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.
Keywords:
performance measures, production system, discrete event simulation, decision support systemDownloads
References
J. Heilala, J. Montonen, P. Jarvinen, S. Kivikunnas, “Decision Support Using Simulation for Customer-driven Manufacturing System Design and Operational Planning”, in: Advances in Decision Support Systems, pp. 235-260, IntechOpen, 2010 DOI: https://doi.org/10.5772/39400
M. P. Roessler, J. Reimer, M. Mueller, “Decision Support for Choosing an Appropriate Simulation Method for Dynamic Material Flow Analysis”, Journal of Industrial and Intelligent Information, Vol. 3, No. 4, pp. 337-341, 2015 DOI: https://doi.org/10.12720/jiii.3.4.337-341
W. J. Hopp, M. L. Spearman, Factory Physics, Irwin McGraw-Hill, 2000
M. Wilcox, M. Bourne, “Predicting Performance”, Management Decision, Vol. 41, No. 8, pp. 806-816, 2003 DOI: https://doi.org/10.1108/00251740310496314
A. Neely, M. Gregory, K. Platts, “Performance measurement system design: A literature Review and Research Agenda”, International Journal of Operations an Production Management, Vol. 25, pp. 1228-1263, 2005
R. Sundkvist, Financial benefits of shoop floor productivity improvements, PhD Thesis, Chalmers University of Technology, 2014
B. O. Odedairo, D. S. Ladokun, “Varying Lot -Sizing Models for Optimum Quantity- Determination in Material Requirement Planning System”, Presented at the International Conference of Manufacturing Engineering and Engineering Management, London, UK, July 4-6, 2018
S. Melnyk, D. Stewart, M. Swink, “Metrics and Performance Measurement in Operations Management: Dealing with the Metrics Maze”, Journal of Operations Management, Vol. 22, pp. 209-217, 2014 DOI: https://doi.org/10.1016/j.jom.2004.01.004
A. Gunasekaran, C. Patel, R. McGaughey, “A framework for supply chain performance measurement”, International Journal of Production Economics, Vol. 87, No. 3, pp. 333-347, 2004 DOI: https://doi.org/10.1016/j.ijpe.2003.08.003
D. Fasel, Fuzzy Data Warehousing for Performance Measurement-Concept and Implementation, Springer, Switzerland, 2014 DOI: https://doi.org/10.1007/978-3-319-04226-8
T. Taweesak, “Performance Measurement System Design and Implementation in Thai Automotive Industry”, PhD Thesis, University of South Australia, 2005
J. Lorentzon, Fredlund, Application of Performance Measurement on Manufacturing Simulations for Knowledge-Based Decision Support, MSc Thesis, Lund University, 2017
P. Sandberg, M. Larsson, J. Dahl, M. Soderstrom, H. Vourinen, “In search of stability-Investigating Flexible and Stable Production Strategies for an Optimised Steel Plant”, International Journal of Green Energy, Vol. 3, No. 2, pp. 159-170, 2006 DOI: https://doi.org/10.1080/01971520500544028
M. Gong, Using Exergy and Optimization Models to Improve Industrial Energy Systems Towards Sustainablity, PhD Thesis, Linkopings Universitet, 2004
J. Persson, T. Berntsson, “Influence of Short-term Variations on Energy-Saving Opportunities in a pulp Mill”, Journal of Cleaner Production, Vol. 18, No. 9, pp. 935-943, 2010 DOI: https://doi.org/10.1016/j.jclepro.2009.12.018
J. Jonsson, P. Ruohonen, G. Michel, T. Berntsson, “The potential for Steam Savings and Implementation of Different Biorefinery Concepts in Scandinavian Integrated TMP and Paper Mills”, Applied Thermal Engineering, Vol. 31, No. 13, pp. 2107-2114, 2011 DOI: https://doi.org/10.1016/j.applthermaleng.2011.03.001
S. Robinson, Successful Simulation: A Practical Approach to Simulation Projects, McGraw -Hill, 1994
