Managing performance improvement initiatives using DEMATEL method with application case study

Abstract

Currently, manufacturing companies are facing market volatility. To gain such market competition, organisations should respond quickly to customers’ needs by reducing lead times, or/and lowering their operating costs. These organisations usually select performance improvement initiatives to enhance their internal processes and handle such working challenges. Many of the available approaches can be implemented for manufacturing process improvements e.g. Lean, Six Sigma and Total Productive Maintenance. The appropriate selection for the most suitable approach(es) can be appreciated especially before utilising or investing resources. The current paper introduces an integrated model to support manufacturing organisations in selecting and managing the suitable performance improvement initiative(s). The proposed model combines balanced scorecard, Theory Of Constraints and DEMATEL method. The model is adopted by a home appliance manufacturing firm located in Egypt starting from mid-2014 to achieve the firm goals, and to support operations managers to select and manage the suitable improvement initiatives using DEMATEL method. Significant results related to improving production rate by 6.22%, improving machines reliability through increasing mean time between failures, and reducing manufacturing costs due to reducing defects were reported during executives’ review meetings.