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Proposal of a Model for Life Cycle Simulation and

Optimization of Industrial Equipment


Valerio Contaldo, Daniele Cerri, Marco Garetti Sergio Terzi
Department of Management, Economics and Industrial Department of Industrial Engineering
Engineering Universit degli Studi di Bergamo
Politecnico di Milano Viale Marconi 5, 24044, Dalmine (Bergamo), Italy
Piazza Leonardo da Vinci 32, 20133, Milano, Italy sergio.terzi@unibg.it
valerio.contaldo@mail.polimi.it, daniele.cerri@polimi.it,
marco.garetti@polimi.it

Abstract The transformation of advanced industries from a such a context, it is easy to realize how this aim can be
resource intensive to a sustainable knowledge-based industrial achieved by making use of simulation-based optimization:
environment is a focal objective of the Western countries and simulation permits to cover the whole life cycle perspective,
institutions. If on the one hand Life Cycle Simulation (LCS) can while optimization ensures that final results in terms of
be seen as a new approach for supporting designers and engi- input parameters denote the selection of best elements (with
neers in their work for creating optimized and sustainable solu- regard to some criteria specified in the objective function) from
tions, on the other hand an in-depth review of the state of the art some set of available alternatives. Nevertheless, also consider-
has revealed how LCS system developed so far have been specific ing those works that implement a combined simulation-
to particular research purposes and had limited functions. The
optimization approach, we can draw conclusions similar to the
present paper proposes a model to simulate and optimize life
ones regarding LCS systems developed so far: they are usually
cycle costs and environmental impacts of industrial equipment:
simulation is implemented by means of Discrete Event Simulation limited to specific industrial sectors and mainly deal with the
(DES), while a genetic algorithm performs optimization. optimization of the modular structure of a product, while indus-
trial equipment have not yet been studied from a combined
KeywordsLife Cycle Simulation; optimization; Discrete Event simulation-optimization perspective.
Simulation; genetic algorithm Hence, the research objective is to introduce a new ap-
proach hereafter called simulation and optimization ap-
I. INTRODUCTION proach for supporting product developers in their work for
The increased relevance of the life cycle perspective in creating optimized and sustainable solutions, by developing a
modern society calls for more sustainable approaches to de- software simulation environment in which they can test and
sign, engineer and construct everyday products [1]. To respond anticipate the impacts of their choices over the entire life cycle
to such a need, designers and engineers may have access to of a product. A combined simulation-optimization approach
new methods and tools that are able to integrate the life cycle will allow product developers to choose the best product alter-
perspective in a proper way. In such a context, Life Cycle Si- native in the early design stages, providing them a long-term
mulation (LCS) could play a relevant role for engineering the view over all possible costs and environmental impacts that the
life cycle of a product and for testing and anticipating the im- product will have to face during its life cycle. In particular, we
pacts of designers' choices over the entire life cycle. LCS sys- propose a model to simulate and optimize life cycle costs and
tems developed so far have been specific to particular research environmental impacts of industrial equipment: the life cycle
purposes and had limited functions. In fact, considering the behavior of a station is simulated by means of Discrete Event
industrial product as a consumer product (e.g. a car, a fridge, a Simulation (DES). Then, allowing the user to replicate the
laptop, a mobile phone, etc.), those works are usually limited to station model an arbitrary number of times, it is possible to
specific industrial sectors. Instead, when considering the indus- create the model of any industrial equipment (e.g. an assembly
trial product as an industrial equipment (e.g. a production line, line or a production line) and simulate its costs and environ-
a chemical reactor, an assembly line, etc.) the life cycle man- mental impacts from a life cycle perspective. Optimization by
agement approach called Asset Life cycle Management means of genetic algorithm is also implemented to identify the
(ALM) is not yet supported by simulation environments values of each station's input parameters which permit to mi-
able to address that holistic point of view that should character- nimize a suitable objective function: processing simulation
ize the life cycle perspective. outputs in an iterative way, the optimization method eventually
finds the optimal line configuration, i.e. the configuration
In most application cases the ultimate aim of a life cycle that allows to minimize life cycle costs and/or environmental
analysis is finding a particular set of input parameters (e.g. the impacts. The implementation of this model is realized taking
modular configuration of a product, the stations of a production advantage of the potentialities provided by MATLAB and
