The purpose of this research is to analyze the relationship between production complexity and operational performance in a mass customization (MC) production system, typical in automobile industry of commercial vehicles, such as trucks and buses. A mixed quantitative-qualitative approach was used in this research. That is, two main research methods were combined: Case Study and Quantitative Modelling. Information Entropy was applied as an indicator of operations complexity. Production performance was measured with production downtimes and non-conformities. Logistics performance was measured with parts obsolescence, stock-outs and days of supply. Although the results show small positive correlations between pairs of operations complexity and operations performance and pairs of operations complexity and logistic performance indicators, the tests of significance performed on these corrections show that they are statistically insignificance. Although they are not statistically or theoretically significant, we believe that, practically, the positive values of correlations between pairs of operations complexity and operations performance indicators and pairs of operations complexity and logistic performance indicators show that complexity has some direct relationship with production and logistic efficiencies.
Salomon, Valerio A. P.; Simonb, Mateus L.; and Juniora, Jorge Muniz
"Complexity and Operations Performance: A Case Study,"
Annals of Management Science: Vol. 5
, Article 6.
Available at: https://digitalscholarship.tnstate.edu/ams/vol5/iss1/6