1. Design and Optimization of Logistic Systems
Think | Optimize | Succeed

2. SIMANDO is a global management and technology consulting firm with a high
focus on decision support systems and operational excellence. We partner with
client organizations in all industrial sectors to address their most important
challenges and develop complete solutions that will enable them to achieve
their objectives and make significant improvements in their performance. Our
customized approach combines innovative technology, systems thinking and
passion for operational excellence. This ensures that our solutions enable our
clients to achieve sustainable competitive advantage by optimized operations
and responsiveness to the current dynamic business environment.
Founded in 2009, SIMANDO is a private company with its headquarters in
Timisoara, Romania. For more information, please visit:
www.simando.com

3. Outline
 About SIMANDO
 Services and Products
 Simulation Modeling
 Simulation of logistic systems
 Order Picking Systems
 Warehouse Operations
2011 3/35

4. About SIMANDO
Company founded in 2009
Privately owned, LLC
Headquarters: Timisoara, ROMANIA
Mission
At SIMANDO, our primary mission is to help our clients make substantial, continuous improvement in their performance. We
accomplish this by providing them with outstanding technology solutions and consulting services to increase their excellence
degree at all levels.
Vision
We strive to be the company that understands perfectly its clients' objectives, always delivers quantifiable results and
maximizes the financial and trust investments made by its clients.
Our Certifications
Certified Six Sigma Black Belt Project Management Professional
(American Society for Quality) (Project Management Institute)
Certificate in Finance Oracle Certified Professional Java
(New York Institute of Finance) Programmer
(Oracle Corporation)
2011 4/35

5. Expertise
Modeling and Simulation Operational Excellence
 Systems modeling, simulation and optimization  Lean Six Sigma Transformation
 All simulation paradigms - discrete events, agent-  Design for Six Sigma
based and system dynamics
 Toyota Production System
 Statistics
 Theory of Constraints
 Product Development
Software Applications Development Industrial
 Advanced algorithms and design patterns  Project and product development management
 Software architecture
 Computer Integrated Manufacturing
 Software development lifecycle methodologies
 Industrial engineering and factory planning
 Functional and object oriented programming
 Manufacturing, logistics, supply chain design
 Database Management Systems
 Transport and distribution systems
 MRP/ERP Systems
2011 5/35

6. Services and Products
 Services
 Production, logistics, supply chain, healthcare engineering , modelling and simulation
 Operations optimization
 Lean Six Sigma/Design For Six Sigma training and implementation
 Training and assistance in simulation models development
 Product development and project management
 Computer Integrated Manufacturing
 Products
 Modeling and simulation component libraries
 MANSIM™ - general manufacturing
 SOLSIM ™ - photovoltaics manufacturing equipment
 LOGSIM ™ - warehousing and logistics
 Specialized software applications for Lean Six Sigma, planning and scheduling
2011 6/35

7. P&L Systems Performance Optimization
Industrial
Engineering
Information
Six Sigma
Technology
Production &
Logistic Systems
Performance
TRIZ Lean
Theory of
Constraints
Synergistic framework for continuous significant improvement of production and logistics
2011 7/35

8. Logistic Systems Leverage Points
1st Dimension
1st Dimension
Products and processes selection
Warehouse location, size and layout
2nd Dimension
Warehouse or DC personnel
Material handling systems
Degree of automation 2nd Dimension
3nd Dimension
Jobs scheduling
Preventive maintenance protocols
Personnel allocation protocols
Batching protocols
Waste reduction programs
The 3 Dimensions of Logistics 3rd Dimension
Investment
Logistic System Performance
2011 8/35

9. Why Simulation ?
What?
Where? Who? The future is of greater interest
to me than the past, since that
is where I intend to spend the
! rest of my life.
When? Why? ~ Albert Einstein
How?
BECAUSE … SIMULATION GIVES US ANSWERS!
2011 9/35

