Thomas A. Lacksonen, Associate
Professor
Department of Industrial Management
University of Wisconsin-Stout
Menomonie, WI 54751 USA
Mustafa Alp Ertem, Graduate student
Industrial Engineering
Middle East Technical University
06531 Ankara, Turkey
Abstract
Integrated manufacturing and material handling systems suppliers must satisfy customer requirements through all project phases. This study identifies key activities and resources in the design, ship, install, and commission phases of a project to achieve full customer satisfaction.
The scope of work defines which activities are performed by the integrator, performed by the customer, and performed jointly. Each alternative for an activity has cost, duration, and risk of increased cost/duration. A mathematical project scheduling model is developed which minimizes total expected project cost. The model is solved optimally for each phase of the project. Sample solutions are given for a case study problem. Various international scenarios with different costs and risks are modeled.
This research creates a model of cost and risk of all phases of a system integration project, to improve customer satisfaction while lowering project costs. The model allows system integrators and customers to jointly determine the optimal scope of work for a project. Additionally, integrated system customers are able to accurately model project costs and risks, for cost justification and supplier selection. Integrated systems suppliers can identify the strategic benefits of adding international services to better serve global customers.
Material Handling Research Colloquium,