G. Lodewijks
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Composite Indicators of Company Performance
A Literature Survey
Composite indicators (CIs) are needed for decision makers to effectively benchmark holistic company performance. Composite indicators at macro levels are inappropriate to be implemented at the company level. By a literature survey, this article identified 29 individual methods for constructing CIs, 17 specific business sectors where CIs have been utilized in practice, and the motor vehicle manufacturing sector as the most studied sector. This article identified nine problems and provided four recommendations for future research.
Benchmarking company performance from economic and environmental perspectives
Time series analysis for motor vehicle manufacturers
Purpose: The purpose of this paper is to develop an approach to measuring the performance of motor vehicle manufacturers (MVMs) from economic and environmental (E&E) perspectives. Design/methodology/approach: Eight measures are identified for benchmarking the performance from E&E perspectives. A new company performance index IMVM is constructed to quantitatively generate the historical data of MVMs’ company performance. Autoregressive integrated moving average (ARIMA) models are built to generate the forecast data of the IMVM. The minimum Akaike information criteria value is used to identify the model of the best fit. Forecast accuracy of the ARIMA models is tested by the mean absolute percentage error. Findings: The construction of the index IMVM is benchmarked against three frameworks by six benchmark metrics. The IMVM satisfies all of its applicable metrics while the three frameworks are incapable to satisfy their applicable metrics. Out of 15, 4 MVMs are excluded for benchmarking future performance due to their non-stationary time series data. Based on the forecast IMVM data, GM is the best performer among the 15 samples in the FY2018. Originality/value: This research highlights the environmental perspective during vehicles’ production. The development of this approach is based on publicly available data and transparent about the methods it used. The data out of the approach can benefit stakeholders with insights by benchmarking the historical performance of MVMs as well as their future performance.
Purpose: The development of bulk material handling equipment can be accelerated and made less expensive when testing of virtual prototypes is adopted. However, the modelling of a grab unloader requires a large volume (77 m3) of iron ore pellets, making the computational costs prohibitive. This paper investigates the extent to which the original particles can be substituted by larger, coarser grains. It is crucial that this particle upscaling does not alter the realistic behaviour of the simulated bulk material, nor its interaction with the bulk handling equipment. Approach: First, our coarse graining technique is explained and set out for the particle system at hand. The material behaviour is then characterized using three laboratory experiments (two angle of repose tests and a penetration test). Next, the results of simulations using two contact models with and without coarse graining with different scale factors are compared with the measured material behaviour and material-equipment interaction. This includes a comparison of the macrobehaviour of the bulk material and the tool interaction of coarser grains in a cutting and sliding process. After reaching a satisfactory verified solution on the laboratory scale, the material behaviour and interaction behaviour of a large-scale experiment are modelled. A simulation model of a grab unloader was used for validation of the chosen coarse graining approach. Findings: Using the scaling method presented, the macroscopic tests indicated consistent material behaviour, regardless of the chosen particle scale for two contactmodels. Scaling of the tool interaction process produced mixed results: the sliding process scaled consistently but the penetration process did not, most likely because it is significantly harder for coarser grains to move since they have to move further to the sides before the tool can pass, leading to higher normal forces and frictional forces on the tip. This inconsistency was compensated for by adjusting the wall friction coefficient in the tip of the penetration tool. Once this adapted coarse graining scheme was applied to the industrial-scale simulation of a grab unloader, it produced consistent particle-scale invariant results. Originality/value: This research is the first to show how coarse graining schemes for DEM simulations can be applied to large-scale bulk handling equipment involving dominance of material equipment interaction through penetration of the bulk material.
Belt conveyor systems are widely utilized for continuous transport of bulk materials. Maintenance activities are essential to ensure the reliability of belt conveyor systems. Conventional diagnosis decision is achieved based on empirical constant thresholds. The Challenge of this study is to propose a framework of integrated maintenance decision making for belt conveyor idlers. Information from operational conditions, reliability estimation of idlers and condition monitoring data are integrated for accurate decision making. Innovatively, in the proposed framework threshold of the monitoring parameter can vary according to real time operational conditions and reliability estimation results. A simulation study is presented to demonstrate the effectiveness of framework. Simulation results show that the framework can result in more accurate maintenance decision making compared to conventional approaches.
