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A CASE for PROCESS SIMULATION
1e-mail:info@SherTrack.comwww.SherTrack.com ©2008, SNAPPS and SherTrack are trademarks of SherTrack LLC; other product or service names mentioned herein are thetrademarks of their respective owners. 
Whitepaper
A Case for Simulation
Companies practicing Lean Six Sigma without processmodeling and simulation techniques need to considerwhat these practices can provide in terms of risk-analysis and decision-making (such as cost estimating,scheduling, resource allocation, engineering design,etc.) by modeling the probabilistic behavior of asystem, process or service.
Specifically, process modeling and simulationcan accomplish the following:
• Predict performance of current processes againsteffectiveness, readiness and cost to determine areas of significant improvement potential• Enable rapid analysis in situations with eitherextensive data or no data• Provide an understanding of why key factors have thehighest impact on results and where to focus efforts• Meet quality objectives by determining optimalspecifications and tolerances• Communicate findings in a simple, highly visualmanner
Why companies don't practice ProcessModeling:
The most common reasons companies restrict the use of process modeling and simulations involve cost, timing,safety concerns, lack of simulation/modelingexperienced resources, and/or unavailable or lack of skills in using modeling and simulation tools.One of the greatest complaints we hear from seniormanagers is “projects are successfully completed, butI’m not seeing a significant change to the bottom line.”That’s because in the Define stage of (DMAIC), LeanSix Sigma experts don’t have enough information toquantify the benefits. They are predicting a bottom linefinancial benefit without truly understanding how theprocess behaves, let alone how it would behave afterthe change. Without seeing the big picture you maycomplete a successful Lean Six Sigma project and seeno impact in dollars for your organization. There is abetter way. With process modeling you create asimple simulated model of the process. You willvisually see which projects will affect the totaloutput, and which will sub-optimize the system.
Why Practice Process Modeling?:
Process modeling and simulation can be invaluable insituations where the construction of a real worldmodel is infeasible. Process modeling helps tovisualize a proposed system, facility layout, or otherprocess change. It can help answer "what if"questions and scenarios within a given confidencelevel. Process Modeling and simulation can oftendemonstrate the effectiveness (or lack of) of a newdesign or process through the exploring theimplications of operational changes and theinvestigation of the impact of changes in themarketplace.
Key advantages of integrating Lean SixSigma phases (DMAIC) with processmodeling:
Overall interdependencies in process
.
The standardLean Six Sigma toolbox has no way of showing theinterdependencies between one area of the processand another. In complex change initiatives wherethere are interdependencies between processes, whenincidents happen that cause delays, bottlenecks,variability, etc., if you can’t show theinterdependencies, understanding the system andresolving issues is very difficult. If you can’tunderstand the system and pinpoint the waste andbottlenecks, changing the system could be risky andtypically does not provide the desired results. Asimulated model shows those interdependencies,which allows for the uncovering of changes that willaffect the overall system.
 Risk free experimentation
.
It is proven that real-timeexperiments are costly and can have an enormousnegative impact on the system. If you areexperimenting with a simulated model of the system,the only cost is setting up the experiment andreviewing the results. There are no negative impactsto system output or to the morale of the workforce intrying new process experiments. You can change the
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    sbonacorsi

    Are you interested in connecting with a Lean Six Sigma Thought Leader or Consulting Professional, Please feel free to contact me directly. Warm Regards, Steven Bonacorsi Vice President, MBB, MBA, MS-CIS, PMP Toll Free 888-826-2484 Cell Phone 603-401-7047 Main Fax 480-730-7980 sbonacorsi@theaitgroup.com Tomorrow starts today... so let's work hand-in-hand to Create the Future... http://www.theaitgroup.com – Lean Six Sigma Training and Events http://www.sixsigmalive.net – Lean Six Sigma Online Courses & Certification http://www.linkedin.com/in/stevenbona... - Add me directly to LinkedIn http://www.linkedin.com/e/gis/37987/6... - Lean Six Sigma LinkedIn Group http://lean6sigma.ning.com – Join the Lean Six Sigma Business Network http://ezinearticles.com/?expert=Stev... - Lean Six Sigma Articles http://www.konnects.com/profile/sbona... - Please add me directly to Konnects

    reply02 / 10 / 2009
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