line, etc.) that allows to minimize/maximize a given objective Simulink: in such a way it is possible to make use of one
function (e.g. life cycle costs and/or environmental impacts). In single software tool Simulink is integrated with MATLAB
978-1-4799-4735-5/14/$31.00 2014IEEE.
to combine optimization with simulation. Such a tool is TABLE I. LCS AND OPTIMIZATION
expected to be used during the early stages of the detailed de- Author Optimization method LCS method
sign, i.e. when the overall system configuration and the plant Brunet [7] Simplex algorithm DES
layout have been already defined, while the detailed configu- Hasan [8] GenOpt DES
ration of each station forming the equipment is yet to be deter- Hong [9] Optimization by means of MCS MCS
mined. Komoto [10] Genetic algorithm DS
Nonomura [11] Genetic algorithm DS
The paper is organized as follows: Section II discusses a Sakai [12] Genetic algorithm n.s.
state of the art review of existing solutions implementing a Shu [13] Genetic algorithm MCS
combined simulation and optimization approach; in Section III Umeda [14] Genetic algorithm DES
the model to simulate and optimize life cycle costs and envi- Yamada [15] Genetic algorithm n.s.
ronmental impacts of industrial equipment is described. Section
IV concludes the paper. In Table I, a list of papers providing an optimized LCS is pre-
sented n.s. stands for not specified. Brunet et al. [7] describe
II. STATE OF THE ART ANALYSIS a computational approach for the simultaneous minimization of
the total cost and environmental impact of thermodynamic
According to [1], product life cycle management and analy-
cycles. Their method combines process simulation, multi-
sis is a well-known concept in the relevant literature. Methods
objective optimization and life cycle assessment within a uni-
for measuring and assessing the life cycle dimension of a prod-
fied framework that identifies in a systematic manner optimal
uct were created years ago see [2] for Life Cycle Assess-
design and operating conditions according to several economic
ment (LCA) and [3] for Life Cycle Cost (LCC) analysis. These
and environmental issues. Optimization is performed by means
well-known methodologies are the basis of the life cycle design
of the Simplex algorithm. Hasan [8] achieves minimization of
approach; they are used for conducting deep analysis of the
life cycle costs for a single family detached house by combined
different stages of product life cycle, accumulating knowledge
simulation and optimization; the GenOpt [9] optimization
and defining different life cycle scenarios. Simulation has ac-
program is used to find optimized values of five selected de-
quired an important role along the life cycle design phase be-
sign variables in the building construction and HVAC (Heat-
cause it provides tools for evaluating the performances of a
ing, Ventilation and Air Conditioning) system. Verification of
system in virtual environments. Business process simulations
the GenOpt results is made by comparison with results from
have been extensively studied in the past and many techniques
a brute-force search method, which indicates that GenOpt has
and tools currently exist. As already introduced, Life Cycle
found, or has come very close to, the global minimum in the
Simulation [4] is a method to evaluate the performances of life
current study. Hong et al. [10] develop an analytical model that
cycles (e.g. life cycle costs and environmental impacts) for
would allow assessment of the optimal life cycle cost of FRP
design and planning of life cycles based on simulation metho-
bride deck panels at different discount factors (interest rates)
dologies. The earliest versions of LCS were proposed by Shu et
through Monte Carlo Simulation (MCS) using Crystal Ball.
al. [5] and Johansen et al. [6]. In the relevant literature there are
Komoto [11] proposes a method for OEMs (original equipment
many references directly related to LCS: in the remainder of
manufacturers) to model, simulate, and optimize their supply
this section we draw attention to those works that implement a
chain operations considering their end-of-life operations. The
combined simulation and optimization approach. The main
optimization program implemented on the system is based on
reason for conducting such classification is the added value of
the multi-objective genetic algorithm developed by Fonseca
an optimized processing of simulation outputs: in fact, in most
and Fleming [12]. Nonomura [13] introduces a methodology
application cases the ultimate aim of a life cycle analysis is
for configuring modular products and planning its product life
finding a particular set of input parameters (e.g. the modular
cycles at the conceptual design stage by simulating their life
configuration of a product, the stations of a production line,
cycle models. The authors also developed a life cycle optimizer
etc.) that allows to minimize/maximize a given objective func-
to optimize the modular structure of a product, by means of a
tion (e.g. life cycle costs and/or environmental impacts). In
genetic algorithm. Sakai et al. [14] describe a product life
such a context, it is easy to understand how this aim can be
cycle design approach based on product life control and a
achieved by making use of simulation-based optimization:
product life cycle design support system using LCS and opti-
