CHINHOYI UNIVERSITY OF TECHNOLOGY

SCHOOL OF ENGINEERING SCIENCE AND TECHNOLOGY

DEPARTMENT OF PRODUCTION ENGINEERING

TIMOTHY MADZIWA C20143127O +263 771 570 652

CHANTELLE P MUKETIWA C20141251U +263 785 305 916
DEAN MUKWASHI C20142569O +263 782 736 749
MUNASHE CHIPORIRO C20141593I +263 771 748 975

PROJECT TITLE: A model that enhances manufacturing performance,

minimize energy shortage and manpower shortage to improving competitiveness
optimize the production performance.
Table of Contents

Contents
Introduction ..................................................................................................................................... 4
Problem statement ....................................................................................................................... 6
Aims ............................................................................................................................................ 6
Literature Review............................................................................................................................ 7
Introduction ................................................................................................................................. 7
Overview of Industrial Engineering and its Importance in Production Performance: ................ 7
Lean Manufacturing Models ....................................................................................................... 8
Principles and Applications of Lean Manufacturing in Enhancing Efficiency ........................... 8
Six Sigma Methodology .............................................................................................................. 9
Key Mathematical Modeling Approaches................................................................................... 9
Stochastic Programming: .......................................................................................................... 11
Methodology ................................................................................................................................. 12
Introduction ............................................................................................................................... 12
Problem Definition .................................................................................................................... 12
Possible Solution........................................................................................................................... 13
Linear Programming ................................................................................................................. 13
Nonlinear programming (NLP) ................................................................................................. 14
Genetic Algorithms ................................................................................................................... 15
Linear Programming ................................................................................................................. 16
Formulation of Linear Programming Problem .......................................................................... 16
Objective Function .................................................................................................................... 17
Constraints................................................................................................................................. 18
Linear Programing Optimization Tools .................................................................................... 19
1.Excel Solver ........................................................................................................................... 19
2.MATLAB as an Optimization Toolbox ................................................................................. 20
3.LINDO (Linear, Interactive, and Discrete Optimizer) ........................................................... 21
Disadvantages............................................................................................................................ 21
Implementing the Simplex Method ........................................................................................... 21
Optimization using solver on Excel .......................................................................................... 22
 Key Features .............................................................................................................................. 22
Excel Optimization Procedure Using Simplex Solver .............................................................. 23
Simulation tools......................................................................................................................... 24
1. Python PuLP ...................................................................................................................... 24
MATLAB .................................................................................................................................. 25
AnyLogic................................................................................................................................... 26
Python Simulation Procedure Using PuLP ............................................................................... 27
Results Interpretation .................................................................................................................... 28
Excel optimization (open excel ) ............................................................................................... 28
Analysis: ................................................................................................................................ 29
Python Simulation Results ....................................................................................................... 30
Analysis Of Python Results....................................................................................................... 31
1. Optimal Production Index: ............................................................................................. 31
2. Raw Materials Consumption: ......................................................................................... 31
3. Manpower Shortage: ...................................................................................................... 31
4. Energy Consumption:..................................................................................................... 31
Conclusion................................................................................................................................. 32
Recomentations ......................................................................................................................... 33
Appendix ....................................................................................................................................... 34
Source code for the python simulation:..................................................................................... 34
References ..................................................................................................................................... 37
CHAPTER 1
Introduction
The manufacturing sector in Zimbabwe faces significant operational challenges that prevent its
competitiveness in both local and international markets. Key issues such as energy and manpower
shortages have become prevalent, negatively affecting production performance. In order to address
these concerns effectively, businesses must adopt innovative strategies that enhance operational
efficiencies while optimizing resource allocation. This research project aims to develop a
comprehensive model that enhances manufacturing performance specifically by minimizing
energy and manpower shortages, thereby improving overall competitiveness in the sector.

In the context of Zimbabwe, the manufacturing industry has been characterized by fluctuating
output levels influenced by various internal and external factors. The decline in production
capabilities has been attributed to insufficient investment in modernization, and external economic
pressures. Recent studies have also highlighted the necessity for the industry to embrace
sustainable practices, particularly in energy management and workforce optimization, to ensure
long-term viability and growth (Mushonga, R., Hove, N., & Mafapo, M.,2024). By focusing on
these crucial areas, this project seeks to provide recommendations fit for the unique challenges
faced by Zimbabwean manufacturers.

To support the development of an effective model, it is essential to engage with existing literature
that explores relevant strategies and frameworks as will be highlighted in the literature review. For
instance, the implementation of energy management systems has shown promising results in
optimizing energy consumption in manufacturing settings, leading to cost savings and reduced
carbon footprints (S. M., & Puthusseri, M.,2022). Furthermore, employee engagement has been
identified as a critical factor influencing productivity and operational effectiveness, emphasizing
the need for organizations to foster a supportive work culture (Ngwenya & Sigauke., 2023). These
insights form the foundation upon which a holistic approach can be developed, integrating both
technological innovations and human resource strategies.
Additionally, the rise of smart manufacturing technologies presents an opportunity for
Zimbabwean manufacturers to modernize their processes. Integrating digital solutions into
production workflows can facilitate real-time monitoring and analysis, thereby enhancing
decision-making capabilities and operational agility (Mushonga et al., 2024). By leveraging these
advancements, manufacturing firms can significantly improve their performance metrics and
effectively address existing challenges related to energy and manpower shortages.

Overall, the proposed research project aims to produce practical solutions that can be adopted by
stakeholders in Zimbabwe's manufacturing sector to enhance their competitiveness and
sustainability. The convergence of energy management practices, workforce optimization, and
technological innovation will be essential in countering the ongoing operational challenges and
positioning Zimbabwean manufacturers for future success.

