littlefield simulation 2

Author: adair-gallo-junior

Post on 11-Oct-2015

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Littlefield simulation 2

Littlefield simulation 2Adair Gallo JuniorBarbara BedranFrank RossJiaying GaoZachary NolteFactory Layout

ObjectivesTo make money

To be efficient

Objectives

Actions we took to accomplish our objectivesReduce queuesMake sure there were always raw materials available Get the best contract (Numer 3) with the maximum revenuesReduce lead times in order to fulfill contract number 3

Job arrivalsThe job arrivals kept constant during all simulationSo, at the moment we found the perfect number of machines for each station, we did not have to change it for the rest of simulation

Job arrivalsStation 1The utilization was very high in station 1 in the beginning of the simulation The big utilization generated big queuesSo we decided to buy more machines to reduce the utilization and by consequence, the queues Utilization in Station 1

Station 1The station was having big queues in the beginning of the simulation So we decided to buy more machines to reduce the queues

Queued Jobs in Station 1Station 2

Utilization in Station 2

Queues in Station 2The same analysis was taken in station 2We bought one machine to reduce untilization and consequently reduce queues Station 3Utilization in Station 3Queues in Station 3The same analysis was taken in station 3We bought one machine to reduce untilization and consequently reduce queues

Inventory (Raw materials)In the beginning of the simulation the reorder point was too lateThe inventory got to zero before the next order arrivedSo, we increased the reorder point to 3300 and later to 3900 kits to ensure we would not run off materials We also increased the order quantity to 10800 kits to reduce the number of orders, since each order costed $ 1000Inventory in kits

Lead timesIn the beginning the lead times were big because there were not enough capacity in the factoryAfter the lead times were reduced, we changed our contract to make more money per jobAs we can see, the number of machines we bought for each station and our decision in the reorder point were good, because the lead times kept constant and we could fulfill the requirements for contract number 3Daily average job lead time

CashAs we can see, the growth rate increased after we bought more machines and increased our capacityThe red line shows the tendency if we took no decisions. As we can see, we would have have finished the game with only $ 1,559,264 if we did nothing. We got 47.3% more money with our decisions or $ 738,142 more.

Cash on hand at the end of each day

Growth prediction (days: 66-123)We ploted our money just after buying raw materials from day 66 to 123We used our data to find an equation that described the growth rate of our moneyThe ajusted equation (R=0.999) is presented in the graphThis data correspond to a difference between the order quantity and the reorder point of 6300 kits

Ajustment of our money

Growth prediction (days: 136-258)We ploted our money just after buying raw materials from day 66 to 123We used our data to find an equation that described the growth rate of our moneyThe ajusted equation (R=0.9995) is presented in the graphAfter day 132, we changed the order quantity and the reorder point This data correspond to a difference between the order quantity and the reorder point of 6600 kits

Ajustment of our money

Growth prediction (Comparison)As we can see in the ajusted equations, after incresing the difference between the order quantity and the reorder point (day 132) from 6300 to 6900, we notice that the growth rate (slope) increased from 6.95 to 7.55.This happened because we needed to order raw material with a lower frequency. Thus, we reduced the frequency we paid the $ 1000 per order.So, we conclude that we should have increased the order quantity sooner in the simulation, in order to get a higher growth rate. (But the lack of data about interest over cash in hand and money growth data prevented us from changing it before.

Overall team standing

Last thoughts Predict the future based on the pastAct as soon as possible to improve efficiency

Questions?