Reliable Cost Prediction and Control for Intelligent Manufacture: A Key Performance Indicator Perspective

Hang Geng; Alireza Mousavi; Nikolaos Grigorios Markatos; Kai Chen; Xuan Gou

doi:10.53941/ijndi.2024.100001

Abstract

Intelligent manufacturing is facing significant challenges in adapting to the ever-changing equipment, instrumentation, process and economics. Such a trend together with the pressure to reliably control and contain production costs means that frequent adjusting decisions are required to adapt to incessant volatility imposed on manufacturing systems. Under this circumstance, cost-effective and quality-guaranteed manufacturing strategies would be the most logical route to reducing production costs. In this paper, a novel dynamical cost prediction and control (CPC) model is proposed to support collective decision-making in intelligent manufacturing, where the model output is the real-time prediction of possible manufacturing costs, while the inputs are generic manufacturing key performance indicators covering inventory, product quality, production efficiency, resource utilisation and environmental impact. This proposed CPC model distinguishes itself from existing ones for its capability to translate manufacturing data (at both the physical level and operation management level) into financial metrics that contribute to forming a common language between engineering, financial and administrative departments of an enterprise. The case study about the assembly line of optoelectronic devices demonstrates that, although different enterprise departments have different priorities, our CPC model helps them to achieve certain consensus on intended production that finally creates satisfactory profitability for the company at controlled manufacturing costs.

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