The literature reviews to follow, shows the efforts made by other stakeholders in the manufacturing
industry in trying to come up with relevant solutions to boost the overall production performance
index. Particular studies will include the research focused on the different types of models that
firms can try to utilize and their pros and cons in trying to implement them.
 Problem statement
Zimbabwe's manufacturing sector struggles with energy shortages, inefficient manpower use, and
outdated systems, reducing productivity and competitiveness. A comprehensive model is needed
to minimize these challenges and improve overall manufacturing performance

Aims
This project aims to develop a model that enhances Zimbabwe's manufacturing performance by
minimizing energy and manpower shortages, optimizing resource efficiency, and improving
competitiveness.
CHAPTER 2
Literature Review
Introduction

In recent decades, the pursuit of enhanced production performance has propelled industrial
engineering into the forefront of operational strategy across various sectors. A comprehensive
exploration of existing models reveals their critical role in streamlining processes, optimizing
resource allocation, and ultimately fostering innovation within organizations. Each model, ranging
from Lean Manufacturing to Six Sigma, carries distinct methodologies and principles that can be
tailored to meet the unique demands of different production environments. With the relentless
pressure for efficiency in today’s global market, understanding these models has profound
practical implications for practitioners aiming to refine their operational frameworks. This
literature review aims to outline the key characteristics, advantages, and limitations of various
industrial engineering models, setting the stage for an in-depth analysis of how they can
collectively enhance overall production performance and drive competitive advantage in the
manufacturing context.

Overview of Industrial Engineering and its Importance in Production Performance:

Industrial engineering embodies a multifaceted approach to optimizing complex systems,

particularly within production environments. By systematically analyzing workflows, resource
allocation, and process efficiencies, industrial engineers implement strategies that significantly
enhance production performance. As highlighted in the exploration of Business Process Analysis
(BPA) and Business Process Re-engineering (BPR), these methodologies are crucial for
identifying inefficiencies and reengineering processes to achieve substantial improvements in cost,
quality, and speed (Ezeh MO et al., 2024). The significance of industrial engineering models
extends beyond mere cost reduction; it also encompasses the elevation of quality standards and the
improvement of customer satisfaction through streamlined operations. Furthermore, integrating
technological advancements, such as automation and predictive analytics, aligns with the critical
success factors identified in process improvement initiatives (A Piyatilake et al., 2022).
 Lean Manufacturing Models
A foundational component of modern industrial engineering, lean manufacturing models prioritize
waste reduction and efficiency enhancement, significantly influencing production performance.
Originating from Toyotas operational philosophies, lean manufacturing emphasizes systematic
strategies to eradicate non-value-added activities. Tools such as the Eliminate, Combine,
Rearrange, Simplify (ECRS) approach facilitate the thorough analysis and restructuring of
production processes, resulting in streamlined operations. Research highlights that integrating lean
practices leads to notable improvements in firm’s operational performance, as observed in
pharmaceutical manufacturing, where strategic supplier partnerships and human resource practices
emerged as critical factors influencing outcomes (Elvis Adjei Nti, 2022). As lean manufacturing
focuses on mainly waste reduction, it extends to analyzing the energy losses and performing energy
audits. Furthermore, the Theory of inventive problem solving (TRIZ) complements lean
methodologies by promoting innovative solutions for persistent production challenges, effectively
addressing contradictions in manufacturing processes (Gamboa P et al., 2021). Collectively, these
models not only enhance productivity but also foster a culture of continuous improvement,
underscoring their importance in contemporary industrial settings.

Principles and Applications of Lean Manufacturing in Enhancing Efficiency

A strategic application of Lean Manufacturing (LM) principles can significantly enhance

operational efficiency across various sectors, most notably in manufacturing. This structured
methodology focuses on minimizing waste while maximizing productivity, aligning closely with
the imperative to improve cycle efficiency. For instance, a study within the Metals and Alloys
sector reveals that delay time was the leading contributor to production inefficiencies,
underscoring the importance of LMs systematic approach to identifying and mitigating such
delays. This delay time can be attributed to the manpower shortages. In addition, the literature
indicates that small and medium-sized enterprises (SMEs) can leverage LM frameworks to
overcome challenges inherent in their operations. By analyzing existing models and success
metrics, organizations can develop tailored strategies for implementing LM effectively, thereby
fostering a culture of continuous improvement (Soltani H et al., 2023). Overall, the principles of
Lean Manufacturing not only facilitate enhanced efficiency but also position businesses for
sustained competitive advantage in a dynamic market landscape.
 Six Sigma Methodology

A systematic application of the Six Sigma methodology provides a structured approach for
organizations aiming to enhance production performance. By focusing on defect reduction, this
framework employs statistical tools and quality management principles to streamline processes
and optimize outputs. As demonstrated in recent studies, the integration of Six Sigma into
educational settings reflects its versatility and potential impact beyond traditional manufacturing
environments (Sabtu SH et al., 2024). Furthermore, the Design for Six Sigma (DFSS) method
emphasizes the importance of understanding user requirements to develop effective solutions, thus
reinforcing a quality-centric culture within organizations. A case study in the logistics sector
effectively illustrates how DFSS can improve operational efficiencies through enhanced
communication systems, minimizing errors associated with manual processes (Lima P., 2023).
Consequently, implementing the Six Sigma methodology across various industries fosters
continuous improvement, driving organizations toward higher production performance and
operational excellence.

There are key mathematical modeling approaches that can be implemented in manufacturing firms
for the sole purpose of performance index optimization given a set of constraints.

Key Mathematical Modeling Approaches

Linear Programming (LP): LP models are widely used to allocate resources efficiently while
considering constraints such as energy consumption and manpower availability. By formulating
the problem as a linear optimization problem, optimal solutions can be obtained.

