Use of Simulation software in Service Industries

~ By Samved Patil

- A simulation is a useful way for you to test real-life situations and processes without actually implementing those situations and processes. Since they help you to identify where improvements can be made before processes are put in place, working with simulations can save valuable time and resources. 

Simulation modeling solves real-world problems safely and efficiently. It provides an important method of analysis which is easily verified, communicated, and understood. Across industries and disciplines, simulation modeling provides valuable solutions by giving clear insights into complex systems.

Just as simulating traffic conditions and driving situations can help students improve their driving skills, simulations can help you analyze the service sector processes and entire industry and discover where improvements need to be made. In today’s world of global competition, customer satisfaction has become a major concern in service industry settings like banks, hospitals etc. Service industries , in general, are characterized by high variability in demand. Under changing demand scenario, if the workforce is constant, customer’s waiting time may increase drastically which may result in heavy loss.

Benefits of process simulation
Using simulation-based methods in service industry has significant benefits. The benefits are achieved in terms of cost savings and intangible assets such as a deeper understanding of the process. The payback time of a typical improvement project is shorter than two years - in some cases only a few months. 

Benefits of applying simulation are:

• Reduction of capital cost by better design
• Reduction of time for design, commissioning, and start-up
• Reduction of pilot plant cost, size, and complexity
• Improved productivity and efficiency by material and energy optimization
• Increased process knowledge and confidence in big decisions
• Training aid for new personnel
• Extension of equipment life
• Improved safety and environmental management

As tools of prediction, models can support thought and communication as well as training and instruction. They can be used for control or decision-making processes; to investigate complicated, expensive, dangerous, or inconvenient systems; to investigate systems in which study in real time would be a problem; to elucidate operating mechanisms for complex systems; and to investigate alternate strategies. 

The modelling process may consist of the following steps:

• Recognition of a problem or an opportunity (in the current or new process)

• Delineation of the system to be studied

• Formulation of questions to be asked

• Gathering of the information i.e., process and measurement data needed for the model construction 

• Generation of the model (modelling) 

• Running the model (simulation)

• Analysis of the results and their implications 

• Defining how the model will be maintained for possible future needs

The simulation market is evolving in numerous directions, incorporating new capabilities and predictive models, leveraging machine learning and artificial intelligence, reducing barriers to adoption and ease of use as well as expanding its value to larger audiences within an organization through collaboration and data accessibility.