HP Saves $100,000 Annually and Achieves Productivity Gains Using Simulation | SIMUL8

  SIMUL8 case study

HP saves $100,000 annually and achieves productivity gains with SIMUL8

HP saved $100,000 annually and achieved productivity gains by simulating their production lines with SIMUL8 to determine the most effective set-up for their process.

About the project

Hewlett Packard (HP) is a worldwide leader in the development and manufacturing of electronic equipment. For more than a decade, HP have been using simulation to improve production throughput, process times and increase profits to their bottom line.

HP used SIMUL8 to simulate the assembly and test process in the manufacturing of test and measurement products. The inputs for the simulation for one particular product family included a comprehensive mix of data, including cycle times for process stages, machinery failure rates, labor availability, shift patterns and storage capacities.

By varying orders and labor availability, HP's simulation could determine the most effective set-up of the production line. According to Ian Harrison, QMD at HP, the simulation not only met its objectives but also illustrated the delays and constraints within the process, and presented opportunities to reduce and eliminate non-value adding activities.

"Simulation is particularly speedy at highlighting the major constraints within critical processes and thus enabling the model builder to construct the correct event sequence and buffer sizes to keep the major constraints fully utilized."

Ian Harrison, QMD, HP

Expanding the use of simulation within HP

Within QMD Process Engineering, the number of simulation users quadrupled in a 12-month period. This is almost completely due to SIMUL8's comprehensive, intuitive and easy to use features.

Ian noticed "By dispersing simulation into the rest of the engineering community and first level management, many more processes are analyzed and improved". More users has also provided more opportunities for training and more innovative applications, as users continue to push the boundaries of simulation's use.

Another major benefit brought by SIMUL8 was that it provided a platform where simulation has become more familiar, and easier to use as a desktop productivity tool. As a training tool, it has become easier to illustrate management fundamentals such as Goldratt's theory of constraints or the need for Kanban.

This particular project saved HP an estimated $100,000 annually in opportunity costs as well as other productivity gains.

The chart below is an example on how the simulation results identified critical constraints.

HP simulation results

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