Promise and Problems of Simulation Technology in Scm Domain

This paper begins by identifying the potential Promise of Simulation domain. It also provides a brief review of this domain and modeling methodologies as applied to supply chain optimization. Problems and solutions of this area are discussed forming the rationale behind most of the industrial practice of this author. As a result most of the deterministic Business Process Reengineering and Opportunity Assessment work that needs to be done resorts to the “a priori methods”. Building the simulation models costs more time and effort than implementing an equivalent solution from SAP such as APO or any part thereof in the domain of Supply Chain Management and Optimization. Against this environment and e-Supply Chain Management as a domain of the focus, this paper describes the methodology of doing Business Cases with Case Studies to illustrate how the Supply Chain Opportunity Assessment through the Blue Printing process is carried out. 1 PROMISE OF SIMULATION Industry experts on manufacturing technology have recognized the importance of simulation and visualization. Simulation and modeling have been identified as one of two breakthrough technologies that will accelerate the grand challenges facing manufacturing in 2020. Fulfillment of the recommendation would provide fundamental building blocks for the dynamic models and ‘real-time’ simulations of 2020. It has been recognized by researchers and practitioners that techniques such as variation simulation analysis (VSA) and factory floor layout simulation can improve product performance. Assembly modeling can be used to complement simulations to determine if changing the order of steps in the assembly of a complex product can lead to labor savings and reduce variation. Combining three-dimensional product modeling with simulation techniques can help determine the cost of alternative manufacturing processes. Even the Semiconductor Research Corporation’s (SRC) Factory Sciences board has also identified manufacturing simulation as a high payback area. Examples of current manufacturing simulation applications include: modeling and verification of discrete and continuous manufacturing processes (machining, injection molding, sheet metal forming, semiconductor fabrication, refining, etc.), offline equipment programming (robots), system layout planning, material flow analysis, process and system visualization, ergonomic analysis of work areas and manual tasks, evaluation of schedules, and business process modeling. However while the manufacturing simulation software domain has huge future the present does not appear to be a robust market like ERP. Hundreds, if not thousands, of commercial simulation software products are currently marketed to support these and other areas. It is likely that the number and types of simulation applications will continue to grow rapidly in the coming years. For the most part, these software applications do not interoperate with each other, or with other manufacturing systems that need to share data. Independent economic studies have estimated the size of the manufacturing simulation and visualization software market in the range of $650 million dollars by the 2001 time frame. Although studies have recognized the potential of manufacturing simulation and visualization, there are a number of technical and economic barriers that hinder the use of this technology. Industry expense for implementing simulation technology is much greater than the cost of computing hardware, peripheral devices, software licenses, and maintenance. Typically companies must factor in the cost of salaries and training for simulation and support staff, translation of existing company data, systems integration of applications, and development and maintenance of models. These costs are likely to be much greater than the initial acquisition costs for the simulation software and hardware.