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Design and Optimization of Logistic Systems


                         Think | Optimize | Succeed
SIMANDO is a global management and technology consulting firm with a high
focus on decision support systems and operational excellence. We partner with
client organizations in all industrial sectors to address their most important
challenges and develop complete solutions that will enable them to achieve
their objectives and make significant improvements in their performance. Our
customized approach combines innovative technology, systems thinking and
passion for operational excellence. This ensures that our solutions enable our
clients to achieve sustainable competitive advantage by optimized operations
and responsiveness to the current dynamic business environment.

Founded in 2009, SIMANDO is a private company with its headquarters in
Timisoara, Romania. For more information, please visit:

www.simando.com
Outline

   About SIMANDO

   Services and Products

   Simulation Modeling

   Simulation of logistic systems

       Order Picking Systems
       Warehouse Operations




                                     2011   3/35
About SIMANDO
Company founded in 2009
Privately owned, LLC
Headquarters: Timisoara, ROMANIA

Mission
At SIMANDO, our primary mission is to help our clients make substantial, continuous improvement in their performance. We
accomplish this by providing them with outstanding technology solutions and consulting services to increase their excellence
degree at all levels.


Vision
We strive to be the company that understands perfectly its clients' objectives, always delivers quantifiable results and
maximizes the financial and trust investments made by its clients.


Our Certifications
                      Certified Six Sigma Black Belt                                    Project Management Professional
                      (American Society for Quality)                                    (Project Management Institute)


                      Certificate in Finance                                            Oracle Certified Professional Java
                      (New York Institute of Finance)                                   Programmer
                                                                                        (Oracle Corporation)

                                                           2011                                                        4/35
Expertise
Modeling and Simulation                                         Operational Excellence

   Systems modeling, simulation and optimization                   Lean Six Sigma Transformation

   All simulation paradigms - discrete events, agent-              Design for Six Sigma
    based and system dynamics
                                                                    Toyota Production System
   Statistics
                                                                    Theory of Constraints

                                                                    Product Development

Software Applications Development                               Industrial
   Advanced algorithms and design patterns                         Project and product development management
   Software architecture
                                                                    Computer Integrated Manufacturing
   Software development lifecycle methodologies
                                                                    Industrial engineering and factory planning
   Functional and object oriented programming
                                                                    Manufacturing, logistics, supply chain design
   Database Management Systems
                                                                    Transport and distribution systems
   MRP/ERP Systems

                                                         2011                                                        5/35
Services and Products

   Services
       Production, logistics, supply chain, healthcare engineering , modelling and simulation
       Operations optimization
       Lean Six Sigma/Design For Six Sigma training and implementation
       Training and assistance in simulation models development
       Product development and project management
       Computer Integrated Manufacturing


   Products
       Modeling and simulation component libraries
         MANSIM™ - general manufacturing
         SOLSIM ™ - photovoltaics manufacturing equipment
         LOGSIM ™ - warehousing and logistics

       Specialized software applications for Lean Six Sigma, planning and scheduling


                                               2011                                              6/35
P&L Systems Performance Optimization

                                            Industrial
                                           Engineering


                           Information
                                                            Six Sigma
                            Technology


                                          Production &
                                         Logistic Systems
                                          Performance

                              TRIZ                            Lean



                                            Theory of
                                           Constraints




Synergistic framework for continuous significant improvement of production and logistics

                                               2011                                        7/35
Logistic Systems Leverage Points
                                                                                    1st Dimension
                      1st Dimension

                      Products and processes selection
                      Warehouse location, size and layout




                      2nd Dimension

                      Warehouse or DC personnel
                      Material handling systems
                      Degree of automation                                  2nd Dimension


                      3nd Dimension

                      Jobs scheduling
                      Preventive maintenance protocols
                      Personnel allocation protocols
                      Batching protocols
                      Waste reduction programs



The 3 Dimensions of Logistics                               3rd Dimension


         Investment


         Logistic System Performance

                                                              2011                                  8/35
Why Simulation ?


              What?

     Where?               Who?       The future is of greater interest
                                     to me than the past, since that
                                     is where I intend to spend the
               !                     rest of my life.

     When?                Why?                     ~ Albert Einstein

              How?




BECAUSE …             SIMULATION GIVES US ANSWERS!

