Deploying Discrete-Event Simulation and Continuous Improvement to Increase Production Rate in a Modular Construction Facility

Aiming at continuous improvement, a modular construction company attained favorable results by implementing recommendations that were based on value stream mapping analysis. Yet, there is still a need to assess the production lines in a unified and integrated manner. As such, this study employed simulation to model five major production lines in the factory to evaluate their performance concurrently and suggest improvements. Bottlenecks were identified by tracking the waiting times at different stations, and an iterative and sequential approach was adopted. After eight suggested improvements and tested scenarios, results showed a 17.8% reduction in the unit cycle time and 22% increase in the weekly production rate. The study's major takeaway is the importance of studying improvements in an integrated manner to avoid shifting bottlenecks, achieving local improvements that do not guarantee global improvements, and underestimating the effect of minor changes on the overall process. Simulation modelling helped target these issues.