle cost and timeMinimized life cycle cost and time
Timely introduction of products to marketTimely introduction of products to market
Increased deliver reliabilityIncreased deliver reliability
Measurable improvement in supplier performanceMeasurable improvement in supplier performance
Improvements in changeover and setup Improvements in changeover and setup technologiestechnologies
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CE TEAMCE TEAM Product designerProduct designer Manufacturing engineerManufacturing engineer Quality control managerQuality control manager Marketing managerMarketing manager Purchasing managerPurchasing manager
Product design activities and Product design activities and practices are coordinated and practices are coordinated and accomplished concurrentlyaccomplished concurrently
Suppliers inputs and assistance is in Suppliers inputs and assistance is in terms of part and product is taken into terms of part and product is taken into considerationconsideration
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STRATEGIC GOALS (P1)
COST OF PRODUDUCTSTO MARKET (P11)
TIME OF PRODUDUCTSTO MARKET (P12)
Products research and development cost Engineering design costProduct investment costProduct investment and developing costCost of quality
Speed of response to customersProduct time to market Design lead timeOrder-to-delivery cycleTotal product delivery time
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INTERMEDIATE GOALS (P2)
THROUGHPUT COST (P21) THROUGHPUT TIME (P22)
Procurement cost Non-recurring manufacturing costsRecurring manufacturing costsFacilities cost Initial logisticssupport costsCost of quality
Manufacturing lead timeSet-up time Producrtion cycle timeChangeover timeDelay timeDistribution lead timeManufacturing response timeProcurement lead time
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TACTICAL GOALS (P3)
OPERATIONAL ANDMATERIAL COST (P31)
DELIVERY TIMES (P32)
Operations cost Maintenance costProduct modification costFacilities cost Product phase-out and disposal cost
Delivery reliabilityDelivery speed
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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CASE STUDY AND THE EXAMPLECASE STUDY AND THE EXAMPLE
COMPANY PROFILECOMPANY PROFILE
Medical manufacturing company Medical manufacturing company producing skin prepping applicatorsproducing skin prepping applicators
10 years in the Industry 10 years in the Industry
Hospitals first aid users and industHospitals first aid users and industrialrialcompanies are the customerscompanies are the customers
125 employees125 employees
17 million $17 million $ annual salesannual sales
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Aim of the studyAim of the study
Minimized life cycle cost and timeMinimized life cycle cost and time
Timely introduction of products to marketTimely introduction of products to market
Increased deliver reliabilityIncreased deliver reliability
Measurable improvement in supplier performanceMeasurable improvement in supplier performance
Improvements in changeover and setup Improvements in changeover and setup technologiestechnologies
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CE TEAMCE TEAM Product designerProduct designer Manufacturing engineerManufacturing engineer Quality control managerQuality control manager Marketing managerMarketing manager Purchasing managerPurchasing manager
Product design activities and Product design activities and practices are coordinated and practices are coordinated and accomplished concurrentlyaccomplished concurrently
Suppliers inputs and assistance is in Suppliers inputs and assistance is in terms of part and product is taken into terms of part and product is taken into considerationconsideration
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STRATEGIC GOALS (P1)
COST OF PRODUDUCTSTO MARKET (P11)
TIME OF PRODUDUCTSTO MARKET (P12)
Products research and development cost Engineering design costProduct investment costProduct investment and developing costCost of quality
Speed of response to customersProduct time to market Design lead timeOrder-to-delivery cycleTotal product delivery time
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INTERMEDIATE GOALS (P2)
THROUGHPUT COST (P21) THROUGHPUT TIME (P22)
Procurement cost Non-recurring manufacturing costsRecurring manufacturing costsFacilities cost Initial logisticssupport costsCost of quality
Manufacturing lead timeSet-up time Producrtion cycle timeChangeover timeDelay timeDistribution lead timeManufacturing response timeProcurement lead time
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TACTICAL GOALS (P3)
OPERATIONAL ANDMATERIAL COST (P31)
DELIVERY TIMES (P32)
Operations cost Maintenance costProduct modification costFacilities cost Product phase-out and disposal cost
Delivery reliabilityDelivery speed
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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Aim of the studyAim of the study