                            2011                                         9/35
Simulation Study Types

                                                 Simulation
                                                   Studies

System Design                           Problem Solving                           Continuous Improvement
  New processes                         Diagnosis                                Opportunity definition
 New facilities                         Problem definition                       Performance measurement
 New concepts                           Solution finding                         Performance improvement

           Structural Design                       Diagnosis                                 Opportunity Definition
            Elements                               Problem definition                       Benchmarking
            Layout
            Logic


           Logical Design                          Testing Schemes                           Test Plans
            Flow logic                             What-if scenarios analysis               Feasibility check
            Operations sequences
            Priority rules


           Parametric Design                       Solution Validation                       Plan Validation
            Cycle times                            Sensitivity analysis                     Sensitivity analysis
            Reliability requirements
            Velocities, rates


                                                       2011                                                           10/35
Simulation Benefits


                                                                                                              Analyze the behavior of
                                                       Experiment and get                                        complex systems
Make prompt and
                                                          fast feedback
 correct decisions


                            Convince clients of your
                            operational capabilities                                Communicate ideas
                                                                                   efficiently and credibly


       Teach new                          Test fast, fail fast, adjust fast.
     concepts easily

                                                             ~ Tom Peters
                                                                                                       Discover alternatives to
                                                                                                       unexpected roadblocks

      Save money in short
       and medium term
                                          Safely analyze
                                       dangerous scenarios                     Implement your decisions
                                                                                   with confidence


                                                                2011                                                              11/35
Applicability Areas

Manufacturing                    Lean Six Sigma                      Logistics and Supply Chain
   Key Performance Indicators      Stochastic process simulation
   FMEA                            Statistical analysis               Transport networks design
   Production flow design          Variability elimination            Fleet planning & maintenance
   Planning and scheduling         Pull mechanism design              Warehouse design
   Resource estimation             QOS metrics                        Operations optimization
   Capacity planning               Dynamic VSM                        Supply chain planning
   Total cost of ownership         Benchmarking


Healthcare                       IT & Telecom                        Urban Development

   Resource estimation             Wireless networks topology
                                                                        Public utilities planning
   QOS                             Protocols design                   Evacuation plans creation
   Epidemics dynamics              Agent-based emergent               Disaster recovery
   Operations optimization          behaviour analysis                 Anti-terrorist measures
                                    QOS


                                                2011                                                 12/35
How We Do It ?

Continuous improvement is better
than delayed perfection.
                    ~ Mark Twain

                                                                       Problem formulation

                                            Objectives and plan definition
                                                                                                                             Control
                       Model conceptualization



          Data collection
                                                  Your trajectory to success                                      Implementation
                                                        with simulation
                                                                                                            Reporting

          Model development
                                                                             Experiments run and analysis
                    Code verification
                                                           Design of experiments
                                        Model validation




                                                                      2011                                                             13/35
Modeling

Reusable models and components encourage continuous improvement!

Specialized
component
libraries
                                                                   2D/3D
                                                                   customizable
                                                                   animation




Domain specific
library components
                             Fast and easy
                             drag-and-drop
                             layout modeling


                                               2011                        14/35
Simulation Models Input/Output Data


 CAD                                              Run-time Charts


 Text                                             Text



 Excel                                            Excel



 XML                  Simulation Model            XML
              Input                      Output
 Database                                         Database
              Data                       Data

 Webservice                                       Webservice




                            2011                             15/35
Simulation of Order Picking/Packaging




   Creativity is thinking up new things.
   Innovation is doing new things.

                           ~ Ted Levitt
                                           E.g. Order Picking & Packaging System
                                           (simulation application developed by SIMANDO)

                                                  2011                                     16/35
Simulation of Order Picking/Packaging

                                                   Pickers & zones
   Pickers & weigh                                runtime statistics
       stations




                                                                    Equipment
  Storage zones                                                  runtime statistics
filled with goods




Operators loading
from pallets into
the storage zone




   Pallets with
different types of
      goods
                                              Packaging
                      End of line &           equipment
                     delivery pallet

                                       2011                                 17/35
Simulation of Order Picking/Packaging




• Highly detailed behavior of pickers (states: IDLE, PICKING,          • Detailed modeling of equipments (e.g. conveyors, offloaders,
  MOVING_BUSY, MOVING_FREE, WAITING, and any other                       strapping, plastic foil application, foil heating, weight checker,
  custom state according to needs)                                       storage zones, carousels, mini-loads, stacker cranes, labeling)

• Support for complex interactions among personnel (pickers,           • Probabilistic/deterministic events for breakdowns,
  operators), equipment and items                                        maintenance, change of consumables, setup, assistance etc.

