Integrating Multi-Dimensional Value Stream Mapping and Multi-Objective Optimization for Dynamic WIP Control in Discrete Manufacturing

Source abstract

Discrete manufacturing environments face increasing challenges in managing work-in-process (WIP) inventory due to growing product customization and demand volatility. While Value Stream Mapping (VSM) has been widely used for process improvement, traditional approaches lack the ability to dynamically control WIP levels while optimizing multiple performance dimensions simultaneously. This research addresses this gap by developing an integrated framework that synergizes Multi-Dimensional Value Stream Mapping (MD-VSM) with multi-objective optimization, functioning as a specialized digital twin for dynamic WIP control. The framework employs a four-layer architecture that connects real-time data collection, multi-dimensional modeling, dynamic WIP monitoring, and execution control through closed-loop feedback mechanisms. A mixed-integer optimization model is used to balance time, cost, and quality objectives. Validation using a high-fidelity simulation, parameterized with real-world industrial data, demonstrates that the proposed approach yielded up to a 31% reduction in inventory costs while maintaining production throughput and showed a 42% faster recovery from equipment failures compared to traditional methods. Furthermore, a comprehensive sensitivity analysis confirms the framework’s robustness. The system demonstrated stable performance even when key operational parameters, such as WIP upper limits and buffer capacity coefficients, were varied by up to ±30%, underscoring its reliability for real-world deployment. These findings provide manufacturers with a validated methodology for enhancing operational efficiency and production flexibility, advancing the integration of lean principles with data-driven, digital twin-based control systems.