Dynamic Modeling for Process Improvement

Improvement efforts now have main focus on business processes. Total Quality Management (TQM), Business Process Reengineering (BPR) and Six Sigma are process based methodology. Through process improvement quality, productivity, and flexibility are improved. These processes have to be analyzed, evaluated, and reengineered. Process state is monitored through the performances of process. Quality Cost (QC) is one such measure where quality improvement efforts are quantified in monetary terms. We have developed a generic system dynamics model to simulate the process behavior in terms of quality costs. We have used historical quality cost data from a manufacturing organization for model calibration. Four different policies are experimented through the simulation runs. The results are analyzed and compared with similar policy experiments available in literature. The simulation model is aimed to be a learning tool for developing insight into the impacts process improvement efforts.