During difficult economic times, companies have few positive cost reducing options that simultaneously improve operational performance. The ability to identify cost reduction opportunities through improving operational efficiencies provides com panies with the ability to reduce costs while maintaining service levels, to increase production with the same level of re sources (thereby spreading the cost burden over a greater volume of product), or a combination of the two results.
Facing the need to increase production capacity while reducing costs from the process, a major HVAC manufacturer hired Deloitte Consulting to identify opportunities for improving the throughput of one of their production lines. During this time, Deloitte was introduced to Simio’s simulation package and the opportunity was presented to use simulation as a basis for identifying improvement opportunities, as well as quantifying the degree of potential improvement in terms of increased throughput or decreased operating costs. Through the use of Simio and supporting analysis, the Deloitte team determined that the opportunity existed to improve throughput by 41% and reduce work-in-process by 36%.
During difficult economic times, companies have few positive cost reducing options that simultaneously improve operational performance. The ability to identify cost reduction opportunities through improving operational efficiencies provides com panies with the ability to reduce costs while maintaining service levels, to increase production with the same level of re sources (thereby spreading the cost burden over a greater volume of product), or a combination of the two results.Facing the need to increase production capacity while reducing costs from the process, a major HVAC manufacturer hired Deloitte Consulting to identify opportunities for improving the throughput of one of their production lines. During this time, Deloitte was introduced to Simio’s simulation package and the opportunity was presented to use simulation as a basis for identifying improvement opportunities, as well as quantifying the degree of potential improvement in terms of increased throughput or decreased operating costs. Through the use of Simio and supporting analysis, the Deloitte team determined that the opportunity existed to improve throughput by 41% and reduce work-in-process by 36%.
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