COURSE: OPEN ELECTIVE

DATE: 22/10/2020
SUBJECT: FACILITY PLANNING & SPECIALIZED BUILDING DESIGN
SUBJECT CODE: AR215
LECTURE NO: 08
BY: Kranti Kumar Maurya

Simulation in Facility Planning

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NATIONAL INSTITUTE OF TECHNOLOGY, PATNA
Simulation
– is the process of developing a model of an entity
that can then be altered and analyzed to determine
the impact of changes in key variables.
– can be used for process improvement, scenario
planning, and resource utilization.
– is one of the most powerful tools available for
analyzing new system design, retrofits to existing
systems, redesign of system components, and
proposed changes to operational processes.
– enable the user to visualize how an entire system
can be altered by changing an individual piece of
the system

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Simulation
– The ability to model existing and forecasted data permits
organizations to test multiple options and quantify
relationships and values in a laboratory setting with
minimal risk to the organization.
– Scarcity of resources compels organizations to test and
validate a variety of scenarios before strategic decisions are
made and plans are executed.
– Simulation offers what conventional analytical techniques
do not—a comprehensive, precise, flexible way to test,
modify, and retest processes until a best-suited scenario is
identified.
– Simulation allows organizations to make informed, data-
driven strategic decisions that minimize the possibility of
placing capital at undue risk, strengthen the organization’s
market position, and improve the organization’s financial
viability. 3
Simulation types
• Deterministic simulation
• A model that does not contains random variables.
• In deterministic models, the output of the model is
fully determined by the parameter values and the
initial conditions.
• Discrete stochastic simulation
• a process-oriented estimation approach that
measures the performance of a system and its
responses to varying conditions.
• Stochastic models possess some inherent
randomness.
• The same set of parameter values and initial
conditions will lead to an ensemble of different
outputs.

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Simulation Scenarios
• Current-State Model
• Ideal Scenario
• Variable Scenario
• Desired Utilization Rate Scenario
• Revenue Growth Scenario

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Simulation Limitations
• Constructing a simulation model can be an
expensive, time-consuming process.
• Accurate results depend on the depiction of
scenarios that precisely mimic the real system.
• The output is a function of the variables that
have been entered and may not be the
optimized solution for the system.

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Example

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Characteristics - Example

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Example