Framework for Operational Performance Measurements in Small and Medium Scale Industries Using Discrete Event Simulation Approach

Abstract

Globally, production systems must cope with limitations arising from variabilities and complexities due to globalization and technological advancements. To survive in spite of these challenges, critical process measures need to be closely monitored to ensure improved system performance. For production managers, the availability of accurate measurements which depict the status of production activities in real time is desired. This study is designed to develop an operational data decision support tool (ODATA-DST) using discrete event simulation approach. The work-in-process and processing time of each workstation/buffer station in a bottled water production system were investigated. The status of each job as they move through the system was used to simulate a routing matrix. The production output data for 50cl and 75cl product from 2014-2016 were collected. A mathematical model for routing jobs from the point of arrival to the point of departure was developed using discrete event simulation. A graphical user interface (GUI) was designed based on the factory’s performance measurement algorithm. Simulating the factory’s work-in-process with respect to internal benchmarks yielded a cycle time of 4.4, 6.23, 5.04 and throughput of 0.645, 0.455, 0.637 for best case scenario, worst case scenario and practical worst case scenario respectively. The factory performed below the simulated benchmark at 26%, 28%, 28% for the 50cl and at 51%, 54%, 59% for 75cl regarding the year 2014, 2015 and 2017 respectively. Performance measurement decision support tool has been developed to enhance the production manager’s decision making capability. The tool can improve production data analysis and performance predictions.