Minimized life cycle cost and timeMinimized life cycle cost and time
Timely introduction of products to marketTimely introduction of products to market
Increased deliver reliabilityIncreased deliver reliability
Measurable improvement in supplier performanceMeasurable improvement in supplier performance
Improvements in changeover and setup Improvements in changeover and setup technologiestechnologies
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CE TEAMCE TEAM Product designerProduct designer Manufacturing engineerManufacturing engineer Quality control managerQuality control manager Marketing managerMarketing manager Purchasing managerPurchasing manager
Product design activities and Product design activities and practices are coordinated and practices are coordinated and accomplished concurrentlyaccomplished concurrently
Suppliers inputs and assistance is in Suppliers inputs and assistance is in terms of part and product is taken into terms of part and product is taken into considerationconsideration
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STRATEGIC GOALS (P1)
COST OF PRODUDUCTSTO MARKET (P11)
TIME OF PRODUDUCTSTO MARKET (P12)
Products research and development cost Engineering design costProduct investment costProduct investment and developing costCost of quality
Speed of response to customersProduct time to market Design lead timeOrder-to-delivery cycleTotal product delivery time
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INTERMEDIATE GOALS (P2)
THROUGHPUT COST (P21) THROUGHPUT TIME (P22)
Procurement cost Non-recurring manufacturing costsRecurring manufacturing costsFacilities cost Initial logisticssupport costsCost of quality
Manufacturing lead timeSet-up time Producrtion cycle timeChangeover timeDelay timeDistribution lead timeManufacturing response timeProcurement lead time
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TACTICAL GOALS (P3)
OPERATIONAL ANDMATERIAL COST (P31)
DELIVERY TIMES (P32)
Operations cost Maintenance costProduct modification costFacilities cost Product phase-out and disposal cost
Delivery reliabilityDelivery speed
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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CE TEAMCE TEAM Product designerProduct designer Manufacturing engineerManufacturing engineer Quality control managerQuality control manager Marketing managerMarketing manager Purchasing managerPurchasing manager
Product design activities and Product design activities and practices are coordinated and practices are coordinated and accomplished concurrentlyaccomplished concurrently
Suppliers inputs and assistance is in Suppliers inputs and assistance is in terms of part and product is taken into terms of part and product is taken into considerationconsideration
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STRATEGIC GOALS (P1)
COST OF PRODUDUCTSTO MARKET (P11)
TIME OF PRODUDUCTSTO MARKET (P12)
Products research and development cost Engineering design costProduct investment costProduct investment and developing costCost of quality
Speed of response to customersProduct time to market Design lead timeOrder-to-delivery cycleTotal product delivery time
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INTERMEDIATE GOALS (P2)
THROUGHPUT COST (P21) THROUGHPUT TIME (P22)
Procurement cost Non-recurring manufacturing costsRecurring manufacturing costsFacilities cost Initial logisticssupport costsCost of quality
Manufacturing lead timeSet-up time Producrtion cycle timeChangeover timeDelay timeDistribution lead timeManufacturing response timeProcurement lead time
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TACTICAL GOALS (P3)
OPERATIONAL ANDMATERIAL COST (P31)
DELIVERY TIMES (P32)
Operations cost Maintenance costProduct modification costFacilities cost Product phase-out and disposal cost
Delivery reliabilityDelivery speed
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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STRATEGIC GOALS (P1)
COST OF PRODUDUCTSTO MARKET (P11)
TIME OF PRODUDUCTSTO MARKET (P12)
Products research and development cost Engineering design costProduct investment costProduct investment and developing costCost of quality
Speed of response to customersProduct time to market Design lead timeOrder-to-delivery cycleTotal product delivery time
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INTERMEDIATE GOALS (P2)
THROUGHPUT COST (P21) THROUGHPUT TIME (P22)
Procurement cost Non-recurring manufacturing costsRecurring manufacturing costsFacilities cost Initial logisticssupport costsCost of quality
Manufacturing lead timeSet-up time Producrtion cycle timeChangeover timeDelay timeDistribution lead timeManufacturing response timeProcurement lead time
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TACTICAL GOALS (P3)
OPERATIONAL ANDMATERIAL COST (P31)
DELIVERY TIMES (P32)
Operations cost Maintenance costProduct modification costFacilities cost Product phase-out and disposal cost
