The show case factory produces gear boxes. It supplies a number of car producers worldwide. It has 5 main gear boxes types in its assortment. Each can be produced in up to 10 versions. The production list includes over 100 production steps. All parts are either produced on site from raw materials or they are ordered from suppliers. The parts and raw materials reside either in their separate buffers or they are purchased in daily quantities and are all delivered to the entry door. Gear boxes are produced according to a daily plan. One car producer orders a batch of specific gear boxes on a weekly basis. Another car producer demands that the shipped gear boxes will be put in sequence, which is decided upon two days in advance.
The first objective of simulating the described system is to build a virtual factory model that encompasses all meaningful processes: production shop, ordering, storage, shipment, and others. These processes are tested under a given production burden, of course, in a safe environment. Each update of the processes has to lead to a fast update of the virtual model. The gear box planners can wait for max 1 hour before the experiment, they have in mind, will be carried out. With this virtual factory one can analyze new scenarios, which could not be considered before. The factory design described in Challenges/Reusability shows a good approach to this undertaking.
Many analyses and observations lead to a strategic decision
A simulation model is only as good, as it can be used in practice. The model must represent a given problem accurately and in very convincing fashion. It has to present a good answer to the real problem without major delays. Only then it can be a source of competitive advantage.
The simulation model of the gear box producer was used to:
Shorten the average production time by 20%
Limit the WIP in factory to 50% of the original state
Introduce the just in sequence production and delivery system.
Certainly, model animation helps to visualize processes and helps employees to better see the full view of the manufacturing activities, but the animation does not bring any measurable value. It is the answers, like above, that are valuable.