Dynamic layout optimisation through simulation: enhancing machine utilisation for fluctuating demand

Abstract A change in customer demand and business priorities has shifted from mass production to mass customisation. Manufacturers can revamp and improve older manufacturing plants to increase production levels. Due to poor manufacturing facility layouts, there can be inefficient material and product flow systems. A variety of approaches may be used to aid in the design of optimal facility layouts. There is no feasible generic foundation for designing such layouts with essential data, resources, simulation and optimisation to contribute to constructing optimal facilities. In this work, a discrete event simulation (DES) model is developed for the existing assembly line for a delivery valve (DV) assembly that can meet the future demand of the assembly line for a 5-year period. Compared to the previous configuration, the new configuration improved machine usage by 40% whilst conserving 60% of space and boosting production by 75%. The study provides valuable insights into manufacturing optimisation by addressing the complexities of hybrid flow-shop assembly lines and proposing methods for optimising resource allocation and layout. This study has managerial implications in terms of making effective and efficient decisions in considering the constraints of a large solution space.