Delivery reliabilityDelivery speed
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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INTERMEDIATE GOALS (P2)
THROUGHPUT COST (P21) THROUGHPUT TIME (P22)
Procurement cost Non-recurring manufacturing costsRecurring manufacturing costsFacilities cost Initial logisticssupport costsCost of quality
Manufacturing lead timeSet-up time Producrtion cycle timeChangeover timeDelay timeDistribution lead timeManufacturing response timeProcurement lead time
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TACTICAL GOALS (P3)
OPERATIONAL ANDMATERIAL COST (P31)
DELIVERY TIMES (P32)
Operations cost Maintenance costProduct modification costFacilities cost Product phase-out and disposal cost
Delivery reliabilityDelivery speed
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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TACTICAL GOALS (P3)
OPERATIONAL ANDMATERIAL COST (P31)
DELIVERY TIMES (P32)
Operations cost Maintenance costProduct modification costFacilities cost Product phase-out and disposal cost
Delivery reliabilityDelivery speed
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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THE GOALS OF THE COMPANY THE GOALS OF THE COMPANY
For products XFor products X11 and X and X22
STRATEGIC GOALSSTRATEGIC GOALS
Engineering DesEngineering Desiign Cost under 240gn Cost under 240 $$ Cost Of Quality under 130 $Cost Of Quality under 130 $ Minimum Minimum Value Added to Product Value Added to Product 320320 $$
INTERMEDINTERMEDIIATE GOALSATE GOALS
Recurring manufacturing cost under 170 $Recurring manufacturing cost under 170 $ Set up Time under 60 minSet up Time under 60 min
TACTICAL GOALS TACTICAL GOALS
Delivery Reliability over 22Delivery Reliability over 22 Operation Cost under 45 $Operation Cost under 45 $
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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Strategic GoalStrategic Goal Engineering Design CostEngineering Design Cost
Total Total EDCEDC 2 x1 + 4x2
Upper Resource LimitUpper Resource Limit 240240 2 x1 + 4x2 = 240 + d1
+ - d1-
2 x1 + 4x2 + d1- - d1
+ = 240 2 x1 + 4x2 lt = 240
dd11++ indicates the indicates the EDCEDC over over 240240 while while dd11
--
indicates indicates the the EDCEDC under the under the goalgoal The objective is to minimize The objective is to minimize dd11
++
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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Strategic GoalStrategic Goal Cost of QualityCost of Quality
Total Total COQCOQ 1 x1 + 2x2
Upper Resource LimitUpper Resource Limit 130 1 x1 + 2x2 = 130 + d2
+ - d2-
1 x1 + 2x2 + d2- - d2
+ = 130 1 x1 + 2x2 lt = 130
dd22++ indicates the indicates the COQCOQ over over 130 130 while while dd22
-- indicates theindicates the COQ COQ under the under the goalgoal The objective is to minimize The objective is to minimize d2
+
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
Slide 21
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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Strategic GoalStrategic Goal Value Added to ProductValue Added to Product
Total Total VAPVAP 4x1 + 5x2
Upper Resource LimitUpper Resource Limit 320 4x1 + 5x2= 320 + d3
+- d3-
4x1 + 5x2+ d3- - d3
+ = 320
4x1 + 5x2 gt = 320
dd33++ indicates the indicates the VAPVAP over over 320320 while while d3
- indicates the indicates the VAP VAP under the under the goalgoal
The objective is to minimize The objective is to minimize d3-
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
Slide 31
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
Slide 32
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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IIntermediate Goalntermediate Goal Recurring Manufacturing CostRecurring Manufacturing Cost
Total Total RMCRMC 4x1 + 3x2
Upper Resource LimitUpper Resource Limit 170 4x1 + 3x2= 170 + d4
+- d4-
4x1 + 3x2+ d4- - d4
+ = 170
4x1 + 3x2 lt = 170
d4+ indicates the indicates the RMCRMC over over 170 while while d4
- indicates the indicates the RMC RMC under the under the goalgoal
The objective is to minimize The objective is to minimize d4+
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
Slide 31
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
Slide 32
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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IIntermediate Goalntermediate Goal Set-Up TimeSet-Up Time
Total Total SUT SUT 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 60 3x1 + 4x2= 60 + d5
+- d5-
3x1 + 4x2+ d5- - d5
+ = 60
3x1 + 4x2 lt = 60
d5+ indicates the indicates the SUTSUT over over 60 while while d5
- indicates the indicates the SUT SUT under the under the goalgoal
The objective is to minimize The objective is to minimize d5+
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
Slide 31
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
Slide 32