• Picking time based on item weight, dimension, appedices,             • Tracking/evaluation of energy use, consumables, spare parts
  wrapping, picker dexterity, tiredness etc.                             according to operation scenarios

• Personnel have dexterity levels, moving speeds, max load             • Support for any type of items, picking strategies used (single,
  capacity etc.                                                          batch, baskets, tote boxes, sorting etc.)

• Dynamically configurable layout, number of resources,                • Customizable animation, behavior and parameter set for any
  animation, animation/speed ratio                                       component

• Any type of KPI can be tracked, reported and analyzed

                                                                2011                                                                   18/35
Simulation Order Picking/Packaging

   IT’S MORE THAN A SIMULATION MODEL, IT’S AN APPLICATION!
                                                                                Feedback




Production plan
(ERP/WMS/WCS)

   The simulation model resulted is a Java stand-alone application that is utilized by the end-user
    daily after the system is installed, to simulate production scenarios and make fine-tunings

   Extremely fast - 1 week production scenario for an average order fulfillment and packaging
    system simulated on a regular laptop in less than 3 minutes!


                                                2011                                             19/35
Simulation of Order Picking/Packaging

   Simulation model/application benefits (order fulfillment systems specific)
        Great support for system design activities: system layout, equipment selection, value engineering, FMEA, KPIs
        Work dispatching and scheduling alternatives efficiency
        Order batching and picking strategies
        Zoning and slotting of products
        Zone balancing and labor required to meet schedule
        Zone reconfiguration recommendations
        System bottlenecks detection and management
        Sales tool to convince your clients of your capabilities and abilitiy to deliver in time
        Cost effective optimizations


   Features

        Labor, zones, and system productivity KPIs
        Runtime charts
        Reports and statistics available in PDF format following a simulation run
        Integration with ERP, WMS, WCS or other software applications
        Great visualization tool
        Extremely fast simulation
        Platform independent application (Windows, Linux, Mac OS)


                                                         2011                                                      20/35
Simulation of Warehouse Operations

                                                                                       Multi-depth/level
                  Forklifts                                                            storage racks




Trucks arrival according
to deterministic or
probabilistic schedule


                                                                                  Conveyor system




Receiving docks
                        S/R machine


                                      E.g. Warehouse Operations
                                      (simulation application developed by SIMANDO)

                                                        2011                                               21/35
Simulation of Warehouse Operations
  Innovative and revealing customized
  animation based on large data             Extensive and easily configurable
  visualization techniques                  simulation parameter set




                                            Runtime and post-simulation
                                            statistics and charts for inflows,
                                            outflows, stocks, equipment
        S/R machine with acceleration       utilization, energy consumption,
        and deceleration for all types of   spare parts etc.
        movements; single/multi cycle


                                                            2011                 22/35
Simulation of Warehouse Operations

   Simulation models/applications utility

       Long term planning
           Dimensioning of storage areas and warehouse technology/MH equipment selection
           Preparation of the warehouse layout (storage & access pathways)
           Development of fundamental operating strategies and proof of functionality
           Input for the implementation of WMS/WCS functions
           Staging protocols



       Medium term planning
           Planning the asortment and range of items to be kept in stock to react to seasonal/market
            influences
           Manpower requirement planning, preparation of shift models and work schedules
           Reorganization of stocks
           Planning of transport routes within the warehouse


                                                 2011                                               23/35
Simulation of Warehouse Operations

   SIMANDO simulation models/applications benefits
       All aspects of warehousing operations (receiving, cross-docking, storing, picking, packing, shipping) are covered,
        thus local optimizations to the detriment of the whole system are avoided

       Calculation of a realistic Total Cost of Ownership (TCO) based on stochastic models

       The built-in flexibility enables you to run any type of scenario imaginable

       The end-result is a stand-alone Java application that can be used for planning and optimizing operations daily

       Great tool to make decisions in reverse-logistics (which have a high degree of variability/uncertainty)