In transportation, LP is frequently used to solve problems related to route optimization, allocation

of resources, and minimizing transportation costs. This can involve finding the most cost-effective
way to transport goods from suppliers to manufacturing facilities or from manufacturing facilities
to distribution centers ( Javeria Saif., 2023)
Nonlinear programming (NLP): is the process of solving a system of equalities and
inequalities, collectively termed constraints, over a set of unknown real variables, along with an
objective function to be maximized or minimized, where some of the constraints or the objective
function are nonlinear.

Nonlinear programming problems are in general more difficult to solve than linear programming
problems, and often the solution found is only a local optimum. The solution methods for
nonlinear programming models vary, which can result in different nonlinear solvers giving
different local optima for the same problem.

Simulation Models: Simulation models can be used to evaluate different production scenarios
and assess the impact of energy and manpower constraints on PPI. By simulating various
configurations, decision-makers can identify optimal solutions and mitigate risks. The fourth
industrial revolution takes the automation of manufacturing processes to a new level by integrating
multiple digital technologies, bundling them together under customized and flexible mass
production models

As the industrial landscape moves toward the fourth industrial revolution, new methods, and
approaches that enable simulation in manufacturing emerge, integrating data from various sources
and expanding its fields of application (Mourtzis, Papakostas, et al.,2020) Handling complex cases
of resilient factories, intelligent maintenance, self-organized adaptive logistics, customer
integrated engineering, and smart factory architectures, require the integration of production data
in modeling that can only be accomplished with the use of advanced simulation and IT.
 Stochastic Programming:
When uncertainty exists in parameters such as energy availability or manpower costs, stochastic
programming models can be used to incorporate probabilistic information and make robust
decisions.Stochastic programming is a framework for modeling optimization problems that
involve uncertainty. Whereas deterministic optimization problems are formulated with known
parameters, real world problems almost invariably include some unknown parameters. When the
parameters are known only within certain bounds, one approach to tackling such problems is called
robust optimization. Here the goal is to find a solution which is feasible for all such data and
optimal in some sense. Stochastic programming models are similar in style but take advantage of
the fact that probability distributions governing the data are known or can be estimated. The goal
here is to find some policy that is feasible for all (or almost all) the possible data instances and
maximizes the expectation of some function of the decisions and the random variables. More
generally, such models are formulated, solved analytically or numerically, and analyzed in order
to provide useful information to a decision-maker ( Henrion R.,2021).
CHAPTER 3
Methodology
Introduction
This study adopts a mixed-methods approach to enhance manufacturing processes through the
application of linear programming, with a particular focus on the Simplex method. This
comprehensive methodology encompasses several key steps designed to systematically optimize
production efficiency and resource allocation. The following outlines the specific steps involved
in this process

Problem Definition
The primary goal is to maximize overall production performance. Production performance for each
batch is quantified by the Production Performance Index (PPI), which measures how efficiently a
batch produces units relative to the resources utilized. Additionally, each batch requires a specific
amount of energy, and the total energy consumed is limited by the overall energy availability.

Furthermore, each batch necessitates a certain level of manpower. The total manpower required is
constrained by the overall availability of manpower resources. It is essential to optimize both
energy and manpower allocation to enhance production efficiency and ensure that all resources are
utilized effectively. By addressing these constraints, we can achieve a more balanced and
productive manufacturing process.
Possible Solution
Linear Programming
Linear programming (LP) is a mathematical optimization technique used to maximize or minimize
a linear objective function, subject to a set of linear constraints. It is widely applied in various
fields such as manufacturing, transportation, finance, and healthcare.

Advantages of Linear Programming

1. Optimal Resource Allocation: LP helps organizations allocate limited resources
effectively, ensuring maximum output or minimum cost.

2. Enhanced Decision-Making: Provides a structured approach to decision-making, reducing

reliance on intuition and guesswork.

3. Identification of Inefficiencies: Helps identify bottlenecks and inefficiencies in processes,

allowing for targeted improvements.

4. Flexibility and Adaptability: LP models can be easily adjusted to reflect changes in

constraints or objectives, making them adaptable to evolving business environments.

Disadvantages of Linear Programming

1. Assumption of Linearity: LP assumes linear relationships between variables, which may
not always be true in real-world scenarios where relationships can be complex or nonlinear.

2. Integer Solutions Limitation: LP does not guarantee integer solutions for decision
variables; this can necessitate additional methods like integer programming when whole
numbers are required.

3. Static Parameters: The parameters in LP models are often treated as constant; however,
real-world conditions may change over time, affecting outcomes.

4. Single Objective Focus: Traditional LP focuses on optimizing a single objective function

at a time, which may not capture the complexity of real-world problems involving multiple
objectives.
 Nonlinear programming (NLP)
Nonlinear programming is a mathematical approach used to optimize an objective function that is
nonlinear, subject to a set of constraints that may also be nonlinear. This technique is essential for
solving complex problems where relationships between variables cannot be accurately represented
by linear equations.

Advantages of Nonlinear Programming

1. Realistic Modeling: NLP allows for modeling complex relationships in real-world
scenarios that cannot be captured by linear equations, making it suitable for many practical
applications.

2. Flexibility: The ability to handle both nonlinear objective functions and constraints
provides greater flexibility in formulating problems.

3. Diverse Applications: NLP can be applied in various fields such as finance (portfolio
optimization), engineering (design optimization), and economics (resource allocation).

4. Local Optima Exploration: NLP techniques can explore local optima effectively, which
can be sufficient for many practical problems where global optimality is not necessary.

Disadvantages of Nonlinear Programming

1. Complexity of Solutions: NLP problems can be significantly more complex than linear
programming problems, often requiring specialized knowledge and tools to solve
effectively.

