We develop a data-driven decision model to improve process quality in manufacturing. A challenge for traditional methods in quality management is to handle high-dimensional and nonlinear manufacturing data. We address this challenge by adapting explainable artificial intelligence to the context of quality management. Specifically, we propose the use of nonlinear modeling with Shapley additive explanations to infer how a set of production parameters and the process quality of a manufacturing system are related. Thereby, we contribute a measure of process importance based on which manufacturers can prioritize processes for quality improvement. Grounded in quality management theory, our decision model selects improvement actions that target the sources of quality variation. The decision model is validated in a real-world application at a leading manufacturer of high-power semiconductors. Seeking to improve production yield, we apply our decision model to select improvement actions for a transistor chip product. We then conduct a field experiment to confirm the effectiveness of the improvement actions. Compared with the average yield in our sample, the experiment returns a reduction in yield loss of 21.7%. Furthermore, we report on results from a postexperimental rollout of the decision model, which also resulted in significant yield improvements. We demonstrate the operational value of explainable artificial intelligence by showing that critical drivers of process quality can go undiscovered by the use of traditional methods. This paper was accepted by Charles Corbett, operations management.

This paper proposes a data-driven procedure to improve productivity in make-to-stock manufacturing. By leveraging recent developments in information systems research, the paper addresses manufacturing systems with high process complexity and variety. Specifically, the proposed procedure draws upon process mining to dynamically map and analyse manufacturing processes in an automated manner. This way, manufacturers can leverage data to overcome the limitations of existing process mapping methods, which only provide static snapshots of process flows. By bridging data and process science, process mining can exploit hitherto untapped potential for productivity improvement. The proposed procedure is empirically validated at a leading manufacturer of sanitary products. The field test leads to three concrete improvement suggestions for the company. This research contributes to the literature on production research by demonstrating a novel use of process mining in manufacturing and by guiding practitioners in its implementation.

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To meet order fulfillment targets, manufacturers seek to optimize production schedules. Machine learning can support this objective by predicting throughput times on production lines given order specifications. However, this is challenging when manufacturers produce customized products because customization often leads to changes in the probability distribution of operational data—so‐called distributional shifts. Distributional shifts can harm the performance of predictive models when deployed to future customer orders with new specifications. The literature provides limited advice on how such distributional shifts can be addressed in operations management. Here, we propose a data‐driven approach based on adversarial learning, which allows us to account for distributional shifts in manufacturing settings with high degrees of product customization. We empirically validate our proposed approach using real‐world data from a job shop production that supplies large metal components to an oil platform construction yard. Across an extensive series of numerical experiments, we find that our adversarial learning approach outperforms common baselines. Overall, this paper shows how production managers can improve their decision making under distributional shifts.