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Daniel Whitney, Scott Keating, and Timothy Gutowski. Benitez Cardenas, Mauricio Salvador. Sloan School of Management. Massachusetts Institute of Technology. Department of Mechanical Engineering. Leaders for Global Operations Program. Sloan School of Management Massachusetts Institute of Technology. Department of Mechanical Engineering Leaders for Global Operations Program 2019-10-11T22:24:44Z 2019-10-11T22:24:44Z 2019 2019 2019 https://hdl.handle.net/1721.1/122585 1119391607 Thesis: M.B.A., Massachusetts Institute of Technology, Sloan School of Management, 2019, In conjunction with the Leaders for Global Operations Program at MIT Thesis: S.M., Massachusetts Institute of Technology, Department of Mechanical Engineering, 2019, In conjunction with the Leaders for Global Operations Program at MIT Cataloged from PDF version of thesis. Includes bibliographical references (pages 85-86). Composite airplane manufacturing requires the use of autoclaves to cure composite materials in order to create durable, lightweight parts for use in airplanes. The large size, complexity and utility consumption of this equipment makes it an ideal starting place for cost optimization. Cost modeling and the framework created by this research provide input to understand the cost impact of the complex decision between multiple part capacity and single part capacity autoclaves. The results of this research include the identification of cost drivers for the autoclave equipment as focus areas for future cost reduction efforts. Additionally, wait time modeling illustrates how multiple capacity autoclaves increase work in progress and queue lengths and how to assign costs based on the impact of batching to production flow. The framework and analysis also show cost sensitivity to offloading parts and changes in production rates by using linear optimization algorithms to evaluate different scenarios. The framework is extendable to other capital equipment with complex tradeoffs by serving as a starting point for a data driven understanding of costs from recurring, non-recurring and production flow factors. by Mauricio Salvador Benitez Cardenas. M.B.A. S.M. M.B.A. Massachusetts Institute of Technology, Sloan School of Management S.M. Massachusetts Institute of Technology, Department of Mechanical Engineering 86 pages eng Massachusetts Institute of Technology MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission. http://dspace.mit.edu/handle/1721.1/7582 Sloan School of Management. Mechanical Engineering. Leaders for Global Operations Program. Life-cycle cost modeling and Optimization for capital equipment procurement Thesis application/pdf 2019-10-11T22:24:43Z Publication Master Sloan MechE unknown unknown <Publication xmlns="https://www.openaire.eu/cerif-profile/1.1/" id="9050ee3c-719c-4dfd-8cfe-f41437dce195"> <Type xmlns="https://www.openaire.eu/cerif-profile/vocab/COAR_Publication_Types">http://purl.org/coar/resource_type/c_1843</Type> <Language>eng</Language> <Title>Life-cycle cost modeling and Optimization for capital equipment procurement</Title> <PublishedIn> <Publication> </Publication> </PublishedIn> <PublicationDate>2019</PublicationDate> <PublicationDate>2019</PublicationDate> <Authors> <Author> <DisplayName>Benitez Cardenas, Mauricio Salvador.</DisplayName> <Affiliation> <OrgUnit> </OrgUnit> </Affiliation> </Author> </Authors> <Editors> </Editors> <Publishers> <Publisher> <DisplayName>Massachusetts Institute of Technology</DisplayName> <OrgUnit /> </Publisher> </Publishers> <License>http://dspace.mit.edu/handle/1721.1/7582</License> <Keyword>Sloan School of Management.</Keyword> <Keyword>Mechanical Engineering.</Keyword> <Keyword>Leaders for Global Operations Program.</Keyword> <Abstract>Composite airplane manufacturing requires the use of autoclaves to cure composite materials in order to create durable, lightweight parts for use in airplanes. The large size, complexity and utility consumption of this equipment makes it an ideal starting place for cost optimization. Cost modeling and the framework created by this research provide input to understand the cost impact of the complex decision between multiple part capacity and single part capacity autoclaves. The results of this research include the identification of cost drivers for the autoclave equipment as focus areas for future cost reduction efforts. Additionally, wait time modeling illustrates how multiple capacity autoclaves increase work in progress and queue lengths and how to assign costs based on the impact of batching to production flow. The framework and analysis also show cost sensitivity to offloading parts and changes in production rates by using linear optimization algorithms to evaluate different scenarios. The framework is extendable to other capital equipment with complex tradeoffs by serving as a starting point for a data driven understanding of costs from recurring, non-recurring and production flow factors.</Abstract> <Access xmlns="http://purl.org/coar/access_right" > </Access> </Publication>