2. Local Optima Issues: Many NLP algorithms may converge to local optima rather than
global optima, leading to suboptimal solutions unless specific strategies are employed to
ensure global search.

3. Computational Intensity: Solving NLP problems can be computationally expensive and

time-consuming, especially for large-scale problems with many variables and constraints.

4. Sensitivity to Initial Conditions: The performance of many NLP algorithms can be

sensitive to initial guesses, which may affect convergence and solution quality.
 Genetic Algorithms
Genetic Algorithms (GAs) are a class of optimization algorithms inspired by the principles of
natural selection and genetics. They are part of a broader category known as evolutionary
algorithms and are widely used for solving complex problems in various fields, including
engineering, economics, and artificial intelligence.

Advantages of Genetic Algorithms

1. Global Search Capability: GAs can explore large and complex search spaces effectively,
making them suitable for problems with many local optima.

2. Flexibility: They can be applied to a wide range of optimization problems, including those
that are nonlinear or involve discrete variables.

3. Robustness: GAs are less sensitive to noise and uncertainty in the environment compared
to traditional optimization techniques.

Disadvantages of Genetic Algorithms

1. Computationally Intensive: GAs can require significant computational resources,
especially for large populations or complex fitness evaluations.

2. Convergence Speed: While GAs are good at exploring search spaces, they may converge
slowly compared to other optimization methods like gradient descent.

3. Parameter Sensitivity: The performance of GAs can be highly sensitive to parameters such
as population size, mutation rate, and crossover rate, requiring careful tuning.
 Linear Programming
Linear programming (LP) is a mathematical technique used to optimize a linear objective function,
subject to linear equality and inequality constraints. It is widely utilized in various fields, including
economics, business, engineering, and military applications, to make the best possible decisions
given limited resources.

Formulation of Linear Programming Problem

Decision Variables:These are the variables that decision-makers will decide on. For example, in
a production scenario, they could represent the number of units of different products to produce.

Let 𝑥𝑖 be the production level for batch 𝑖 , where 𝑖 =

1; 2; 3; 4; 5; 6; 6; 7; 8; 9; 10; 11; 12; 13; 14; 15; 16; 17; 18; 19

𝑥1 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 1

𝑥2 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 2
𝑥3 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 3
𝑥4 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 4
𝑥5 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 5
𝑥6 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 6
𝑥7 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 7
𝑥8 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 8
𝑥9 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 9
𝑥10 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 10
𝑥11 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 11
𝑥12 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 12
𝑥13 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 13
𝑥14 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 14
𝑥15 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 15
𝑥16 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 16
𝑥17 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 17
𝑥18 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 18
𝑥19 ∶ 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐿𝑒𝑣𝑒𝑙 𝑓𝑜𝑟 𝐵𝑎𝑡𝑐ℎ 19

These are decision variables that we are solving for, representing the amount of production in each
batch.
 Objective Function
● This is the function that needs to be optimized (maximized or minimized).
● The goal is to maximize the total production performance. The production performance for
each batch is defined by the Production Performance Index (PPI), which indicates how
efficiently a batch produces units given the resources.

The objective function to maximize is:

𝑍 = 70𝑥1 + 80𝑥2 + 75𝑥3 + 85𝑥4 + 95𝑥5 + 65𝑥6 + 70𝑥7 + 75𝑥8 + 70𝑥9 + 80𝑥10 + 65𝑥11
+ 60𝑥12 + 64𝑥13 + 74𝑥14 + 84𝑥15 + 91𝑥16 + 75𝑥17 + 71𝑥18 + 87𝑥19

This can be written more generally as:

19

𝑍 = ∑ 𝑃 𝑃𝐼𝑖 . 𝑥𝑖
𝑖=1

Where 𝑃𝑃𝐼𝑖 is the production performance index for batch 𝑖

 Constraints
Manpower shortages, energy shortages, and material inadequacy are critical constraints that hinder
the optimization of the Producer Price Index (PPI). Each of these factors can significantly impact
production processes, costs, and ultimately pricing strategies in the economy.The acceptable
manpower shortage is approximately 8.5% (de Ruyter, André ,2023) indicating that any shortage
beyond this level can significantly disrupt operations and pricing structures.The acceptable energy
shortage threshold is set at 10%.(Stephanie Ferguson and Makinizi Hoover,2024) Shortages
exceeding this level can lead to significant operational challenges and increased production
costs.An acceptable level of material adequacy is considered at 90% (Matazu ,2022). This means
that a material adequacy below this threshold can severely impact production capabilities and cost
structures.

● Energy Shortage Constraints: Each batch also requires energy, and the total energy
availability is constrained by the total available energy.
8𝑥1 + 5𝑥2 + 6𝑥3 + 2.9𝑥4 + 1.3𝑥5 + 12𝑥6 + 7𝑥7 + 6.2𝑥8 + 7.3𝑥9 + 4.9𝑥10 + 1.9𝑥11
+ 15𝑥12 + 13𝑥13 + 6𝑥14 + 3.5𝑥15 + 2.5𝑥16 + 6.2𝑥17 + 7.5𝑥18 + 1.9𝑥19 ≤ 100

This ensures that the total energy required for production is available

● Manpower Constraints: batch requires a certain amount of manpower. The total

manpower available is constrained by the total amount of available manpower.
11𝑥1 + 9𝑥2 + 12𝑥3 + 10𝑥4 + 8𝑥5 + 15𝑥6 + 17𝑥7 + 20𝑥8 + 25𝑥9 + 23𝑥10 + 21𝑥11
+ 17𝑥12 + 35𝑥13 + 25𝑥14 + 12𝑥15 + 15𝑥16 + 18𝑥17 + 19𝑥18 + 21𝑥19 ≤ 100

