Pursuit of responsiveness in SMEs through dynamic allocation of flexible workers: A simulation study

Abstract

The aim of this research is to study production responsiveness in Small and Medium Enterprises (SMEs) in Italy. Responsiveness is considered as the ability of a production system to achieve its goals in the presence of disturbances. The main issue this research tries to address is “how responsiveness can be achieved in production environments facing recurring uncertain disturbances in demand?” This research is particularly focused on the “worker flexibility” as a lever to achieve responsiveness. In this regard, alternative control logics for decision-making, regarding use of workers with varying levels of flexibility, have been evaluated through simulation for their potential impact on production responsiveness. It is found that, contrary to general belief, higher flexibility does not always guarantee higher responsiveness; it is the right level of flexibility combined with the proper decision-making logic which leads to higher production performance in the face of recurring uncertain disturbances.