A Review Article[1]

Applications of
Artificial Neural Networks
in Industrial Engineering

 

 

Stefanus Rachmat Djajasaputra

Institute Technology Bandung

E-mail: steverd@technologist.com

 

                                                                                                                                

 

Abstract

 

This article gives a survey of applications of Artificial Neural Networks in Industrial Engineering  and its related disciplines, such as: operation research, manufacturing, and management.  Artificial Neural Networks had been employed for optimation/resource allocation,  pattern-recognition (classification, clustering) and prediction. The main advantages of Artificial Neural Networks are its adaptivity, fault tolerant, and noise-resistant. Some Neuralnets have non linear capability, which can be an advantage to overcome complex problems. Several researches showed that Artificial Neural Networks was better in term of accuracy compared with conventional approaches such as linear programming, discrete optimization, regression and statistics.

 

 

 

1. Introduction

 

The industrial needs which were getting more & more advances and the competitions which were getting tougher, required us to take the benefits of the most advanced technique in problem solving.  Artificial Neural Networks was one of the most recent developed computational method.  Artificial Neural Networks had been employed for optimation/resource allocation,  pattern-recognition (classification, clustering) and prediction (L.Burke, 1992).  Several researches showed that Artificial Neural Networks was better in term of accuracy compared with conventional approaches for classification, clustering and predictioan (Rao, 1994). Artificial Neural Networks is able to identify a system adaptively, thus eases a complex-system modeling, such as stock-market behaviour which was so difficuly to do with conventional methods. The main advantages of Artificial Neural Networks are its adaptivity, fault tolerant, noise-resistant and its non linearity that can be useful to overcome industrial complex problems. The other advantage of Artificial Neural Networks is its parallel processing capability, whuch can be implemented on hardware easily in several Artificial Neural Networks (e.g. Hopfield model.) This article serves as an introduction of applications of Artificial Neural Networks in Industrial Engineering and its related disciplines, while references were provided to seek further. The discussion was made as brief as possible and thus we avoid mathematics details.

 

 


 2. Artificial Neural Networks

 


Artificial Neural Networks is a computational method which got its idea from the neural structure of. living creatures. By mimicking the original neural model, we hope Artificial Neural Networks will be able to reconstruct inteligence phenomena which can be useful for classification task, system identification, assosiative memory, etc. Artificial Neural Networks can be described in a form of learning algorithms  and a computational model, i.e. using graph theory, as interconnected nerve nodes, along with multiply-factors (weights) representing the interaction levels between them. One of the most popular form of the Artificial Neural Networks  is multilayer perceptron, as show in figure 1 (represented in graph theory.) The number of its hidden layers depends on  the complexity  of the problem to be solved.

 

 


Figure 1. An Artificial Neural Networks model: Multilayer Perceptron

 

 


From learning method point of view, Artificial Neural Networks  can be classified into two big groups: supervised learning and unsupervised learning. A supervised learning method needs a supervision during its training phase, thus the users shoulds provide the output targets along with their inputs. Artificial Neural Networks  adaptively  will search a weight configuration which suitable for mapping inputs to their targets by changing the weights using a learning algorithm. This learning process will be assumed to be finished after the performance fulfill a specific criteria (e.g. the distance between the outputs and the corresponding targets.) After this training process, we hope that this  Artificial Neural Networks  will have a generalization capability, i.e. be able to recognignize (map) the inputs which are not exactly the same with the training data.  On the other hand, a unsupervised method doesn’t need a target for training. During training, this neuralnets will map/arrange its weights so that it will be capable to  cluster the input patterns.  In the following paragraphs, we will have a short discussion about some popular Artificial Neural Networks. For further details (including comparisons between networknets models) it’s recommended to refer to literatures by Freeman and Skapura (1991), Sanchez-Sinecio and Lau (1992), Haykin (1994), Hetch-Nielsen (1988) and Lippman (1987.)

 

Backpropagation

Backpropagation  is the most popular supervised learning method which is implemented at multilayer percepteron model. This method is popular because relatively easy to implement, while it had proved powerful for many applications. Backpropagation is suitable for classification/pattern recognition, prediction and control. The weakness of this method is its slowness, therefore researchers developed faster algorithms, such as RPPROP (Riedmiller, 1993), Cascade Correlation (S.Fallman, 1988) or Conjugate Gradient (Johansson et.al., 1990.)

