Computers in Industry 38 Ž1999.

159–172

Simulation in production system life cycle
) Jan , Milan Gregor ´ Kosturiak ˇ Institute of Industrial Engineering, Zilina, SloÕak Republic Department of Industrial Engineering, UniÕersity of Zilina, MoyzesoÕa 20, SK-010 26 Zilina, SloÕak Republic

Abstract People managing production process need a new kind of decision support in the business environment which is being changed rapidly. They need new tools for dynamic modelling of enterprise processes to search for answers to the following basic questions: What is to be changed? To be changed into what? How to change it? This paper presents some new trends in the area of simulation of manufacturing systems and gives some recommendations, derived from experience, for effective simulation application in the whole production system life cycle. The paper summarises how discrete-event simulation can be used in the design, operation and continuous improvement of complex manufacturing and logistical systems. A combination of simulation with systems engineering methodology and the horizontal and vertical extension of simulation models in an enterprise are described. Last part of the paper briefly presents the main results of above-mentioned approach in logistics, flexible manufacturing, electrical engineering industry, furniture assembly and tyre manufacturing. q 1999 Elsevier Science B.V. All rights reserved.
Keywords: Simulation; Production system life cycle; Dynamic modelling

1. Introduction There are several variables which affect manufacturing enterprises today—rising competition and market globalisation, stringent for high quality, low costs and short throughput times, available new technology, changes in the living standard and the value system, increased environmental problems, etc. Various modelling techniques have experienced a great boom, due to their ability for functional testing and optimisation of dynamic processes in an enterprise. These tools are able to analyse complex and dynamic relationships in production and they support the deci-

) Corresponding author. Tel.: q421-89-6462703, q421-903500054; fax: q42-89-53541; e-mail: kostur@fstroj.utc.sk, http:rrfstroj.utc.skr ; kpi, http:rrwww.produktivita.sk

sions in all phases of a production system’s life cycle. The new requirements for enterprise flexibility, quality improvement, costs and throughput times reduction - cannot be achieved by using the traditional approaches. While the U.S. and European industry developed the grand CIM, FMS, CADrCAM and MRP II projects, Japan introduced Just In Time and Lean Production—not to demonstrate the possibilities of the new technology but to expose operational inefficiencies and waste in the manufacturing process. The main CIM effort was in the flexibility and productivity improvement, but its implementation stressed above all the technical aspects of the factory integration and the most flexible production factor—people—remained in the background. The new technology must be implemented into the organisational framework that uses and de-

0166-3615r99r$ - see front matter q 1999 Elsevier Science B.V. All rights reserved. PII: S 0 1 6 6 - 3 6 1 5 Ž 9 8 . 0 0 1 1 6 - X

3. various forms of waste in the production Žoverproducing. transporting. Gregor r Computers in Industry 38 (1999) 159–172 ˇ velops the skills. overloaded production. knowledge and creativity of the human resources. 2.e. evaluation and decision. The hierarchical. distribution. These concepts are the answer on many occurring problems in production systems today—e. agile structures with the removing the traditional boundaries between the departments in an enterprise ŽFig. which enable rapid modelling of the various control scenarios and testing of possible consequences of decisions.g. unnecessary inventory.. wrong production schedules. The mentioned problems of the current PPC systems leads to the fact that the skills and intellect of people being insufficiently used in the production. inventories and various forms of waste in the factory instead of their elimination. This problem . Kosturiak.. fractals. The production supervisor usually knows very well where the main problems in the production system are and he has enough experience for flexible reactions to various situations. They need the new tools for dynamic modelling of enterprise processes in search for answers to the following basic questions: What is to be changed? To be changed into what? How to change it? An enterprise have to be considered as an entire system in the solving of this questions.g. This causes a shift of the problem e. This paper summarises how discrete-event simulation can be used in design. Business decisions and fast-changing manufacturing environment In order to establish an effective manufacturing strategy in this turbulent environment. synthesis and analysis... etc.. production process. Enterprise organisational structures are dramatically changed today. Combination of simulation with systems engineering methodology Systems engineering ŽSE. But the throughput times are in fact the dynamic quantities.. manufacturing cells with self-directed manufacturing teams. manufacturing facilities and the entire logistical chain Žsuppliers. is defined w1x as the art of designing and optimising complex systems. The main phases of systems engineering are: problem analysis and setting of goals. tactical and operational decisions in an enterprise must be co-ordinated. the production managers need above all the decision support tools. waiting. unnecessary motion. dependent on the efficiency of the production resources and on the product mix. The operation of many PPC systems is expensive. production programme Žproduct variety versus production complexity. defective parts. centralised and static structures are transformed into dynamic. Instead of the difficult control systems with fixed algorithm which is often not fully understood by the user. i. for example. The production order schedule is. People in the production need a new kind of decision support in the business environment which is being changed rapidly. unnecessary processing. segmentation. planned by using the constant throughput times. permanent missed due dates. Insufficient attention is given to the order release control in the production system and to the utilisation of the bottlenecks at the shop floor. The traditional systems for production planning and control ŽPPC. isolated MRP from the operational level. material shortage. 1. starting with an expressed need and ending up with the complete set of specifications for all the system elements. they are not able to show the change of the actual situation in the production process in real time Žunexpected machine breakdowns. operation and continuous improvement of complex manufacturing and logistical systems. etc. and the whole logistical chain of an enterprise must be optimised as an integrated system. The strategic. The local focus on the enterprise processes often leads only to local improvement..160 J. Also the supply. M. they are inflexible and people are often degraded to operators for data preparing. There are also many changes in a shop floor organisation—focused factory.. companies must optimise fundamental decisions concerning organisational structure. distribution and servicing.. the movement of the bottlenecks. etc. work often statically. execution of commands and plans from the computer programme and the level of freedom of decision making is very restricted.

