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Improvement of Business Processes with Simulation Models

Today our work consists of a large number of complex processes which take place in parallel and interactively. Therefore it is often hard to find the criteria and parameters needed to achieve the best possible solutions for upcoming decisions on expansions, resource allocations etc. This is all the more true because in many cases the processes are described only very vaguely.

Even if process managers are experts in their respective fields of work, it is difficult for them to answer detailed questions about the performance of, e.g., business processes, logistic processes or production processes. Examples of such questions are:

  • How can I find out whether my processes run well with efficient interplay?
  • What do I have to do to improve my processes or design them as optimally as possible? How do I find potential savings?
  • What and where do I have to adjust process parameters if certain prerequisites changes (e.g. the order situation, changes in the qualification of employees)?
  • How can I guarantee high product quality?
  • What are the parameters which fulfill the production demands on the one hand, and, on the other hand, optimize the result?

If such questions are not answered well, unnecessary costs occur which often are hard to evaluate straight away and whose avoidability is not obvious. The resources melt away, so to speak, between the fingers. Unfortunately the situation is very often analyzed more exactly only if increasing costs start to destroy the business, or when the competition performs much better.

With the simulation tool PACE, and given adequate effort, it is possible to examine and improve your processes and their synchronization, to recognize weak points and to fully exploit improvement potentials. The costs of such analysis are almost always substantially lower than the attainable savings.

Quotations on the topic

If you can't describe what you are doing as a process, you don't know what you are doing.

W. Edwards Deming
Inventor of Quality Control

Forecasts are difficult, particularly if they concern the future.

Mark Twain

Risks are difficult to manage since they require decisions which have to do with events in the future and our forecasting powers are very weak.

EuRatio Akademie Zürich

An enterprise is not a state but a process.

Ludwig Bölkow

Simulation is the key technology of the new millennium, with expected growth rates of 20% per annum.

Stanford Research Institute

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