 

Competitive Networks

In this unsupervised learning method, the weights of Artificial Neural Networks were represented as topological/spatial mapping.  After the inputs came, these weights would compete and the winner is the weight closest[2] to the input pattern.Then this winneer weight will be modified to get closer to the input-pattern. In some Neuralnets types, the close neighboring weights also will be modified. After the training, the weights will form  groups based on the input-patterns, this process is called clustering. Some Artificial Neural Networks in Competitive Networks category, namely: Kohonen model, Self Organizing Map (SOM) and Learning Vector Quantization (LVQ).

 

Hopfield Networks

This method is an optimization algorithm which was developed from statistical physics approach: a learning algorithm will perform self-organizing on Artificial Neural Networks weights to minimize the energy/ lyapunov function. Thus, this algorithm is appropriate for constraint optimization problems on matematical programming. The general problem on  matematical programming is to find the minimum (or maximum) of a cost-function given several constraints. In  Hopfield model, the cost function and constraint were translated in form of an energy function. When this energy function is minimum, the information on the Artificial Neural Networks weights represents the optimal solution. Hopfield model is a  recurrent networks, where the Network’s outpus were feeded to its inputs. However, Hopfield model has some weaknesses, such as trapped on sub-optimal solution (local-minima problem) and the limitation of its information capacity. Several approaches were developed to improve Hopfield model, for example Boltzman-machine, which is based on simulated annealing from physics, to avoid local minima.

 

Adaptive Resonance Theory (ART)

Some people regard this  unsupervised Artificial Neural Networks as the most similar neural model comparing with a real brain. The applications of ART mainly are for classification and pattern recognition. ART is better regarding its speed and accuracy compared with other Artificial Neural Networks. Another its advantage is its plastiscity, ART is able to remember new input patterns without forgeting the previous/old input patterns. Nevertheless ART is not so popular due to its high complexity, and unclueness to tune the learning parameter. ART consists of two layers: recognition layer and comparison layer. The input patterns will be saved at recognition layer (short term memory), then the patterns at this recognition layer will be compared with the patterns at comparison layer (long term memory). If a matching[3] pattern was not found, this input pattern will be classified as a new pattern. The development of ART model leads to ART-2, ART-3, Fuzzy ART, ARTMAP (supervised) and Multichannel Fuzzy ART.

 

The others popular Artificial Neural Networks models, namely: Probabilistic Based Neural Networks (Specht, 1990), General Regression Neural Networks (Specht, 1991), BAM (Kosko, 1987), Least Mean Square (LMS), CMAC (for control application), Hidden Markov Neural Networks, Bayesian Neural Networks, Gram-Charlier Neural Networks, Wavelet Networks, Radial Basis Neural Networks dan Temporal Diference Neural Networks.

 

 

 

3. The Application of Artificial Neural Networks in Industrial Engineering

 

Here are several applications of Artificial Neural Networks in Industrial Engineering and its related disciplines:

 

Operation Research

On operation research,  Artificial Neural Networks is useful as an alternative for conventional techniques (e.g. mathematical programming & statistics) for optimization & decision support. Neural Networks paradigm (e.g. reinforcement learning) can also be used to improved dynamic programming, it’s called Neuro-Dynamic-Programming (Bertsekas & Tsitsiklis, 1996).  On the other hand, several  operation research techniques (such as linear programming or dynamic programming) can be also implemented to improve Artificial Neural Networks learning algorithms.

One of the most important problems on operation research is constraint optimization problems, i.e. finding optimal solution that minimize (or maximize) a cost function under several constraints.  In constraint optimization problems, the most important problem is to model the system, formulate the cost function as well as its constraints. Conventionally, this problem was solved using mathematical programming. Looi (1992) did a comparison of several methods (included Hopfield model and its derivatives) for travelling salesman problem, a problem which was acknowledged as a benchmark standard for studying optimization-algorithms. This study along with other study by Burke & Ignizio (1992) showed that Artificial Neural Networks (Hopfield model) wasn’t superior compared with conventional methods for constraint optimization problems.  Researchers tried to improve its performance by improving formulation of energy function and learning algorithms (C. Dagli, 1994.) Several constrained optimization problems which can be solved Hopfield model (or its derivatives), namely:

Þ     Finding the shortest path for facilities layout (Tsuchiya, Brathikar, Takefuji, 1996.) Almost similar approach was applied for reducing the size of  IC layout (Wang, Chen, Lai, Liu, 1992.)