simulation permits to cover the whole life cycle perspective,
mization; the life cycle optimizer optimizes both parameter
while optimization ensures that final results in terms of
values in the target life cycle model and modular structure of
input parameters denote the selection of best elements (with
the design object, by using the genetic algorithm technique.
regard to some criteria specified in the objective function) from
Shu [15] outlines and experimentally verifies a probability-
some set of available alternatives. This approach contrasts with
based reliability model that describes the effect of remanufac-
the trial and error method, characterized by repeated, varied
ture on the reliability of parts and systems; this model is com-
attempts which are continued until success, or until the design-
bined with other life cycle cost models so that manufacture and
er stops trying. In fact, being unsystematic by nature, this me-
assembly, remanufacture, maintenance, and scrap-material
thod is unsuitable to cope with the typical complexity of LCS
recycling costs can be considered simultaneously. The reliabili-
problem. Making use of computational optimization tech-
ty-based remanufacturing life cycle cost model was linked to a
niques, instead, allows to reduce calculation efforts and taking
genetic algorithm-based search methodology to optimize both
advantage of numerical analysis to search the best available
joint design for re-manufacturability and replacement policy
solution.
decisions subject to life cycle cost goals. Umeda et al. [4] pro-
pose a life cycle simulator able to virtually simulate stochastic
behavior of components' lifetime distribution, while an optimi- of SimEvents which provides a discrete event simulation
zation method based on genetic algorithm helps to determine engine and component library for Simulink and of the
design parameter values. Yamada [16] develops a method for Global Optimization Toolbox which provides methods that
optimizing the operating conditions of industrial robots in order search for global solutions to problems that contain multiple
to improve their reliability, as a part of facility life cycle man- maxima or minima.
agement based on life cycle simulation of the robot. By means
of hybrid genetic algorithm which combines genetic algo- Existing tools: MATLAB makes available a huge
rithm and simulated annealing a layout of the robot and number of ready-to-use functions and toolboxes
velocity patterns are optimized so as to minimize deterioration from linear algebra and statistics to optimization and re-
of the joint gear, while maintaining a constant total execution sults visualization so that the user can really focus on
time for the operation. what he wants to program, not how to program it. Also
Simulink (i.e. MATLAB block diagram environment
for multi-domain simulation and Model-Based Design)
III. PROPOSED MODEL is provided with a set of toolboxes from event-based
The proposed model allows to simulate and optimize life modeling to signal processing and debugging that al-
cycle costs and environmental impacts of an industrial equip- low to effectively reproduce the behavior of the mod-
ment during the early stages of the detailed design. In particu- eled system.
lar, the life cycle behavior of a station is simulated by means of
Tools integration: Simulink thus SimEvents too
DES. Therefore, allowing the user to replicate the station mod-
is totally integrated with MATLAB, enabling the user to
el an arbitrary number of times, it is possible to create the mod-
incorporate MATLAB algorithms into models and ex-
el of any industrial equipment (e.g. an assembly line or a pro-
port simulation results to MATLAB for further analys-
duction line) and simulate its costs and environmental impacts
es. It is possible to manipulate the inputs, analyze statis-
from a life cycle perspective. Optimization by means of genetic
tics, create visualizations of the data or optimize the da-
algorithm is also implemented to identify the values of each
ta easily by controlling and sending information from
station's input parameters which permit to minimize a suitable
the model to MATLAB.
objective function: processing simulation outputs in an iterative
way, the optimization method eventually finds the optimal Documentation and community: documentation is
line configuration. As already introduced, adopting simulation- easy to understand and very quick to access, so that it is
based optimization allows to get significant information during (almost) no effort for the user learning to properly use a
the early design stages: simulation permits to cover the whole new toolbox and to integrate its functionality into the
life cycle perspective, while optimization ensures that final model. Moreover, there is a large community of users
results in terms of input parameters denote the selection who share numerical codes and solutions of common
of best elements (with regard to some criteria specified in the problems.
objective function) from some set of available alternatives.
Here we provide reasons for the choice of Simulink and A. Model description
MATLAB as the reference tools for the implementation of In Fig. 1 the outward appearance of the station block is
DES and optimization, respectively. In particular, we made use presented, i.e. the SimEvents block that implements the simula-

