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Skill formation and its impact on the adaptation process of new production systems
Author(s) -
Diawati Lucia,
Kawashima Hironao,
Hayashi Yoshio
Publication year - 1994
Publication title -
system dynamics review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.491
H-Index - 57
eISSN - 1099-1727
pISSN - 0883-7066
DOI - 10.1002/sdr.4260100103
Subject(s) - adaptation (eye) , process (computing) , production (economics) , computer science , process management , phase (matter) , operations management , industrial organization , risk analysis (engineering) , business , engineering , economics , microeconomics , chemistry , physics , organic chemistry , optics , operating system
A system dynamics model is developed to facilitate the study of a firm's introduction of a new, more technologically sophisticated production facility. The system must adapt in three areas: production facilities, labor, and management. Emphasizing industrial situations commonly encountered by producers in developing countries, this study focuses on the ways management efforts and the learning process influence the development of labor expertise. The firm's performance is found to move through three phases of adaptation: fluctuations, growth, and adjustment to external change. Three approaches to improving the firm's performance are investigated: better preparation for the new technology, quicker initiatives to develop labor skills, and better‐designed skill training. Comparative simulations show that better skill formation yields better system performance than faster response alone because of its ability to accelerate the development of new skills. However, better preparation can reduce the length of the initial unstable phase in the adaptation process and produce higher system performance when combined with the other skill formation policies.