Course 2 – MK. Simulasi Komputer System Dynamics Benazir Imam Arif Muttaqin, S.T., M.T. Teknik Industri, Institut Teknologi Telkom Surabaya benazir.imam.a.m@ittelkom-sby.ac.id OUTLINE 1. 2. 3. 4. 5. 6. 7. 8. 9. Introduction System Definition System Elements System Complexity System Performance Metrics System Variables System Optimization The Systems Approach System Analysis Techniques 1. Introduction WHY SYSTEM UNDERSTANDING IS NEEDED? • Knowing how to do simulation doesn’t make someone a good systems designer any more than knowing how to use a CAD system makes one a good product designer. Simulation is a tool that is useful only if one understands the nature of the problem to be solved. • Simulation exercises fail to produce useful results more often because of a lack of understanding of system dynamics than a lack of knowing how to use the simulation software. • The challenge is in understanding how the system operates, knowing what you want to achieve with the system, and being able to identify key leverage points for best achieving desired objectives. ILLUSTRATIONS ILLUSTRATIONS WHY SYSTEM UNDERSTANDING IS NEEDED? • This example illustrates the nature and difficulty of the decisions that an operations manager faces. • Managers need to make decisions that are the “best” in some sense. • To do so, however, requires that they have clearly defined goals and understand the system well enough to identify cause-and-effect relationships. • While every system is different, just as every product design is different, the basic elements and types of relationships are the same. • Knowing how the elements of a system interact and how overall performance can be improved are essential to the effective use of simulation. 2. System Definition SYSTEM DEFINITION • A system, as used here, is defined as a collection of elements that function together to achieve a desired goal (Blanchard 1991). • Key points in this definition include the fact that (1) a system consists of multiple elements, (2) these elements are interrelated and work in cooperation, and (3) a system exists for the purpose of achieving specific objectives. • Examples of systems are traffic systems, political systems, economic systems, manufacturing systems, and service systems. • Our main focus will be on manufacturing and service systems that process materials, information, and people. MANUFACTURING SYSTEMS • Small job shops and machining cells or large production facilities and assembly lines. • Warehousing and distribution as well as entire supply chain systems will be included in our discussions of manufacturing systems. SERVICE SYSTEMS • Service systems cover a wide variety of systems including health care facilities, call centers, amusement parks, public transportation systems, restaurants, banks, and so forth. 3. System Elements SYSTEM ELEMENTS ENTITIES • • • • • Entities are the items processed through the system such as products, customers, and documents. Different entities may have unique characteristics such as cost, shape, priority, quality, or condition. Entities may be further subdivided into the following types: 1. Human or animate (customers, patients, etc.). 2. Inanimate (parts, documents, bins, etc.). 3. Intangible (calls, electronic mail, etc.). For most manufacturing and service systems, the entities are discrete items. For some production systems, called continuous systems, a nondiscrete substance is processed rather than discrete entities. Examples of continuous systems are oil refineries and paper mills ACTIVITIES • Activities are the tasks performed in the system that are either directly or indirectly involved in the processing of entities. • Examples: 1. Entity processing (check-in, treatment, inspection, fabrication, etc.). 2. Entity and resource movement (forklift travel, riding in an elevator, etc.). 3. Resource adjustments, maintenance, and repairs (machine setups, copy machine repair, etc.). RESOURCES • Resources are the means by which activities are performed. • They provide the supporting facilities, equipment, and personnel for carrying out activities. • Examples: 1. Human or animate (operators, doctors, maintenance personnel, etc.). 2. Inanimate (equipment, tooling, floor space, etc.). 3. Intangible (information, electrical power, etc.) CONTROLS • • • Controls dictate how, when, and where activities are performed. Controls impose order on the system. At the highest level, controls consist of schedules, plans, and policies. At the lowest level, controls take the form of written procedures and machine control logic. At all levels, controls provide the information and decision logic for how the system should operate. Examples: 1. Routing sequences. 2. Production plans. 3. Work schedules. 4. Task prioritization. 5. Control software. 6. Instruction sheets. 