54-pres · Title: Microsoft PowerPoint - 54-pres Author: Terry Created Date: 4/20/2008 9:52:16 PM

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Simulation ModelingSimulation ModelingNonNon--Manufacturing Uses and Practical Lessons LearnedManufacturing Uses and Practical Lessons Learned

Harris CorporationHarris Corporation

Harris Corporation:Harris Corporation:–– International International

Communication and Communication and Information Technology Information Technology CompanyCompany

–– Annual revenue of Annual revenue of approximately $5 Billionapproximately $5 Billion

–– Headquarters in Headquarters in Melbourne, FLMelbourne, FL

–– Divided into 4 Business Divided into 4 Business UnitsUnits

–– 16,000 employees16,000 employees

IntroductionIntroduction

Jeffrey Ferris Jeffrey Ferris

Dr. Gwendolyn MaloneDr. Gwendolyn Malone

Introduction Introduction -- SpeakersSpeakers

OverviewOverview

Simulation Focus TeamSimulation Focus TeamNonNon--Traditional ApplicationsTraditional ApplicationsSimulation in PracticeSimulation in Practice

Simulation Focus TeamSimulation Focus Team

Where we wereWhere we were

10+ active members, all part time10+ active members, all part time

Available individuals to execute simulationsAvailable individuals to execute simulations

Define standard process development criteriaDefine standard process development criteria

ReRe--use of models throughout Corporationuse of models throughout Corporation

Provide standardized training for new usersProvide standardized training for new users

Lessons learned from the Focus TeamLessons learned from the Focus Team

Need for GrowthNeed for GrowthHow we get our projectsHow we get our projects–– Approach group with problemsApproach group with problems

Process owners internal to our divisionProcess owners internal to our division

Managers from other divisionsManagers from other divisions

SuppliersSuppliers

–– Review problem and suggest simulation (if Review problem and suggest simulation (if applicable) and/or other toolsapplicable) and/or other tools

How our demand has grownHow our demand has grown

Where we areWhere we are

3 full time and 13 part time employees 3 full time and 13 part time employees

Structured under Center of Excellence Dept.Structured under Center of Excellence Dept.–– Lean process improvement groupLean process improvement group

–– Currently within Manufacturing Operations & Currently within Manufacturing Operations & expandingexpanding

Expanding simulation software tool beltExpanding simulation software tool belt

20 complete projects since 200320 complete projects since 2003

NonNon--Traditional ApplicationsTraditional Applications

Capacity PlanningCapacity Planning

KanbanKanban ModelModel

ProposalsProposals

Capacity PlanningCapacity Planning

Problem Definition/ObjectiveProblem Definition/Objective

Problem Definition: Does the current Problem Definition: Does the current facility have the capacity to accommodate facility have the capacity to accommodate business expansion? business expansion?

Objective: Determine if current facility has Objective: Determine if current facility has the space to produce X quantities of the space to produce X quantities of reflectors and meet schedulereflectors and meet schedule

–– 3 large size reflectors (9m, 12m, 18m)3 large size reflectors (9m, 12m, 18m)

–– Current facility used for low volume quantitiesCurrent facility used for low volume quantities

Why a Capacity Planning Model?Why a Capacity Planning Model?

Cost effective way to determine space Cost effective way to determine space requirements for current and future requirements for current and future workloadworkload

Aid in the decision in whether to Aid in the decision in whether to build/lease more spacebuild/lease more space

Quick insight into any foreseeable Quick insight into any foreseeable problems with continued increase in problems with continued increase in production quantitiesproduction quantities

MethodologyMethodologyAssign “space” as a resourceAssign “space” as a resource

Created multiple modelsCreated multiple models–– 1 shift (current state)1 shift (current state)

–– 2 shift scenario (possible option)2 shift scenario (possible option)

Write data to Excel spreadsheetWrite data to Excel spreadsheet–– Created macros for multiple scenariosCreated macros for multiple scenarios