   Features
       Simulation/application developed with AnyLogic platform
       2D/3D customizable animation
       Runtime charts
       Reports and statistics available in PDF format following a simulation run
       Integration with ERP, WMS, WCS or other software applications
       Extremely fast simulation models/applications compared to other fixed-library simulation platforms
       Platform independent application (Windows, Linux, Mac OS)


                                                         2011                                                        24/35
Logistic Systems Life Cycle

  Cost vs. Impact                                                        Cost




                                                                         Potential is negative
                                                                           (Impact < Cost)
                     Potential is positive
                       (Impact > Cost)




                                                                          Impact
                                                                                        Time

            Design            Produce/Build          Deliver          Support

                              Impact of design stages on life cycle
                                              2011                                         25/35
Thank you for your attention!
                                      SIMANDO Team
           SIMANDO LLC
           9 Republicii Blvd
           Timisoara, TM 300159
           ROMANIA

           Tel:    +40 356 172 021
           Fax:    +40 356 172 017
           E-mail: info@simando.com
           Web: www.simando.com

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Logistic systems simulation (a presentation by SIMANDO)

  • 1. Design and Optimization of Logistic Systems Think | Optimize | Succeed
  • 2. SIMANDO is a global management and technology consulting firm with a high focus on decision support systems and operational excellence. We partner with client organizations in all industrial sectors to address their most important challenges and develop complete solutions that will enable them to achieve their objectives and make significant improvements in their performance. Our customized approach combines innovative technology, systems thinking and passion for operational excellence. This ensures that our solutions enable our clients to achieve sustainable competitive advantage by optimized operations and responsiveness to the current dynamic business environment. Founded in 2009, SIMANDO is a private company with its headquarters in Timisoara, Romania. For more information, please visit: www.simando.com
  • 3. Outline  About SIMANDO  Services and Products  Simulation Modeling  Simulation of logistic systems  Order Picking Systems  Warehouse Operations 2011 3/35
  • 4. About SIMANDO Company founded in 2009 Privately owned, LLC Headquarters: Timisoara, ROMANIA Mission At SIMANDO, our primary mission is to help our clients make substantial, continuous improvement in their performance. We accomplish this by providing them with outstanding technology solutions and consulting services to increase their excellence degree at all levels. Vision We strive to be the company that understands perfectly its clients' objectives, always delivers quantifiable results and maximizes the financial and trust investments made by its clients. Our Certifications Certified Six Sigma Black Belt Project Management Professional (American Society for Quality) (Project Management Institute) Certificate in Finance Oracle Certified Professional Java (New York Institute of Finance) Programmer (Oracle Corporation) 2011 4/35
  • 5. Expertise Modeling and Simulation Operational Excellence  Systems modeling, simulation and optimization  Lean Six Sigma Transformation  All simulation paradigms - discrete events, agent-  Design for Six Sigma based and system dynamics  Toyota Production System  Statistics  Theory of Constraints  Product Development Software Applications Development Industrial  Advanced algorithms and design patterns  Project and product development management  Software architecture  Computer Integrated Manufacturing  Software development lifecycle methodologies  Industrial engineering and factory planning  Functional and object oriented programming  Manufacturing, logistics, supply chain design  Database Management Systems  Transport and distribution systems  MRP/ERP Systems 2011 5/35
  • 6. Services and Products  Services  Production, logistics, supply chain, healthcare engineering , modelling and simulation  Operations optimization  Lean Six Sigma/Design For Six Sigma training and implementation  Training and assistance in simulation models development  Product development and project management  Computer Integrated Manufacturing  Products  Modeling and simulation component libraries  MANSIM™ - general manufacturing  SOLSIM ™ - photovoltaics manufacturing equipment  LOGSIM ™ - warehousing and logistics  Specialized software applications for Lean Six Sigma, planning and scheduling 2011 6/35
