Assessment of VSM Scenarios by Simulation of Logistics Systems in Petrochemical Company

Subject Areas : Business Strategy

Mohsen Parhizgar ¹

1 - Department of Industrial Management, Marvdasht Branch,Islamic Azad University, Marvdasht, Iran

Received: 2013-12-01 Accepted : 2015-10-03 Published : 2017-04-01

Keywords: Simulation, Optimization, Value Stream Mapping, Logistics Equipment, Material Handling Cost,

Abstract :

Believe that VSM involves the concurrent improve of processes, organizations, and their supporting information systems to achieve radical improvement in time, cost, quality, and customer’s regard for the company’s products and services. Nowadays, simulation is the most important way to do VSM and improving logistics processes. A time study was performed by measuring the time duration per process and identifying different time drivers from direct observation, interviews and time templates. These results were then consolidated in to a generalized framework (simulated process) that was used to optimize material handling time and cost in logistics processes. In this paper, the process of loading, unloading and movement of the containers, in the firm has been studied. The aim of this study is to determine the maximum efficiency of process and movement equipment’s and also to minimized the cost and time for this purpose. Simulation and VSM processes have been used to study this system regarding the complexities of the logistics processes. At the end by designing and implementing of model in ARENA software, the results of implemented simulation, by study of alternatives have been analyzed. Finally, current optimization leads to increase efficiency inthe firm’s logistics and reduction of approximately 12% of the logistics costs and 35% of process cycle time.

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