Continuous Improvement

The identification and the elimination of the constraints which limit the performance of supply and manufacturing networks (systems) is the task of continuous improvement, a process of lean management. So far continuous improvement is a reactive process since the main constraint is often identified a posteriori after having impacted negatively the performance of the system. Another inconvenient is that the other system constraints remain hidden as long as the main constraint has not been eliminated. It can therefore take a long time until all significant system constraints are identified and eliminated.

Once a constraint has been identified, corrective measures have to be taken. Implementation of new operating conditions (inventory targets, installed capacity, campaign sizes, lead times, etc.) is always associated with risk. Modifying one local parameter may have undesired side effects and may affect the entire network, deteriorating the overall performance. A wrong move may cause huge financial loss, damages the company reputation or even endanger its existence.

Thanks to the modelling and dynamic simulation approach it is possible to identify all the constraints before they impact the system performance. Further the corrective measures can be validated before their implementation to avoid possible side effects like material shortage, bottle necks, etc., leading to late delivery to customers. The ROI of the corrective measures can be calculated as well. Last but not least, knowing all the significant system constraints enables to plan and coordinate the implementation of all the corrective measures at the same time, reducing the number and the duration of production interruption periods.

Technology Evaluation

The potential of process innovation initiatives has to be quantitatively evaluated. What will be the performance of a supply and manufacturing network if a new technology is implemented. This information is necessary to calculate the ROI of the efforts inputted in the development of that new technology.

A modelling and dynamic simulation approach can calculate the performance of the system before and after the implementation of a new technology.