Simulation stimulates our thinking, and, as a result, improves our decision making ability. Simulation provides us insight into the critical factors driving our operations and how we can optimally manage them. This knowledge allow us to optimize operational efficiency, effectiveness, and flexibility.
How does Simulation do this? Simulation is the only analytical tool that allows us to incorporate the chaos and dynamic interactions inherent to daily operational behavior. As a result, simulation improves our ability to predict future outcome, when we test our ideas for operational improvement.
What operational improvement ideas? How will our investment in a set of new equipment & processes pay out. What do we need to do to ensure switching from Push to Pull works for us. Or from Batch to Cellular processing. What is optimal allocation of resources by warehouse zone. And many more other operational improvement questions.
Why don’t we simulate everything? Simulation requires much more expertise and knowledge than most analytical tools. This expertise is hard to come by, and takes effort to develop. In addition, simulation pays off most when we have an objective for the model versus building a model for the sake of building a model.
Our Goal at Sustainable Productivity Solutions is to ensure that our clients optimize their payback from simulation. How much coaching, training, and/or modeling support we provide you depends on the unique needs of your team. Below is an 11 slides PDF file that provides insight into key issues to consider, when starting your simulation modeling & analysis effort.
Please email thoughts & questions to Modeling@ReduceOR.com