Controlling production variances in complex business processes

Paul Griffioen, Rob Christiaanse, Joris Hulstijn

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

Abstract

Products can consist of many sub-assemblies and small disturbances in the process can lead to larger negative effects downstream. Such variances in production are a challenge from a quality control and operational risk management perspective but also it distorts the assurance processes from an auditing perspective. To control production effectively waste needs to be taken into account in normative models, but this is complicated by cumulative effects. We developed an analytical normative model based on the bill of material, that derives the rejection rates from the underlying processes without direct measurement. The model enables improved analysis and prediction. If the rejection rate is not taken into account the function of the bill of material as a reference model deteriorates and therefore output measures become more opaque and harder to verify. As a consequence it is extremely difficult or even impossible to assess efficiency and effectiveness of operations. Secondly it is impossible to judge whether net salable assets represent the correct amount and finally it is impossible to assert whether the operations do comply to company standards and applicable laws.
Original languageEnglish
Title of host publication Proceedings of the International Conference on Software Engineering and Formal Methods (SEFM 2017)
Editors Antonio Cerone, Marco Roveri
Place of PublicationCham
PublisherSpringer Verlag
Pages72-85
ISBN (Electronic)9783319747811
ISBN (Print)9783319747804
DOIs
Publication statusPublished - 2018

Publication series

NameLecture Notes in Computer Science
PublisherSpringer
Volume10729

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Cite this

Griffioen, P., Christiaanse, R., & Hulstijn, J. (2018). Controlling production variances in complex business processes. In A. Cerone, & M. Roveri (Eds.), Proceedings of the International Conference on Software Engineering and Formal Methods (SEFM 2017) (pp. 72-85). (Lecture Notes in Computer Science; Vol. 10729). Springer Verlag. https://doi.org/10.1007/978-3-319-74781-1_6