Method for performance measurement of car companies from a stability-value leverage perspective
The balancing act between investment in R&D, supply chain configuration and value creation
Purpose: Today, most of the car manufacturers world-wide have embraced the principles of lean manufacturing on strategic and operational level. On strategic level car companies like Toyota (Womack et al., 1990) shifted 63 per cent of the value of the car towards the first, second and third tier suppliers for the co-production and co-development of cars as an effect of lean implementation. However, lean implementation was also followed by for instance Ford and GM in the USA, the latter company faced a sudden disruption in 2009 due to the break-out of the financial crisis in 2008, while Ford survived. Could this be foreseen? The exclusive use of (classic) financial performance indicators may give a false image of a company’s current and future performance. There is a need for a model to identify “the stars and the laggards’ regarding car companies by taking into account non-financial and intangible dimensions as advocated by Neely et al. (2003) regarding the third generation of business performance measurement systems. The purpose of this paper is therefor to propose a method to measure and benchmark car company performance which includes the non-financial R&D dimension as well as supply chain, value creating and employee dimensions. These dimensions are present in the value leverage model (van Blokland et al., 2012a, 2012b) which can serve as a basis for this method. The aim is to contribute to the third generation business performance measurement systems by further development of the value leverage model towards a maturity model for benchmarking car company performance. The proposed method can provide a big picture and give insight regarding company performance and direction of the performance. Design/methodology/approach: Value leverage can be measured by a correlation analysis regarding three dimensions, namely, supply chain, R&D and value creation, all relative to the employee or capita which results in the average value leverage (AVL) factor. This AVL factor can be used to compose a combined relative and absolute ranking. The score regarding the AVL results in a relative ranking expressing the level of stability regarding the car companies value chain and system. For the absolute ranking the car companies receive per variable parameter a score according to their absolute performance relative to the other car companies. The relative and absolute ranking are presented on the vertical and horizontal axes forming a matrix. The matrix is the basis for the stability-value leverage maturity model for measuring and benchmarking company performance. With the proposed method, the following main research question can be answered: “How can company performance be measured and benchmarked from a stability-value leverage perspective?”. Findings: With the proposed method, stability-value leverage performance can be measured. The relative ranking on the vertical axis and the absolute ranking form together a matrix which is presented by a scatterplot. A matrix with four maturity levels emerged from the analysis by introducing the average score of all the car companies together in the data set crossing the matrix vertical and horizontal. The four levels are as follows: Level I, low stability – low value leverage; Level II, low stability – high value leverage; Level III, high stability – low value leverage; and Level IV, high stability – high value leverage. Stability-value leverage performance of car companies can be measured over time which makes it possible to observe to which direction the car company migrates for instance from Level I to Level III, before and after the financial crises in 2008. The car companies BMW, Daimler, Audi, Ford and Honda are the best performing companies in stability-value leverage over the period 2000-2014, as they are situated at Level IV. With the findings, the main research question can be answered. The value leverage indicators can be used for measuring and benchmarking company performance regarding four maturity levels of stability and value leverage. The direction of performance can be observed as well. Research/limitations/implications: This research is limited to the car industry. Further research is devised to test the indicators for instance on the truck manufacturing industry. Further research towards new variables is part of the ongoing research. Practical/implications: With the value leverage maturity model, it is possible to inform stakeholders about stability, value leverage and value creation capability of car companies. Weak performing companies can be identified in an early stage with this method to anticipate for instance on possible discontinuation of a car company effecting in merger an acquisition processes. Social/implications: With the method stakeholders such as employees, users of cars and investors can be informed about how and why car companies perform in an unstable or stable manner. Originality/value: This research towards ranking and classification of car companies aligns with theories regarding lean manufacturing and maturity models, as these models are used to compare companies on their level of perfection or excellence.
The ultimate strength of metallic pipelines will be inevitably affected when they have suffered from structural damage after mechanical interference. The present experiments aim to investigate the residual ultimate bending strength of metallic pipes with structural damage based on large-scale pipe tests. Artificial damage, such as a dent, metal loss, a crack, and combinations thereof, is introduced to the pipe surface in advance. Four-point bending tests are performed to investigate the structural behavior of metallic pipes in terms of bending moment-curvature diagrams, failure modes, bending capacity, and critical bending curvatures. Test results show that the occurrence of structural damage on the pipe compression side reduces the bending capacity significantly. Only a slight effect has been observed for pipes with damage on the tensile side as long as no fracture failure appears. The possible causes that have introduced experimental errors are presented and discussed. The test data obtained in this paper can be used to further quantify damage effects on bending capacity of seamless pipes with similar D/t ratios. The comparison results in this paper can facilitate the structural integrity design as well as the maintenance of damaged pipes when mechanical interference happens during the service life of pipelines.
