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Page 1: 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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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

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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-

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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

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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

Page 2: Goal Programming

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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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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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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

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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

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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

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+

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

Page 3: Goal Programming

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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

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)

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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

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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 $

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

++

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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+

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

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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

Page 4: Goal Programming

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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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

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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-

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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

Page 5: Goal Programming

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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-

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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

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

Page 6: Goal Programming

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

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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

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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

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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-

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

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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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copy 2003 By Default

THANKSTHANKS

Page 7: Goal Programming

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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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

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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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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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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

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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

Page 8: Goal Programming

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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

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THANKSTHANKS

Page 9: Goal Programming

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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

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THANKSTHANKS

Page 10: Goal Programming

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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

Page 11: Goal Programming

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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

Page 12: Goal Programming

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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

Page 13: Goal Programming

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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

Page 14: Goal Programming

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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

Page 15: Goal Programming

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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

Page 16: Goal Programming

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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

Page 17: Goal Programming

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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

Page 18: Goal Programming

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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

Page 19: Goal Programming

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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

Page 20: Goal Programming

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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

Page 21: Goal Programming

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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

Page 22: Goal Programming

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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

Page 23: Goal Programming

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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

Page 24: Goal Programming

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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

Page 25: Goal Programming

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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

Page 26: Goal Programming

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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

Page 27: Goal Programming

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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

Page 28: Goal Programming

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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

Page 29: Goal Programming

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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

Page 30: Goal Programming

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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

Page 31: Goal Programming

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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

Page 32: Goal Programming

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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

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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Page 33: Goal Programming

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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

Page 34: Goal Programming

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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

Page 35: Goal Programming

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

Page 36: Goal Programming

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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Page 37: Goal Programming

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

Page 38: Goal Programming

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

Page 39: Goal Programming

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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Page 40: Goal Programming

Slide 40

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