Þ     Automatic transport-vehicles system: comprising the shortest-route, schedule optimization and decision of vehiche types (Potvin, Shen, Rousseau, 1992.)

Þ     Johnston & Adorf (1992) studied the operation schedule of Hubble telescope: concerning modeling of its scheduling system, formulation of the cost function along with its constraints, and implementation using  Guarded –Discrete-Stochastic Neural Networks.

Þ     Chiu, Maa & Shanblatt (1990) studied applying Hopfield model for dynamic programming.

 

Other applications of Artificial Neural Networks for example:

Þ     Optimation of ticket-machine maintanance using fuzzy-neural (Liu, Sin, 1997.)  First, the input data (e.g. machine activity, weather) was fuzzified before Artificial Neural Networks (e.g. a backpropagation-like) processed this data. Finally, the output from Neuralnets was defuzzificatied resulting the final output, e.g.the machine-maintanance priorities.

Þ     Distance estimation using a combination of backpropagation, regression neural networks and parametrict method (Alpaydin, Altinel, Aras, 1996)

Þ     Optimation of routing & scheduling of a train-networks using backpropagation to classify service-demand patterns  (Martinelli, Teng, 1995)

Þ     Optimazion of  communication networks: packet scheduling( D.B.Schwartz, 1993,) routing (M.Goudreau & L.Giles, 1992), & traffic control (A.Hiramatsu, 1991.) Planning the celluar mobile-communication networks to optimize the service-covering area (T.Fritsch,S.Hanshans, 1993)

 

More detail discussions can be found on journals which published  special issue about this topic, for example: European Journal of Operations Research, vol.93 or Computers in Operations Research, vol.19.

 

Manufacturing

Þ     Monitoring , Diagnosis and Maintanance

The pattern recognition power of Artificial Neural Networks (e.g. backpropagation, ART) fcan be used for monitoring, vision, and diagnosis of manufacturing system. The result from this monitoring can be used for production control, e.g. for robot-length movement control, conveyor-belt speed control, or quality control. The diagnosis result can be used for maintanance and repairment of equipments, as well as for alerting system (e.g. at chemical reactor.)

Þ     Control

Artificial Neural Networks (e.g. LMS, CMAC) can be applied also for adaptive control (Nguyen, Widrow, 1990.)  On neuro-fuzzy system, Artificial Neural Networks was used for optimizing  the parameters of a fuzzy logic system adaptively. There are already several industrial equipments which had took benefits from Fuzzy-Neuralnets for pattern recognition and control, namely: air conditioner, refrigerator, and camera. More detailed discussions about the applications of fuzzy-neural in industry can be found on publications by von Altlock (1994), dan Yem, Langari, Zadeh (1995).

Þ     Component Desain

The proses for creating a new component is very expensive, so we should find a method to reuse  the design of existing components. According to Gunn (1982), actually only 20% of the new components which  was really needed for new designs, the rests can be made/modified from old components. Boeing  saved cost of new components production by using a multi-stages ART Artificial Neural Networks for classification and saving component design patterns (Smith, Escobedo, Anderson, Caudell, 1997)

Þ     Group Technology

Component grouping based on “family” will help to make a production system more efficient (Kusiak, 1990.) Several researchers used ART & its derivatives for classification of machine-component family. (Dagli, Huggahali, 1995; Burke, Kamal, 1992; Malave, Ramachandran, 1994)

Þ     Feature Identification

Perceptron can be used to determinine the most suitable component-type, based on feature identification (Henderson, 1994.)


Þ     Proces Planning

Artificial Neural Networks (e.g. backpropagation) was used for identifying component-types and determining the process (e.g. method selection, machine, tools.) For planning a complex industrial system, Artificial Neural Networks (e.g. backpropagation) was used to model nonlinear parameters, e.g. durability of components, chemical-process on reactor, etc.

