Use of Simulation Software In Service Industries

 

INTRODUCTION

 Simulation means imitation of reality. Simulation techniques are widely used in industry for the purpose of capacity & resource planning. Based on the well developed statistical theories, simulation effectively deals with the unforeseen uncertainties in any business. When used proficiently, it enables to determine the fluctuations in many business parameters (like, demand, service time, waiting time, downtime, repair time, etc.,) to desired level of accuracy with specified degree of confidence level. With the advent of many simulation software, simulation is gaining ever increasing importance in industry to plan & control the processes effectively .Service industries are different than manufacturing industries in the sense that the former works with more flexibility in the processes. Standardized processes may vary from time to time depending the customer’s requirement. Service industries, in general, employ comparatively less automation, which is one of the causes for the variations. Hence, it would be interesting to study the process deviations under changing customer’s requirement and to develop master plan that could compensate for the expected deviation without hampering the resource availability.

How to use simulation in business process improvement

A simulation is a useful way for you to test real-life situations and processes without actually implementing those situations and processes. Since they help you to identify where improvements can be made before processes are put in place, working with simulations can save valuable time and resources. 

Just as simulating traffic conditions and driving situations can help students improve their driving skills, simulations can help you analyze business processes and discover where improvements need to be made.

What is business process simulation?

A business process is a set or sequences of linked tasks and activities that result in a specific goal or outcome. A business process simulation is a mechanism used to test and analyze both current business processes and those that have not yet been implemented.

The purpose of simulation is to figure out how a process may work in the real world before it is built. Additionally, process simulations give you the freedom to be creative and to try a variety of solutions and scenarios until you find the ones that work best for you without impacting current production cycles.

Business process simulation can also be effective as an integral part of your process improvement plan. Running simulations is a cost-effective and low-impact way to look for ways to improve production and operations.

What are the advantages of process simulation?

Simulations are used in many different contexts across a variety of industries for process improvement, training, education, testing, safety, and experimentation. The benefits of simulation include: 

·         Resource conservation—Modeling a business process and running it as a simulation makes more sense than spending the time and money to build and implement a process only to find out that it is flawed. Finding and fixing problems early during a simulation can save you time and money because it has no impact on work currently being done in your organization.

·         Visual output—Business process models give you an easy-to-read visual overview of processes and model designs. Running simulations based on your BPMN models lets you easily see the links among various tasks and identify where tasks may need to be added to, or removed from, the process flow. Visual outputs from simulations make it easier for you to communicate past and future changes in the process to managers and stakeholders.

·         Testing process behavior—Testing business process behavior before it is built gives you a good indication of how it will work in the real world.

·         Problem solving—Analysis of the behavior lets you see what works and what doesn’t work. It’s easier and cheaper to fix simulated problems than it is to fix real world problems.

·         Education and training—Simulations are a good, cost-effective way to give new employees hands-on practice and experience with processes and systems without having an impact on actual, real-time workflows.

·         Accurate results—The results you get from a simulation are usually accurate and can help you know what to expect when you transition the process from the virtual world into the real world.

Types of process modeling and simulations

While simulations and models are related, there are important differences between the two. A model is a physical, mathematical, or logical representation of a process or system that is used in the real world. Models are the basis for running simulations to collect and analyze data.

Simulations can be categorized into three types: live, which can involve real people and equipment; virtual, which can involve real people working with simulated systems; and constructive, which can involve simulated people working with simulated equipment. 

Live simulations

A live simulation has more of a real world feel. Individuals or groups of real people work with real equipment in an environment that closely resembles the environment that they will actually be working in. With this type of simulation you want the situations to replicate actual activity as closely as possible.

For example, the military participates in “war games” to simulate real battle situations with real equipment without actually risking lives.

Virtual simulations

Virtual simulations involve real people (human-in-the-loop, or HITL) working with equipment to control a simulated environment. The outcome of the simulation is controlled by decisions and actions that humans make while operating the equipment. These types of simulations are interactive and useful for measuring motor control skills, decision making, and communication skills.

Examples of virtual simulation include flight and driving simulators as well as the video games people play every day.   

Constructive simulations

In a constructive simulation, you have simulated people operating simulated systems. Real people input data for the simulation but they do not determine the outcome. The computer runs the simulation to predict possible outcomes, analyze data, generate statistics, and so on. For example, scientists use constructive simulations to predict the spread and impact of viruses. 