Fig. 1. Station block and its mask: SimEvents block that implements the LCS of an industrial equipments station.
tion of the life cycle behavior of a manufacturing plant's sta- Failures and requests for preventive maintenance are
tion. In the right side of the block it is possible to recognize the processed by two Single Server blocks: each of these
output ports that allow to extract the signals generated within blocks serves its respective entity for a period of time, and then
the block. In such a way these output signals are made availa- attempts to output the entity through the out port. Service
ble for visualization and post-processing analysis. This custom times, which represent the duration of service, are here as-
block, once put in a library, can be replicated an arbitrary num- sumed to come from a lognormal distribution, therefore they
ber of times in a new Simulink model, allowing to create a represent TTR (time to repair) and TTPM (time to preventive
model for any industrial equipment. Particular attention has maintenance), respectively. A series of Enabled Gate
been paid to realize an in depth modeling of the station's main- blocks has been positioned between each entity generator block
tainability: as explained in [17], at equipment and system level, and its corresponding server block. We made use of gates to
maintainability has a great influence on reliability and availa- create periods of unavailability of the Single Server
bility; it is thus an important parameter in the optimization of blocks, so that an entity (a failure or a request for preventive
availability and life cycle costs. Therefore, it comes maintenance) cannot be generated while another entity (a fail-
straightforward that one of the main purposes this LCS model ure or a request for preventive maintenance) is being processed
is aiming at is providing a tool for easy assessment of the im- by one of the two servers. This allows to couple corrective
pacts of choices taken early in the design phase in particular and preventive maintenance (they are carried out on the same
the user is allowed to choose between different maintenance item) and reflects the behavior of any real equipment. Making
strategies and to simulate the resulting station's reliability be- use of such a device guarantees that the processing of failures
havior, getting a long-term view over their implications in and requests for preventive maintenance is correctly modeled.
terms of both reliability and costs.
By properly setting the Enabled Gate blocks and defin-
B. Modeling reliability behavior and maintenance strategies ing two flag variables it is possible to simulate the execution of
different preventive maintenance strategies:
Making reference to Fig.2, two Time-Based Entity
Generator blocks generate entities i.e. failures and re- Age-based preventive maintenance: preventive main-
quests for preventive maintenance, respectively using inter- tenance is carried out only if a time interval equal to
generation times that satisfy criteria specified by the user. The Tprev has passed since the completion of the last main-
intergeneration time is the time interval between two succes- tenance action (corrective or preventive);
sive generation events: failures generation is implemented
Date-based preventive maintenance: preventive ac-
using intergeneration times from a Weibull or exponential dis-
tions are scheduled to be performed at a constant prede-
tribution depending on what part of the bathtub curve has
termined interval, equal to Tprev, even if a corrective ac-
been modeled, e.g. exponential distribution is used to represent
tion has been just completed.
the useful life of components. Thus, making reference to
basic concepts and definitions used in reliability engineering, Preventive maintenance can be scheduled during available time
each intergeneration time represents TTF (time to failure) or or when the equipment is not supposed to be available for pro-
TBF (time between failures) when considering as-good-as new duction.
after repair repairable items. Requests for preventive mainten-
ance follow a constant distribution i.e. the block generates a C. Modeling life cycle costs
request for preventive maintenance making use of a constant
The following expression concisely summarizes how costs
intergeneration time, equal to Tprev.
incurred during the station's life cycle can be taken into account

