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Line 74: ===Diagnosing process issues=== Simulation approaches are particularly well equipped to help users diagnose issues in complex environments. The ([[Theory of Constraints]]) illustrates the importance of understanding bottlenecks in a system. Identifying and removing bottlenecks allows improving processes and the overall system. For instance, in manufacturing enterprises bottlenecks may be created by excess inventory, [[overproduction]], variability in processes and variability in routing or sequencing. By accurately documenting the system with the help of a simulation model it is possible to gain a bird’s eye view of the entire system. A working model of a system allows management to understand performance drivers. A simulation can be built to include any number of [[performance indicator]]s such as worker utilization, on-time delivery rate, scrap rate, cash cycles, and so on.

Discrete-event simulation: Difference between revisions