Using dynamic simulation
, a replica of the current operation is created and validated to prove that the baseline model behavior and results are comparable to existing data. Once the ideal process improvement solution is determined, the transition plan can be tested and analyzed to minimize the impact on current production schedules
, allowing for optimum efficiency
during an otherwise hectic phase of the improvement process.
For instance, during analysis
, the model may show the “excessive” resource travel within an operation. More specifically, costs are progressively incurred through the non-value added time to the total product lead time. A resource that travels to move parts from one location to another 30% of the time will cost the company 30% salaries, benefits and intangibles
without generating a return. Furthermore, the excessive travel causes an increased inventory on the production floor and longer product lead time.
As a result
, money which could otherwise be used to improve cash flow or implement process improvements is now tied up in the operation.