Changes of the enterprise organisation structures. resource allocation and co-ordination. 1. M. solving cycle is reiterated in each stage of the project. Gregor r Computers in Industry 38 (1999) 159–172 ˇ 161 Fig. The project management is responsible for all the aspects of a project organisation—project planning and control. project organisation.J. Kosturiak. documentation. An example of the application of systems engineering . project progress monitoring. In the foreground of the system design there are the technical aspects of the project. etc. Systems engineering integrates two methodologies: system design and project management.

Systems engineering in manufacturing system design and simulation application fields in the whole life cycle of production system. .162 J. M. Kosturiak. 2. Gregor r Computers in Industry 38 (1999) 159–172 ˇ Fig.

but also the decisions concerning situation analysis and the defining of the project objectives. model building and verification. .e. etc. Large simulation models of logistic systems are designed and built on a project basis. Systems engineering deals with a system in its whole life cycle. 3. Theory of constraints.. from analysis and design. etc. the generation of solution variants and their evaluation.. for example. Kosturiak. tested and finally integrated into a common hierarchical model. 2. The model com- Fig. M. The features of the object oriented simulation make team based co-operation in the development of the model possible. i. simulation and continuous improvement of production system. in the assembly of a production facility—various specialists in the team prepare the components and sub-assemblies. The new generation of simulation tools should support not only the traditional tasks Žstatistical data analysis. which are then assembled into the system. through implementation and operation to its modernisation and re-design. In the similar way the specific modelling objects and submodels are designed.J. Gregor r Computers in Industry 38 (1999) 159–172 ˇ 163 methodology in design and operation of production systems is presented in Fig. It is similar.

A relatively new application area of simulation is its incorporation into continuous improvement process ŽCIP. The Japanese approach to the improvement process emphasises above all the incremental improvements in the shop floor level in the small teams. This.. The integrated application of a simulation model in the whole life cycle of a logistic or manufacturing system can improve considerable the economic results of simulation.. Internet. . labour or production methods w3.6x view ŽTheory of Constraints. etc.g. is based on finding and eliminating waste in machinery. Gregor r Computers in Industry 38 (1999) 159–172 ˇ ponents can be developed in the different locations and their exchange and integration can be realised in the computer network Že. can be refined and used for the stage of system re-design. Fig. Project management techniques should also be implemented in this model design phase w2x.164 J.. The rough simulation model. Eliyahu Goldratt’s w5. capacity plans. 3. extended with control functions and interfaces with the envi- ronment Žshop floor data collection and production planning and control database. recent very popular concept.. The same model. Kaizen. labour allocation. Kosturiak. Fig. Simulation in continuous improvement process ŽIPI Zilina.. 4.4x. can support dynamic scheduling of the production orders. developed for the purpose of system analysis and conceptual design. M.

