Extending system dynamics simulation and lean thinking for enhancing operational efficiency: a food industry case study

Abstract

This study examines the operational problems that a mid-sized food production factory faces. It utilizes system dynamics (SD) and lean thinking approaches to analyze various challenges that these companies encounter. Through extensive data analysis and managerial meetings, this study identifies several factors affecting the company’s performance: cash management, delivery delays, product quality impact on customer satisfaction, debt burden from raw materials purchase, and poor product planning. Various scenarios are simulated to significantly improve sales’ stability and liquidity. This paper offers insights into how effective cash flows can be attained, as well as customer satisfaction, managing debts, and strategic plans that lead to business success. Additionally, the potential for extending SD to address similar challenges in the food industry is explored through detailed financial modeling and actionable plans.