Wheel impact load detectors are widespread railway systems used for measuring the wheel–rail contact force. They usually measure the rail strain and convert it to force in order to detect high impact forces and corresponding detrimental wheels. The measured strain signal can also be used to identify the defect type and its severity. The strain sensors have a limited effective zone that leads to partial observation from the wheels. Therefore, wheel impact load detectors exploit multiple sensors to collect samples from different portions of the wheels. The discrete measurement by multiple sensors provides the magnitude of the force; however, it does not provide the much richer variation pattern of the contact force signal. Therefore, this paper proposes a fusion method to associate the collected samples to their positions over the wheel circumferential coordinate. This process reconstructs an informative signal from the discrete samples collected by multiple sensors. To validate the proposed method, the multiple sensors have been simulated by an ad hoc multibody dynamic software (VI-Rail), and the outputs have been fed to the fusion model. The reconstructed signal represents the contact force and consequently the wheel defect. The obtained results demonstrate considerable similarity between the contact force and the reconstructed defect signal that can be used for further defect identification.
We introduce a distributed optimization method for improving the computational efficiency of real-time traffic management approaches for large-scale railway networks. We first decompose the whole network into a pre-defined number of regions by using an integer linear optimization approach. For each resulting region, a mixed-integer linear programming approach is used to address the traffic management problem, with micro details of the network and incorporated with the train control problem. For handling the interactions among regions, an alternating direction method of multipliers (ADMM) algorithm based solution approach is developed to solve the subproblem of each region through coordination with the other regions in an iterative manner. A priority rule based solution approach is proposed to generate feasible suboptimal solutions, in case of lack of convergence. Numerical experiments are conducted based on the Dutch railway network to show the performance of the proposed solution approaches, in terms of effectiveness and efficiency. We also show the trade-off between solution quality and computational efficiency.
Reducing unmet demand and spoilage in cut rose logistics
Modeling and control of fast moving perishable goods
Fresh cut flower supply chains are aware of the need for reducing spoilage and increasing customer satisfaction. This paper focuses on a part of the cut rose supply chain, from auction house to several end customers. A new business mode is considered that would allow end customers to subscribe to florists and have a continuous supply of bouquets of roses. To make this business mode feasible, we propose to benefit from real-time information on roses’ remaining vase life. First, a quality-aware modeling technique is applied to describe supply chain events and quality change of cut roses among several supply chain players. Then, a distributed model predictive control strategy is used to make up-to-date decisions for supply chain players according to the latest logistics and quality information. This approach provides a tool for multiple stakeholders to collaboratively plan the logistics activities in a typical cut rose supply chain based on roses’ estimated vase life in real time. The proposed approach is compared with a currently used business mode in simulation experiments. Results illustrate that the new business mode and the planning approach could reduce unmet demand and spoilage in a cut rose supply chain.
Shuttle based storage and retrieval systems (SBS/RS) attract continuous research attention because of their ability to achieve a high throughput. In an SBS/RS system, lifts are regarded as the bottleneck that hinder reaching higher throughput and therefore require subtle control polices. In this paper, the scheduling of two non-passing lifts on a common rail SBS/RS has been studied with consideration of the acceleration and deceleration of the lifts. Lift scheduling includes storage and retrieval requests sequencing, assignment of lifts, and collision avoidance. The main objective of the lift scheduling is minimizing the makespan of the moves. Different with the traditional constant velocity lift scheduling approach is that new collisions emerge when the acceleration/deceleration of the lifts are taken into consideration. This makes the scheduling different. In this paper a collision free lifts trajectory predicting approach with acceleration/deceleration is presented. Combined with the collision-free method, request sequencing and assignment are carried out by a proposed genetic algorithm. Experimental results with several SBS/RS practical working scenarios provide evidence that the proposed scheduling approach achieved on average 12.2% and 6.4% improvement in makespan compared with the constant velocity approach when the maximum velocity of the lifts is 1.5 m/s and 2 m/s respectively.
Belt conveyors play an important role in the dry bulk material handling process. Speed control is a promising method of reducing the power consumption of belt conveyors. However, inappropriate transient operations might cause risks like material spillage away from the belt conveyor. The unexpected risks limit the applicability of speed control. Current studies on speed control mainly focus on designing energy models of belt conveyors or building control algorithms of variable speed drives, while rare researchers take into account the risks in transient operations and the dynamic performance of belt conveyors under speed control. The paper proposes an Estimation-Calculation-Optimization (ECO) method to determine the minimum speed adjustment time to ensure healthy transient operations. The ECO method is composed of three steps and takes both risks in transient operations and the conveyor dynamics into account. In the Estimation step, an estimator is built to approximate the permitted maximum acceleration by treating the belt as a rigid body. Taking the belt's visco-elastic property into account, the Calculation step computes the conveyor dynamics by using a finite-element-method. With respect to the risks in transient operations, the Optimization step improves the conveyor's dynamic behaviors and optimizes the speed adjustment time. A case of a long belt conveyor system is studied and the ECO method is applied. The secant method is also used to improve the optimization efficiency. According to the experimental results, the ECO method is successfully used to determine the minimum speed adjustment time to ensure healthy transient operations, including both the accelerating and the decelerating operations. With the suggested adjustment time, unexpected risks are avoided and the belt conveyor shows an appropriate dynamic behavior. Accordingly, the ECO method ensures healthy transient operations and improves the applicability of speed control with the consideration of the potential risks and the conveyor dynamics.