Fig. 2. Logical scheme on which the SimEvents has been based. The dashed lines represent the information flow between blocks.
when addressing the LCS approach: of station's components had on the environment. In a way simi-
lar to how we defined the station's acquisition cost, EIst is eva-
luated once and for all at the beginning of the life cycle, thus its
value is not affected by simulation. In determining the indicator
for the production of materials all the processes are included
from the extraction of the raw materials up to and including the
last production stage, resulting in bulk material; in particular
we made reference to the framework developed within the Eco-
where it should be firstly noticed that the calculation has been indicator99 method [18].
made with consideration for the time value of money i.e.
summarizing LCC results in net present value (NPV) format, EIen allows to take into account environmental impacts
considering depreciation, taxes and the opportunity cost of caused by electric energy consumption. Following the same
capital; N is the total number of simulation years i.e. the approach adopted to evaluate the electric energy cost, EIen is
LCS horizon and br is the discount rate that allows to eva- here evaluated making use of the output signals generated by
luate the opportunity cost of capital, i.e. the rate of return that the simulation.
could be earned on an investment in the financial markets with It must be said that the model here proposed does not claim
a similar risk. The terms of the equation represent, respectively, to be complete: we simply provide a framework for the easy
acquisition cost, corrective maintenance cost, preventive main- evaluation of station's environmental impacts, making the best
tenance cost, electric energy cost, air cost, labor cost, spare use of simulation outputs. Combining the practicality of the
parts cost, labor cost, consumables cost, and decommissioning Eco-99 system and the potentialities of reliability behavior's
cost. These cost items have been defined distinguishing be- simulation, it is possible to create a LCA model that allows to
tween static life cycle costs Cin, Clab, Ccon, Cdec and dy- properly evaluate different consumption thus different envi-
namic life cycle costs: static costs represent the sum of those ronmental impacts occurred during different station's func-
items not affected by DES, while dynamic costs can be consi- tioning states (i.e. during normal operational functioning or
dered as the value added by addressing a LCS approach. In fact during maintenance).
Cmc, Cmp, Cen, Cair, and Csp i.e. dynamic cost items are
evaluated making use of the output signals generated by the
E. Optimization of simulation outputs
simulation: in such a way their value effectively takes into
account a life cycle perspective, since those signals directly The genetic algorithm can be applied to solve a variety of
come from the analysis of the station's reliability behavior over optimization problems that are not well suited for standard
its entire life cycle. optimization algorithms. In particular, the genetic algorithm of
the MATLAB Global Optimization Toolbox can address prob-
As an example of dynamic cost, the corrective maintenance lems of mixed integer programming, where some components
cost can be evaluated making use of the output signals generat- are restricted to be integer-valued. Since in our model the op-
ed by those blocks that analyze the reliability behavior of the timization aims to identify the optimal line configuration and
station: each station forming the equipment is provided with a set of
finite alternatives (i.e. an integer-valued number of alterna-
tives), the genetic algorithm particularly fits the implementa-
(2) tion of the proposed simulation and optimization approach.
The algorithm solves optimization problems by repeatedly
modifying a population of individual points: in our case each
where Nf is the total number of corrective actions performed individual represents one specific line configuration, i.e. the
during the k-th simulation year, TTRi is the time to repair of the selection of one alternative for each station forming the equip-
i-th corrective action, hmc is the hourly maintainer cost and np ment. Fig.3 illustrates how simulation is integrated with opti-
is the average number of maintainers involved in corrective mization, allowing to understand how the simulation and op-
actions. timization approach is implemented:
1. The genetic algorithm creates a new individual by set-
D. Modeling Environmental impacts
ting values for its variables. Making reference to our
The following equation allows to evaluate the stations en- model, these values represent the number of the se-
vironmental impacts (EI): lected alternative of each station forming the line. For
instance, denoting with X the vector whose length is
(3) the number of variables in the problem (i.e. the number
of stations), X = (3,1, , 7) is an individual: the first
station is identified by the third corresponding alterna-
where EIst provides information about the environmental im-
tive, the second station by the first alternative and so
pacts directly related to the physical production of the sta-
on.
tion, i.e. it allows to estimate what impacts the manufacturing
Fig. 3. Framework of the simulation and optimization approach.

