DISCRETE EVENT SIMULATION A PRACTITIONERS POINT OF VIEW€¦ · 9 Optimize consumption of utilities...

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[ i n t e g r a t e ] DISCRETE EVENT SIMULATION A PRACTITIONERS POINT OF VIEW Integrate, June 2017

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DISCRETE EVENT SIMULATION

A PRACTITIONERS POINT OF VIEW

Integrate, June 2017

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Agenda

• What is Integrate?

• How do we work with simulation?

• Simulation tool - Enterprise Dynamics®

• Cases from real life

• Recap and round-off

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Me..

• Dan Knudsen• Master of Science and Technology in Engineering -

Operations and SCM (Civilingeniør)

• Integrate since 2013

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What is Integrate?

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Behind Integrate

ProductionLogistics &

Supply ChainBusiness-processes

Simulation and decision support

Process- and business optimization and development

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Simulation and decision support

Forretnings-processer

Business services

• Consulting

• Development of applications

• Teaching

• Distribution of software

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Simulation and decision support

Forretnings-processer

ED-Partner

Proof of Concept

Proof of performance

Supply Chain simulation

Health Care simulation

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Test the effects of Strategic Energy planning

Proof of Concept

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Optimize consumption of utilities electricity, gas, water, heatwithin production

Proof of Performance

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Effective, efficient and risk free decision support and impact analysis

Supply Chain Simulation

How to reduce inventory levels?

Can delivery performance improve?

How to transport goods most cost-

effective?

Does the Supply Chain have the right

capabilities?

Do we operate with the optimale

steering principles?

Where to place production sites,

warehouses, distribution centers?

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Impact analysis and Optimization of operating areas

Health Care simulation

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Market focus and specialties

Industry

• LEAN and continuous improvement

• Logistics optimization

• Optimization of business processes

• Simulation & decision support

Food

• LEAN and continuous improvement

• Logistics optimization

• Optimization of business processes

• Simulation & decision support

Logistics, warehouses, supply chains

• Logistics optimization

• Simulation & decision support

Healthcare

• Simulation & decision support

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HOW DO WE WORK WITH SIMULATION

Integrate, June 2017

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Statistical simulation

Statistical simulation

• Expected output per hour

• Costs per product

• Production planning

• Etc.

Methods

• Models in MS Excel

• ERP

• Mapping of different situations (flow)

• Paper, pencil, basic calculator

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Why simulation / calculation?

Is it for any use?

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Case – Production of trailers

a b c d e

A: Shafts and wheels are mounted on the frame (robot) B: Floor is mounted on the frame (robot)C: Assembly of sides on the frame (robot)D: Roof is mounted on the trailer (robot)E: Final assembly and quality test (Manuel)

No buffers between processes

A: 15 min. +/- 1 min.B: 15 min. +/- 1 min.C: 18 min. +/- 1 min.D: Precision, 3 trailers pr. hourE: Average 18 min. spread 3 min.

Robot breakdowns once per hour and repair time 6 min. each time(A-D)

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Case – Production of trailers

• New contract agreements are coming up.

• Which leads to a longer contract period regarding the delivery

and amount of trailers.

• Capacity in production is unknown and a realistic estimate on

the weekly production is enquired.

• YOU are the new production manager:

• Make an estimate of how many trailers you and your

production team is able to deliver each week!

(40 working hours)

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Case – Production of trailers

• How many trailers can you produce ?

Example on calculation:

What is the bottleneck?

3 pr. hour in 40 hours = 120 trailers.

1 breakdown for 6 min pr. hour (10 %)

120 trailers – 10% = 108 trailers

Is this answer good enough to agree on a long term contract ?

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Why dynamic simulation?

For dyrt og/eller umuligt!

Simulation, Analysis

”Real” world

”Model” world

Experiment, analysis

Problem Solution

Improved modelModel

Dynamic simulation is a particularly powerful tool to decision support when

testing different configurations of a system

Dynamic simulation incorporates time – meaning that it is the behavior of

the system over time and not a snap that is analyzed.

Too expensive and/or

impossible

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Why dynamic simulation?

Dynamic simulation complement static data analysis

• Static data analysis = looking in the rear view mirror

• Dynamic simulation = Looking out the windscreen

• Both are preconditions for optimal and safe movement and development!

