Scrapping and rework are a manufacturing reality that influences the automotive manufacturing industry. This research utilizes System Dynamics modeling and simulation tools to study the causalities and feedback relationships for defects which contribute to the scrapping and rework of vehicles in an automotive manufacturing company based in South Africa. It also recommends remedies for scrap and rework reduction. The causes of defects were identified by consulting the company documents, and the cause and effects and improvement feedback relationship were explored using system dynamics (SD) models. The SD simulation models were created following the five steps of the system dynamics modelling process, namely problem articulation, formulation of a dynamic hypothesis; formulation of a simulation model; testing of the model; and policy design and evaluation. Based on identified root causes for defects and the simulation results, resources and techniques for process improvement were recommended. The paper demonstrates the usefulness of system dynamics modelling and simulation tools for solving problems in the automotive manufacturing sector. Building simulation models can reveal previously hidden relationships, provide systematic ways to analyse manufacturing defects, and allow the user to test effects of different alternative scenarios without having to make changes to the real system
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System Dynamics Modeling and Simulation for Reduction of Scrap and Rework in an Automotive Manufacturing Company
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