4. System Complexity WHY SYSTEM IS COMPLEX? • Unfortunately, unaided human intuition is not very good at analyzing and understanding complex systems. • Economist Herbert Simon called this inability of the human mind to grasp real-world complexity “the principle of bounded rationality.” This principle states that “the capacity of the human mind for formulating and solving complex problems is very small compared with the size of the problem whose solution is required for objectively rational behavior in the real world, or even for a reasonable approximation to such objective rationality” (Simon 1957). SYSTEM COMPLEXITY FACTORS • Interdependencies between elements so that each element affects other elements. • Variability in element behavior that produces uncertainty INTERDEPENDENCIES • Interdependencies cause the behavior of one element to affect other elements in the system. • For example, if a machine breaks down, repair personnel are put into action while downstream operations become idle for lack of parts. VARIABILITY • Variability is a characteristic inherent in any system involving humans and machinery. • Uncertainty in supplier deliveries, random equipment failures, unpredictable absenteeism, and fluctuating demand all combine to create havoc in planning system operations. • Variability compounds the already unpredictable effect of interdependencies, making systems even more complex and unpredictable. VARIABILITY 5. System Perforance Metrics SYSTEM PERFORMANCE METRICS • Metrics are measures used to assess the performance of a system. • At the highest level of an organization or business, metrics measure overall performance in terms of profits, revenues, costs relative to budget, return on assets, and so on. • These metrics are typically financial in nature and show bottom-line performance. • Unfortunately, such metrics are inherently lagging, disguise low-level operational performance, and are reported only periodically. • From an operational standpoint, it is more beneficial to track such factors as time, quality, quantity, efficiency, and utilization. FLOW TIME • • • • • • The average time it takes for an item or customer to be processed through the system. Synonyms include cycle time, throughput time, and manufacturing lead time. For order fulfillment systems, flow time may also be viewed as customer response time or turnaround time. A closely related term in manufacturing is makespan, which is the time to process a given set of jobs. Flow time can be shortened by reducing activity times that contribute to flow time such as setup, move, operation, and inspection time. It can also be reduced by decreasing work-in-process or average number of entities in the system. UTILIZATION • The percentage of scheduled time that personnel, equipment, and other resources are in productive use. • If a resource is not being utilized, it may be because it is idle, blocked, or down. • To increase productive utilization, you can increase the demand on the resource or reduce resource count or capacity. It also helps to balance work loads. • In a system with high variability in activity times, it is difficult to achieve high utilization of resources. VALUE-ADDED TIME • The amount of time material, customers, and so forth spend actually receiving value, where value is defined as anything for which the customer is willing to pay. • From an operational standpoint, value-added time is considered the same as processing time or time spent actually undergoing some physical transformation or servicing. • Inspection time and waiting time are considered non-value-added time. WAITING TIME • The amount of time that material, customers, and so on spend waiting to be processed. • Waiting time is by far the greatest component of non-value-added time. • Waiting time can be decreased by reducing the number of items (such as customers or inventory levels) in the system. • Reducing variation and interdependencies in the system can also reduce waiting times. FLOW RATE • The number of items produced or customers serviced per unit of time (such as parts or customers per hour). • Synonyms include production rate, processing rate, or throughput rate. • Flow rate can be increased by better management and utilization of resources, especially the limiting or bottleneck resource. INVENTORY / QUEUE LEVELS • The number of items or customers in storage or waiting areas. • It is desirable to keep queue levels to a minimum while still achieving target throughput and response time requirements. • Where queue levels fluctuate, it is sometimes desirable to control the minimum or maximum queue level. • Queuing occurs when resources are unavailable when needed. YIELD • From a production standpoint, the percentage of products completed that conform to product specifications as a percentage of the total number of products that entered the system as raw materials. • If 95 out of 100 items are nondefective, the yield is 95 percent. • Yield can also be measured by its complement—reject or scrap rate. CUSTOMER RESPONSIVENESS • The ability of the system to deliver products in a timely fashion to minimize customer waiting time. • It might be measured as fill rate, which is the number of customer orders that can be filled immediately from inventory. VARIANCE • The degree of fluctuation that can and often does