1.

summary
contents page
scope and problem definition
description of the basic Simul8 model
Proposal one

First of all to get a good, working proposal one, it is necessary to go through

old model of production process using a given data collected in 31.10.14
The given data provides production procedure that can be considered as four
stages:
1. "Setup", taking around 3 hours, when the supervisor works with a "hard"
group to arrange and check the key parts for the specific order
2. "Hard install", introducing the centre segments, e.g. the motor, gearbox and
transmission; this normally obliges 21 hours and including simply the "hard"
group
3. "Soft install", fitting segments, for example, the lights, dashboard and seats;
this stage takes around 24 hours including a "delicate group"
4. Then the car goes to a test area to check the quality. Quality control takes
an average of 8:00, however about 10% does not match the quality, so the
machine that are not meet the quality must repeat the whole process again
Also there are two parallels of "hard install" and soft "soft work" stations,
where the setup and hard introduce happen for "hard install" and soft install
where soft install takes place.
While the production process includes numerous assets, there are 3 key staff:
Staff and movements
Day shift
Night shift
Supervisor(1)
+
+
hard group(2)
+
+
soft group(2)
+
+
They are all available on both the day and night shifts, which operate from
07:00-19:00 and from 19:00-02:00(from Monday to Friday)
Supervisor has low usage (24%), as it has many commitments at the factory,
while the groups have 95-99%
For the factory and space storage there are little rooms between hard and soft install
only 2 cars each and 1 storage that wait for the quality control test and autos obliging
revamp can be put away outside.

Left table indicates annual orders

for 2013/14 with a total number of
397, also in addition to the new
orders; the waiting list also has to
be considered 59 cars that were
waiting for production to begin.

Model

Orders

Inglese

167

Romana

173

Grande

57

Based on the values above the old model

for 2013/14 was constructed

Model 1

Simulation
Object

Performance
Measure

dispatched

Number Completed

Run
1

Averag
2
3
4
5
-95% e
95%
33 35 34 34 336.4
356.7
358
7
0
7
1
91
346.6
09

Using simulation with random number the average dispatched number was found. The
average number is 346.6. Next step is to compare old and new model using given financial
model below.
Marginal costs per car

setup
hard install
soft install

600
3360
1920

other manufacturing
other activities, e.g. delivery
components & materials
total

1280
960
6880
15000

The fix cost of 3M, which present Torre Cars pay to IT covering all of the fixed costs of the
current factory and the mean price of 30000 should be taken in to consideration to calculate
net profit.
With the help of Excel the net profit was calculated with a value is equal to 2205000 by the
formula:
((347*30000)-3000000)- (15000*347) = 2205000

So this number indicates annual net profit per year with the use of old simulate model.
The next step is to construct simulate model redesigning the hard install stage, that would
involve an additional cost of 500000 p.a. for each workstation but it would also reduce the
time from 21 to 15 hours per car.
Using Excel the net profit was calculated with a value is equal to 2205000 by the formula:
((347*30000)-3000000)- (15000*347) = 2205000
So this number indicates annual net profit per year with the use of old simulate model.

description of the revised Simul8 model to examine proposal 3

analyses of the key proposals
analyses of other possible proposals
recommendations and suggestions for further work