A framework for selecting and evaluating process improvement projects using simulation and optimization techniques

Selection of process improvement initiatives can be a challenging task. Process improvement projects usually fall into the following categories: Lean, Six Sigma, Lean Six Sigma, Change Management, and Business Process Reengineering. The selection process of these projects is a multi-criteria decision making process which involves multiple conflicting objectives. In this study, we develop an optimization model to select process improvement projects taking into consideration resource availability, required skills, and budget constraints. In addition, discrete event simulation (DES) models are developed to evaluate some of the selected projects. The DES models account for the uncertainty in the system and allow for performing scenario analysis on the selected projects. To validate the proposed approach, we provide a case study from a high-end server manufacturing environment. Results can be used to enhance the decisions on selecting process improvement projects.