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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Tactical GoalTactical Goal Delivery ReliabilityDelivery Reliability
Total Total DR DR 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 22 4x1 + 5x2= 22 + d6
+- d6-
4x1 + 5x2+ d6- - d6
+ = 22
4x1 + 5x2 gt = 22
d6+ indicates the indicates the DRDR over over 22 while while d6
- indicates the indicates the DR DR under the under the goalgoal
The objective is to minimize The objective is to minimize d6-
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
Slide 32
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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Tactical GoalTactical Goal Operations CostOperations Cost
Total Total OC OC 3x1 + 4x2
Upper Resource LimitUpper Resource Limit 45 6x1 + 3x2= 45 + d7
+- d7-
6x1 + 3x2+ d7- - d7
+ = 45
6x1 + 3x2 lt = 45
d7+ indicates the indicates the OCOC over over 45 while while d7
- indicates the indicates the OC OC under the under the goalgoal
The objective is to minimize The objective is to minimize d7+
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The ModelThe Model
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
Slide 31
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
Slide 32
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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THANKSTHANKS
Slide 25
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The ModelThe Model
Slide 26
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
Slide 31
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
Slide 32
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
Slide 26
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The Model The Model The strategic goalThe strategic goal Min dMin d11
+ + + d+ d22+ + ++ dd33
--
Min Min ww11dd11+ + +w+w11dd22
+ + +w+w11dd33-- ++ ww22dd44
+ + +w+w22dd55++ ++ ww33
d6- +ww33d7
+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 x1 x2 di
+ di- 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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The solutionThe solution
Let the solution beLet the solution be
x1 = 80 x2 = 0
d1+ =0 d2
+ = 0 d3- =0
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
Slide 30
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
Slide 31
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
Slide 32
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
Slide 33
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
Slide 36
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
Slide 37
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
Slide 39
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
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THANKSTHANKS
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The Model The Model
The intermediate goalThe intermediate goal Min d4
+ + d5+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0
Slide 29
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
Slide 30
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
Slide 31
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
Slide 32
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
Slide 33
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
Slide 35
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
Slide 36
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
Slide 37
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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THANKSTHANKS
Slide 29
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The solutionThe solution
Let the solution beLet the solution be
x1 = 1333 x2 = 5333
d4+ =4333 d5
+ = 19333
Slide 30
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
Slide 31
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
Slide 32
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
Slide 33
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
Slide 36
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
Slide 37
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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THANKSTHANKS
Slide 30
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The Model The Model The tactical goalThe tactical goal Min d6
- + d7+
2x1 + 4x2 + d1- - d1
+ = 240 1x1 + 2x2 + d2
- - d2+ = 130
4x1 + 5x2+ d3- - d3
+ = 320 4x1 + 3x2+ d4
- - d4+ = 170
3x1 + 4x2+ d5- - d5
+ = 60 4x1 + 5x2+ d6
- - d6+ = 22
6x1 + 3x2+ d7- - d7
+ = 45 d1
+ =0 d2+ = 0 d3
- = 0 d4
+ =4333 d5+ = 19333
Slide 31
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
Slide 32
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
Slide 33
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
Slide 36
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
Slide 37
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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THANKSTHANKS
Slide 31
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The solutionThe solutionLet the solution beLet the solution be x1 = 1333 x2 = 5333 (EDC) d1