Five steps to business process simulation

A process simulation will vary in complexity and scope depending on what kind of problems need to be solved. No matter what you are trying to accomplish with the simulation, you will generally follow these five steps to process simulation. 

Step 1: Define the purpose or problem 

You’re probably not designing models and simulations just because they are fun. You need a specific reason, such as a process that needs improvement or a problem that needs to be addressed.

Determine what type of data you want to collect and identify which part of your process should be modeled and simulated in order to gather that data. For example, you may want to run simulations to understand why customer wait times are so long.  

Step 2: Conceptualize the model and run a first pass simulation

It may be easier and less time consuming to go from simple to complex when building your model. Create a model that represents the areas you want to monitor. Run a first pass simulation against the model and analyze the data it returns. Add more complexity to the model as needed to ensure that you are getting all of the data that you need to address your stated problem.

Use the flowchart templates and library of BPMN shapes available in Lucidchart to help you design your models. Using just a few simple lines, shapes, and colors you can visualize any idea or process and then share your work with team members and other stakeholders. Process flowcharts are a great way to find and identify areas in a process that need improvement. 

 

Step 3: Calibrate the simulation

Run your simulation to make sure that it behaves as you would expect the process to run in the real world. Make adjustments to the model as necessary until the simulation matches your real world process. Be aware that as your model changes or as complexity is added, the data you need to collect may also change.

Step 4: Analyze the results

Analyze the results of the simulation. Determine if the data matches expectations. Adjust the model and repeat the simulations as necessary to get the results you want. 

Step 5: Share simulation results and implement changes

After all simulations have been run and you have collected and analyzed the data, share the results with managers, team members, and other stakeholders. Run a demonstration of the simulations for all interested parties so they can better visualize how your ideas and changes can improve or fix processes.

Once you get buy-in from the management team, implement the best model based on feedback and consensus. Continue to analyze and monitor the process after implementation to ensure that it works as designed.

Business process simulation is cost-effective, saves time, and has little impact on current production as you work to address areas that need improvement. After analyzing results, you can confidently implement the process into your work environment without too much disruption

AnyLogic simulation software is used in these industries:

 

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Supply Chains

Supply chain simulation software helps you manage supply chain challenges, reducing costs, and improving customer service. By providing deep and clear insight into the complex networks of suppliers, carriers, and freight forwarders, simulation can supercharge your supply chain and redefine your competitiveness.

 Clarity when analyzing your supply chain and when forecasting makes for good decision making, this is what simulation provides. You can explore the interrelated, dynamic, and random events that influence your business, quickly and clearly. Explore “what-if” scenarios, stress-test your system and refine strategies by utilizing real-time data in a digital twin.

 Simulate the digital transformation of your supply chain and understand how the technologies of Industry 4.0 will affect your business. With a digital supply chain, you can experiment with the future, now.

 AnyLogic supply chain simulation models enable you to gain deeper insights and optimize complex systems and processes. A powerful supply chain analysis tool, able to integrate with your current workflow.

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Manufacturing

Decisions regarding manufacturing development, optimization, or reorganization are driven by many factors and are often costly, with the benefits hard to justify before implementation.

 Traditionally, decisions are made based upon intuition and experience, sometimes with the support of spreadsheet tools. These approaches can be risky and are unnecessary in decision making today.

 Simulation is a powerful technique for analyzing manufacturing systems, evaluating the impact of system changes, and for making informed decisions.

 Specific processes and strategies, such as JIT or Lean, can be modeled and simulated in manufacturing simulation software. This enables effective analysis, and provides an efficient way to experiment and reduce the costs of testing in the real world. AnyLogic helps improve manufacturing processes. It is powerful process simulation software with a specially designed Material Handling Library that simplifies the simulation of complex manufacturing systems and operations. The library helps when designing detailed models of production facilities and managing material workflows

v   Transportation

Transportation planning and fleet management has many complexities, from scheduling and maintenance, to risk management and human resources. AnyLogic helps you successfully deal with these complicated issues, including the challenging task of transportation network optimization.

 Simulation modeling enables you to effectively manage transportation resource planning, maximize transportation loads, minimize costs, and calculate the probability of traffic cost overruns. As a safe environment for experimentation, it allows you to discover potential difficulties ahead of time.

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Warehouse Operations

Whether designing and optimizing your warehouse layout and operation, or forecasting and adapting to operational needs, simulation modeling enables you to efficiently and dynamically meet these challenges.

