Enhancing value creation of operational management for small to medium manufacturer: A conceptual data-driven analytical system

This paper aims to explore the challenges and opportunities for Small and Medium-sized Manufacturing Enterprises (SMMEs) in implementing data-driven techniques in their operations. SMMEs are often considered to be low and medium–low tech companies, even if they have machinery, as they still rely on traditional processes and manpower and lack any digital technology. Previous research has shown that medium–high and high-tech companies perform better, with higher rates of growth, than low and medium–low ones by a sustainable and significant margin. Therefore, there is a need for further research on the implementation of data-driven analytical methods and technologies in SMMEs that are both cost-effective and easy to use. This study proposes a conceptual analytical system that combines Integration Definition for Function Modeling 0 (IDEF0) and the Cross Industry Standard Process for Data Mining (CRISP-DM) business analytics method to develop a practical and widely applicable framework for data-driven techniques in manufacturing. We then developed a case study of an Indonesian company, where we collected real and direct information about specific objects, events, and activities related to particular aspects, including showing their key performance indicators (KPIs) through data dashboards, to evaluate the effectiveness of the proposed conceptual analytical system in improving operational management in SMMEs. The findings of this study provide valuable insights that can be used to develop effective solutions for SMMEs to leverage data-driven techniques and improve their operations. We also highlight implications of the findings for future research and practical applications. The final framework can be converted into a system that can be continuously and flexibly updated and customized, based on specific needs.