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VisualizationDynamic simulation do as standard feature 2D and 3D visualization,

which to a very high degree support an improved mutual understanding

of the system under analysis.

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Why dynamic simulation?

Simulation does NOT deliver the definitive truth! BUT, the value of

knowledge based test scenarios are often a significant improvement

compared to the alternatives – gut feelings, assumptions and statistical

calculations.

The establishment of a mutual picture of the “system” creates a united

basis for objective decisions.

Dynamic simulation is a strong and powerful tool for ”What if” scenarios

and decision support to all elements in system.

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Simulation from the beginning

“Simulation is the process of designing a model of a real system and

conduction experiments with this model for the purpose of either

understanding the behavior of the system and/or evaluating various

strategies for the operation of the system.”

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Typical approach and procedure

Analysis & specification

Understand system and assignment:Real world system is analyzed. Requested solution is specified.

1 2 3

Develop and build solution: All standard processes are available in ED library - drag and drop into model. Very specific needs are developed and build from scratch.

Experiment/simulate:- Capacity- Work force- New technologies- Efficiency- Transport/logistics- Scarce resources- Various control

systems- Etc.

Evaluate performance:- Delivery-

performance- Inventory levels- Efficiency- Capacity utilization- Supply Chain

performance- Etc.

Maximum overview -Minimum risk

Design & Modelling Simulation/handover Results/handover/education

4

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Preconditions

• Precise problem statement

• Level of detail – (Need or Nice to know?)

• Reliable data – (garbage in garbage out)

• Communication and presentation of results

• Don’t misinterpret simulation – (read results correctly)

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A good model..

• Include only elements which directly relates to the problem on hand

• Is valid and accurately reflects the system

• Delivers meaningful results

• Is “fast” and “cheap” to build

• Is easy to modify and expand

• Is convincing

• Is reusable

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Simulation tool – Enterprise Dynamics®

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Simulation in ED – Production of trailers

a b c d e

A: Shafts and wheels are mounted on the frame (robot) B: Floor is mounted on the frame (robot)C: Assembly of sides on the frame (robot)D: Roof is mounted on the trailer (robot)E: Final assembly and quality test (Manuel)

No buffers between processes

A: 15 min. +/- 1 min.B: 15 min. +/- 1 min.C: 18 min. +/- 1 min.D: Precision, 3 trailers pr. hourE: Average 18 min. spread 3 min.

Robot breakdowns once per hour and repair time 6 min. each time(A-D)

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Now – Time for a break!

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HOW DO YOU USE SIMULATION TO DEVELOP AN INNOVATIVE SUPPLY CHAIN?

AALBORG PORTLAND

Integrate, June 2017

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• Supply Chain Visibility

• Develop a tool to analyze and evaluate the utilization of the ships

for cement bulking

• All siloes and ships in Europe

• Demand in the model is based on forecast and is easy to change

• Dynamic ship allocation

Case – Aalborg Portland A/S

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• How does the supply chain operate?

Case – Aalborg Portland A/S

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HOW SIMULATION SUPPORT DECISIONS REGARDING HOW INNOVATIVE PRODUCT DEVELOPMENT AFFECT THE SUPPLY CHAIN?

GRUNDFOS

Integrate, June 2017

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• Selection of components and material quality from component

production centrally to assembly sites globally

• Particular focus on security of supply and inventory levels

• Demand in the model is based on a full year sales and production

data – and can easily be changed!

Case – Grundfos A/S

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• Data input controlled via database

• Adjustment of inventory controls

• Trim of MRP-profiles

Case – Grundfos A/S

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Case – Sanistål

BillundCentrallager

1.500lagerførte

leverandører

~ 4 mio.produkter

efterspurgt

> 30.000 aktive

kunder

2mio.salgslinjer

220.000indkøbslinjer

2mio.disklinjer

XX lagerførte leverandører

XXIndkøbslinjer

XXSalgslinjer

XX Produkter

XX Disklinjer

XX Aktive kunder

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Case - Sanistål

Sammenligning af aftræk. Sanistål lager og model lager

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Samlet

Afræk Lager (simulering) SaniStålLager

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Case – Plukkelager

• Plukoptimering på ferskvareterminal

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Case – Plukkelager

• ABC-analyse

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42Don’t Speculate… Simulate!

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