off introduction:

Production optimization aims at the best possible use of resources leading to short- and long-term cost savings. To achieve this, available production resources and facilities can be restructured and unnecessary resources can be eliminated. This contribution presents an optimization tool based on the key performance indicator Every Part Every Interval (EPEI) which is applicable to most producing industries. A minimum overall EPEI value indicates high production efficiency. Also, achieving a lower EPEI value helps to dissolve the dichotomy between the economy of scale and the economy of scope. Hence, it is especially useful to ensure profitable production in high-wage countries. The optimization of the EPEI values is followed by a calculation of the total costs resulting from the respective scenario. To illustrate the benefit of using the optimization tool, this contribution shows the development of the optimization process subdivided into four steps. The results of each step are presented and compared.

The tool is designed in such a way that it can be applied to many different industries. To outline the underlying method, this contribution uses the example of a company with a portfolio of 600 products and four production lines.