A dent is one of the main structural damages that may affect ultimate strength. In this paper, the residual ultimate strength of dented metallic pipes subjected to a bending moment is quantitatively investigated. The numerical model is developed accounting for the variation of the dent length (ld), dent depth (dd), dent width (wd), dent rotation angle (θd) and dent location based on ABAQUS Python. The numerical model is validated by test results from a four-point bending test. Subsequently, a parametric investigation is performed on the effects of wave-type initial imperfection, D/t and dent geometrical parameters. It is found that both ld and dd have a significant effect on the residual ultimate strength of dented metallic pipes, while the effect of wd is slight. Finally, an empirical formula with respect to ld and dd has been proposed for the prediction of bending moment, which can be deployed for practical purposes.
Belt conveyor systems are widely used in bulk material handling and transport applications. Within a belt conveyor, depending on its distance, there can be tens of thousands of idler rolls which face random failure. However, condition monitoring solutions for belt conveyor idlers is underdeveloped. This is because the choice of monitoring parameters is still arbitrary. This paper aims to investigate which parameters can represent technical condition of idler rolls for the purpose of condition monitoring. A belt conveyor test rig is developed in laboratory. Temperature and vibration sensors are applied to monitor idler rolls induced with different types of failures. Patten of temperature evolution and RMS level of vibration are extracted from the signal and analysed. It is concluded that temperature measurement at roll shafts is a straightforward and effective manner for condition monitoring of belt conveyor idlers.
On the basis of an experimental investigation [1], numerical investigation is conducted in this paper on damaged seamless metallic pipelines with metal loss (diameter-to-thickness ratio D/t around 21) through nonlinear finite element method (FEM). Numerical models are developed and validated through test results by using the measured material properties and specimen geometry, capable of predicting the residual ultimate strength of pipes in terms of bending capacity (Mcr) and critical curvature (κcr). By changing the metal loss parameters, i.e. length (lm), width (wm) and depth (dm), a series of numerical simulations are carried out. Results show that the larger the dm or lm is, the less the bending capacity will be. The increase of notch width slightly reduces the pipe strength, presenting a linear tendency. Based on the FEM results, empirical formulas are proposed to predict the residual ultimate strength of metallic pipes with metal loss under pure bending moment. The prediction results match well with the results from the tests, the numerical simulations as well as the theoretical derivation. Such formulas can be therefore used for practice purposes and facilitate the decision-making of pipe maintenance after mechanical interference.
Numerical investigation is conducted in this paper on both intact and dented seamless metallic pipelines (diameter-to-thickness ratio D/t around 21), deploying nonlinear finite element method (FEM). A full numerical model is developed, capable of predicting the residual ultimate strength of pipes in terms of bending capacity (Mcr) and critical curvature (κcr). The simulation results are validated through test results by using the measured material properties and specimen geometry. An extensive parametric investigation is conducted on the influences of material anisotropy, initial imperfection, friction of the test set-up and dent parameters. It is found that the structural response is quite sensitive to the frictions that have been introduced by the test configuration. For a pipe with a considerable dent size, the effect of manufacturing induced initial imperfection is insignificant and can be neglected in the FEM simulation. The material yield stress in the pipe longitudinal direction dominates the bending capacity of structures. In the end, formulas are proposed to predict the residual ultimate strength of dented metallic pipes under pure bending moment, which can be used for practical purposes. A satisfying fit is obtained through the comparison between the formulas and FEM methods.
The combination damage induced by mechanical interference, in reality, is more likely to happen. In this paper, numerical models on pipes with combined dent and metal loss in terms of a notch are developed and validated through tests (diameter-to-thickness ratio D/t of test pipes around 21), capable of predicting the residual ultimate strength of pipes in terms of bending moment (Mcr) and critical curvature (κcr). The effect of residual stress is explored, assuming a linear distribution in the pipe hoop direction. Investigations of damaged pipes with different D/t (15–50) are carried out. Through changing damage parameters in the combinations, i.e. dent depth (dd) or metal loss depth (dm), the corresponding effects of damage are clarified. Results show that the combined dent and notch damage is a more severe type of damage on pipe strength compared with other damage types (excluding fracture). The dent in combined damage plays a more dominant role on the pipe residual strength. Empirical formulas are proposed to predict residual ultimate strength of damaged metallic pipes (D/t around 21) with combined dent and metal loss under bending moment, which can be used for practical purposes. The application domain can be expanded to pipes with D/t up to 30 based on simulations.