Gregor r Computers in Industry 38 (1999) 159–172 ˇ 165 is focused above all on the system constraints Žbottlenecks. M. Integration of simulation modelling in enterprise. American and European techniques. developed by the Institute of Industrial Engineering ŽIPI. 4... The local decisions and improvements must be measured according to their impact on the global corporate goals. .J. Kosturiak. 4 w7–9x. Integrated approach—horizontal and vertical extension of simulation models in an enterprise The traditional simulation tools make it possible to model the manufacturing lines. Zilina and implemented in a number of Slovak companies is shown in Fig. A new approach to the integration of simulation with an improvement process. flexible manufac- Fig. operating expense. cash flow. 5. Simulation technique is an ideal tool for identification of the ‘real’ constraints and for testing and evaluation of the proposed measures and their impact on the entire company. Integration of modelling methods with a team based continuous improvement process is an optimal combination of the best Japanese. in the enterprise logistic system and on the integration of the operational measurements Žthroughput. with the overall management measurements Žreturn on investment. inventory. net profit.

Fig. . The future development of the new simulation systems is di- rected to the integrated enterprise modelling in two directions. Integration of simulation with manufacturing system design tools. 6. manufacturing cells. etc. M. Gregor r Computers in Industry 38 (1999) 159–172 ˇ turing systems.166 J. Kosturiak.

. re-routing orders. Ø Vertical integration of the decision making processes at strategic. additional capital costs for unused equipment. to the highest degree possible. etc. Ø Graphical user interface and animation. tactical and operational level in production planning and control system. Simulation is used for example to decide what jobs are running on what machine and in what order.. economic changes on the market.production output and throughput times.. increased building costs.. Simulation results . 6. The above mentioned problems. Ø Horizontal integration of the manufacturing and assembly processes with the entire enterprise logistics chain and with the external processes in the manufacturing environment Žsuppliers and various supply strategies. orders for raw materials and purchased components are determined. Daily scheduling decisions are supported at the operational level. etc. demand forecasting.J. Ø Testing of the ‘what if’ or ‘what now’ scenarios Že. On the tactical level the production volumes of the individual products are planned. M. Ø Flexible and event-driven analyses to provide visibility of what impact of unanticipated changes that occur will have on the shop floor. insurance. Ø Pro-active management support which optimally integrates the advantages of the computer technology and human resources. The experience shows two typical mistakes in the planning without simulation: Ø Over capacity Žincreased overhead costs—light.g. Gregor r Computers in Industry 38 (1999) 159–172 ˇ 167 Fig. led to the broad on-line applications of simulation. re-prioritising a specific Fig. On-line simulation integrated with the enterprise information system and shop floor data collection system offers the following main advantages: Ø Direct bi-directional data exchange between simulation model and its environment during simulation run. Kosturiak. The corporate long-term plans for production requirements and production resources are prepared on the strategic level. Ø Under-Capacity Žovertime costs and possible lost business due to longer throughput times and inefficient inventory floating. At the strategic level the aggregate system is modelled and details of the operating or control logic are not included. distribution network.. the due dates for their completion and the production order release times are scheduled. Detailed simulation analyses that enable to finetune or ‘optimise’ the performance of a system are performed at the tactical level.furniture production. heat. A goal is to correlate. 8. ŽFig. Logistical system . 7.. An example of an integration of simulation with manufacturing system design tools is in Fig. etc. planned and actual requirements and resources. 5. as well as the increase of the computer performance and simulation software capabilities. A plant manager can test his new schedules or control polices when machine failure or material shortage occur.. power.

9. Flexible manufacturing system. .168 J. Kosturiak. Gregor r Computers in Industry 38 (1999) 159–172 ˇ Fig. M.

10. Chair production. Kosturiak. Gregor r Computers in Industry 38 (1999) 159–172 ˇ 169 Fig. . M.J.

. Electric socket manufacturing. 11. M. Gregor r Computers in Industry 38 (1999) 159–172 ˇ Fig. Kosturiak.170 J.

SQL.above all in automotive industry. Gregor r Computers in Industry 38 (1999) 159–172 ˇ 171 Fig. etc.. 10 presents the results of a simulation projects in office chair production. The traditional approach is building of standard interfaces with the other software packages. Also the testing of various control strategies brought considerable improvement of the production indicators. 7 and the main results at Fig. Tyre production . 8. The following projects will be briefly presented in this section: Ø Logistical Chain in Furniture Production and Distribution ..J. Industrial applications The simulation specialists of the Institute of Industrial Engineering Zilina who developed the above described approach implemented their solutions in the more than 20 industrial application . There are more possibilities on how to integrate simulation in an enterprise structure. warehousing and logistics. adding overtime.the simplified structure of the logistical Ø system is presented at Fig. Fig. Simulation of an assembly system for electric sockets brought the results presented at Fig. 11. and the throughput times were decreased of 30%. Another way of integration is the building of specialised simulation toolkits for supporting decision making processes at various enterprise levels and their integration. Ø Ø Ø 5. This crucially affect the methods and tools for designing and managing these complex systems which have shorter life .. Transportation and process industry. 12 shows simulation model of tyre production in Matador Puchov. 9. the production throughput was increased of 100%. their ongoing improvement and the necessary involvement and motivation of people.g. e. Socket Interface. M. Fig. RPC. etc. Conclusion The new ISO 9000 proposal emphasizes a system approach to all processes in logistics and production. Kosturiak. ´ 6. In a Flexible Manufacturing System ŽFig.Matador.. DDE.. 12. order. re-distributing manufacturing resources.