10. Simulation Study Types
Simulation
Studies
System Design Problem Solving Continuous Improvement
 New processes  Diagnosis  Opportunity definition
 New facilities  Problem definition  Performance measurement
 New concepts  Solution finding  Performance improvement
Structural Design Diagnosis Opportunity Definition
 Elements  Problem definition  Benchmarking
 Layout
 Logic
Logical Design Testing Schemes Test Plans
 Flow logic  What-if scenarios analysis  Feasibility check
 Operations sequences
 Priority rules
Parametric Design Solution Validation Plan Validation
 Cycle times  Sensitivity analysis  Sensitivity analysis
 Reliability requirements
 Velocities, rates
2011 10/35

11. Simulation Benefits
Analyze the behavior of
Experiment and get complex systems
Make prompt and
fast feedback
correct decisions
Convince clients of your
operational capabilities Communicate ideas
efficiently and credibly
Teach new Test fast, fail fast, adjust fast.
concepts easily
~ Tom Peters
Discover alternatives to
unexpected roadblocks
Save money in short
and medium term
Safely analyze
dangerous scenarios Implement your decisions
with confidence
2011 11/35

12. Applicability Areas
Manufacturing Lean Six Sigma Logistics and Supply Chain
 Key Performance Indicators  Stochastic process simulation
 FMEA  Statistical analysis  Transport networks design
 Production flow design  Variability elimination  Fleet planning & maintenance
 Planning and scheduling  Pull mechanism design  Warehouse design
 Resource estimation  QOS metrics  Operations optimization
 Capacity planning  Dynamic VSM  Supply chain planning
 Total cost of ownership  Benchmarking
Healthcare IT & Telecom Urban Development
 Resource estimation  Wireless networks topology
 Public utilities planning
 QOS  Protocols design  Evacuation plans creation
 Epidemics dynamics  Agent-based emergent  Disaster recovery
 Operations optimization behaviour analysis  Anti-terrorist measures
 QOS
2011 12/35

13. How We Do It ?
Continuous improvement is better
than delayed perfection.
~ Mark Twain
Problem formulation
Objectives and plan definition
Control
Model conceptualization
Data collection
Your trajectory to success Implementation
with simulation
Reporting
Model development
Experiments run and analysis
Code verification
Design of experiments
Model validation
2011 13/35

14. Modeling
Reusable models and components encourage continuous improvement!
Specialized
component
libraries
2D/3D
customizable
animation
Domain specific
library components
Fast and easy
drag-and-drop
layout modeling
2011 14/35

15. Simulation Models Input/Output Data
CAD Run-time Charts
Text Text
Excel Excel
XML Simulation Model XML
Input Output
Database Database
Data Data
Webservice Webservice
2011 15/35

16. Simulation of Order Picking/Packaging
Creativity is thinking up new things.
Innovation is doing new things.
~ Ted Levitt
E.g. Order Picking & Packaging System
(simulation application developed by SIMANDO)
2011 16/35

17. Simulation of Order Picking/Packaging
Pickers & zones
Pickers & weigh runtime statistics
stations
Equipment
Storage zones runtime statistics
filled with goods
Operators loading
from pallets into
the storage zone
Pallets with
different types of
goods
Packaging
End of line & equipment
delivery pallet
2011 17/35

18. Simulation of Order Picking/Packaging
• Highly detailed behavior of pickers (states: IDLE, PICKING, • Detailed modeling of equipments (e.g. conveyors, offloaders,
MOVING_BUSY, MOVING_FREE, WAITING, and any other strapping, plastic foil application, foil heating, weight checker,
custom state according to needs) storage zones, carousels, mini-loads, stacker cranes, labeling)
• Support for complex interactions among personnel (pickers, • Probabilistic/deterministic events for breakdowns,
operators), equipment and items maintenance, change of consumables, setup, assistance etc.
• Picking time based on item weight, dimension, appedices, • Tracking/evaluation of energy use, consumables, spare parts
wrapping, picker dexterity, tiredness etc. according to operation scenarios
• Personnel have dexterity levels, moving speeds, max load • Support for any type of items, picking strategies used (single,
capacity etc. batch, baskets, tote boxes, sorting etc.)
• Dynamically configurable layout, number of resources, • Customizable animation, behavior and parameter set for any
animation, animation/speed ratio component
• Any type of KPI can be tracked, reported and analyzed
2011 18/35

