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Ch44-I044963.fm  Page 215  Tuesday, August 1, 2006  4:00 PM
                            Tuesday, August
                                      1, 2006
                      Page 215
                                           4:00 PM
            Ch44-I044963.fm
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                     4.  ABC BASED APPROACH
                     As a first  algorithm  of cost  based  scheduling, we propose  an ABC  based  approach.  We tend  to the
                     practicality  and global improvement of cost structure rather than the optimality.
                     We focus  on three types of simple dispatching rules, named EDD (Earliest Due Date), SPT (Shortest
                     Processing  Time)  and  HC  (Highest  Commonality).  HC  is  our  original  rule.  Under  this  rule,
                     materials  which  have  higher  commonality  for  the  products  are  granted  higher  priority.  Simulation
                     for  term  ti  is  performed  three  times  applying  each  rule  (shown  as  Step  1  in  Figure  3).  Then,
                     product costs are estimated  for  each trial with ABC and the rule which produces with the minimum
                     cost  is  selected  as  the  scheduling  rule  for  term  ti  (shown  as  Step  2  and  3  in  Figure  3).  Those
                     procedures are iterated  for  all over the scheduling term.
                                       Step!                      Step 3
                                       Simulation Applying Each Rule  Analysis with ABC  Rule Selectio
                                                        (a)S123,456
                                      M                 (b)S124,879
                                      HDD               (c) $134,586
                                      SPT
                                      (c)
                                      HC
                                             Figure 3 Concept of Proposed Method

                                               Table  1 List of Objective Costs
                              Cost Name       Cost Driver 1  Cost Driver 2  Charge Rate
                          Depreciation Cost A              Utilization Time  100,000(Yen/Month)
                          Depreciation  Cost B             Utilization Time  150,000(Yen/Month)
                          Depreciation  Cost C             Utilization  Time  500,000(Yen/Month)
                             Stock Cost A                                   3,000(Yen/Month)
                             Stock Cost B                                   8,000(Yen/Month)
                          Indirect Energy Cost  Utilization Time  Processing Time  100,000(Yen/Month)
                           Indirect Labor Cost  Processing Time  Processing Time  750,000(Yen/Month)
                             Material Cost                                    100(Yen/Each)
                          Penalty  for Tardiness                              10( Yen/Minute)
                             Direct Energy                 Processing Time    10( Yen/Minute)
                              Setup Cost                                       50(Yen/Each)

                     4.1.  Experiments 1
                     We have  simple  experiments with the DVF to investigate the  effectiveness  of the proposed  method
                     and the effectiveness  of dispatching  rules  for  product cost. The proposed method  is implemented  in
                     processing A and B. Experiments conditions are  following.
                        1.  Total scheduling period  is 6 days.
                        2.  Term of rule selection (shown as tl  in Figure 3) is 2 days.
                        3.  Order amount for day  1 and 2 makes utilizations of facilities about 85%.
                        4.  Order amount for day 3 and 4 is  10% higher than that of day  1 and 2.
                        5.  Order amount for day 5 and 6 is  10% lower than that of day  1 and 2.
                     4.2.  Results of Experiments I
                     Product  cost  at 4 areas, such as, Processing A, B, Assembly  Line  and  Storages,  for  day  1 and 2 are
                     shown  in  Table  2.  At  first,  we  decided  HC  as  the  dispatching  rule  for  day  1  and  2,  since  HC
                     produces  in the  lowest  cost. However,  HC  is the  best  rule  only  for  Processing  B  and  it is also the
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