COMPUTERISED MANUFACTURING

SIMULATIONFOR ALL

It may have a significant role to playin industry, but simulation is notbeing embraced wholeheartedly byBritish companies. Graham Woodlooks at the potential.

imulation is a technique for solving problemsinvolving resources and their complex interactionwith each other.

The problem to be investigated is made into acomputer model; all machines, processes, materials, work-in-progress, people and information in any industrial, service orcommercial enterprise can be modelled.

Using the powerful graphics of simulation, the model willshow all the important features of the manufacturing facilitiesbeing studied. Statistics are available for each and every aspect

of the simulation. These enable users to verify and quantifythe information gained from the screen images.

Queues, bottlenecks and parts shortages, the effects ofmachinery breakdowns and absenteeism can all be seen andthe necessary adjustments made. Money is then spent on theequipment and resources to correct the problem only whenthe solution has been tried and tested on screen — the costs ofbuilding and then experimenting with a simulation model canbe only a fraction of installing an inherently flawedsolution.

OptionsAs a basic concept simulation is not new, having been used

now for around 25 years. Yet less than ten per cent of UKcompanies use this technique, despite the estimated £300million total annual savings that could be attained.

However, as these companies lack experience of simulationthey are unlikely to feel confident about spending largeamounts of money to improve performance on what isperceived as a hi-tech tool, even with the 'guaranteed'benefits.

Often, the computer facilities, skills and expertise are notavailable and the use of a specialised simulation service or theconsulting arm of a software supplier may well be the answer.

But with some simulation companies offering a 'nosavings — no fees' guarantee, or even working on apercentage of the savings, there are now many 'reduced risk'ways for UK companies to use simulation to reduce costs andimprove performance.

World-wide experiences have shown thefollowing potential for simulating systems andresources:

• five to ten per cent savings in capital costs;• five to 25 per cent resource utilisation

increases;• 15 to 30 % improvements in staffing levels;• 25 to 45 % reductions in throughput times;• substantial stock and work in progress

reductions;• identification and elimination of bottle necks.

SummaryDespite the general lack of awareness, the use

of simulation can, as stated in last year'sDepartment of Trade and Industry (DTI) report,improve the operating costs of most UKcompanies:

• simulation will improve manufacturing performance;• the results are essentially guaranteed;• pay back periods are often measured in weeks;• the potential to use simulation as an every day operational

tool with links to MRP for example are enormous.For more information enter ME33

© IEE: 1993

Graham Wood CEng MIEE is a director of Business Simulation

Services Limited.

Mi

-v.J

f.

L MANUFACTURING