This ensures that the sum of the manpower needed for each batch is available
● Production Adequacy Constraints: Each batch cannot produce more than its adequacy
value. For instance, batch 1 can produce a maximum of 60 units, batch 2 can produce a
maximum of 71 units, and so on. This can be written as:

0 ≤ 𝑥1 ≤ 60 ; 0 ≤ 𝑥2 ≤ 71 ; 0 ≤ 𝑥3 ≤ 67 ; 0 ≤ 𝑥4 ≤ 74 ; 0 ≤ 𝑥5 ≤ 86 ; 0 ≤ 𝑥6 ≤ 55

0 ≤ 𝑥7 ≤ 61 ; 0 ≤ 𝑥8 ≤ 66 ; 0 ≤ 𝑥9 ≤ 59 ; 0 ≤ 𝑥10 ≤ 70 ; 0 ≤ 𝑥11 ≤ 54; 0 ≤ 𝑥12

≤ 51

0 ≤ 𝑥13 ≤ 55 ; 0 ≤ 𝑥14 ≤ 63 ; 0 ≤ 𝑥15 ≤ 72 ; 0 ≤ 𝑥16 ≤ 83 ; 0 ≤ 𝑥17 ≤ 67 ;

0 ≤ 𝑥18 ≤ 62 ; 0 ≤ 𝑥19 ≤ 78
 Linear Programing Optimization Tools
Linear programming (LP) is an optimization technique used to determine the best possible
outcome in a mathematical model whose requirements are represented by linear relationships. It is
widely utilized in various fields, including economics, engineering, and military applications, to
maximize or minimize an objective function while adhering to a set of constraints.

1.Excel Solver
Excel Solver is an add-in feature in Microsoft Excel that allows users to perform optimization by
adjusting variable cells to maximize or minimize an objective function while adhering to
constraints. It can handle linear, nonlinear, and integer programming problems.

Advantages
1. User-Friendly Interface: Accessible and easy to use within the familiar Excel environment.

2. Versatility: Solves a wide range of optimization problems, including linear, nonlinear, and
integer programming.

3. Multiple Constraints: Handles numerous constraints simultaneously, suitable for complex

modeling.

4. Scenario Analysis: Generates multiple solutions under different scenarios for better
decision-making.

5. Integration with Excel: Allows easy data manipulation and visualization without switching
software.

Disadvantages
1. Complex Setup: Configuring the objective function and constraints can be time-
consuming.

2. Limited Capacity: May struggle with very large or complex models, leading to
convergence issues.

3. Local Optima: Nonlinear problems may result in solutions that are local optima rather than
global optima.
 2.MATLAB as an Optimization Toolbox
MATLAB, with its Optimization Toolbox, is a powerful environment for solving a wide range of
optimization problems. This toolbox provides users with the tools necessary to minimize or
maximize objective functions while adhering to specified constraints.

Advantages
1. Wide Range of Problem Types: Supports various optimization problems such as linear
programming (LP), mixed-integer linear programming (MILP), quadratic programming
(QP), and nonlinear programming (NLP).

2. User-Friendly Interface: Provides both problem-based and solver-based approaches,

allowing users to define optimization variables and constraints intuitively.

3. Automatic Differentiation: Utilizes automatic differentiation for objective and constraint

functions, leading to faster and more accurate solutions.

4. Integration with Other MATLAB Tools: Works seamlessly with other MATLAB products,
such as Simulink for modeling dynamic systems and Parallel Computing Toolbox for
speeding up computations

Disadvantages
1. Cost: MATLAB is a commercial product, which may be a barrier for individual users or
small organizations due to licensing fees.

2. Learning Curve: While the interface is user-friendly, new users may still face a steep
learning curve, especially when dealing with complex optimization problems.

3. Performance on Nonlinear Problems: Although MATLAB is powerful, it may struggle

with highly nonlinear problems or those with many local minima, potentially leading to
suboptimal solutions.
 3.LINDO (Linear, Interactive, and Discrete Optimizer)
It is a comprehensive software package developed by LINDO Systems for solving various
optimization problems, including linear programming (LP), integer programming (IP), nonlinear
programming (NLP), stochastic programming, and global optimization. It is widely used in
business, industry, research, and government for its powerful capabilities in mathematical
optimization.

Advantages

1. Versatile Problem-Solving: Supports a wide variety of optimization types, making it

suitable for diverse applications across industries.

2. User-Friendly Tools: The integrated modeling environment and Excel add-in facilitate easy
model formulation and solution.

3. High Performance: Utilizes advanced algorithms that provide fast solutions for large-scale
problems.

4. Extensive Documentation: Comprehensive resources and support help users effectively

utilize the software.

Disadvantages
1. Cost: As a proprietary software package, LINDO may involve significant licensing fees,
which can be a barrier for small organizations or individual users.
2. Learning Curve: While user-friendly, new users may still face challenges in mastering the
full range of features and functionalities.
3. Performance on Complex Nonlinear Problems: Although powerful, LINDO can struggle
with highly nonlinear problems or those with many local optima.

Implementing the Simplex Method

Implementing the Simplex Method involves a systematic approach to solving linear programming
problems, particularly those aimed at maximizing an objective function given certain constraints.
The Simplex Method is renowned for its efficiency and effectiveness in navigating the feasible
region defined by linear inequalities.
 Optimization using solver on Excel
Excel Solver is a powerful add-in for Microsoft Excel that enables users to perform optimization
tasks by finding the best possible solution to a defined problem. It is widely used for various
applications, including financial modeling, resource allocation, and production scheduling.

Key Features
● Objective Cell: Users define a target cell (objective cell) that contains a formula
representing the goal of the optimization (e.g., maximizing profit or minimizing costs).

