Development of Network DEA Model to Measure Risk in Production Lineâ€™s Productivity: A Case Study of Automation and Labor Combination
Keywords:Risk, Automation Breakdown, Network DEA
Upgrade production line in the manufacturing industry needs huge investment to come out with good performance. Company can receive Return on Investment (ROI) and save more money from paying labor salary and increase productivity. However, company also may risk from losing the investment done. The main focus of this study is to investigate the risk faced by company after using automation on the production line when dealing with machines breakdown. We use Network DEA model to evaluate risk of the production line since Data Envelopment Analysis (DEA)Â is one of appropriate tool to evaluate the efficiency of productivity and widely been use in this sector. The automation usage without applying Overall Equipment Effectiveness (OEE) will compare to using human energy related to productivity of the production line.Â The production lines with a high capacity and long-term demand being selected as a sample of this study. The evaluation of the production line starts before and after the line change to semi-automation.
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