Mathematical optimization of the tactical allocation of machining resources for an efficient capacity utilization in aerospace component manufacturing

Paper in proceedings, 2019

In the aerospace industry, with low volumes and many products, there is a critical need to efficiently use available manufacturing resources. Currently, at GKN Aerospace, resource allocation decisions that in many cases will last for several years are to some extent made with a short-term focus so as to minimize machining time, which results in a too high load on the most capable machines, and too low load on the less capable ones. This creates an imbalance in capacity utilization that leads to unnecessary queuing at some machines, resulting in long lead times and in an increase in tied-up capital. Tactical resource allocation on the medium to long-range planning horizon (six months to several years) aims to address this issue by allocating resources to meet the predicted future demand as effectively as possible, in order to ensure long range profitability. Our intent is to use mathematical optimization to find the best possible allocations.