Towards a Smart Factory: An integrated approach based on Simulation and AHP

The optimization of an industrial production process is a complex problem and it implies difficult decisions in terms of technological investments, operating costs, work organization, and economic investments. This is even more true in an economic context characterized by a digital transition that involves new business strategies. In this scenario, the application of digital technologies and multi-criteria decision-making techniques helps to identify the best strategy to improve operational performance. In particular, a discrete event simulation tool to optimize production performance is proposed in this study. More in detail, the present research presents a business model based on digitalization of an Italian SME. Firstly, a digital model (using a simulation software) was developed to carry out experiments and what-if scenarios of the existing production system. Secondly, after the analysis of the results and its discussion, the definition of the most appropriate business strategy was performed using the the well-known multicriteria method, Analytical Hierarchy Process (AHP). The study shows that simulation approach integrated with a multi criteria analysis can be a very powerful tool as a decision support system towards the smart factory paradigm. The studio is an academic pilot study scalable in different sectors not just the manufacturing sector.