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A system dynamics (SD)-based methodology is described for analysing the impact of lean manufacturing strategies on a company's business performance, using business model canvas (BMC) perspective.

A case study approach is used to describe the methodology which consists of conceptualising a SD model on the basis of BMC. The base SD model is elaborated to include variables and concepts that consider the effects of lean manufacturing metrics on business performance. In the modelling experimentation, the lean manufacturing metrics are made to take on likely values one would expect if certain lean practices are initiated or improved. The experimental results provide one with the likely impact on business performance, if one were to improve lean manufacturing practices.

The simulation results for the case study show that lean improvements, on the short-run, have a significant impact on business performance, but in the long run, the impact is only marginal.

The described methodology provides one with a structured format for investigating the impact of lean practices on business performance. Although the developed SD model was built with generality in mind, it remains to be reproduced in other settings to test its replicability.

The methodology enables an organisation target which lean improvements to initiate based on their strategic impact on the business.

Limited studies exist where SD and business models are combined to test the strategic impact of lean manufacturing.

This study aims to seek to advance a system dynamics-discrete event hybrid simulation modelling concept useful for taking improvement decisions where one needs to consider the interactions between human factors and process flow elements in lean manufacturing systems.

A unique approach is taken to hybrid simulation modelling where the whole problem situation is first conceptualized using a causal loop diagram and stock and flow diagram, before transmitting to a hybrid simulation model. The concept is intended to simplify the simulation modelling process and make the concept pliable for use in various types of lean manufacturing problem situations.

The hybrid simulation modelling concept was applied to a lean manufacturing case where quality performance was sporadic mainly because of production pressures. The hybrid modelling concept revealed a solution that advanced full compliance with lean and one that required changes in job scheduling policies to promote both continuous improvement and throughput increases.

Because non-tangible aspects of lean were objectively assessed using the hybrid modelling concept, the study is an advancement towards establishing a credible link between human resource aspects of lean and the performance of an organization.

The applied hybrid model enabled managers in the plant navigate the trade-off decision they often face when choosing to advance production output ahead of continuous improvement practices.

System dynamics-discrete event hybrid simulation modelling is a rarity in lean manufacturing systems.

This study aims to describe in detail, a system dynamics-based study that was used to show how a large vertically integrated aquaculture company should approach its stepwise capacity expansion program, without undermining its financial performance or affecting the performance of the value chain.

The company and its aquaculture value chain are used as case study. A system dynamics model is developed on the basis of generic end-to-end agribusiness and aquaculture supply chain models. The model includes the unique dynamics relating to an aquaculture supply chain. Also modelled is the working capital management rules of the company, with the effects of the capacity expansion program on its working capital, market share and its supply chain obligations. The model is used to determine the long-term impact of the company’s working capital management under different modes of financing and rate of expanding the capacity.

For a large vertically integrated company that wants to increase its capacity, there is a systematic approach to working capital management that can be used to avoid financial distress or value chain distortion.

Extended the scope of system dynamics modelling within multiple disciplines, namely, agribusiness supply chain finance, supply chain capacity investment, financial management in large companies, supply chain working capital management and aquaculture value chain.

The developed model can be used to manage supply chain working capital in large vertically integrated agribusinesses, and also to assess supply chain financial risk.

To enhance the model build, discrete event simulation was used to model aspects of the system. The eventual system dynamics-discrete event simulation model is a form of hybrid simulation modelling that was used to provide a deeper understanding of how supply chain financial decisions affect an entire value chain system.

The purpose of this paper is to promote a system dynamics-discrete event simulation (SD-DES) hybrid modelling framework, one that is useful for investigating problems comprising multifaceted elements which interact and evolve over time, such as is found in TPM.

The hybrid modelling framework commences with system observation using field notes which culminate in model conceptualization to structure the problem. Thereafter, an SD-DEShybrid model is designed for the system, and simulated to proffer improvement programmes. The hybrid model emphasises the interactions between key constructs relating to the system, feedback structures and process flow concepts that are the hallmarks of many problems in production. The modelling framework is applied to the TPM operations of a bottling plant where sub-optimal TPM performance was affecting throughput performance.

Simulation results for the case study show that intangible human factors such as worker motivation do not significantly affect TPM performance. What is most critical is ensuring full compliance to routine and scheduled maintenance tasks and coordinating the latter to align with rate of machine defect creation.

The framework was developed with completeness, generality and reuse in view. It remains to be applied to a wide variety of TPM and non-TPM-related problems.

The developed hybrid model is scalable and can fit into an existing discrete event simulation model of a production system. The case study findings indicate where TPM managers should focus their efforts.

The investigation of TPM using SD-DES hybrid modelling is a novelty.