improving business performance: demystifying simulation and optimization
DESCRIPTION
This session provides an overview of how to use simulation and optimization techniques and technologies to support business performance improvement. Both of these technologies have been accused of being difficult to apply from a practical sense. This session will help to simplify how to use these powerful toolsets to significantly improve business processes and organizational performance through their application to front-end analysis phases of projects as well as operational monitoring and management activities. Explored will be the types of business problems that can benefit from the use of simulation and optimization including manage risk and uncertainty in implementing BPM and a BPMS, a simplified definition of simulation and optimization techniques, as well as a real-world example of how these technologies are used for design, process monitoring and continual improvement strategies.TRANSCRIPT
1 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Ed StephanPMP®
CACI International, Inc.
Session Title:Improving Businesses Performance: Demystifying Simulation and Optimization
WelcomeWelcome
to Transformation and Innovation 2007 The Business Transformation Conference
2 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
This presentation will…
1. Help simplify how to use these toolsets to improve business processes performance
2. ID the types of business problems that can benefit
3. Examine the documentation perspective of simulation
4. Show how simulation and optimization are integrated
3 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
OverviewHow to achieve business performance improvement:
• Through the use of simulation techniques and technologies• Through the use of optimization techniques and technologies
4 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
This presentation will…
1. Help simplify how to use simulation to significantly improve business process performance
2. ID the types of business problems that can benefit
3. Examine the documentation perspective of simulation
4. Show how simulation and optimization are integrated
5 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Object-based Model Development
6 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Drill-down Approach
Processes unique to NS are distinguished from
processes unique to OS
7 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Drill-down w/in 1. Announcement & Selection
SIMPROCESS Model of VA Nurse Recruitment & Selection Process:• 144 Individual Tasks• 79 Logical Branches
Top-level View of Process:
8 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Drill-down within 1.1 Vacancy Occurs
9 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Comparison of AS-IS & WHAT-IF Histograms
AS-IS
WHAT-IF
10 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
This presentation will…
1. Help simplify how to use these toolsets to improve business process performance
2. Identify the types of business problems that can benefit from the application of this technology
3. Examine the documentation perspective of simulation
4. Show how simulation and optimization are integrated
11 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Candidates for Simulation and Optimization
1. Labor-intensive activities (e.g. personnel recruitment)
12 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Projected Benefits of Specific Improvements
AS-IS
72
WHAT-IF
25
VetPro
22
Mailing
6Approvals
6
Other
9
Apply, 4
0
10
20
30
40
50
60
70
80
AS-IS VetPro Mailing Approvals Apply Other WHAT-IF
WHAT-IF Improvements
Da
ys
to
fill
13 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Candidates for Simulation and Optimization
1. Labor-intensive activities (e.g. personnel recruitment)
2. Complex combinations of high volume activities where it’s prototyping isn’t feasible (e.g. data capture processing that includes manual keying)
14 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Enterpri$e$y$tem$
Te$t Lab
EnterpriseModel
Simulation=Cost-effective Alternative to Lab
15 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Candidates for Simulation and Optimization
1. Labor-intensive activities (e.g. personnel recruitment)
2. Complex combinations of high volume activities where it’s prototyping isn’t feasible (e.g. data capture processing that includes manual keying)
3. Activities where the workload consists of a large volume of small, independent tasks (e.g. call center operation)
16 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Logic Diagrams of FAA Air Traffic Call Types
17 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Simulation on Demand
18 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Candidates for Simulation and Optimization
1. Labor-intensive activities (e.g. personnel recruitment)
2. Complex combinations of high volume activities where it’s prototyping isn’t feasible (e.g. data capture processing that includes manual keying)
3. Activities where the workload consists of a large volume of small, independent tasks (e.g. call center operation)
4. Activities where the combination of a large number of independent variables must be optimized (e.g. supply chain management)
19 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Supply Chain Management: Execution
S1S1
D1D1 S1S1
M2M2S2S2 D2D2
M1M1 D1D1 S1S1
S2S2
D1D1M1M1
European European RM SupplierRM Supplier
European European RM SupplierRM Supplier
Key Other Key Other RM RM
SuppliersSuppliers
Key Other Key Other RM RM
SuppliersSuppliers
Alpha Alpha RegionalRegional
WarehousesWarehouses
S1S1
DR1DR1 SR1SR1
DR1DR1 SR1SR1 DR1DR1 SR1SR1
DR3DR3 SR3SR3
RM RM SuppliersSuppliers
DistributorsDistributorsALPHAALPHA
DR3DR3 SR3SR3
S1S1
AmericasDistributors
AmericasDistributors
SR1SR1
SR3SR3
20 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Candidates for Simulation and Optimization
1. Labor-intensive activities (e.g. personnel recruitment)
2. Complex combinations of high volume activities where it’s prototyping isn’t feasible (e.g. data capture processing that includes manual keying)
3. Activities where the workload consists of a large volume of small, independent tasks (e.g. call center operation)
4. Activities where the combination of a large number of independent variables must be optimized (e.g. supply chain management)
5. Forecasts must be continually updated based on the latest operating metrics (e.g. Emergency Dept.)
21 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Optimization Example
22 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
This presentation will…
1. Help simplify how to use these toolsets to improve business process performance
2. ID the types of business problems that can benefit
3. Examine the documentation perspective of simulation
4. Show how simulation and optimization tools are integrated with other BPM tools
23 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Links to Detailed Documentation
24 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Documentation Links
25 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Sample
Document
26 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
This presentation will…
1. Help simplify how to use these toolsets to improve business process performance
2. ID the types of business problems that can benefit
3. Examine the documentation perspective of simulation
4. Show how simulation and optimization tools are integrated with other BPM tools
27 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Predictive Analytics Using Latest Metrics
1. Paper Assumptions
PaperProcessModel
PaperProcessModel
1b. Volume Projection
WorkflowControlSystem 2a. OCR Start & Stop
1a. Paper Assumptions
OCR Throughput
2b. OCR Processing Time
EnsembleEnsemble
Volume Projection
Paper Process Model
March April MayMarch April MayMarch April May 3. OCR Throughput
2. Poll for Latest Metrics
28 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Thank YouThank YEd StephanPMP®
CACI International, Inc.
Contact Information:(703) [email protected]
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