+ = 0 amp d1- = 0
(COQ) d2+ = 0 amp d2
- = 10 (VAP) d3
+ = 0 amp d3- =0
(RMC) d4+ = 433 amp d4
- =0 (SUT) d5
+ = 1933 amp d5- =0
(DR) d6+ = 298 amp d6
- = 0 (OC) d7
+ = 195 amp d7- =0
Slide 32
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
Slide 33
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
Slide 36
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
Slide 37
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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THANKSTHANKS
Slide 32
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The solutionThe solutionLet the solution beLet the solution be This means EDC = 2x1 + 4x2 + d1
- - d1+ = 240
COQ = 1x1 + 2x2 - d2+ = 130 ndash 10 = 120
VAP = 4x1 + 5x2+ d3- - d3
+ = 320
RMC = 4x1 + 3x2+ d4- = 170 + 433 = 2133
SUT = 3x1 + 4x2+ d5- = 60 +19333 =25333
DR = 4x1 + 5x2+ d6- = 22 + 298 = 320
OC = 6x1 + 3x2+ d7- = 45 + 195 =240
Slide 33
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
Slide 35
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
Slide 36
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
Slide 37
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
Slide 38
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
Slide 39
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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Slide 33
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Min d1++ d2
++ d3
-
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45
Slide 34
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
Slide 35
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
Slide 36
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
Slide 37
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
Slide 38
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
Slide 39
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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THANKSTHANKS
Slide 34
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X1 = 80 X2 = 0
d1+ = 0 d2
+= 0
d3-= 0
Slide 35
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
Slide 36
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
Slide 37
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
Slide 38
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
Slide 39
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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THANKSTHANKS
Slide 35
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Min d4++ d5
+
2 x1 + 4 x2 + d1- - d1
+ = 2401 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 3204 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 604 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0
Slide 36
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
Slide 37
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
Slide 38
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
Slide 39
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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THANKSTHANKS
Slide 36
A Free sample background from wwwpowerpointbackgroundscom
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X1 = 1333 X2 = 5333
d4+ = 4333
d5+ = 19333
Slide 37
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
Slide 38
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
Slide 39
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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THANKSTHANKS
Slide 37
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Min d6- + d7
+
2 x1 + 4 x2 + d1- - d1
+ = 240 1 x1 + 2 x2 + d2
- - d2+ = 130
4 x1 + 5 x2 + d3- - d3
+ = 320 4 x1 + 3 x2 + d4
- - d4+ = 170
3 x1 + 4 x2 + d5- - d5
+ = 60 4 x1 + 5 x2 + d6
- - d6+ = 22
6 x1 + 3 x2 + d7- - d7
+ = 45 d1
++ d2++ d3
- = 0 d4
+ +d5+ = 236667
Slide 38
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
Slide 39
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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THANKSTHANKS
Slide 38
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X1 = 1333 X2 = 5333
d6- = 000
d7+= 1950
Slide 39
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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THANKSTHANKS
Slide 39
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CONCLUSIONCONCLUSION
PGP is particularly appropriate where PGP is particularly appropriate where there is a hierarchy of priority levels for there is a hierarchy of priority levels for the goals as is the case in this paperthe goals as is the case in this paper
The most important decisions with The most important decisions with regard to time and cost of products are regard to time and cost of products are made at the product design stagemade at the product design stage
Using CE optimises the LCC and TBC Using CE optimises the LCC and TBC in order to be competitivein order to be competitive
Slide 40
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THANKSTHANKS
Slide 40
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THANKSTHANKS