Supply Chain Improvement with Design Structure Matrix Method and Clustering Analysis (A Case Study)

Many strategic businesses attempt to achieve coordinating
operations of company across departments using information and communication flow for their supply chain network. One of customer goods companies in Surabaya attempts to improved their flow of information and communication using Design Structure Matrix (DSM). DSM is a method that could provide an alternative system grouping work activities. The activities of each department data and data interaction between the elements are needed to develop DSM. The research is done in the inter-department and intra department. The analysis technique used is the clustering analysis, which consists of hierarchical methods. The results show that for inter-department single linkage hierarchical clustering
method with a number of groups of three is the best number of groups. For intra-planning department and intra-RMS department, the best number of groups is 14 and 8, respectively, using ward linkage method