Today, managers are faced with conflicting objectives and significant pressure to ensure that manufacturing projects are delivered within budget, at a high quality and on time.
The “3-Legged Project Management Stool” is an excellent way to describe the balancing act that is required.
Discrete event simulation lends itself to all three of these facets, and that is why most large manufacturing companies are using it to reduce risk and keep up with the competition.
During this webinar former Ford Motor Company employee, Brian Harrington explores the concept of the three-legged stool. Based on his recent Whitepaper, Brian will discuss how simulation can play a key part in the successful completion of a manufacturing project when the conflicting objectives of cost, quality and time all need to be delivered on successfully.
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About the Presenter
Brian Harrington is a Six Sigma Black Belt with 20
years operations research and simulation experience
at Ford Motor Company. He designs and implements
manufacturing process improvements which
incorporate many conflicting objectives such as
robust, flexible, and Lean systems.
Now running his own discrete event simulation specialists firm MTN-SIM LLC, he
continues to deliver high quality complex models for a wide range of
manufacturing, healthcare, and business process improvements. He also acts as a
technical ambassador for SIMUL8 Corporation assisting in teaching, mentoring,
marketing, and consulting projects.
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Housekeeping
1. Audio
2. Q and A
Recording available on: www.simul8.com
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Project Management using Simulation
• The facts
• Factors to consider when managing a project
• Tools to identify key input factors
• Decision making using simulation
• Creating trade-offs and balancing
Money
Time
Quality
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The Facts…
IBM Institute for Business Value Study
(48 countries, 1400 samples)
60% of projects fail to meet their objective
44% fall short on at least one of their Cost, Quality, Time
objectives
15% miss all of their objectives or are stopped by management
20% Highly successful (“Change Architects”)
35% Moderately successful
45% Below average successful
1
1 Article: “Making Change Work” IBM 2010
Sample size 1,500 practitioners worldwide
2 Article: “Making change work . . . while the work keeps changing” IBM 2014
Sample size 1,380 practitioners worldwide
By Hans-Henrik Jorgensen, Oliver Bruehl and Neele Franke 2014
2
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Cost, Quality, and Time
Small or Large, Projects…
Need to be on Budget!
On Time!
And Strive for Continuous Improve of Quality!
Project Management
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Conflicting Objectives
Sounds good to upper management, but
how is this even possible?
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Enterprise Success Equates to…
Shorter Development Time
Beating your Competition to Market
Delivering Quality
The pressure is on Project Management!
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Simulation- Reduces the Risk
Most successful companies use Discrete Event
Simulation to address such critical factors as:
Cost, Quality, and Time
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What’s Critical
How do we know what to
focus on when it comes Cost,
Quality, and Time?
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Critical to Quality, Cost, Time
Materials
Machinery/
Equipment
Methods
People
Effect:
Not achieving desired
throughput
Companies need to focus on what is critical to the
business and its customers.
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CT is Input into a QFD
Quality Functional Deployment
• User Requirements into
Design Parameters
• Correlation Matrix of the
“What’s” & “How’s”
• Prioritizing what is most
important
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Include C,Q,T Metrics into your Simulation
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Simulation metrics
• Throughput (JPH)
– Changeovers
– Batch Builds
• Number of Repairs
– Repair rate
• Number of Scrapped
Units
– Scrap rate
• Cost
– Number of Carriers
– Number of Pallets
– Number of Tugs & Racks
– Number of Robots
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Poll Question
Does your company’s managers use
simulation results when comparing
costly proposals?
A.Always (100%)
B.Most of the time (80%)
C.Some of the time (50%)
D.Never
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Cost
Cost Avoidance- Biggest bang for your buck!
• Comparing simulation scenarios
Replication
• Can you replicate these actions elsewhere?
Additional Cost Measures
•Cost per unit
•Material Costs
•Scrap Costs
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Comparing Proposed Solutions
Automated Guided Vehicle System
vs. Tugs and Racks
Large difference in cost per system.
What are the benefits of each system?
Will the company achieve these benefits?
Is there a better place to spend the funds?
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Quality
• Equipment
• Product Design
• Method/Process
• Tests
• Repairs
Where to place quality equipment within your facility,
and how much is necessary?
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Quality Example
Strategically placing a vision detection
system to analysis weld integrity and
random imperfections.
Reduces scrap
Reduces destructive testing
Reduces heavy & light repairs
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Quality within a Bodyshop
Where to place quality equipment within your facility, and how much is
necessary?
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Time
What Discrete Event Simulation does best
The model is an animated database of events taking place at
discrete times; producing realistic behavior and results.
Predicts the facilities capability (Parts per Hour)
Provides insight into system performance (Wait, Blocked)
Optimize operating patterns (Shifts, Planned DT)
Predicts long-term behavior (1 yr. of production)
Includes outliers (Catastrophic delays)
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We have the Time
Cycle Times
Changeover Time
Breakdown Time
Shift Patterns
Conveyor Speeds
Resource Times
Travel Matrix
Dwell Times
Shelve Life Time
Delays
Conditional Time
Load Time
Unload Time
Simulation Time
Warm-up Time
… The list goes on
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Overall Program Timing
As for project management the simulation
analysis will reduce the overall development
time, it will keep the focus on the critical steps.
Allowing managers to make decisions, accept
implementation bids, and keep the program
moving forward.
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It’s a Bit of a Juggling Act
“Project management is like juggling three balls
– time, cost and quality. Program management is
like a troupe of circus performers standing in a
circle, each juggling-three balls and swapping balls
from time to time.”
– G. Reiss
1 Project Management Demystified: Today's Tools and Techniques GEOFF REISS
1
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Poll Question
How would you rate your company’s
success with respect to Projects?
A.Highly Successful
B.Moderately Successful
C.Below Average
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Balanced Project Management
Project Managers must keep the project moving forward
On Time
Within Budget
Best in Class Quality
How?
Corporate Strategy
1.Data-backed Decisions
2.“Simulation Milestones” within your strategic timeline
3.“Simulation Sign-Offs”
Simulation studies must be sized
properly to deliver Results at Key
Milestones!
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Keep your eye on the ball
Simulation models can…
Address all three areas of concern
Justify trade-offs within your development plan
Identify interrelationships between key input factors
Provide the muscle to keep your project on target!
Q TC
Q TC
Q
TC
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Questions?
If you have any questions around this topic,
please email: brian.h@simul8.com
Continue the discussion on the SIMUL8 Users Group
– LinkedIn Group
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