J. Banks, J. Carson, B. Nelson, D. Nicol, Discrete-Event System Simulation, Third Edition, Prentice–Hall, 2001
N. Mardan, Combining Simulation and Optimization for Improved Decision Support and Energy Efficiency in Industry, Linkoping University Institute of Technology, Sweden, 2012
M. Al Durgham, M Barghash, “A generalised framework for simulation -based decision support for manufacturing”, Production Planning and Control, Vol. 19, No. 5, pp.518–534, 2008 DOI: https://doi.org/10.1080/09537280802187626
S. Kursun, F. Kalaoglu, “Simulation of Production Line Balancing in Apparel Manufacturing”, Fibres in Eastern Europe. Vol. 12, No. 6, pp. 68-71, 2009
B. Johansson, On Virtual Development of Manufacturing Systems: Proposal for a Modular Discrete Event Simulation Methodology, PhD Thesis, Chalmers University of Technology, 2006
A. G. Hirschberg, K. G. Heitmann, “Simulation in German Industry -A survey”, 9th European Simulation Symposium and Exhibition Simulation in Industry, Passau, Germany, pp. 429-433, October 19-22, 1997
L. Holst, G. Bolmsjo, “Simulation Integration in Manufacturing System Development: A study of Japanese industry”, Industrial Management and Data Systems, Vol. 101, No. 7, pp. 339-356, 2001 DOI: https://doi.org/10.1108/EUM0000000005822
J. Fowler, O. Rose, “Grand challenges in Modelling and Simulation of Complex Manufacturing Systems”, Simulation, Vol. 80, No. 9, pp. 469-476, 2004 DOI: https://doi.org/10.1177/0037549704044324
B .O. Odedairo, D. Bell, “Framework for Introducing and Implementing Value Methods: A Novel Toolkit for Small and Medium Scale Industries in Developing Nations”, International Journal of Basic and Applied Sciences, Vol. 9. No.10, pp. 87-95, 2009
V. O. Oladokun, A. O Olaitan, “Development of a Materials Requirements Planning (MRP) Software”, Pacific Journal of Science and Technology, Vol. 13, No. 1, pp. 351-357, 2012
J. Spanier, “Thoughts about Essential of Mathematical Modelling”, Mathematical Modelling, Vol. 1, pp. 99-108, 1980 DOI: https://doi.org/10.1016/0270-0255(80)90010-X
A. J. Jakeman, R. A Letcher, J. P. Norton, “Ten Iterative Steps in Development and Evaluation of Environmental Models”, Environmental Modelling and Software, Vol. 2, No. 5, pp. 602-614, 2006 DOI: https://doi.org/10.1016/j.envsoft.2006.01.004
W. Domschke, A. Drexel, Introduction to Operations Research, Springer-Verlag, 2007
H. I. Yoon, W. Shen, “Simulation -based Real -Time Decision Making for Manufacturing Automation Systems: A review”, Manufacturing Technology and Management, Vol. 8, pp. 188–202, 2006 DOI: https://doi.org/10.1504/IJMTM.2006.008795
B. Kadar, A. Pfeiffer, L Monostori, “Discrete Event Simulation for Supporting Production and Scheduling Decisions in Digital Factories”, 37th CIRP International Seminar on Manufacturing Systems, Digital Enterprise, Production Networks, Budapest, Hungary, pp. 444-448, 2004
J. Heilala, J. Montonen, A. Salmela, P. Jarvenpaa, “Modelling and Simulation for Customer Driven Manufacturing System Design and Operations Planning”, IEEE 2007 Winter Simulation Conference, Miami, USA, December 7-10, 2007 DOI: https://doi.org/10.1109/WSC.2007.4419812
W. J. Hopp, M. L. Spearman, Factory Physics: Foundations of Manufacturing Management, Waveland Press, 2008
G. L. Curry, R. M Feldman, Manufacturing System Modeling and Analysis, Springer, 2007
Downloads
How to Cite
License
Authors who publish with this journal agree to the following terms:
- Authors retain the copyright and grant the journal the right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) after its publication in ETASR with an acknowledgement of its initial publication in this journal.