Analyzing Current and Future Business Performance Using Simulation
Novelis planned to shift production at its Oswego Plant from predominately can sheet product to an increased focus on automotive products. In advance of this conversion to a Tier 1 Automotive Supplier, Novelis conducted a business systems gap analysis to ensure there was a smooth transition. The gap analysis project started with building the “As is” model of the current process, and then projected the one or more “To be” scenarios of future state. This exercise identified the process changes needed to transition from the existing state to the required future state to accommodate the new business.
This change in product output represented a significant shift in the way the business was handled and processed from customer order acceptance through to product delivery. In addition, the automotive business introduceed new process complexity, such as:
- Quality/Process/Shipping documentation
- Truck Logistics – dedicated fleet, carrier management
- Closed loop Scrap management
Creating a transition plan to ensure a successful business conversion into this new market was an immediate and top priority.
As part of the gap analysis, Novelis identified a need for tools that could provide tangible business measurements to compare current “As is” business processes to the “To be” planned state. Visual8 was contacted by Novelis to work with the BPM team to develop a simulation tool with the capability of demonstrating these business performance measurements.
Visual8 has experience in providing simulation models as part of BPM initiatives for a variety of industries, and has a proven track record helping analyze, optimize and improve business processes through this approach.
Working with Novelis’ BPM team, Visual8 developed an Automotive Business BPM Simulation that provided feedback as to how systems would react as transactional volumes ramp up in line with planned future production. This business metric feedback along with the static visual representation of process flow, dependencies, sequence and inputs/outputs helped generate buy-in from stakeholders regarding planned process changes.
The development of the BPM process simulation tool provided Novelis’ Automotive Business Systems GAP Analysis team with an important dynamic analysis capability. The tool identified the potential process bottlenecks that would be experienced within the Automotive and Specialty Business Unit as it transitioned into higher volumes of automotive business.
The simulator also analyzed what process improvements could be made to accommodate future state scenarios to acceptable performance levels.