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To optimize the production plan of a two wheeler manufacturing company having 3 plants and 4 production lines per plant in order to maximize its profit abstract Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of two-wheelers, based in India. It has 3 globally benchmarked manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of Haryana in northern India. The third manufacturing plant is based at Haridwar, in the hill state of Uttrakhand. It has 4 production lines per plant and 13 different motorcycle models in demand. This project will provide the production plan for 13 different two wheeler models produced by Hero MotoCorp, in order to maximize the profit. Finding the optimized production plan which satisfies the demand and each assembly line will be loaded equally. DATA OBTAINED FROM COMPANY GIVEN PLANT CAPACITIES mathematical MODEL Decision Variables: x111 = No. of Splendor produced on Line 1 of Plant 1 x121 = No. of Splendor produced on Line 2 of Plant 1 x131 = No. of Splendor produced on Line 3 of Plant 1 x141 = No. of Splendor produced on Line 4 of Plant 1 x112 = No. of Splendor+ produced on Line 1 of Plant 1 x122 = No. of Splendor+ produced on Line 2 of Plant 1 x132 = No. of Splendor+ produced on Line 3 of Plant 1 x142 = No. of Splendor+ produced on Line 4 of Plant 1 Generalized form: Xijk = No. of Motorbike Model ‘k’ produced on Line ‘j’ of Plant ‘i’ Here we will be maximizing the profit for Hero Moto Corp. based on the production capacity of different plants. Maximize Z = 3000 ( xij1) +2000 ( xij2) +1200 ( xij3) +1210 ( xij4) +1100 ( xij5) +4200 ( xij6) +5000 ( xij7) +2400 ( xij8) +5350 ( xij9) +5740 ( xij10) +3550 ( xij11) +4500 ( xij12)+ 2130 ( xij13) Where xijk : Total number of Model ‘k’ produced at all the locations Constraints : Objective function & Constraints 1. Demand Constraints (1 to 13): Total number of motorbikes produced of a particular model (splendor, passion, ZMR, etc) should be greater than or equal to its market demand. x111+x121+x131+x141+x211+x221+x231+x241+x311+x321+x331+x341 ≥ 40000 (For Splendor) Similarly, Xij2 ≥ 100000 (For Splendor +) Xij3 ≥ 40000 (For Splendor Pro) Xij4 ≥ 80000 (For Passion +) 2. Plant Capacity Constraints (14 to 16): Each plant has its different capacity of producing number of motorbikes per month. X1jk ≤ 251687 (For Plant 1) X2jk ≤ 234040 (For Plant 2) X3jk ≤ 186476 (For Plant 3) 3. Production Line Constraints (17 to 28): Each production line of each plant has different capacity of production per month. X11k+X21k+X31k ≤ 206796 (Line 1 of all 3 plants) X12k+X22k+X32k ≤ 185370 (Line 2 of all 3 plants) X13k+X23k+X33k ≤ 173277 (Line 3 of all 3 plants) X14k+X24k+X34k ≤ 106760 (Line 4 of all 3 plants) 4. Maximum Finished Inventory Constraint (29 to 41): Maximum number of motorbikes of a particular model that can be produced. It should not be greater than 110% of demand. x111+x121+x131+x141+x211+x221+x231+x241+x311+x321+x331+x341 ≤ 44000 (For Splendor) Similarly, Xij2 ≤ 110000 (For Splendor +) Xij3 ≤ 44000 (For Splendor Pro) Xij4 ≤ 88000 (For Passion +) 5. Individual Line constraint (42 to 53): Individual production line of each plant has different capacity of production depending of the cycle time of various motorbike model. 6. Integer Constraint : All values has to be integer since we are talking about ‘Number’ of Motorbikes. results conclusion A. Total Production of Gurgaon Plant: 251687 Motorbikes B. Total Production of Dharuhera Plant: 234040 Motorbikes C. Total Production Haridwar Plant: 186476 Motorbikes D. Total Production : 672203 Motorbikes (Per Month) Now we have total production plan of all 13 Models of Bike with maximum profit for a given demand and plant capacities. Department of Industrial Enginee References 1. https://en.wikipedia.org/wiki/Hero_MotoCorp 2. http://www.heromotocorp.com/en-in/

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Page 1: ALO Poster

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To optimize the production plan of a two wheeler manufacturing company having 3 plants and 4 production lines per plant in order to maximize its profit

abstract• Hero MotoCorp Ltd. (Formerly Hero Honda

Motors Ltd.) is the world's largest manufacturer of two-wheelers, based in India.

