COVER PAGE Program Name: Title of Idea: MTConnect Challenge Automated predictive analytics for production scheduling by a novel simulation optimization Respondent Name: George Mejtsky Organization (if applicable): n/a Phone Number: (610) 594-0558 Email address: george.mejtsky@yahoo.com Date of Proposal: April 28, 2013 SECTION I: ABSTRACT In manufacturing intelligence, predictive analytics is used for planning and operations management, particularly for production scheduling. In production scheduling, simulation with heuristic rules and what-if analysis are used to run several scenarios generating several results (schedules). This process is highly labor-intensive and time-consuming, and therefore, a prime candidate for automation. Our idea is to automate this process by merging simulation with an approximate branch-and-bound optimization algorithm. Such metaheuristic simulation optimization, more described and tested in a referenced paper of this proposal, can be used for solving combinatorial problems like production scheduling, supply chain optimization, resource allocation, routing of war robots, scheduling military operations, or air traffic management. In production scheduling, direct benefits of the proposed automated predictive analytics are: higher quality of schedules (schedules are shorter), the schedules are generated faster, and savings of labor-intensive and time-consuming scheduling activities. These direct benefits lead to other manufacturing benefits like increased throughput, maximized utilization of resources (machines, people, tools, etc.), shorter lead times, improved customer satisfaction (meeting due dates, on-time delivery), improved lean manufacturing by reducing waste (waiting time, setup time, resource idleness). Therefore, production cost is reduced, profitability is increased without any capital investment, and sustainable manufacturing is supported. SECTION II: PROPOSED IDEA The goal The goal of this innovative idea is to improve the predictive capability of analytics in manufacturing intelligence. The proposed software will automate currently “manual” what-if analysis in production scheduling. This automation is based on merging simulation with an approximate branch-and-bound optimization method at the expense of heuristic rules. The idea description Currently in manufacturing intelligence, predictive analytics is used in several places, such as production scheduling/optimization or verification/simulation. In such places, usually simulation with heuristic rules and what-if analysis/scenarios are used to develop production schedules or to evaluate/verify plans, processes, or procedures. For example in production scheduling, a typical what-if analysis is carried out by a person, scheduler, in several steps. In the first step, the scheduler decides on a set of heuristic rules used in a simulation model (the first scenario). Simulation is then run, and a result (schedule) is produced. In the next step, the scheduler analyzes the schedule and decides on the second set of heuristic rules (the second scenario). Simulation is run again, and a result (schedule) is produced. This process is repeated until a satisfactory schedule is found. The goal of the what-if analysis is to find such a set of heuristic rules producing a satisfactory schedule. For an example of this type of scheduling software, see Proficy Scheduler (ROB-EX) from GE Intelligent Platforms, a leading user of MTConnect data in aerospace manufacturing. Such what-if analysis is a very labor-intensive and time-consuming process. It requires a scheduler to understand heuristic rules (differences among rules and when a rule should be applied). There are virtually hundreds of heuristic rules to choose from. If the shop floor has dozens of machines and other resources (like tools, operators, automated guided vehicles, and automated storage and retrieval systems) which need to have a rule assigned, then such “manual” what-if analysis is tedious and can last for hours. Let’s look at an example of how heuristic rules work and how they are used. Zoom in on one machine in a job shop. Suppose there are 6 jobs waiting for processing in a queue in front of the machine. In which sequence should we process these jobs on the machine? Each sequence has significant and different impact on a production schedule. One sequence can result in a schedule not meeting job due dates, and another sequence can meet the due dates. We would like to find such a sequence which would produce as good schedule as possible. There are 720 possible sequences (6! = 6x5x4x3x2x1=720) to choose from. In what-if analysis, we would have to carry out 720 scenarios to find the best sequence for just one machine. With “manual” what-if analysis, this process would take hours, so it is not practical to search through all 720 scenarios. Therefore, we use heuristic rules to help us find a satisfactory sequence fast. How does a heuristic rule work? In our example, there is a decision point with 6 options (which job to select from the 6 jobs). The machine can processed one job at a time. When deciding which option to take, a heuristic rule orders the 6 jobs according to a rule of thumb and selects the first (“best”) job in the ordered list to be processed on the machine first. For example, the FIFO (First In First Out) rule orders jobs based on the order as they entered the waiting queue. Then FIFO selects the first job in the ordered list (the oldest job in the waiting queue). The EDD (Earliest Due Date) rule orders jobs based on their due dates, and then EDD selects the job with the earliest due date to be processed on the machine first. Usually heuristic rules are simple, taking into account only one factor, like EDD cares only about job due dates, and FIFO cares only about how long jobs are waiting in a queue. There are many factors on a shop floor impacting quality of a schedule, such as sequence dependent setup