● Decision Variables: Solver adjusts the values in designated cells (decision variables) to
achieve the desired outcome in the objective cell while adhering to specified constraints.

● Constraints: Users can set limits on the values of other cells, ensuring that the solution
remains feasible and realistic.

Solving Methods

Excel Solver offers several algorithms to choose from based on the nature of the problem:

● Simplex LP: Best for linear programming problems.

● GRG Nonlinear: Suitable for smooth nonlinear problems.

● Evolutionary: Designed for complex problems that may not fit traditional algorithms

When choosing a solving method in Excel's Solver, the Simplex LP algorithm offers several
advantages compared to GRG Nonlinear and Evolutionary methods, particularly when dealing
with linear programming problems. When working with linear programming problems in Excel
Solver, the Simplex LP method is often the preferred choice due to its guaranteed global
optimality, speed, robustness against scaling issues, and ease of formulation. In contrast, GRG
Nonlinear and Evolutionary methods are better suited for nonlinear problems but come with their
own challenges related to local optima and computational intensity.
Excel Optimization Procedure Using Simplex Solver
1. Set Up the Spreadsheet:
Organize your data in Excel, including decision variables, the objective function, and
constraints. Ensure that the objective function is calculated in a specific cell.
2. Open Solver:
Go to the Data tab and click on the Solver button in the Analysis group. If Solver is not
visible, you may need to enable it through Excel Options.
3. Define the Problem in Solver:
● Objective Cell: Enter the cell reference for the objective function.
● Maximize or Minimize: Select whether you want to maximize or minimize the
objective function.
● Variable Cells: Specify the cell references for the decision variables.
4. Add Constraints:
Click on the Add button to enter constraints. Specify the left-hand side of each constraint,
the relationship (e.g., ≤, ≥), and the right-hand side value.
5. Set Non-Negativity Conditions:
Ensure that the option to make unconstrained variables non-negative is checked if
applicable.
6. Select Solving Method:
Choose Simplex LP as the solving method for linear programming problems.
7. Solve the Problem:
Click on the Solve button to run Solver and find the optimal solution.
8. Review Results:
Once Solver completes processing, review the results in your spreadsheet and select
whether to keep or discard the solution. The optimal values for decision variables will be
displayed in their respective cells.
Simulation tools
In industrial engineering, various simulation tools are utilized to enhance production performance
in manufacturing firms. Some of these tools and methodologies are highlighted below:

1. Python PuLP

PuLP is a powerful linear programming (LP) and mixed-integer programming (MIP) modeling
library for Python. It allows users to formulate optimization problems using a high-level syntax
that is intuitive and easy to understand. PuLP can interface with various solvers, making it a
versatile tool for solving real-world optimization challenges.

Advantages of Python PuLP

1. Ease of Use: Intuitive API for defining decision variables, objective functions, and
constraints.
2. Flexibility: Supports a wide range of optimization problems, including linear and mixed-
integer programming.
3. Integration with Solvers: Can interface with multiple solvers (e.g., GLPK, CPLEX,
Gurobi) for varied problem-solving needs.
4. Open Source: Free to use and modify, fostering community contributions

Disadvantages of Python PuLP

1. Limited Nonlinear Programming Support: Primarily focused on linear and mixed-integer
programming; less effective for nonlinear problems.
2. Performance Variability: Solution times can vary based on the solver and problem
complexity.
3. Learning Curve for Advanced Features: Advanced functionalities may require additional
expertise.
 MATLAB
MATLAB is a high-level programming language and environment widely used for numerical
computation, visualization, and programming. It includes powerful optimization capabilities
through its Optimization Toolbox and Simulink, making it suitable for solving a variety of
optimization problems in engineering, finance, and research.

Advantages of MATLAB as an Optimization Simulation Tool

1. Comprehensive Toolboxes: Offers specialized toolboxes for various optimization tasks,
including linear, nonlinear, and multi-objective problems.
2. User-Friendly Interface: Intuitive environment for defining and solving optimization
problems.
3. Robust Algorithms: Provides a wide range of built-in algorithms for reliable and efficient
solutions.
Disadvantages of MATLAB as an Optimization Simulation Tool
1. Cost: Commercial software can be expensive, especially for individuals or small
organizations.
2. Learning Curve: Mastering its extensive functionalities may require significant time and
effort.
3. Performance Limitations: May struggle with extremely large-scale problems compared to
specialized software.
4. Dependency on External Toolboxes: Advanced features may require additional toolboxes,
increasing costs and complexity.
 AnyLogic
AnyLogic is a powerful simulation software that supports various modeling methodologies,
including discrete event, agent-based, and system dynamics. It includes robust optimization
capabilities that allow users to improve system performance by finding optimal solutions under
specific conditions.

Advantages
1. Multimethod Simulation: Combines discrete event, agent-based, and system dynamics
modeling in a single platform.
2. Advanced Optimization Engines: Supports multiple optimization methods, including
OptQuest and Genetic algorithms, for robust solution finding.
3. User-Friendly Interface: Simplifies model setup and experimentation, making it accessible
to users with varying expertise.
4. Integration with Java: Allows customization and advanced functionalities through Java
programming.
Disadvantages
1. Learning Curve: Mastering its extensive features may require significant time and effort.
2. Performance Limitations: May struggle with very large-scale models compared to
specialized optimization tools.
3. Dependency on Java Knowledge: Advanced features often require familiarity with Java
programming.

