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Think | Simulate | Succeed




Simulation in Logistics
        2011




          2011                                         1/24
Outline

   Company overview

   Expertise

   Products and services

   Modeling and simulation

   Simulation in Logistics
       Order Fulfillment Systems
       Warehouse Operations

                                    2011   2/24
Company Overview

   Our mission:   SIMANDO delivers outstanding simulation, analysis and optimization
                  software applications and services that enable its clients to better
                  understand, design and run their processes and systems.



   Our vision:    At SIMANDO, simulation is viewed as an important, multi-purpose
                  component of the value chain. By this approach, we offer to our clients
                  the most effective simulation-based tools and services that will enable
                  them to maximize the results of their enterprises.




                      Founded 2009
                      Limited Liability Company
                      Headquarters: Timisoara, ROMANIA




                                            2011                                            3/24
Expertise

Modeling and Simulation                                         Continuous Improvement

   Systems modeling, simulation and optimization                   Lean principles implementation

   All simulation paradigms - discrete events, agent-              Six Sigma/Design For Six Sigma
    based and system dynamics




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

                                                                    Transport and distribution networks


                                                         2011                                                        4/24
Expertise


                Our certifications                                       Our clients’ benefits

                                                                   Rapid understanding of their environment and
Certified Six Sigma Black Belt                                      problems to solve
                         American Society for Quality
                                                                   Solutions based on proven methods and
                                                                    technology
Project Management Professional
                         Project Management Institute              Efficient communication and professional
                                                                    project management

Certificate in Finance                                             Consideration for a mix of aspects that impact
                         New York Institute of Finance              the proposed solutions

                                                                   Flexible, timely and cost efficient solutions
Oracle Certified Professional Java Programmer
                         Oracle Corporation




                                                         2011                                                       5/24
Products and Services

   Products
       Modeling and simulation component libraries
          MANSIM™ - general manufacturing
          SOLSIM™      - photovoltaics manufacturing
          LOGSIM™ - warehousing and logistics
       Specialized components for Lean Six Sigma applications

   Services
       Production, logistics, supply chain, healthcare, financial modeling and simulation
       Training and assistance in simulation platforms and paradigms
       Lean Six Sigma/Design For Six Sigma training and implementation
       Product development and project management
       Computer Integrated Manufacturing
       Facilities planning


                                               2011                                          6/24
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?




SIMULATION GIVES YOU ANSWERS!

                       2011                                         7/24
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                                                           8/24
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                                                              9/24
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                                                 10/24
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                                                             11/24
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                        12/24
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                             13/24
Simulation in Logistics




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

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

                                                2011                                     14/24
Simulation in Logistics
                                                   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                                 15/24
Simulation in Logistics




• 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                                                                   16/24
Simulation in Logistics

   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                                             17/24
Simulation in Logistics

   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                                                      18/24
Simulation in Logistics

                                                                                       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                                               19/24
Simulation in Logistics
  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                 20/24
Simulation in Logistics

   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                                               21/24
Simulation in Logistics

   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                                                        22/24
Simulation in Logistics
  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                                         23/24
Thank you for your attention!
                                     SIMANDO Team
           SIMANDO
           9 Republicii Blvd
           Timisoara, TM 300159
           ROMANIA

           Tel: + 40 356 172 021
           Fax: + 40 356 172 017
           engineering@simando.com
           www.simando.com




                    2011                            24/24

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Simulation in logistics - SIMANDO

  • 1. Think | Simulate | Succeed Simulation in Logistics 2011 2011 1/24
  • 2. Outline  Company overview  Expertise  Products and services  Modeling and simulation  Simulation in Logistics  Order Fulfillment Systems  Warehouse Operations 2011 2/24
  • 3. Company Overview Our mission: SIMANDO delivers outstanding simulation, analysis and optimization software applications and services that enable its clients to better understand, design and run their processes and systems. Our vision: At SIMANDO, simulation is viewed as an important, multi-purpose component of the value chain. By this approach, we offer to our clients the most effective simulation-based tools and services that will enable them to maximize the results of their enterprises.  Founded 2009  Limited Liability Company  Headquarters: Timisoara, ROMANIA 2011 3/24
  • 4. Expertise Modeling and Simulation Continuous Improvement  Systems modeling, simulation and optimization  Lean principles implementation  All simulation paradigms - discrete events, agent-  Six Sigma/Design For Six Sigma based and system dynamics 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  Transport and distribution networks 2011 4/24
  • 5. Expertise Our certifications Our clients’ benefits  Rapid understanding of their environment and Certified Six Sigma Black Belt problems to solve American Society for Quality  Solutions based on proven methods and technology Project Management Professional Project Management Institute  Efficient communication and professional project management Certificate in Finance  Consideration for a mix of aspects that impact New York Institute of Finance the proposed solutions  Flexible, timely and cost efficient solutions Oracle Certified Professional Java Programmer Oracle Corporation 2011 5/24
  • 6. Products and Services  Products  Modeling and simulation component libraries  MANSIM™ - general manufacturing  SOLSIM™ - photovoltaics manufacturing  LOGSIM™ - warehousing and logistics  Specialized components for Lean Six Sigma applications  Services  Production, logistics, supply chain, healthcare, financial modeling and simulation  Training and assistance in simulation platforms and paradigms  Lean Six Sigma/Design For Six Sigma training and implementation  Product development and project management  Computer Integrated Manufacturing  Facilities planning 2011 6/24
  • 7. 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? SIMULATION GIVES YOU ANSWERS! 2011 7/24
  • 8. 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 8/24
  • 9. 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 9/24
  • 10. 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 10/24
  • 11. 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 11/24
  • 12. 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 12/24
  • 13. 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 13/24
  • 14. Simulation in Logistics Creativity is thinking up new things. Innovation is doing new things. ~ Ted Levitt E.g. Order Fulfillment & Packaging System (simulation application developed by SIMANDO) 2011 14/24
  • 15. Simulation in Logistics 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 15/24
  • 16. Simulation in Logistics • 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 16/24
  • 17. Simulation in Logistics  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 17/24
  • 18. Simulation in Logistics  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 18/24
  • 19. Simulation in Logistics 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 19/24
  • 20. Simulation in Logistics 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 20/24
  • 21. Simulation in Logistics  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 21/24
  • 22. Simulation in Logistics  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 22/24
  • 23. Simulation in Logistics 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 23/24
  • 24. Thank you for your attention! SIMANDO Team SIMANDO 9 Republicii Blvd Timisoara, TM 300159 ROMANIA Tel: + 40 356 172 021 Fax: + 40 356 172 017 engineering@simando.com www.simando.com 2011 24/24