System dynamics model to improve productivity in manufacturing industries

Abstract

In this work a model is executed to understand dynamics of the key productivity factors in manufacturing industries. It is aimed to show contribution of key productivity factors in productivity improvement strategy. The diverse causal relations among factors are brought together in a cohesive system dynamics model to investigate performance. Three feedback loops-driver, system and productivity index - are recognized and their role in the dynamics of productivity improvement strategy are discussed. A causal loop diagram is constructed to develop a detailed system dynamics model. This work relies on identification of various attributes affecting productivity, grouping them into key factors, designing and developing a questionnaire, setting causal relations among the key factors. The simulated results conclude that for any industry having no productivity concern should first and foremost focus on enhancing the 'organizational culture', 'human resource management', and 'performance' factors to achieve higher productivity maturity levels in the future.