What is Simulation?
Simulation: “Attempting to predict aspects
of the behavior of some system
by creating an approximate model of it.”
Simulation is a powerful tool and methodology, providing decision makers
and analysts the ability to run “What If” scenarios of any
business process. Any process can be modeled accurately, accounting for
complex interdependencies and variability, and can be run quickly
in accelerated time. The simulation model can be used to predict the
impact on key metrics and significantly reduce the risk associated with
key business decisions.
Similar to flight simulation where pilots fly an accurate
model of the system and can practice with a number of scenarios
prior to the real thing, business decision makers can
do the same by modeling processes and testing potentially high risk ideas.
Why Simulate?
Traditional spreadsheet solutions are static and often
do not account for variability and interdependencies. Simulation is dynamic
allowing key predictive metrics to be tracked over time. Simulation is
used in:
• Determining and evaluating capacity
• Testing lean initiatives by simulating value stream maps
• Balancing manufacturing lines
• Identifying and managing bottlenecks
• Designing and testing supply chain initiatives
• Testing new scheduling practices
• Business process analysis, including service level scenarios
• Justifying capital expenditures
• Identifying risk in Microsoft Project schedules
If you can describe it you can model it.
For more information download the PDF
for Justifying Simulation.
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