Paper Info
Title
Developing a performance index with a Poisson process and an exponential distribution for operations management and continuous improvement.
Abstract
The adoption of performance measurements is becoming increasingly widespread and represents the key success factor for companies seeking to gain a sustainable competitive advantage. Consequently, there is a need to develop a systematic method for companies to be more performance-measurement focused. This study presents an operating performance index (OPI) based on the concept of customers arriving at a store from a Poisson process and an exponential distribution. To support the efficient use of the proposed method, the statistical properties of OPI are given and a step-by-step operating procedure is constructed. The proposed method can not only evaluate and determine whether the current performance meets the level of Six Sigma, but also improve the precision when estimating a parameter. To validate the application and viability of the proposed method, it is applied to a realistic case study for operating performance measurement and improvement. The results reveal that the proposed method provides a more effective way to achieve Six Sigma, and that it can easily be implemented in practice for operations management and continuous improvement.
Year
DOI
Venue
2018
10.1016/j.cam.2018.03.034
Journal of Computational and Applied Mathematics
Keywords
Field
DocType
Operating performance index (OPI),Performance measurement,Six sigma,Confidence interval
Six Sigma,Success factors,Performance index,Competitive advantage,Performance measurement,Exponential distribution,Poisson process,Mathematics,Operations management
Journal
Volume
ISSN
Citations 
343
0377-0427
4
PageRank 
References 
Authors
0.46
7
2
Name
Order
Citations
PageRank
K.S. Chen1409.35
Chun-Ming Yang240.80