Analysis of Barriers in a Make-to-Order Production System Using Grey - DEMATEL Approach

Abstract

In today’s dynamic and competitive business environment, achieving sustainable profitability is a key objective for manufacturing and service organizations. Small and medium-sized enterprises (SMEs) operating under make-to-order (MTO) production systems face unique challenges, including production inefficiencies, high customization requirements, and limited resources. As SMEs constitute a significant portion of the global manufacturing sector, addressing these challenges is critical for improving lead times, reducing costs, and enhancing responsiveness to customer demands. This article aims to identify and analyze the key barriers that hinder the performance of MTO production systems in SMEs. A comprehensive approach involving literature review, process evaluations, and expert consultations (with departmental heads, senior executives, and supply chain managers) led to the identification of ten critical barriers. The grey decision-making trial and evaluation laboratory method is employed to assess the significance of these barriers and categorize them into cause-and-effect groups, offering valuable insights into their interrelationships and guiding effective managerial decision-making.