A distributed virtual factory in agile manufacturing environment

There is a growing recognition that current manufacturing enterprises must be agile, that is, capable of operating profitably in a competitive environment of continuously changing customer demands. The use of a virtual enterprise (VE) is becoming increasingly prevalent, and that has been made possible, in part, due to the significant advances in communication and information technology in recent years. A manufacturing system is one of the competitive factors that forms an effective VE. Therefore, for manufacturers wishing to obtain a contract in VE, it is crucial to present attractive and competitive offers to other coalition members. There are several criteria to these offers, such as cycle time, fulfilment of due date or quick shipping date, cost, and quality assurance for the ordered products. Manufacturing system simulation could endorse the basic estimates of the criteria for the strategic offer. The distributed simulation model concept provides practical solutions to facilitate such a large-scaled precise simulation model in the VE environment, because it is constructed as the integration of several manufacturing simulation models of each production module in the factory. As a solution to realize this integration, we propose a Distributed Virtual Factory (DVF) concept that consists of distributed precise simulation models connected by several synchronization mechanisms named Time Bucket algorithms. A DVF enables precise evaluations of the whole manufacturing system, especially in terms of the material flows. In this study, we introduce an Activity Based Costing (ABC) method into the DVF architecture to estimate the detailed cost analysis of the products. The methodology facilitates strategic enterprise management to prepare the request for the bids in the VE environment. The effectiveness of the proposed concept in agile manufacturing is discussed with simulation experiments.