Reliability analysis of productivity enhancement initiatives

Nicholds, B and Mo, J 2018, 'Reliability analysis of productivity enhancement initiatives', Journal of Manufacturing Technology Management, vol. 29, no. 6, pp. 1003-1024.

Document type: Journal Article
Collection: Journal Articles

Title Reliability analysis of productivity enhancement initiatives
Author(s) Nicholds, B
Mo, J
Year 2018
Journal name Journal of Manufacturing Technology Management
Volume number 29
Issue number 6
Start page 1003
End page 1024
Total pages 22
Publisher Emerald Publishing Limited
Abstract Purpose: Process improvement (PI) projects in manufacturing suffer from high failure rates, often due to management capability overstretch. An organisations management may be unaware that they lack the necessary capability to achieve desired performance gains from a particular PI project. As a consequence, PI projects containing a level of complexity are undertaken but the organisation is not capable of providing the required resources. The purpose of this paper is to develop a new method for assessing whether a productivity enhancement initiative which develops into PI projects have a good probability of success (POS). The risk assessment method predicts the POS in achieving desired performance targets from a PI project. Design/methodology/approach: The POS of a system can be measured in terms of reliability. An operation with a high POS indicates high reliability of the systems ability to perform. Reliability is a form of risk assessment. When applied to PI projects, several key factors should be addressed. First, risk should be modelled with a framework that includes human factors. Second, time is an important dimension due to the need for persistence in effort. This research proposes the concept of performance effectiveness function, kP, that links the capability of an organisation with its performance level. A PI reliability function indicating the probably of success of the PI projects can then be derived at the design stage by combining the capability score and actual performance. Findings: The PI reliability function has been developed and tested with an industry case in which a PI project is planned. The analysis indicates that the company is far from ideal to do the project. Research limitations/implications: The reliability function may be used as a decision support tool to assist decision makers to set realistic performance gain targets from PI projects. The data set for deriving the function came from automotive and metal industries. Further research
Subject Manufacturing Engineering not elsewhere classified
Keyword(s) Manufacturing strategy process
Performance indicators
Process re-engineering
Project management
Risk management
DOI - identifier 10.1108/JMTM-12-2016-0187
Copyright notice © Emerald Publishing Limited
ISSN 1741-038X
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