We selected Python PuLP for optimizing the productive index due to its user-friendly interface
and robust capabilities for formulating and solving linear programming problems. PuLP allows for
straightforward modeling of decision variables, objective functions, and constraints, making it
accessible even for those with limited programming experience. Its integration with various solvers
enhances flexibility, enabling efficient handling of complex optimization scenarios. Additionally,
being an open-source tool, it provides a cost-effective solution for resource optimization without
the need for expensive software licenses. Overall, PuLP's versatility and ease of use make it an
ideal choice for my optimization simulation needs.
Python Simulation Procedure Using PuLP
1. Install PuLP:
Ensure that the PuLP library is installed using pip.
2. Initialize the Model:
Create an instance of the optimization problem using LpProblem, specifying whether to
maximize or minimize the objective.
3. Define Decision Variables:
Use LpVariable to define the decision variables in your model, setting any necessary
bounds.
4. Define the Objective Function:
Specify the objective function by adding it to your model, representing what you want to
optimize.
5. Define Constraints:
Add constraints to your model to limit the values of decision variables based on real-world
conditions.
6. Solve the Model:
Call the solve() method on your model to find the optimal solution.
7. Output Results:
Retrieve and print the results of your optimization, including the status and values of
decision variables.
CHAPTER 4
Results Interpretation
Excel optimization (open excel )

The scenario presents a post-optimization analysis of a production system, revealing the following
key metrics:

● Production Performance Index (PPI): 99.55

● Manpower Utilization: 8.5
● Energy Utilization: 1.43
 Analysis:
1. PPI of 99.55: This indicates a significant improvement in overall production efficiency
and effectiveness. It suggests that the optimization process successfully addressed
bottlenecks and inefficiencies, leading to a substantial increase in output relative to
resource inputs.
2. Manpower Utilization of 8.5%: This relatively low figure suggests that the optimization
process identified and implemented strategies to reduce labor requirements. It may indicate
the successful automation of certain tasks, improved workflow processes, or more efficient
allocation of human resources. This could potentially lead to cost savings and increased
productivity.
3. Energy Utilization of 1.43%: This low percentage suggests that the optimization process
also focused on energy efficiency. It could be a result of improved equipment efficiency,
reduced energy consumption through process changes.
 Python Simulation Results
MAXIMIZE

70*x1 + 80*x10 + 65*x11 + 60*x12 + 64*x13 + 74*x14 + 84*x15 + 91*x16 + 75*x17 + 71*x18
+ 87*x19 + 80*x2 + 75*x3 + 85*x4 + 95*x5 + 65*x6 + 70*x7 + 75*x8 + 70*x9 + 0

SUBJECT TO

_C1: 60 x1 + 70 x10 + 54 x11 + 51 x12 + 55 x13 + 63 x14 + 72 x15 + 83 x16

+ 67 x17 + 62 x18 + 78 x19 + 71 x2 + 67 x3 + 74 x4 + 86 x5 + 55 x6 + 61 x7

+ 66 x8 + 59 x9 <= 90

_C2: 11 x1 + 23 x10 + 21 x11 + 17 x12 + 35 x13 + 25 x14 + 12 x15 + 15 x16

+ 18 x17 + 19 x18 + 21 x19 + 9 x2 + 12 x3 + 10 x4 + 8 x5 + 15 x6 + 17 x7

+ 20 x8 + 25 x9 <= 8.5

_C3: 8 x1 + 4.9 x10 + 11.9 x11 + 15 x12 + 13 x13 + 6 x14 + 3.5 x15 + 2.5 x16

+ 6.2 x17 + 7.5 x18 + 1.9 x19 + 5 x2 + 6 x3 + 2.9 x4 + 1.3 x5 + 12 x6 + 7 x7

+ 6.2 x8 + 7.3 x9 <= 10

Simulation Results

Production Index = 99.55223595999999

Raw Material Consumption = 59.145520735999995

Manpower Shortage= 8.49999976

Energy Shortages = 1.4335820504

Analysis Of Python Results

1. Optimal Production Index:

○ The objective function value is 99.5522, meaning the maximum achievable
production index under the given constraints is 99.55. This is the "best" solution
the model can produce, considering the limitations on raw materials, manpower,
and energy.

2. Raw Materials Consumption:

○ The total raw materials used in the optimal solution is 59.1455, which is well below
the upper bound of 90 units. This shows that the raw materials constraint (C1) was
not a limiting factor in reaching the optimal solution.

3. Manpower Shortage:
○ The total manpower used is 8.49999976, which is almost exactly the maximum
allowable manpower of 8.5 units. This indicates that the manpower constraint (C2)
was a binding constraint (meaning it was fully used), and any more production
would have violated this constraint.

4. Energy Consumption:
○ The total energy used is 1.4336, which is well below the upper limit of 10 units.
This suggests that energy availability (C3) was also not a limiting factor in this
scenario.
CHAPTER 5
Conclusion
The scenario demonstrates a successful optimization process that has resulted in significant
improvements in production performance, manpower utilization, and energy efficiency. The
system is now operating at a higher level of productivity while simultaneously reducing resource
consumption. The optimization results show that the production index peaked at 99.55, primarily
constrained by manpower availability, which reached its maximum utilization of 8.5 units. In
contrast, both raw materials and energy were underutilized, indicating substantial potential for
increased production. To enhance productivity, it is advisable to either augment manpower
resources or seek ways to optimize production processes that leverage the underused raw materials
and energy. By adjusting these factors, further improvements in the production index could be
achieved, maximizing resource efficiency.
 Recomentations
The scenario demonstrates a successful optimization process that has resulted in significant
improvements in production performance, manpower utilization, and energy efficiency. The
system is now operating at a higher level of productivity while simultaneously reducing resource
consumption, with a production index peaking at 99.55—indicative of strong performance relative
to industry benchmarks.

