Application of Performance Measurement on Manufacturing Simulations for Knowledge-Based Decision Support

Abstract: Manufacturing systems are becoming increasingly more complex at the same time as competition requires manufacturers to continuously improve their effectiveness and efficiency. The use of discrete event simulation to model manufacturing systems is well-established and generally considered to be the method of choice when analysing what-if scenarios. Simulation is currently predominantly applied when evaluating manufacturing system design and manufacturing rules and policies. These applications studies specific attributes and dimensions of the manufacturing system. To make full use of simulation-based decision-support in operations and inventory management, a performance measurement system needs to established to enable evaluation of simulated scenarios. In this study, manufacturing simulation and knowledge-based decision support are linked to performance measurement practises used on real systems. By examining the characteristics of manufacturing simulation applications as well as the modelling conditions of discrete event simulation, measurable performance dimensions on manufacturing simulations are identified. Furthermore, a proposition on how to design a manufacturing simulation and a performance measurement system to provide effective decision support is formulated. Based on this, the authors present a suggestion for a manufacturing organisation on how they should develop their simulation-based decision support system.