  • 7. P&L Systems Performance Optimization Industrial Engineering Information Six Sigma Technology Production & Logistic Systems Performance TRIZ Lean Theory of Constraints Synergistic framework for continuous significant improvement of production and logistics 2011 7/35
  • 8. Logistic Systems Leverage Points 1st Dimension 1st Dimension Products and processes selection Warehouse location, size and layout 2nd Dimension Warehouse or DC personnel Material handling systems Degree of automation 2nd Dimension 3nd Dimension Jobs scheduling Preventive maintenance protocols Personnel allocation protocols Batching protocols Waste reduction programs The 3 Dimensions of Logistics 3rd Dimension Investment Logistic System Performance 2011 8/35
  • 9. Why Simulation ? What? Where? Who? The future is of greater interest to me than the past, since that is where I intend to spend the ! rest of my life. When? Why? ~ Albert Einstein How? BECAUSE … SIMULATION GIVES US ANSWERS! 2011 9/35
  • 10. Simulation Study Types Simulation Studies System Design Problem Solving Continuous Improvement  New processes  Diagnosis  Opportunity definition  New facilities  Problem definition  Performance measurement  New concepts  Solution finding  Performance improvement Structural Design Diagnosis Opportunity Definition  Elements  Problem definition  Benchmarking  Layout  Logic Logical Design Testing Schemes Test Plans  Flow logic  What-if scenarios analysis  Feasibility check  Operations sequences  Priority rules Parametric Design Solution Validation Plan Validation  Cycle times  Sensitivity analysis  Sensitivity analysis  Reliability requirements  Velocities, rates 2011 10/35
  • 11. Simulation Benefits Analyze the behavior of Experiment and get complex systems Make prompt and fast feedback correct decisions Convince clients of your operational capabilities Communicate ideas efficiently and credibly Teach new Test fast, fail fast, adjust fast. concepts easily ~ Tom Peters Discover alternatives to unexpected roadblocks Save money in short and medium term Safely analyze dangerous scenarios Implement your decisions with confidence 2011 11/35
  • 12. Applicability Areas Manufacturing Lean Six Sigma Logistics and Supply Chain  Key Performance Indicators  Stochastic process simulation  FMEA  Statistical analysis  Transport networks design  Production flow design  Variability elimination  Fleet planning & maintenance  Planning and scheduling  Pull mechanism design  Warehouse design  Resource estimation  QOS metrics  Operations optimization  Capacity planning  Dynamic VSM  Supply chain planning  Total cost of ownership  Benchmarking Healthcare IT & Telecom Urban Development  Resource estimation  Wireless networks topology  Public utilities planning  QOS  Protocols design  Evacuation plans creation  Epidemics dynamics  Agent-based emergent  Disaster recovery  Operations optimization behaviour analysis  Anti-terrorist measures  QOS 2011 12/35
  • 13. How We Do It ? Continuous improvement is better than delayed perfection. ~ Mark Twain Problem formulation Objectives and plan definition Control Model conceptualization Data collection Your trajectory to success Implementation with simulation Reporting Model development Experiments run and analysis Code verification Design of experiments Model validation 2011 13/35
  • 14. Modeling Reusable models and components encourage continuous improvement! Specialized component libraries 2D/3D customizable animation Domain specific library components Fast and easy drag-and-drop layout modeling 2011 14/35
  • 15. Simulation Models Input/Output Data CAD Run-time Charts Text Text Excel Excel XML Simulation Model XML Input Output Database Database Data Data Webservice Webservice 2011 15/35
  • 16. Simulation of Order Picking/Packaging Creativity is thinking up new things. Innovation is doing new things. ~ Ted Levitt E.g. Order Picking & Packaging System (simulation application developed by SIMANDO) 2011 16/35
  • 17. Simulation of Order Picking/Packaging Pickers & zones Pickers & weigh runtime statistics stations Equipment Storage zones runtime statistics filled with goods Operators loading from pallets into the storage zone Pallets with different types of goods Packaging End of line & equipment delivery pallet 2011 17/35
