A method for selecting the optimal portfolio of performance improvement projects in a manufacturing system

This paper proposes a method for selecting the optimal portfolio of performance improvement projects in a manufacturing system. The proposed method consists of evaluation process and selection process for selecting the optimal portfolio. In the evaluation process, the strategic value of a project portfolio is evaluated by considering both the strategy and the performance improvement of a system. In the selection process, the objective is to maximize the strategic value of a project portfolio without violating constraints and a genetic algorithm is used to select the optimal project portfolio. The strategic value of a project portfolio obtained in the project portfolio evaluation process is used as the fitness function of the genetic algorithm. An example of a project portfolio selection in a manufacturing system is discussed in order to illustrate the proposed project portfolio selection method. Significance: This paper introduces a method for selecting the optimal project portfolio based on system performance improvement.