AHP and Sensitivity Analysis to Study Cost-Dependency of Decision Variables in Facilities Layout Selection

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International Journal of Research and Scientific Innovation (IJRSI) | Volume V, Issue VI, June 2018 | ISSN 2321–2705

AHP and Sensitivity Analysis to Study Cost-Dependency of Decision Variables in Facilities Layout Selection

Dr. G. Shashikumar * and Prof. Bijan Sarkar **

IJRISS Call for paper

 *Department of IEM, B.M.S. College of Engineering, Bangalore, Karnataka, India
** Department of Production Engg., Jadavpur University, Kolkata, India

Abstract: – Selection of a proper Facilities Layout (FL) to accommodate a particular type of manufacturing environment is a Herculean task. Multi-Criteria Decision Making (MCDM) approaches provide comprehensive solutions to FL selection problems, so that an efficient and cost effective FL can be selected from amongst many. These tools also provide a mechanism that can handle complementary, conflicting and even contradictory factors. Analytical Hierarchy Process (AHP) is one such tool. Here, Decisions Matrix and Pair wise Comparison (PWCP) matrices are formed on the basis of objective and subjective evaluation of a given scenario and corresponding Priority Vector (PV) values are calculated. These PV values are calculated through iterative process and are accepted if the concerned matrices yield Consistency Ratios (CR) below a specific limit. Then Composite Priority (CP) values are found out and used as Subjective Factor Measure (SFM)s in determining Facility Layout Measure (FLM)s. The algorithm is coded in ‘C’ language. The program is general and can be used to handle varieties of ‘selection from amongst many’ kind of problems. In the next step, a Sensitivity Analysis is taken up, to estimate the model’s performance when subjected to minor changes where CP values are used as SFMs in determining FLMs.

Keywords: Facilities Layout, AHP, CR, FLM, Sensitivity Analysis.

I. INTRODUCTION

Modern industry has challenges to meet on many fronts. Product Design, Production, Marketing and Customer Care are the vital fields. Since the advent of Computer Integrated Manufacturing (CIM) system as a means of production automation of manufacturing technologies, the manufacturing scene has undergone a dramatic change. The production capacity has increased manifolds. Nearly all modern production setups make an all pervasive use of computers to design the products, plan the production, control the operations and perform various business related functions needed in a manufacturing firm. Computer Aided Design/ Computer Aided Manufacturing (CAD/CAM) is used today almost synonymously with CIM.