However, this peak is primarily constrained by manpower availability, which reached its
maximum utilization of 8.5 units, suggesting potential staffing or scheduling inefficiencies that
warrant further investigation. In contrast, both raw materials and energy were underutilized,
indicating substantial potential for increased production output.

To enhance productivity further, it is advisable to consider augmenting manpower resources

through targeted hiring or training programs aimed at skill enhancement. Additionally, exploring
process improvements using methodologies such as Lean Manufacturing or Six Sigma could
optimize production processes and better leverage underused raw materials and energy sources.

By setting measurable goals for these adjustments and continuously monitoring their impact on
the production index, the organization can maximize resource efficiency and drive sustainable
growth."

These recommendations aim to strengthen your conclusion by providing actionable insights while
maintaining clarity and focus on future improvements.
Appendix
Source code for the python simulation:
import pulp as p
Lp_prob = p.LpProblem('Problem1', p.LpMaximize)
#Decision Variables
x1 = p.LpVariable("x1", lowBound = 0 , upBound =60)
x2 = p.LpVariable("x2", lowBound = 0 , upBound =71)
x3 = p.LpVariable("x3", lowBound = 0 , upBound =67)
x4 = p.LpVariable("x4", lowBound = 0 , upBound =74)
x5 = p.LpVariable("x5", lowBound = 0 , upBound =86)
x6 = p.LpVariable("x6", lowBound = 0 , upBound =55)
x7 = p.LpVariable("x7", lowBound = 0 , upBound =61)
x8 = p.LpVariable("x8", lowBound = 0 , upBound =66)
x9 = p.LpVariable("x9", lowBound = 0 , upBound =59)
x10 = p.LpVariable("x10", lowBound = 0 , upBound =70)
x11 = p.LpVariable("x11", lowBound = 0 , upBound =54)
x12 = p.LpVariable("x12", lowBound = 0 , upBound =51)
x13 = p.LpVariable("x13", lowBound = 0 , upBound =55)
x14 = p.LpVariable("x14", lowBound = 0 , upBound =63)
x15 = p.LpVariable("x15", lowBound = 0 , upBound =72)
x16 = p.LpVariable("x16", lowBound = 0 , upBound =83)
x17 = p.LpVariable("x17", lowBound = 0 , upBound =67)
x18 = p.LpVariable("x18", lowBound = 0 , upBound =62)
x19 = p.LpVariable("x19", lowBound = 0 , upBound =78)
#Objective Functions

Lp_prob += 70*x1 +80*x2 +75*x3 +85*x4 +95*x5 +65*x6 +70*x7+ 75*x8 +70*x9+ 80*x10+
65*x11+ 60*x12 +64*x13 +74*x14 +84*x15 +91*x16 +75*x17 +71*x18 +87*x19

#Constraints

#Raw Materials

Lp_prob += 60*x1 +71*x2 +67*x3 +74*x4 +86*x5 +55*x6 + 61*x7 + 66*x8 + 59*x9 + 70*x10
+54*x11 +51*x12 +55*x13 +63*x14 +72*x15 +83*x16 +67*x17 +62*x18 +78*x19<=90

#Manpower Shortage

Lp_prob += 11*x1 +9*x2 +12*x3 +10*x4 +8*x5 +15*x6 +17*x7 +20*x8 +25*x9 +23*x10
+21*x11 +17*x12 +35*x13 +25*x14 +12*x15 +15*x16 +18*x17 +19*x18 +21*x19<=8.5

#Energy Shortage

Lp_prob += 8*x1 +5*x2 +6*x3 +2.9*x4 +1.3*x5 +12*x6 +7*x7 +6.2*x8 +7.3*x9 +4.9*x10
+11.9*x11 +15*x12 +13*x13 +6*x14 +3.5*x15 +2.5*x16 +6.2*x17 +7.5*x18 +1.9*x19<=10

#Solving the LPP

print(Lp_prob)

#Solving the LPPP

status = Lp_prob.solve()

print(p.LpStatus[status])

#Solution

#Optimum Raw Materials

r=71*p.value(x1) +67*p.value(x2) +74*p.value(x3) +86*p.value(x4) +55*p.value(x5)

+61*p.value(x6) +66*p.value(x7) +59*p.value(x8) +70*p.value(x9) +54*p.value(x10)
+51*p.value(x11) +55*p.value(x12) +63*p.value(x13)+72*p.value(x14) +83*p.value(x15)
+67*p.value(x16) +62*p.value(x17) +78*p.value(x18)
#Optimum Manpower shortage

m= 11*p.value(x1) +9*p.value(x2) +12*p.value(x3) +10*p.value(x4) +8*p.value(x5)

+15*p.value(x6) +17*p.value(x7) +20*p.value(x8) +25*p.value(x9) +23*p.value(x10)
+21*p.value(x11) +17*p.value(x12) +35*p.value(x13) +25*p.value(x14) +12*p.value(x15)
+15*p.value(x16) +18*p.value(x17) +19*p.value(x18) +21*p.value(x19)

#Optimum Energy Shortage

e= 8*p.value(x1) +5*p.value(x2) +6*p.value(x3) +2.9*p.value(x4) +1.3*p.value(x5)

+12*p.value(x6) +7*p.value(x7) +6.2*p.value(x8) +7.3*p.value(x9) +4.9*p.value(x10)
+11.9*p.value(x11) +15*p.value(x12) +13*p.value(x13) +6*p.value(x14) +3.5*p.value(x15)
+2.5*p.value(x16) +6.2*p.value(x17) +7.5*p.value(x18) +1.9*p.value(x19)

print("PRODUCTION INDEX =" , p.value(Lp_prob.objective))

print("RAW MATERIALS CONSUMPTION =" , r)

print("MANPOWER SHORTAGE=" , m)

print("TOTAL ENERGY SHORTAGE =" , e)

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