Process Innovation Challenges : - how to reduce Uncertainty through Discrete Event Simulation
Abstract: In today’s competitive market, a company will not succeed unless they stand out in other ways than pure benefits with its products. This can be reached by in some way altering the process currently in place. One way, is by introducing process innovation. Advantages related to the adoption of process innovation has been found in literature, for example by increase competitiveness, increase productivity, and increase plant visibility. However, process innovation evokes uncertainty. Discrete Event Simulation (DES) models has in previous research been suggested as a tool to reduce uncertainty at manufacturing companies when they are undergoing changes. However, the study of change in process innovation setting has been largely ignored. By acknowledging this gap in current research, the aim of this study is to investigate whether the use of DES models are able to reduce uncertainties in process innovation. The study is guided by three research questions: 1. What are the characteristics of process innovation introduction in a production process context? 2. How is the production process at manufacturing companies affected by process innovation related uncertainties? 3. How can the usage of DES contribute to reduction of uncertainties during the introduction of process innovation at manufacturing companies? In order to answer these questions, a research methodology consisting of a literature review and a case study including the usage of DES were applied. In this thesis the case study is conducted at a manufacturing company, presented with the goal of making a modification in the production. This is done in an attempt to make it more environmental friendly while also establish a competitive edge over the rivals. To reach this, an implementation of a process innovation technology is under planning, but introducing something new creates numerous uncertainties. To be able to implement this process innovation, uncertainty reduction is crucial. By identify literature within the field, and compare with findings from interviews and workshops at the studied company, process innovation characteristics and how process innovation evokes uncertainties were identified. From the usage DES in this thesis, uncertainties were reduced, partly reduced and identified while some uncertainties remain unresolved. Moreover, the findings point to the creation of the simulation model working as a visualisation of the current production and the possible future, which generates a discussion platform for all stakeholders involved.
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