Key improvement decision analysis mechanism based on overall loss of a production system

ABSTRACT

Business operations must effectively utilize real-time information presented by the manufacturing execution system for the identification and analysis of key improvements, finite resources can be put to better use, and implement effective quality improvements. This study analyzed overall loss through time loss, performance loss, and material loss by expanding the manufacture value process. Overall process loss (OPL) and overall line loss (OLL) were developed as indexes to select key improvement targets. First, Pareto analysis was used to identify process. The ICAM (Integrated Computer Aided Manufacturing) Definition (IDEF) was then employed to inform improvement decisions regarding the loss item. Finally, new key improvement goals were identified from the updated OLL, with continual improvement. The contributions of this study are the development of the indexes, OPL and OLL, based on overall loss, the improvement decision model, and the construction of a mechanism whereby sustainable reduction of overall loss can be achieved.

KEYWORDS:

• Time loss
• performance loss
• material loss
• overall line loss
• overall process loss

Disclosure statement

No potential conflict of interest was reported by the author.

Additional information

Funding

This work was supported by the Ministry of Science and Technology of the Republic of China [MOST-106-2221-E-035-071].

Notes on contributors

Yau-Ren Shiau

Yau-Ren Shiau, as the vice-president of Feng-Chia University now, Pro. Shiau got his Ph.D. degree of Industrial Engineering from Auburn University in 1991. His research interests are Supply Chain Management, Performance Assessment, and Innovation Management. He also assists enterprises to establish the development strategy, and have several patents in hand.

Shun-Yu Wang

Shun-Yu Wang, Ph.D. candidate in Department of Industrial Engineering and Systems Management, Feng Chia University. Master Degree in Executive Master of Business Administration, EMBA in 2014. His research interests including Process Management, Process Improvement, Quality Optimization, and Business Administration.