times or bottlenecks. Even if a rule appears reasonable and makes sense, like EDD, it can produce a very poor schedule. This can happen when a combination of other factors creates a situation on the shop floor which is not suitable for a certain rule to be applied at that time on that machine. In a later time when the situation changes then the same rule can produce a very good schedule. In what-if analysis, when a scheduler designs scenarios, it is very difficult to imagine all possible future situations on the shop floor, particularly, when the shop floor has many machines and other resources. For example, bottlenecks could be unpredictably shifting over time, so to find the right set of heuristic rules for such fogy future situations is difficult. The scheduler has a daunting task to assign the right rule for each machine and other resources which need it. Before each scenario, the scheduler analyzes schedules from previous scenarios to figure out a better combination of rules for the next scenario in order to find a better schedule. Can we help the scheduler? This labor-intensive and time-consuming “manual” what-if process is a prime candidate for automation. This is our basic idea: Let’s automate the “manual” what-if analysis in simulation scheduling/optimization, and let the computer do the tedious work. But how? The idea proposes to exclude heuristic rules and to merge simulation with an approximate branch-and-bound optimization algorithm. The resulting novel simulation-based optimization, called sweep algorithm or Sweeper, is suitable for solving combinatorial problems, such as production scheduling, vehicle routing, staff scheduling in hospitals or airports, resource allocation, supply chain optimization, air traffic management, project management with limited resources, scheduling military operations, and routing of war robots. For example in production scheduling, Sweeper (1) first creates a simulation model of a shop floor with all needed production constraints (finite capacity scheduling), based on input MTConnect data from a real or near-real time snapshot of the shop floor, (2) then runs automatically many scenarios with the model, (3) analyzes scenarios without any human involvement, (4) searches intelligently for as good solution (schedule) as possible by branch-andprune optimization, and finely (5) outputs the best schedule found. Branching is the key concept of the idea. In the above example with one machine and 6 jobs, there is the decision point with 6 options. A heuristic rule selects only one option. The idea proposes to select more than one option, preferably all options, so the right option leading to a very good schedule or even the best (optimal) schedule cannot be missed. In the real world, only one option can be selected. However in the computer world, we can select more than one option. In such a simulation run, (1) this branching with several selected options is carried out in every decision point; (2) the algorithm continuously analyzes situations on the simulated shop floor; and (3) focuses on the most promising options to continue in the simulation run. In this way, many promising scenarios are run and analyzed automatically, and finally, the best found schedule is presented. For a detailed description of Sweeper and its testing on the standard benchmark problems for job shop scheduling, see our latest conference paper: (Mejtsky, G. J. 2008. “The improved sweep metaheuristic for simulation optimization and applications to job shop scheduling”. In Proceedings of the 2008 Winter Simulation Conference, 731-739. Piscataway, New Jersey: Institute of Electrical and Electronics Engineers, Inc.). In Sweeper, it is possible to use heuristic rules if needed. The rules can be freely mixed with the novel optimization on machines and other resources. For example, on some machines only rules can be applied, and on others the novel optimization can be applied. Even it is possible to mix a rule and the novel optimization on one machine, effectively creating a hybrid (Super rule) which outperforms the rule. In this way, we can create Super rules outperforming any heuristic rule. Areas of benefit and impact In Operations Management, the main impact of this innovation is in shop floor operations and in the Production Scheduling area of Process Management. The direct benefits are: (1) higher quality of schedules (schedules are shorter), (2) the schedules are generated faster since human time-consuming tedious analysis is minimized, and (3) savings of labor-intensive and timeconsuming scheduling activities. SECTION III: TECHNICAL REQUIREMENTS The new scheduling module (Sweeper) can be deployed as an individual software application or can be combined into an integrated application like ERP. In both cases, some integration/interface work needs to be added to bring input MTConnect data into the module and send output data (schedule) to a destination. MTConnect is utilized heavily and often by any scheduling module, such as Proficy Scheduler (ROB-EX) from GE Intelligent Platforms. Our new module needs the same large amount of input MTConnect data like Proficy Scheduler or others. MTConnect data is provided by capturing a snapshot of the whole shop floor. The frequency of taking snapshots depends on the frequency of scheduling/rescheduling. No additional scientific or technical breakthroughs are required to achieve the goal. SECTION IV: BENEFITS Because of the higher quality of schedules (schedules are shorter), manufacturing benefits are: increased throughput, maximized utilization of resources (machines, people, tools, etc.), shorter lead times, improved customer satisfaction (meeting due dates, on-time delivery), improved lean manufacturing by reducing waste (waiting time, setup time, resource idleness). Therefore, production cost is reduced, profitability is increased without any capital investment, and sustainable manufacturing is supported.