System Dynamics Modeling to Improve Productivity in Manufacturing Industries

Abstract

The productivity improvement is an issue that combines the effect of various productivity attributes. Development of productivity model showing impact of various productivity attributes is vital to enhance productivity. Therefore, this research work is focused on the comprehensive productivity system dynamics (SD) model in manufacturing industries. The SD model plays a very important role in productivity measurement there by, suggests the strategies for achieving targeted productivity in shorter period of time significantly influencing the production and employees wage growth. It is important that the productivity team understand that the managerial strategy affects the performance of organization. The initial feedback in the strategy development process avoids re-work loops needed to utilize resources capacity utilization of manufacturing industry. The SD model will help researchers and manufacturing organizations to understand the issues involved and to set better managerial strategies for productivity improvement. The work is carried out in four phases. newlineThe concept of multi factor productivity has received much attention in the past four decades, however, different scholars who have investigated productivity issues have done it mostly independent of each other and widespread literature review has not been presented so far. The work aims to identify the attributes affecting productivity and performance of various industrial sectors. The work further categorizes identified attributes into five major key factors including human resource management (HRM), organizational culture (OC), production methodology (PM), management strategy (MS), and performance (PER). newlineAlthough there are number of studies investigate attributes affecting productivity, the research in the measurement of productivity attributes has been incomplete. In an attempt to deal this gap, the work is extended to integrate the attributes for developing a measure to tap those attributes. The measuring tool, questionnaire on productivity attributes (QPA