–– Calculate delta between start and end date to Calculate delta between start and end date to determine an ondetermine an on--time or late deliverytime or late delivery

ResultsResults

Large reflectors create significant backlog Large reflectors create significant backlog –– Utilize majority of space Utilize majority of space

–– Limit production of other reflector typesLimit production of other reflector types

22ndnd shift temporarily alleviates space issueshift temporarily alleviates space issue

Deliveries will eventually be lateDeliveries will eventually be late

Need more spaceNeed more space

Lessons LearnedLessons Learned

Current modeling was not fast Current modeling was not fast enough to create multiple scenariosenough to create multiple scenarios

Capacity planning depends on Capacity planning depends on schedule schedule –– accurate production accurate production timeline is neededtimeline is needed

Modeling can also be used for Modeling can also be used for schedule planningschedule planning

KanbanKanban ModelModel

PurposePurpose

Why a Why a KanbanKanban Model?Model?A need to identify optimal bin sizesA need to identify optimal bin sizesIdentify stockIdentify stock--out problems before they out problems before they occuroccurImpact of supplier process improvement Impact of supplier process improvement on the current inventory management on the current inventory management systemsystem–– Supplier lead time on productionSupplier lead time on production–– Yield issues on inventory systemYield issues on inventory system

Description of Description of KanbanKanban ModelModel

Modeling a volatile demand environmentModeling a volatile demand environmentSimulation model includesSimulation model includes–– 3 circuit card types3 circuit card types–– No animationNo animation–– Scenario analysis toolScenario analysis tool

Project dynamicsProject dynamics–– 1 person1 person–– Worked partWorked part--time for 3 monthstime for 3 months

MethodologyMethodology

Need accurate demand dataNeed accurate demand data

Determine safety factorsDetermine safety factors

Analyze impact of stockAnalyze impact of stock--outs (tradeoff cost outs (tradeoff cost of inventory holding vs. cost of stockof inventory holding vs. cost of stock--out)out)

Basic understanding of supplier process Basic understanding of supplier process and delivery lead timesand delivery lead times

Use scenario analysis toolUse scenario analysis tool

Inputs Varied in AnalysisInputs Varied in Analysis

Bin sizesBin sizes

Demand distributionsDemand distributions

Yield percentagesYield percentages

Production ratesProduction rates

Shipping timeShipping time

Outputs of InterestOutputs of Interest

Days out of stockDays out of stock

Number of inventory turnsNumber of inventory turns

Average number of bins availableAverage number of bins available

Queue sizes and times at supplier Queue sizes and times at supplier facilityfacility

ResultsResults

Incorrect selection of bin sizesIncorrect selection of bin sizes–– One circuit card had too much in One circuit card had too much in

inventoryinventory

–– Other two circuit cards had far too littleOther two circuit cards had far too little

Significant bin size reduction will Significant bin size reduction will occur ifoccur if–– Demand is smoothed further Demand is smoothed further

–– Yield is increasedYield is increased

Difficult to model a nonDifficult to model a non--stationary processstationary process–– Make improvements firstMake improvements first

–– Then model stable systemThen model stable system

KanbanKanban systems are ideally suited for a stable systems are ideally suited for a stable demand environmentdemand environment

Very difficult to work on process remotely Very difficult to work on process remotely --need need simulation analyst onsimulation analyst on--sitesite–– Facilitate model build Facilitate model build

–– Make future runsMake future runs

ProposalsProposals

Proposal ModelingProposal Modeling

Purpose: Provide a more aggressive and Purpose: Provide a more aggressive and accurate analysis during proposal accurate analysis during proposal processesprocesses

Proposal process is prior to a projectProposal process is prior to a project

Fast turnFast turn--around timearound time

Product and/or process can changeProduct and/or process can change

Simulation provides a method to compare design and process alternatives analytically

Proposals and SimulationProposals and Simulation

Issues when using simulation for a proposalIssues when using simulation for a proposal

Scope creepScope creep

How detailed/how much data to submitHow detailed/how much data to submit

Providing results in management’s termsProviding results in management’s terms

Difficult to obtain accurate dataDifficult to obtain accurate data

Changes in process definition/designChanges in process definition/design

Issue Management TechniquesIssue Management Techniques

Lean principles (is/is not, problem Lean principles (is/is not, problem definition, etc.)definition, etc.)

