capacity planning modelling
It doesn't matter whether you are responsible for capacity planning for industrial processes, for a transport terminal or for a contact centre, or any other facility - you still face the following potential hazards:
- You get the capacity right, but use more resource (cost) than really needed
- You minimise investment and operating costs and use resources efficiently but miss capacity targets
- You achieve a good balance of capacity and efficiency, but with no ability to respond quickly to demand variations
- You achieve the capacity required under perfect conditions, but have no idea of the impact of process interruptions or failures
- Worst case, you get everything wrong
- You don't know which of the above you're going to get until you implement your plan
Capacity planning isn't easy and the more factors involved and the more shared resources involved, the more multi-dimensional the problem becomes. Many capacity plans have failed because theoretical capacity was based solely on applying average utilisation figures to individual process stages. A Paragon dynamic model, however, can simulate the discrete nature of many processes and the complex interactions between the 'web' of processes that must work together. In other words, the model can provide an exact replication of the way that processes work and so can reveal the exact capacity outcome that will result. The model then provides a unique insight into why the process performs as it does and becomes a powerful tool to help you make and thoroughly test improvements. Many more options can be tried, more quickly and at less expense than in any other way.
At Paragon, since our inception, we have worked with many organisations to model and improve their capacity planning. In many cases their plans were changed dramatically due to the insights that the model provided.
Consolidation of local NHS Accident & Emergency facilities to improve services and reduce the costs compared to the existing multiple smaller facilities
Open Case Study (new window)
A simulation that identified the throughput capability of a waste processing system, and enabled savings in costs in excess of £100m.
Open Case Study (new window)
Major investment in an assembly area for a new breed of printer - needed an animated model of the assembly circuit for Xerox to operate.
Open Case Study (new window)
"There was…an immediate cost saving because the simulation model showed that two fewer AGVs were needed than indicated by the original spreadsheet calculations – a total saving of £160,000."
