IMPROVING PERFORMANCE AND FLEXIBILITY AT THE WORLD'S LEADING AVIATION INFORMATION COMPANY

MMS Operations 2016-17Group 1

Kashyap Salvi (027)Subodh Kadam (051)Parikshit Jagtap (139)

INTRODUCTION

Founded in 1934 by Elrey B. Jeppesen

First to make aeronautical charts for pilots to navigate in flight

World’s leader in aviation information

1,400 employees (900 in Denver, Colorado, 300 in Frankfurt, Germany, and the rest in small offices around the world)

INTRODUCTION

Manufactures flight manuals containing critical safety information to over 300,000 pilots and 400 airlines worldwide from over 80 countries.

Over 80 percent of pilots rely on Jeppesen charts.

American, Delta, Federal Express, Japan Airlines, Korean Airlines, Lufthansa, many smaller airlines and many private and corporate pilots.

Acquired by Boeing in October 2000

PRODUCTS

New Manuals | Revisions

Flight simulators, training packages, flight planning, and other aviation products.

The revisions go out to customers who already have Jeppesen manuals. A revision is a collection of folds, and charts that have been changed or revised during the current production week.

NEW MANUALS

REVISED MANUALS

SERVICE PROBLEMS

The number of orders delivered late was growing at an alarming rate

Jeppesen’s customer service had deteriorated because its existing production and supporting systems could not keep up with changing customer demand.

Threatened Jeppesen’s ability to provide prompt customer service.

SERVICE PROBLEMS

SERVICE PROBLEMS

SERVICE PROBLEMS

Project Description

OR tools to improve production planningStrategic Economic analysis

Improve the production process by making strategic investments in alternative production technology

Developed a list of technology alternatives Simulation and optimization to analyze alternatives Recommended purchase of several pieces of capital equipment

Decision support tools Created a suite of decision support tools for production planning

Development of linear program to optimize production of weekly revisionMixed integer programing model to daily optimize completion of new orderStochastic dynamic inventory management model to control disposal of outdated

chartsKnowledge based heuristic to minimize scrap when making plates

Models used in decision support tools

Developing accurate cost estimate Collection of empirical data regarding performance and cost Regression analysis of time as function of no. of charts and demand Non linear relationship observed, used as input for Optimization model

Capacity planning system providing labour and equipment requirementHelped in making staffing and outsourcing decisions early, forecast of workload

Scheduler

LP model to minimize cost (labour, overtime etc.) of making weekly revisionDetermine optimal way to produce coverages (POD, outsource, manual etc.)250,000 variables, 40,000 - 1,00,000 constraintsParts solved individually and combined to get solutionEstablished 100% on time revision record

Interactive plating tool

Input from scheduler, used for assigning charts to printing platesOne chart can use multiple slots on one plate or slots on multiple platesCreation of algorithm based on rules by JeppesenNonlinear mixed integer problem

New Order model

Improved on time rate of new ordersConsiders outstanding orders, 2 weeks planing, completion time, production capacity,

shipping requirements, and latenessMinimizes cost and penaltyLP model with 14000 variables and 2000 constraintsProvides daily schedule & lists time of day and order must arrive to go out that day

Inventory tool

Used to compute bin stock quantity of charts which are printed in anticipation of new orders

Uncertainties about distribution of demand and the probabilities of revisions affect decisions about bin-stock quantity

Order few - Large fixed cost for new ordersOrder more - Scraping due to early revision