  • 18. Simulation of Order Picking/Packaging • Highly detailed behavior of pickers (states: IDLE, PICKING, • Detailed modeling of equipments (e.g. conveyors, offloaders, MOVING_BUSY, MOVING_FREE, WAITING, and any other strapping, plastic foil application, foil heating, weight checker, custom state according to needs) storage zones, carousels, mini-loads, stacker cranes, labeling) • Support for complex interactions among personnel (pickers, • Probabilistic/deterministic events for breakdowns, operators), equipment and items maintenance, change of consumables, setup, assistance etc. • Picking time based on item weight, dimension, appedices, • Tracking/evaluation of energy use, consumables, spare parts wrapping, picker dexterity, tiredness etc. according to operation scenarios • Personnel have dexterity levels, moving speeds, max load • Support for any type of items, picking strategies used (single, capacity etc. batch, baskets, tote boxes, sorting etc.) • Dynamically configurable layout, number of resources, • Customizable animation, behavior and parameter set for any animation, animation/speed ratio component • Any type of KPI can be tracked, reported and analyzed 2011 18/35
  • 19. Simulation Order Picking/Packaging  IT’S MORE THAN A SIMULATION MODEL, IT’S AN APPLICATION! Feedback Production plan (ERP/WMS/WCS)  The simulation model resulted is a Java stand-alone application that is utilized by the end-user daily after the system is installed, to simulate production scenarios and make fine-tunings  Extremely fast - 1 week production scenario for an average order fulfillment and packaging system simulated on a regular laptop in less than 3 minutes! 2011 19/35
  • 20. Simulation of Order Picking/Packaging  Simulation model/application benefits (order fulfillment systems specific)  Great support for system design activities: system layout, equipment selection, value engineering, FMEA, KPIs  Work dispatching and scheduling alternatives efficiency  Order batching and picking strategies  Zoning and slotting of products  Zone balancing and labor required to meet schedule  Zone reconfiguration recommendations  System bottlenecks detection and management  Sales tool to convince your clients of your capabilities and abilitiy to deliver in time  Cost effective optimizations  Features  Labor, zones, and system productivity KPIs  Runtime charts  Reports and statistics available in PDF format following a simulation run  Integration with ERP, WMS, WCS or other software applications  Great visualization tool  Extremely fast simulation  Platform independent application (Windows, Linux, Mac OS) 2011 20/35
  • 21. Simulation of Warehouse Operations Multi-depth/level Forklifts storage racks Trucks arrival according to deterministic or probabilistic schedule Conveyor system Receiving docks S/R machine E.g. Warehouse Operations (simulation application developed by SIMANDO) 2011 21/35
  • 22. Simulation of Warehouse Operations Innovative and revealing customized animation based on large data Extensive and easily configurable visualization techniques simulation parameter set Runtime and post-simulation statistics and charts for inflows, outflows, stocks, equipment S/R machine with acceleration utilization, energy consumption, and deceleration for all types of spare parts etc. movements; single/multi cycle 2011 22/35
  • 23. Simulation of Warehouse Operations  Simulation models/applications utility  Long term planning  Dimensioning of storage areas and warehouse technology/MH equipment selection  Preparation of the warehouse layout (storage & access pathways)  Development of fundamental operating strategies and proof of functionality  Input for the implementation of WMS/WCS functions  Staging protocols  Medium term planning  Planning the asortment and range of items to be kept in stock to react to seasonal/market influences  Manpower requirement planning, preparation of shift models and work schedules  Reorganization of stocks  Planning of transport routes within the warehouse 2011 23/35
  • 24. Simulation of Warehouse Operations  SIMANDO simulation models/applications benefits  All aspects of warehousing operations (receiving, cross-docking, storing, picking, packing, shipping) are covered, thus local optimizations to the detriment of the whole system are avoided  Calculation of a realistic Total Cost of Ownership (TCO) based on stochastic models  The built-in flexibility enables you to run any type of scenario imaginable  The end-result is a stand-alone Java application that can be used for planning and optimizing operations daily  Great tool to make decisions in reverse-logistics (which have a high degree of variability/uncertainty)  Features  Simulation/application developed with AnyLogic platform  2D/3D customizable animation  Runtime charts  Reports and statistics available in PDF format following a simulation run  Integration with ERP, WMS, WCS or other software applications  Extremely fast simulation models/applications compared to other fixed-library simulation platforms  Platform independent application (Windows, Linux, Mac OS) 2011 24/35
  • 25. Logistic Systems Life Cycle Cost vs. Impact Cost Potential is negative (Impact < Cost) Potential is positive (Impact > Cost) Impact Time Design Produce/Build Deliver Support Impact of design stages on life cycle 2011 25/35
  • 26. Thank you for your attention! SIMANDO Team SIMANDO LLC 9 Republicii Blvd Timisoara, TM 300159 ROMANIA Tel: +40 356 172 021 Fax: +40 356 172 017 E-mail: info@simando.com Web: www.simando.com