Monday 25 July 2011

Why Use Simulation Software

We at Production Modelling are often asked "How can I best run the factory to achieve my business objectives yet at the same time, meet customer demands?" Manufacturers are continually being asked to increase production volumes in less time with less people and for less money. Trying new ideas out in the factory are all very well, but they can take time, be disruptive, very costly, and you may not get it right first time. Today’s managers can’t afford to take such risks when implementing change.

Experimenting with new ideas on a computer model before you make changes for real is simple common sense. It takes the risk out of change. This is where simulation software users have gained a competitive edge, an advantage that results in bottom-line benefits to their business.


Why not flowcharts or process mapping?

Many organisations use static modelling tools, such as flowcharts, process mapping, and spreadsheets. Flowcharts and process mapping tools have their place, but on their own, they merely show relationships between processes and generally don’t provide any quantitive performance measures.


Why not spreadsheets?

 Spreadsheets are very useful, and do have their place, but also have serious limitations.

  • They are static models. This means that they cannot represent changes that occur with respect to time.
  • They are deterministic – using constant values, approximations or averages rather than the variability that exists in real life.
  • They can’t represent interdependencies. In other words, process steps are independent of each other. Again, a serious deficiency, as this limits the validity of the models.

At best, spreadsheets can give misleading results, and in many cases wildly inaccurate predictions. At worst, business decisions can be made on entirely inaccurate information. It’s no surprise that companies often wonder why the results from their spreadsheet models don’t match reality.


Here’s a simple illustration to prove why simulation is so important:


Picture a small cell where parts arrive on average every 30 seconds, queue for Machine1 or Machine 2, each of which takes on average of 1 minute to process

A spreadsheet model of this would show no queuing, 100% utilisation of the workstations, and average lead-time of 1 minute. In other words, a nicely balanced system.

Look what happens if we use variability. A normal, (bell-shaped), distribution of the same averages would be a more realistic way of representing the variability that exists in the real world.



Using a simulation model, running the process for just 8 hours, the results show a completely different (but more accurate) story. The machine utilisation is less than 100%, there are up to 13 jobs queuing for the machines, and the average lead time is over 5 minutes!!!


Imagine the difference in a more complex process, or if the process runs for a week or a month.

Click here to request a copy of this Model.


Why use Simulation Software?

This is why simulation software is so important. Simulation, and only simulation, takes into account the combined effect of variability, uncertainty, and complex interdependencies between processes
Production Modelling's simulation software is helping companies improve their businesses and become more competitive. Increasingly competitive markets bring new challenges and customers' demands are constantly changing. As a result, manufacturers need to become more responsive, more quickly, more efficiently, yet often within tighter budgets and timescales.

Production Modelling's simulation software is helping them to visualize, analyse and optimise their processes to achieve these business performance improvements.

Furthermore, simulation software is often used to help “sell” ideas to others to gain their commitment to change and show why one method will work better than another. The visual accuracy and animation of the model can provide a powerful communications tool. It can help speed up decisions affecting changes in the factory, and get people from the shop floor through to senior management all committed to the same ideas.