. E.. w4x I. 1997. AESOP GmbH Stuttgart Ž1992. Kosturiak. Daenzer. in Stuttgart Ž1987–1988. FH UlmrGeislingen Ž1992–1998. 1997 Žin Slovak. the simulation tool... Goldratt. born 1961. ´ J. Gregor. Matuszek. ˇ Engineering. The crucial factor of the efficient simulation application is the ‘‘simulationist’’. Slamkova. He has international experience from the Fraunhofer Institute of Production Technology and Automation ŽIPA. ´ I. Ways to the Higher Productivity.. Jan and Milan Gregor are lectures on simulation tech´ Kosturiak ˇ nology as visiting professors at TU Lodz Bielsko Biala ŽPoland. H. TU Salerno Ž1996. w2x E. w6x J. Kosturiak. Mi Ieta. Huber. ˇ´ M. Prague 1996. Simulation . IPI Liberec 1996 Žin Czech. Professor Jan . He must manage this method. . Just in Time—Philosophy for a Good Management Ž1994.Tool for Productivity and Profit Increasing.172 J. is ´ Kosturiak ˇ the Managing Director of the Institute of Industrial Engineering Zilina ŽSlovakia. w3x M. the right formulation of this question should be: ‘How long can we still ignore this technology and make the wrong decisions?’ Simulation can lead to considerable improvements in industrial companies. The Haystack Syndrome. Slamkova. Japan Productivity Centre Ž1997. Masın.. References w1x F. Industrial managers often ask in the following wrong way: ‘Can we afford the simulation technique in our company?’ However. TU Salerno Ž1996. He has international experience from the University of Technology Vienna Ž1988. Basl. Gregor r Computers in Industry 38 (1999) 159–172 ˇ w9x B. and BWI ETH Saarbrucken ¨ Ž1993. University of Zilina. the required theoretical basis and he must objectively estimate the requirements and costs for the simulation project and the expected profit from this technique. cycles due to changing requirements and new technologies. Turekova. born 1955.. w5x E. Vytla. and many papers in a wide variety of journals in the area of computer simulation. F. and he is lecturing production systems design and computer integrated manufacturing at the Department of Industrial Engineering University of Zilina. ˇ ´ F. Chromjakova. Jan and Milan Gregor have published three books: ´ Kosturiak ˇ Factory 2001—Revolution in the Corporate Culture Ž1993. Imai. They have consulted with numerous companies involving simulation projects and implementing new production philosophies. M. 1986. University of Zilina 1998 Žin Slovak. Nottingham Trent University Ž1997... Systems Engineering ŽVerlag Industrielle Organisation 1985. Institute of Flexible Automation—INFA Vienna Ž1993. INFORWARE 4r1998. ŽNorth River Press 1991. Simulation of Production Systems Ž1994. ŽRandom House. in Slovak. ´ Production Planning and Control. Professor Milan Gregor. 4th International Conference System Integration 96. production systems design and production planning and control. Kral. Integration of the Key Software Areas in an Enterprise. in Czech. J.. Kuric.. in German. NotZurich ¨ tingham Trent University. Debnar. Methods and Tools of the Enterprise Logistics. Gregor.. and University of Technology. Kaizen. w8x J. and FH Ulm ŽGermany. M. It can help to identify the bottlenecks in the enterprise logistic chain or it can support the decisions concerning investment in new production technology. ´ J. The wide availability of simulation tools and powerful computers create the appropriate conditions for the broad application of simulation methods in solving the above mentioned problems. 1992. Kosturiak.... is the Head of the department of Industrial Engineering at the University of Zilina and he is lecturing computer simulation. w7x R. TU Bielsko Biala 1996. decision processes in production and marketing.... Saarlandes University in Ž1992. Industrial ´ M.M.

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