CommunicationCommunication

Sensitivity analysisSensitivity analysis

Providing animation and graphs for Providing animation and graphs for managementmanagement

Animation as a Communication ToolAnimation as a Communication Tool

Simulation in PracticeSimulation in Practice

Selling SimulationSelling SimulationPreemptive SchedulingPreemptive Scheduling

Selling SimulationSelling Simulation

Selling Simulation Selling Simulation -- CostCostResource allocationResource allocation–– PersonnelPersonnel

–– Computer resourcesComputer resources

Data collectionData collection

ModelingModeling

Validation/verificationValidation/verification

Analysis/scenario alternativesAnalysis/scenario alternatives

Customer interaction timeCustomer interaction time

Justify changes before implementationJustify changes before implementation

Save moneySave money

Animation allows visual of proposed Animation allows visual of proposed plans/changesplans/changes

Proposals Proposals –– prove you can provide what is prove you can provide what is requestedrequested

Find bottlenecks/inefficiencies in systemFind bottlenecks/inefficiencies in system

Selling Simulation Selling Simulation -- BenefitsBenefits

Preemptive SchedulingPreemptive Scheduling

PreemptPreempt (Arena simulation definition) (Arena simulation definition)

Interrupts the currentlyInterrupts the currently--processing entityprocessing entity

Changes the resource capacity Changes the resource capacity

Resource will resume processing the Resource will resume processing the preempted entity as soon as resource preempted entity as soon as resource becomes availablebecomes available

What if two shifts exist?What if two shifts exist?

First shift resource (employee) has not First shift resource (employee) has not completed processing an entity at end completed processing an entity at end of shiftof shift

Second shift employee should finish Second shift employee should finish processing that entity at beginning of processing that entity at beginning of second shiftsecond shift

How do we model the two-shift scenario?

Temporary SolutionTemporary Solution

Simple solution Simple solution –– “Ignore” logic“Ignore” logic–– Can be inaccurateCan be inaccurate–– Can lead to utilizations > 100 %Can lead to utilizations > 100 %–– Problems compound for complex Problems compound for complex

processesprocesses

Complex programming solutionComplex programming solution–– Preempt each individual resourcePreempt each individual resource–– Logic required for each process moduleLogic required for each process module

Example of LogicExample of Logic

Preemptive scheduling Arena logic was built in conjunction with Rockwell Collins Arena Support Team

Example of LogicExample of Logic

Any suggestions for alternative methods?

SummarySummary

NonNon--traditional Applicationstraditional Applications–– Capacity PlanningCapacity Planning

–– KanbanKanban

–– ProposalsProposals

Simulation in PracticeSimulation in Practice–– Selling SimulationSelling Simulation

–– Preemptive SchedulingPreemptive Scheduling

Contact InformationContact Information

Jeffrey FerrisJeffrey Ferrisjferris@harris.comjferris@harris.com321321--729729--32403240

Patricia BuchananPatricia Buchananpbuchana@harris.compbuchana@harris.com321321--729729--26692669

Dr. Gwendolyn MaloneDr. Gwendolyn Malonegmalone@harris.comgmalone@harris.com321321--727727--40634063

Sandra Sandra AbdalianAbdaliansabdalia@harris.comsabdalia@harris.com321321--727727--64926492

QuestionsQuestions

54-pres · Title: Microsoft PowerPoint - 54-pres Author: Terry Created Date: 4/20/2008 9:52:16 PM

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