In Flexible Manufacturing Systems (FMSs), a cutting tool is frequently used
for different operations and on different part types to minimize tool chan
ge-overs and the number of tools required, and to increase part-routing fle
xibility. In such situations, the tools become shared resources and work in
job-dependent, changeable and nonhomogeneous conditions. It is well known
that the tool failure rate depends on both age and machining conditions and
that tool reliability is a function of the duration, machining conditions,
and the sequence of the operations in FMS. The objective of this paper is
to obtain a schedule of the optimal preventive replacement times for the cu
tting tools over a finite time horizon in a flexible manufacturing system.
We assume that the tool will be replaced either upon failure during an oper
ation or preventively after the completion of each operation, incurring dif
ferent replacement costs. A standard stochastic dynamic programming approac
h is taken to obtain the optimal tool replacement times. The optimal schedu
le is obtained by minimizing the total expected cost over a finite time hor
izon for a given sequence of operations. A computational algorithm is devel
oped and a numerical example is given to demonstrate the procedure.