%0 Journal Article %T Analysis of Shop Floor Performance through Discrete Event Simulation: A Case Study %A Yeong Wei Ng %A Joshua Chan Ren Jie %A Shahrul Kamaruddin %J Journal of Industrial Engineering %D 2014 %I Hindawi Publishing Corporation %R 10.1155/2014/878906 %X Shop floor performance management is a method to ensure the effective utilization of people, processes, and equipment. Changes in the shop floor might have a positive or negative effect on production performance. Therefore, optimal shop floor operation is required to enhance shop floor performance and to ensure the long-term efficiency of the production process. This work presents a case study of a semiconductor industry. The punching department is modeled to investigate the effect of changes in the shop floor on production performance through discrete event simulation. The effects on the throughput rate, machine utilization, and labor utilization are studied by adjusting the volume of parts, number of operators, and flow pattern of parts in a series of models. Simulation results are tested and analyzed by using analysis of variance (ANOVA). The best model under changes in the shop floor is identified during the exploration of alternative scenarios. 1. Introduction The fierce competition in the manufacturing industry has become an important issue in developing an effective and efficient shop floor. However, most companies in this industry are challenged by shop floor changes, such as unstable customer demand, alteration of part flow routing, and different numbers of operators assigned. Soh et al. [1] showed that the shop floor is focused on providing a suitable location for existing machines, resource planning, and production planning from the manufacturing system perspective. Changes in the shop floor might have a positive or negative effect on production performance. According to Fredendall and Melnyk [2], variations in the shop floor negatively affect shop floor performance. Therefore, an optimal operating shop floor is important for continuous production improvement. To investigate the positive or negative effect of changes in the shop floor, a company has to assess shop floor performance. As reported by Panjehfouladgaran et al. [3], performance measurement is defined as a managerial key that integrates the tasks for the controlling event, which guides an organization to be within acceptable and desirable parameters. Gunasekaran et al. [4] stated that production performance has to be assessed to develop an efficient and effective shop floor. Performance measurement provides a means to capture performance data, which can be used to evaluate organizational performance. Thus, performance measurement and metrics are essential for objective setting, performance evaluation, and future work identification [3]. Numerous approaches, including thorough %U http://www.hindawi.com/journals/jie/2014/878906/