Managing Manufacturing Complexity Drivers on Performance – An Initial Study

Abstract

Manufacturing systems, in pursuit of cost, time and flexibility optimisation are becoming more and more complex, exhibiting a dynamic and nonlinear behaviour. Unpredictability is a distinct characteristic of such behaviour and effects production planning significantly. Complexity continues to be a challenge in manufacturing systems, resulting in ever-inflating costs, operational issues and increased lead times to product realisation. This challenge must be met with appropriate decision-making by manufacturing companies to secure competitive advantage without compromising sustainability. Assessing complexity realises the reduction and management of complexity sources which contribute to lowering associated engineering costs and time, improves productivity and increases profitability. Therefore, this study was undertaken to investigate the priority level and current achievement of manufacturing performance in Malaysia's manufacturing industry and the complexity drivers on manufacturing productivity performance. The results showed that Malaysia's manufacturing industry prioritised product quality and they managed achieved a good on-time delivery performance. However, for other manufacturing performance, there was a difference where the current achievement of manufacturing performances in Malaysia's manufacturing industry is slightly lower than the priority given to them. The strong correlation of significant value for priority status was observed between efficient production levelling (finished goods) and finish product management while the strong correlation of significant value for current achievement was minimised the number of workstation and factory transportation system. This indicates that complexity drivers have an impact towards manufacturing performance. Consequently, it is necessary to identify complexity drivers to achieve well manufacturing performance.