 Simulation modeling is a powerful method for designing, planning, and optimizing your warehouse operations. It is a low-cost and low-risk technique to determine optimal warehouse layout and operation.

 AnyLogic can be used as warehouse simulation software, which flexible capabilities give you the power to model your warehouse as in the real-world; the structure, the processes, and the resources. Through simulation, and visualization, you can develop the best warehouse design, layout and operations for today and the future.

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Rail Logistics

Detailed simulation is a crucial part of rail logistics, from rail yard design and route optimization, to fleet and resource planning.

 Rail yard design. Whether planning new facilities or renovating old, successful completion depends on many factors. Rail simulation software enables the exploration and testing of plans before committing to construction, with visual representations allowing all interested parties to contribute insight.

 Rail route optimization system. Rail yards can be better utilized by integrating their services and balancing their loads. Optimal train scheduling can be determined in relation to station throughput, which itself can be optimized with informed track and platform placement. Through understanding a system from the basic components up to the network scale, demands can be met, and opportunities realized.

 Fleet and resource optimization. Maximizing resource utilization, such as locomotives and depots, delivers both efficiency and the speediest return on investment. Future capital investment can be prioritized, helping distinguish which projects should be implemented. Rail simulation software is ideally suited for these purposes, providing an environment to test scenarios and ideas.

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Mining

Mine modeling software

Introducing innovation to existing mining operations, or integrating modern technologies into new projects, causes interruptions and delays, not doing so jeopardizes long-term productivity. Mining simulation with AnyLogic offers a way forward, providing mining output statistics and dynamic views of operations for analysis, optimization, and experimentation, all without operational interruption.

 

Pit optimization

From developing optimal excavation plans based on exploration data to delivering efficiency in processing, AnyLogic helps optimize mining operations. Test what-if scenarios, evaluate mining operations over time, and conduct risk analysis. Throughout a mine, efficiencies can be found.

 Modeling constraints on vehicle movement in and around a mine leads to refined routing and scheduling. Evaluating and forecasting equipment utilization allows lease and fleet configuration optimization. Mine phase scenarios can be tested, analyzed, and optimized. Visualizations for presentation and verification provide accessibility for all involved, giving you the power to drive innovation and deliver pit optimization for the long term.

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Oil & Gas

Oil and Gas Simulation Software

Introducing innovation can interrupt existing projects and delay new developments. The alternative, holding back on innovation, threatens sustainable profitability. Oil and gas simulation with AnyLogic ensures effective change implementation by enabling analysis, optimization, and experimentation in an environment that can fully capture the details of your operations.

 Significant efficiencies can be found in the field with optimized maintenance scheduling. With the ability to forecast and allocate work, it is possible to reduce downtime, improve preventative maintenance, and increase production.

 Pipeline delivery is subject to batch congestion, storage restrictions, and customer demands, to name just a few variables. Mitigating these risks can provide large ongoing returns. Simulation modeling for oil and gas processes enables the discovery of bottlenecks, the evaluation of external factors, and the development of new organizational policies to deliver immediate savings and ongoing increased revenues.

 Refinery simulation empowers analysis and decision making. Systems and processes can be modeled for efficient experimentation to achieve reduced costs. Decision making becomes more informed, and system changes have the right impact. Furthermore, the refinery can be integrated into the wider system.

                         

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Ports & Terminals

Simulation is a powerful tool for cutting costs and increasing throughput at ports and container terminals. It enables deep insight and provides a risk-free environment to develop plans. Port and terminal simulation can be used for detailed internal logistics analysis, decision support, risk mitigation, and disruption response.

 Significant losses can be incurred through idle time and demurrage, and minimizing them requires insight across all operational interactions in a port or terminal. The multimethod approach of simulation modeling with AnyLogic helps capture the true characteristics of facilities such as container terminals, including berthing, transfer, storage, multimodal transport, and staffing. Furthermore, the actions of port authorities also affect environmental factors as well, including noise, gas emissions, and particulates. Capturing all such variables in a simulation model allows you to understand their relationships and answer questions such as:

• ·         Are straddle carrier operations causing a bottleneck?
• ·        What impact will increasing the number of berths have?
• ·        Can tank storage changes reduce transfer times?
• ·        How to optimize bridge crane algorithms.
  
  
        

References :

• https://www.lucidchart.com/
• https://www.anylogic.com/
• https://www.anylogic.com/use-of-simulation/
• https://blog.spatial.com/simulation-in-cad
• https://www.youtube.com/watch?v=7-Ugjtj_VmQ