Discrete-event system simulation on small and medium enterprises productivity improvement

Abstract

Small and medium industries in Indonesia is currently developing. The problem faced by SMEs is the difficulty of meeting growing demand coming into the company. Therefore, SME need an analysis and evaluation on its production process in order to meet all orders. The purpose of this research is to increase the productivity of SMEs production floor by applying discrete-event system simulation. This method preferred because it can solve complex problems die to the dynamic and stochastic nature of the system. To increase the credibility of the simulation, model validated by cooperating the average of two trials, two trials of variance and chi square test. Afterwards, Benferroni method applied to development several alternatives. The article concludes that, the productivity of SMEs production floor increased up to 50% by adding the capacity of dyeing and drying machines.