Þ     Facility Layout

The process of optimization a facility layout mainly was influenced by material handling, thus the routing problem for material handling is important. Hopfield model and its derivatives was used for finding the shortest route of this routing (Tsuchiya, Brathikar, Takefuji, 1996; Yip, Pao, 1993)

 

Management: Marketing and Finance

Þ     Market Segmentation (O’Brien, 1994, Heide, 1995)

Kohonen Artificial Neural Networks was used for clustering, e.g. inspecting the grouping pattern of customers based on their age, sex, salary, etc.

Þ     Customer Ranking  (Mooer, Burbach, Heeler, 1995)

Backpropagation was used to determine the rank of targeted customers based on their business, salary, ages, etc.

Þ     Pricing, e.g. for real estate industry (Worzala, Lenk, Silva, 1995)

Backpropagation or radial basis neural networks was used to model a formula for pricing based on product attributes (e.g. total area of the house) and market-condition (e.g. interest rate.)

Þ     Credit-card fraud detetion (Dorronsoro, Ginel, Sanchez, Cruz, 1997)

Nonlinear discriminant neural networks was used for fraud-detection based on input data from the card-holder profiles ( e.g. employment, salary) and the types of the service/stuffs that their bought.

Þ     Bankrupt Prediction (Odom, Shardo, 1990)

Backpropagation was used for bankrupt justification, using Neuralnets inputs such as: capital, profit, total sales, market volume, etc.

Þ     Time-series Forecasting

Some problems which included in this category for example: stock-market forecasting (Kimoto et.al., 1990), currency rates predition (Refenes, et.al., 1993,) and sales forecasting (Duke, Long ,1992.) Refenes (1997) wrote a review article about this application.

 

 

4. Ending

 

Artificial Neural Networks offers new computation techniques, which can be applied for diverse problems in engineering, included industrial engineering and  operation research Several researches showed that Artificial Neural Networks was better in term of accuracy compared with conventional approaches such as linear programming, discrete optimization, regression and statistics. (Fang, Li, 1990; Chiu, Maa, Shanblatt, 1990.) On intelligent manufacturing, Artificial Neural Networks has more advantages compared with previous approaches (C. Dagli, 1994). Compared with expert systems, Artificial Neural Networks is more powerful in dealing with uncertainty inherent in industrial nature, due to fuzzy properties innate in Artificial Neural Networks (Kosko, 1992). However, other study showed that Artificial Neural Networks (Hopfield model) wasn’t superior compared with conventional methods for constraint optimization problems (L.I.Burke dan J.P.Ignizio, 1992.) This mean that Artificial Neural Networks is not a universal-toolbox which is the best to solve any problems in the world. There are some problems which can be solved better using more-exact methods such as mathematical programming.

In applying Artificial Neural Networks, we must consider the model which is best matching with the problem on hand. For example, for clustering and classification it’s better to use ART or kohonen, however for prediction it’s better to use backpropagation. In the system design, it’s importsnt to select the appropriate inputs, and it has to include preprocessing stage also (i.e. normalisation, cleaning, filtering.)

Finally, as an interesting remark: many researchers now see Artificial Neural Networks only as an ordinary statistical/mathematical programming technique which was reinvented by neuro research. (Sarle, 1995.) Don’t be so fanatic/over-confidence with Artificial Neural Networks capabilities, it’s just a tool not a religion.

 

 

About the writer: Stefanus Rachmat Djajasaputra (ITB), a researcher on Artificial Neural Networks, Fuzzy logic dan Non-Linear Systems. He had published several papers on national and international events. This paper was also published at his homepage http://go.to/steverd

 

 

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Þ     L.A. Zadeh,  1988, Fuzzy Logic, IEEE Computer Magazine



[1] To be presented  at Institute of Industrial Engineering (IIE) – National Conference, Bandung, January 1998. This English translation was accompanied the original text on Indonesians. This English text had not been reviewed by native-speakers due to lack of time, it’s recommended to read the original Indonesians version which was more accurate.

[2] The distance can be defined as euclidean distance or other metrics.

[3] with tolerance influenced by a vigilance parameter