occur in any of the preceding metrics. • Variance introduces uncertainty, and therefore risk, in achieving desired performance goals. • Manufacturers and service providers are often interested in reducing variance in delivery and service times. • For example, cycle times and throughput rates are going to have some variance associated with them. 6. System Variables DECISION VARIABLES • • • • • Decision variables (also called input factors) are sometimes referred to as the independent variables in an experiment. Changing the values of a system’s independent variables affects the behavior of the system. Independent variables may be either controllable or uncontrollable depending on whether the experimenter is able to manipulate them. An example of a controllable variable is the number of operators to assign to a production line or whether to work one or two shifts. Controllable variables are called decision variables because the decision maker (experimenter) controls the values of the variables. An uncontrollable variable might be the time to service a customer or the reject rate of an operation. RESPONSE VARIABLES • Response variables (sometimes called performance or output variables) measure the performance of the system in response to particular decision variable settings. • A response variable might be the number of entities processed for a given period, the average utilization of a resource, or any of the other system performance metrics. • In an experiment, the response variable is the dependent variable, which depends on the particular value settings of the independent variables. STATE VARIABLES • State variables indicate the status of the system at any specific point in time. • Examples of state variables are the current number of entities waiting to be processed or the current status (busy, idle, down) of a particular resource. • Response variables are often summaries of state variable changes over time. • For example, the individual times that a machine is in a busy state can be summed over a particular period and divided by the total available time to report the machine utilization for that period. • State variables are dependent variables like response variables in that they depend on the setting of the independent variables. 7. System Optimization SYSTEM OPTIMIZATION (1) • • • • • Finding the right setting for decision variables that best meets performance objectives is called optimization. Specifically, optimization seeks the best combination of decision variable values that either minimizes or maximizes some objective function such as costs or profits. An objective function is simply a response variable of the system. A typical objective in an optimization problem for a manufacturing or service system might be minimizing costs or maximizing flow rate. For example, we might be interested in finding the optimum number of personnel for staffing a customer support activity that minimizes costs yet handles the call volume. In a manufacturing concern, we might be interested in maximizing the throughput that can be achieved for a given system configuration. SYSTEM OPTIMIZATION (2) • Optimization problems often include constraints, limits to the values that the decision variables can take on. • For example, in finding the optimum speed of a conveyor such that production cost is minimized, there would undoubtedly be physical limits to how slow or fast the conveyor can operate. • Constraints can also apply to response variables. • An example of this might be an objective to maximize throughput but subject to the constraint that average waiting time cannot exceed 15 minutes. SYSTEM OPTIMIZATION (3) 8. System Approach FOUR STEP ITERATIVE APPROACH IDENTIFYING PROBLEMS AND OPPORTUNITIES • The importance of identifying the most significant problem areas and recognizing opportunities for improvement cannot be overstated. • Performance standards should be set high in order to look for the greatest improvement opportunities. • Companies making the greatest strides are setting goals of 100 to 500 percent improvement in many areas such as inventory reduction or customer lead time reduction. • Setting high standards pushes people to think creatively and often results in breakthrough improvements that would otherwise never be considered. DEVELOPING ALTERNATIVE SOLUTIONS • It is necessary to begin developing a solution to a problem by understanding the problem, identifying key variables, and describing important relationships. • This helps identify possible areas of focus and leverage points for applying a solution. • Techniques such as cause-and-effect analysis and pareto analysis are useful here. • Once a problem or opportunity has been identified and key decision variables isolated, alternative solutions can be explored. EVALUATING THE SOLUTIONS • Alternative solutions should be evaluated based on their ability to meet the criteria established for the evaluation. • These criteria often include performance goals, cost of implementation, impact on the sociotechnical infrastructure, and consistency with organizational strategies. • Many of these criteria are difficult to measure in absolute terms, although most design options can be easily assessed in terms of relative merit. SELECTING AND IMPLEMENTING THE BEST SOLUTION • Often the final selection of what solution to implement is not left to the analyst, but rather is a management decision. • The analyst’s role is to present his or her evaluation in the clearest way possible so that an informed decision can be made. • Even after a solution is selected, additional modeling and analysis are often needed for fine-tuning the solution. • Implementers should then be careful to make sure that the system is implemented as designed, documenting reasons for any modifications. 