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Senior Management Services - Consulting

Monte Carlo Simulation

Purpose: Monte Carlo simulation is a powerful tool that lets you run "What If" scenarios on business processes that use complex variables and interdependencies. The simulation model runs in accelerated time to greatly reduce the risk associated with key business decisions.

While companies use many processes, usually a dozen or so are the most-critical. Managers must understand these critical processes. Most organizations use some of the following "macro" processes:

  • Designing products and services
  • Marketing and selling
  • Producing and delivering products or services
  • Billing
  • Servicing customers

Your success depends on flawless performance of these critical processes. Inefficient processes degrade profits and customer satisfaction. Conversely, efficient processes improve both profits and customer satisfaction.

Intended Results: To implement process modeling to show the "big picture," and show root cause of problems.

Many companies use "patch" solutions instead of finding root cause. However, it's more effective to find root cause and solve the REAL problem: upstream errors that cause downstream messes.

Process modeling uncovers bottlenecks. It solves quality problems and reduces costs. It expels needless steps and costly delays. The problems literally "jump off the page."

You then know the REAL problems and can apply REAL solutions -- instead of "patches."

Our LIVE-animation process model shows it all!

  • See flowcharts come to life. See where, when, and in what quantity work arrives. See the workflow. See resource assignments. See bottlenecks and idle time. Discover ways to streamline your processes.
  • See staff requirements using real-life variability. See process changes. Test and compare various staffing plans. Perform what-if analysis. Simulate changes with low-cost impact. Schedule your staff, plan your shifts.
  • See statistical reports of resource usage. These reports help convey proposed changes and ease implementation.

Structure: In our Needs Analysis, we'll show you how others use process modeling to streamline their business to:

  • Determine and evaluate capacity
  • Balance manufacturing lines
  • Identify and manage bottlenecks
  • Test new scheduling practices

To create a model, we’ll need to

  • Create a flowchart you the current or intended process (this becomes the "model" process).
  • Create and employ relevant data (arrival rates, execution times, probability models, resource allocation, if-then scenarios, etc.).
  • Run the model
  • Observe throughput activity animation
  • Evaluate reports showing resource loads, bottlenecks, etc.
  • Iteratively adjust and refine the model and run again.

Click here to request more information.

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