19. Simulation Order Picking/Packaging
 IT’S MORE THAN A SIMULATION MODEL, IT’S AN APPLICATION!
Feedback
Production plan
(ERP/WMS/WCS)
 The simulation model resulted is a Java stand-alone application that is utilized by the end-user
daily after the system is installed, to simulate production scenarios and make fine-tunings
 Extremely fast - 1 week production scenario for an average order fulfillment and packaging
system simulated on a regular laptop in less than 3 minutes!
2011 19/35

20. Simulation of Order Picking/Packaging
 Simulation model/application benefits (order fulfillment systems specific)
 Great support for system design activities: system layout, equipment selection, value engineering, FMEA, KPIs
 Work dispatching and scheduling alternatives efficiency
 Order batching and picking strategies
 Zoning and slotting of products
 Zone balancing and labor required to meet schedule
 Zone reconfiguration recommendations
 System bottlenecks detection and management
 Sales tool to convince your clients of your capabilities and abilitiy to deliver in time
 Cost effective optimizations
 Features
 Labor, zones, and system productivity KPIs
 Runtime charts
 Reports and statistics available in PDF format following a simulation run
 Integration with ERP, WMS, WCS or other software applications
 Great visualization tool
 Extremely fast simulation
 Platform independent application (Windows, Linux, Mac OS)
2011 20/35

21. Simulation of Warehouse Operations
Multi-depth/level
Forklifts storage racks
Trucks arrival according
to deterministic or
probabilistic schedule
Conveyor system
Receiving docks
S/R machine
E.g. Warehouse Operations
(simulation application developed by SIMANDO)
2011 21/35

22. Simulation of Warehouse Operations
Innovative and revealing customized
animation based on large data Extensive and easily configurable
visualization techniques simulation parameter set
Runtime and post-simulation
statistics and charts for inflows,
outflows, stocks, equipment
S/R machine with acceleration utilization, energy consumption,
and deceleration for all types of spare parts etc.
movements; single/multi cycle
2011 22/35

23. Simulation of Warehouse Operations
 Simulation models/applications utility
 Long term planning
 Dimensioning of storage areas and warehouse technology/MH equipment selection
 Preparation of the warehouse layout (storage & access pathways)
 Development of fundamental operating strategies and proof of functionality
 Input for the implementation of WMS/WCS functions
 Staging protocols
 Medium term planning
 Planning the asortment and range of items to be kept in stock to react to seasonal/market
influences
 Manpower requirement planning, preparation of shift models and work schedules
 Reorganization of stocks
 Planning of transport routes within the warehouse
2011 23/35

24. Simulation of Warehouse Operations
 SIMANDO simulation models/applications benefits
 All aspects of warehousing operations (receiving, cross-docking, storing, picking, packing, shipping) are covered,
thus local optimizations to the detriment of the whole system are avoided
 Calculation of a realistic Total Cost of Ownership (TCO) based on stochastic models
 The built-in flexibility enables you to run any type of scenario imaginable
 The end-result is a stand-alone Java application that can be used for planning and optimizing operations daily
 Great tool to make decisions in reverse-logistics (which have a high degree of variability/uncertainty)
 Features
 Simulation/application developed with AnyLogic platform
 2D/3D customizable animation
 Runtime charts
 Reports and statistics available in PDF format following a simulation run
 Integration with ERP, WMS, WCS or other software applications
 Extremely fast simulation models/applications compared to other fixed-library simulation platforms
 Platform independent application (Windows, Linux, Mac OS)
2011 24/35

25. Logistic Systems Life Cycle
Cost vs. Impact Cost
Potential is negative
(Impact < Cost)
Potential is positive
(Impact > Cost)
Impact
Time
Design Produce/Build Deliver Support
Impact of design stages on life cycle
2011 25/35

26. Thank you for your attention!
SIMANDO Team
SIMANDO LLC
9 Republicii Blvd
Timisoara, TM 300159
ROMANIA
Tel: +40 356 172 021
Fax: +40 356 172 017
E-mail: info@simando.com
Web: www.simando.com