• It has 3 globally benchmarked manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of Haryana in northern India. The third manufacturing plant is based at Haridwar, in the hill state of Uttrakhand.

• It has 4 production lines per plant and 13 different motorcycle models in demand.

• This project will provide the production plan for 13 different two wheeler models produced by Hero MotoCorp, in order to maximize the profit.

• Finding the optimized production plan which satisfies the demand and each assembly line will be loaded equally.

DATA OBTAINED FROM COMPANY

GIVEN PLANT CAPACITIES

mathematical MODELDecision Variables:• x111 = No. of Splendor produced on Line 1 of Plant 1

• x121 = No. of Splendor produced on Line 2 of Plant 1

• x131 = No. of Splendor produced on Line 3 of Plant 1

• x141 = No. of Splendor produced on Line 4 of Plant 1

• x112 = No. of Splendor+ produced on Line 1 of Plant 1

• x122 = No. of Splendor+ produced on Line 2 of Plant 1

• x132 = No. of Splendor+ produced on Line 3 of Plant 1

• x142 = No. of Splendor+ produced on Line 4 of Plant 1

Generalized form:

• Xijk = No. of Motorbike Model ‘k’ produced on Line ‘j’ of Plant ‘i’

Here we will be maximizing the profit for Hero Moto Corp. based on the production capacity of different plants.

Maximize Z = 3000 (∑xij1) +2000 (∑xij2) +1200 (∑xij3) +1210 (∑xij4) +1100 (∑xij5) +4200 (∑xij6) +5000 (∑xij7) +2400 (∑xij8) +5350 (∑xij9) +5740 (∑xij10) +3550 (∑xij11) +4500 (∑xij12)+ 2130 (∑xij13)

• Where ∑xijk : Total number of Model ‘k’ produced at all the locations

Constraints :

Objective function & Constraints

1. Demand Constraints (1 to 13): Total number of motorbikes produced of a particular model (splendor, passion, ZMR, etc) should be greater than or equal to its market demand.

x111+x121+x131+x141+x211+x221+x231+x241+x311+x321+x331+x341 ≥ 40000 (For Splendor)

Similarly,

∑Xij2 ≥ 100000 (For Splendor +)

∑Xij3 ≥ 40000 (For Splendor Pro)

∑Xij4 ≥ 80000 (For Passion +)

2. Plant Capacity Constraints (14 to 16): Each plant has its different capacity of producing number of motorbikes per month.

∑X1jk ≤ 251687 (For Plant 1)

∑X2jk ≤ 234040 (For Plant 2)

∑X3jk ≤ 186476 (For Plant 3)

3. Production Line Constraints (17 to 28): Each production line of each plant has different capacity of production per month.

X11k+X21k+X31k ≤ 206796 (Line 1 of all 3 plants)

X12k+X22k+X32k ≤ 185370 (Line 2 of all 3 plants)

X13k+X23k+X33k ≤ 173277 (Line 3 of all 3 plants)

X14k+X24k+X34k ≤ 106760 (Line 4 of all 3 plants)

4. Maximum Finished Inventory Constraint (29 to 41): Maximum number of motorbikes of a particular model that can be produced. It should not be greater than 110% of demand.

x111+x121+x131+x141+x211+x221+x231+x241+x311+x321+x331+x341 ≤ 44000 (For Splendor)

Similarly,

∑Xij2 ≤ 110000 (For Splendor +)

∑Xij3 ≤ 44000 (For Splendor Pro)

∑Xij4 ≤ 88000 (For Passion +)

5. Individual Line constraint (42 to 53): Individual production line of each plant has different capacity of production depending of the cycle time of various motorbike model.

6. Integer Constraint : All values has to be integer since we are talking about ‘Number’ of Motorbikes.

results

conclusionA. Total Production of Gurgaon Plant: 251687 MotorbikesB. Total Production of Dharuhera Plant: 234040 MotorbikesC. Total Production Haridwar Plant: 186476 MotorbikesD. Total Production : 672203 Motorbikes (Per Month)Now we have total production plan of all 13 Models of Bike with maximum profit

for a given demand and plant capacities.

Department of Industrial Engineering

References1. https://en.wikipedia.org/wiki/Hero_MotoCorp 2. http://www.heromotocorp.com/en-in/