manufacturing simulation ROI

Simcad Simulation Software - Benefits and ROI

With the current state of the economy, industry professionals throughout the world are looking for process improvement methods to lower cost and increase efficiency, while at the same time achieving a sustainable, competitive edge.
With many challenges surrounding the validation of a proposed solution, process optimization often evades the best of us. Simulation technology has evolved exponentially over the last few years, providing users with a dynamic interface, which drastically reduces the time required to create the model and improve the overall accuracy of the simulation run. The simulation model not only provides guidance to the areas that require immediate attention, but allows users to gain unprecedented insight into the process flow prior to the lean transition.
Simulation ROI

Benefits of Simcad Manufacturing Simulation Software

Using dynamic simulation, a replica of the current operation is created and validated to prove that the baseline model behavior and results are comparable to existing data. Once the ideal process improvement solution is determined, the transition plan can be tested and analyzed to minimize the impact on current production schedules, allowing for optimum efficiency during an otherwise hectic phase of the improvement process.


For instance, during analysis, the model may show the “excessive” resource travel within an operation. More specifically, costs are progressively incurred through the non-value added time to the total product lead time. A resource that travels to move parts from one location to another 30% of the time will cost the company 30% salaries, benefits and intangibles without generating a return. Furthermore, the excessive travel causes an increased inventory on the production floor and longer product lead time.


As a result, money which could otherwise be used to improve cash flow or implement process improvements is now tied up in the operation.
The total savings in such an implementation is $9500.00 off the bottom line inventory cost. This amount was tied up in “in-production” inventory used mainly to keep production flowing. In addition, eliminating $2.25/hour per person, in a 200 employee factory equals $3600.00 per shift compounded over a year (340 days) and $1,224,000.00/year per shift. Add to that the reduced lead time, which increases the production throughput by 46% using the same equipment, resources and schedules. The bottom line? One less production shift.


What You Need to Know:
The ROI of dynamic simulators far exceeds their implementation cost as they provide optimization of the current state while providing an efficient analysis path for all future changes to the operation. CreateASoft Inc. is the developer of Simcad ® dynamic simulation software and Digital Twin Studio® real-time dynamic visibility & predictive analytics tool.


Manufacturing operations can vary from very complex operations involving high mix production and immense variability to more straight forward operations such a simple assembly lines and low mix production.

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