Simulation usage in SMEs

Abstract

PurposeThe purpose of this paper is to accurately model the existing manufacturing processes of a family‐owned small to medium‐sized enterprise (SME). The study was undertaken to provide the SME with information, so that potential improvements within the production facilities could be identified thereby leading to insights into potential savings, and waste elimination. Ultimately the research attempts to demonstrate that small businesses can benefit from adopting simulation as a decision‐making tool as part of their change management initiatives.Design/methodology/approachThe research methodology is a case‐based simulation study of the production facilities of a SME. A base model and successive experimental models were developed to test various production scenarios.FindingsThe experiments demonstrated how simulation could contribute and assist in the implementation of TQM and change management philosophies within a SME environment. The initial models identified problems in the real system and the latter models showed how further improvements can be achieved, defects reduced and lead to the enhancement of the productivity. Therefore, in this way simulation assisted in the implementation of some of the fundamental principles of TQM philosophy.Originality/valueThe study is limited in that it is based on one case study and therefore, a further study that would include several case studies with cross section analysis is recommended. Furthermore, research that uses cases from both the manufacturing and the service sector is recommended in order to fully document the unique and valuable role of simulation in the execution of TQM and BPR management philosophies in the SME context.