2. Actually, the algorithm handles each of these values as


an array index, i.e. an integer pointer that identifies an F. Case study
element of an array data structure. In our case, the in- The model developed and described in the previous para-
dex allows to extract data from an input database (e.g. graph has been applied to a real case study: we have per-
an Excel spreadsheet), where numerical values of the formed the LCS of an engine assembly line. In particular, we
input parameters of all available station alternatives are have considered a fraction of the line composed by five sta-
stored this database represents the connection be- tions. As shown in Fig.4, each station forming the analyzed
tween the Maintenance Information System and the assembly line has been actually provided with a set of availa-
simulation environment ble alternatives: we have considered 16 station alternatives (2
3. Once the input variables of each station block are de- alternatives for the first station, 4 alternatives for the second
fined, the algorithm runs simulation. station, and so on, where aut, saut and man stand for
automatic, semi-automatic and manual, respectively), but the
4. The genetic algorithm then processes simulation out- set of available alternatives to be evaluated during the optimi-
puts LCC and environmental impacts of each sta- zation can be easily extended. Taking up the definitions of
tion and scores the current individual by computing Cartesian product and cardinality, since the line is formed by
its fitness function (i.e. its objective function).
5 stations and the number of alternatives each station is pro-
The simulation will be repeated over and over, using differ- vided with is known, the number of available line alternatives
ent alternatives for each station (i.e. generating new individu- can be evaluated as follows:
als) until the algorithm converges to an optimal solution. The
optimal solution is defined as the one which minimizes a suita- (4)
ble objective function.

Fig. 4. Station code and corresponding station alternatives.


The aim of the analysis has been finding the optimal line IV. CONCLUSION AND FUTURE WORK
configuration or line alternative, i.e. the one that minimizes
life cycle costs or environmental impacts. In Fig.5 results are A. Overview
presented. From an economical point of view, the optimal The increased relevance of the life cycle perspective in
line configuration is the one that minimizes life cycle costs, modern society calls for more sustainable approaches to de-
therefore we have performed a single-objective optimization: sign, engineer and construct everyday products and related
services. To respond to such a need, designers and engineers
(5) may have access to new methods and tools that are able to
integrate the life cycle perspective in a proper way. In this
where LCCs represents the LCC of each of the 5 stations form- work LCS and optimization are implemented together, thus
ing the analyzed line see (1). The first graph of Fig.5 shows providing a new approach called simulation and optimiza-
the convergence of the genetic algorithm to the optimal solu- tion approach for supporting product developers in the
tion; the algorithm stopped according to the selected stopping early design stages.
condition, i.e. on the basis of the evaluation of the weighted In particular, when considering the industrial product as an
average relative change in the fitness function value. The industrial equipment (e.g. a production line, a chemical reactor,
second graph provides the vector entries of the individual with an assembly line, etc.) the life cycle management approach
the best fitness function value, i.e. the number of the selected often called Asset Lifecycle Management is not yet sup-
alternative of each station forming the line. ported by simulation environments able to address that holistic
Results have been validated and the model has been re- point of view that should characterize the life cycle perspec-
garded as an interesting support tool during the early stages of tive. Thus, this research seeks to cover this gap in the state of
the detailed design. the art, providing a tool that, by analyzing the virtual behavior
of an asset during its life cycle, could help product developers
and service designers in their work for creating optimized and
sustainable solutions.

Fig. 5. Results of the simulation and optimization approach.


Given this background, it can be understood how the devel- fridge, a laptop, a mobile phone, etc. In particular, the
oped simulation environment represents a contribution to the station block could be easily adjusted to implement
current state of the art, in fact: the LCS of modular products.
1. The simulation module allows to simulate the life
cycle behavior of any industrial equipment, providing ACKNOWLEDGMENT
information about its life cycle costs and environmen- This work was partly funded by the European Commission
tal impacts. through the Linked Design Project (FP7-2011-NMP-ICT-FoF,
2. The optimization module is responsible for finding the http://www.linkeddesign.eu/). The authors wish to acknowl-
best solution from some set of available design alter- edge their gratitude and appreciation to the rest of the project
natives. Simulation is integrated with optimization, partners for their contributions during the development of vari-
thus allowing to select the optimal line configura- ous ideas and concepts presented in this paper.
tion, i.e. the configuration that minimizes life cycle
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