A group technology model to assess consolidation and reconfiguration of multiple industrial operations—a shared manufacturing solution

Abstract A model for aiding a large enterprise in decisions regarding consolidation and reconfiguration of its facilities to shared manufacturing facilities is described. Shared manufacturing is the sharing of modern manufacturing technologies and management systems by different manufacturers with similar needs. The concept of shared manufacturing is extended to assess its usefulness to a large enterprise separated by wide geographic distances and focusing on re-manufacturing of products rather than original manufacturing. Production flow analysis was used to assess the technical feasibility of shared manufacturing by measuring the degree of similarity in processing of equivalent items at multiple facilities. Economic feasibility was assessed through development of a cost model that would directly compare savings incurred among factories. Practical feasibility was assessed through resolution of a variety of qualitative factors including the impact of capacity, quality, evolving technology, jigs and fixtures, changing workloads, and out-of-station costs The model was applied to a case study for the analysis of engines with respect to a decision to consolidate engine workload to a shared manufacturing facility