9. System Analysis Techniques SYSTEM ANALYSIS TOOLS • Systems analysis tools, in addition to simulation, include simple calculations, spreadsheets, operations research techniques (such as linear programming and queuing theory), and special computerized tools for scheduling, layout, and so forth. • While these tools can provide quick and approximate solutions, they tend to make oversimplifying assumptions, perform only static calculations, and are limited to narrow classes of problems. • Additionally, they fail to fully account for interdependencies and variability of complex systems and therefore are not as accurate as simulation in predicting complex system performance. HAND CALCULATIONS • • • • • Quick-and-dirty, pencil-and-paper sketches and calculations can be remarkably helpful in understanding basic requirements for a system. Many important decisions have been made as the result of sketches drawn and calculations performed on a napkin or the back of an envelope. Some decisions may be so basic that a quick mental calculation yields the needed results. Most of these calculations involve simple algebra, such as finding the number of resource units (such as machines or service agents) to process a particular workload knowing the capacity per resource unit. For example, if a requirement exists to process 200 items per hour and the processing capacity of a single resource unit is 75 work items per hour, three units of the resource, most likely, are going to be needed. SPREADSHEETS • Spreadsheet software comes in handy when calculations, sometimes involving hundreds of values, need to be made. • Manipulating rows and columns of numbers on a computer is much easier than doing it on paper, even with a calculator handy. • Spreadsheets can be used to perform rough-cut analysis such as calculating average throughput or estimating machine requirements. • The drawback to spreadsheet software is the inability (or, at least, limited ability) to include variability in activity times, arrival rates, and so on, and to account for the effects of inter- dependencies. OPERATIONS RESEARCH TECHNIQUES (1) • Traditional operations research (OR) techniques utilize mathematical models to solve problems involving simple to moderately complex relationships. • These mathematical models include both deterministic models such as mathematical programming, routing, or network flows and probabilistic models such as queuing and decision trees. • These OR techniques provide quick, quantitative answers without going through the guesswork process of trial and error. • OR techniques can be divided into two general classes: prescriptive and descriptive. OPERATIONS RESEARCH TECHNIQUES (2) • Prescriptive OR techniques provide an optimum solution to a problem, such as the optimum amount of resource capacity to minimize costs, or the optimum product mix that will maximize profits. • Examples of prescriptive OR optimization techniques include linear programming and dynamic programming. • Descriptive techniques such as queuing theory are static analysis techniques that provide good estimates for basic problems such as determining the expected average number of entities in a queue or the average waiting times for entities in a queuing system. SPECIAL COMPUTERIZED TOOLS • Many special computerized tools have been developed for forecasting, scheduling, layout, staffing, and so on. • These tools are designed to be used for narrowly focused problems and are extremely effective for the kinds of problems they are intended to solve. • They are usually based on constant input values and are computed using static calculations. • The main benefit of special-purpose decision tools is that they are usually easy to use because they are designed to solve a specific type of problem. EXERCISE • Buat kelompok berpasangan (2 orang) • Amati sebuah sistem • Identifikasikan sistem tersebut: - Jenis (manufaktur vs jasa) - Elemen (entitasnya apa, aktifitasnya apa, resource yg digunakan apa saja, bagaimana kontrolnya) - Bagaimana interdependencies dan variabilities dalam sistem tersebut - System performance metric dalam sistem tsb apa aja - Variabel sistem (variabel keputusannya apa, variabel respon apa, state variable apa) - Bagaimana teknik analisis sistem dilakukan? (menggunakan spreadsheet, menggunakan or, atau bantuan komputer) THANK YOU!