Previous studies in the agriculture and pharmaceuticals industries have indicated that companies who switched to a modular production system design (MPS) have increased profitability and direct control over their respective supply chains, among other benefits. While MPS is relatively new, they have yet to be implemented in the metal or steel-making industries, which are responsible for a considerable portion of the planet’s carbon emissions. In this report, our team develops a sample MPS design that could be implemented when a company decides to begin constructing such a facility. Our design considers the different machine and equipment types necessary to process and produce finished steel products that aim to eliminate some of the limitations captured in traditional steel manufacturing. We then developed a profit and loss analysis that suggested that an MPS in steel is theoretically profitable – generating nearly $1 million annually at the end of four years. This analysis was extended into a linear programming model, proving that the mix of product demand during economic turmoil can be optimized to maximize the profits of the manufacturing operations. Furthermore, we developed risk management tools, such as a Monte-Carlo simulation and decision tree, highlighting the variables that most impact potential payoffs. These variables include sell-through, maintenance costs, and the total value-added time in the process. As proven by both the P&L and Monte-Carlo simulation, the system is cash flow positive nearly a year or two after deployment, which is significantly less time than with the traditional methods of producing steel. Ultimately, additional research is required to prove the impacts MPS might have on the steel supply chain. Similarly, there is insufficient data to draw conclusions about the amount of emissions and impact such a system has on the environment and the long-term suitability of this type of manufacturing.

• This report represents the work of one or more WPI undergraduate students submitted to the faculty as evidence of completion of a degree requirement. WPI routinely publishes these reports on its website without editorial or peer review.

Creator

• Royer, Aaliyah
• Deshusses, Elise
• Surana, Advait
• Savage, Kenneth

Subject

• Industry
• Sustainability
• Energy

Publisher

• Worcester Polytechnic Institute

Identifier

• 94546
• E-project-032323-123843

Palavra-chave

• Steel Manufacturing
• Return on Investment
• Simulation Analysis
• Clean Energy
• Modular Production Systems
• Risk Management

Advisor

• Saberi, Sara

Year

• 2023

Sponsor

• GenH

UN Sustainable Development Goals

• 9 - Industry, Innovation and Infrastructure

Date created

• 2023-03-23

Resource type

• Major Qualifying Project

Major

• Industrial Engineering

Source

• E-project-032323-123843

Rights statement

• In Copyright

Última modificação

• 2023-04-12