Modelling reality to understand and solve business problems
In a competitive environment, businesses are continually expected to improve their operations to increase efficiency, profitability and business value. When undergoing change, organisations can derive substantial benefit from using a model that allows change to be tested in a safe environment. Simulation is an effective technique that enables organisations to identify and manage the impact of change while maximising the benefits.
What is Simulation?
Simulation incorporates both process simulation and systems dynamics modelling. It is performed using a computer model that mimics the operations of a real life or proposed system. This system could be the routing of calls in a call centre, the production of cars on an assembly line or staff allocation in a hospital. It allows a dynamic picture of the system to develop over time and takes into account all the resources, constraints and interactions involved. Simulation models can also factor in the random events of everyday life, such as machine breakdowns, staff absences, irregular customer arrival rates, etc. System dynamic modelling focuses on interactions and influences on the outcomes, and simulating the behaviour of the system as a whole.
Simulation is the best way for organisations to understand the move from today’s “as-is” configuration to the most effective “to-be” configuration and it also allows experimentation with different “what if” scenarios. It gives users the opportunity to evaluate changes in terms of business measures – such as reducing throughput time, optimising resource usage and ultimately improving efficiencies and cost savings.
Click here for an example of a simulation developed to improve call handling in a call centre.
When should I use Simulation?
There are many situations where simulation can be used. As a rule, systems that involve a process flow with discrete events can be simulated. However, simulation is best used in situations that involve change over time with some element of randomness, such as:
- Telephone calls to a call centre
- Customer arrivals
- Evacuation of buildings
- Flow of materials through a factory
- Workflow
System dynamic simulation can model interrelationships and feedback processes between different parts of a process to gain a broader perspective on the behaviour of the system, and the drivers to optimal outcomes
Why use Simulation?
There are many business benefits to be realised from implementation of an effective simulation solution:
- Provides the opportunity to experiment with different scenarios and quantify the effect on resourcing, process times and other key measures
- Increases understanding of individual factors that may affect processes, and their combined effects in a complex situation
- View impact of changes over time, allowing the ability to plan for different outcomes, and proactively manage issues before it’s too late.
- Provides the ability to deal with a greater variety and complexity of problems than offered by traditional models
- Helps the user understand the working of their business processes
- Provides a safe way to quantify the effects of extreme conditions without the risks and costs of a real life experiment
- Allows a user to “see” their processes through model visualisation, to understand the assumptions used within a model, and to question their validity.
- Enable strategic level view of the important factors that influence successful outcomes
Our Capabilities
Capgemini offers expertise at all stages of a simulation engagement, from project inception through modelling and analysis, to application development and benefits realisation, and can support clients through all or part of this journey. Capgemini has proven capabilities and methodologies to enhance process performance:
Our Experience
Capgemini’s simulation capability lies within our Operational Research (O.R.) Group based in the UK. The group has an unparalleled experience of solving problems and delivering solutions within a wide variety of industry sectors across Europe.
Capgemini Operational Research has a dedicated Simulation capability group to act as a focus for skill development, delivery excellence and thought leadership. It brings together some of the leading minds in simulation and business consulting to ensure that this unique expertise aids organisations solve business problems. We are skilled in designing and building models using leading commercial simulation software such as Witness, Simul8, and Vensim.
New Service Offers
Contact Centre Performance Optimisation
An end-to-end approach is the key to significant performance improvements in Contact Centres.
For many large organisations, the contact centre is a prime point of interface with their customers. Yet for many customers, contact centres are a continuing source of irritation and frustration.
Capgemini’s Operational Research team can apply a proven methodology to overcome all of the common issues, including:
- Workload forecasting
- Strategic planning
- Shift pattern optimisation
- Tactical workload management
See also our downloadable Thought Leadership file: PoV Contact Centre Performance Optimisation.pdf
System Dynamics & Systems Thinking
System Dynamics is an innovative way of understanding the behaviour of complex problems over time, incorporating a system-wide view to model the problem at both strategic and operational levels. This enables insight at a broader level than is possible with other approaches.
System dynamics’ advantages include the ability to capture more realistically the complexity inherent in real-life systems, by incorporating interactions between different parts of a system such as feedback processes, delays in impact of decisions, and business-level influences such as impact of stakeholders, environment, policy etc.
Applications of System Dynamics span a wide range of problems, especially where and it is effective for those impacting an organisation such a business processes, supply chain networks, and planning new products and services.
System Dynamics is equally effective at problems across an industry or market such as strategy change, policy and regulation, and the impacts on markets and individual businesses.
Capgemini’s Operational Research team can implement a System Dynamics project methodology to understand all of the key drivers of a problem, model the impacts and enable better decisions to solve it.
Related Success Stories
Assessment of New Technologies in Clinical Trials
A simulation model was built which replicates the events of a real clinical trial
and can be used to examine options for changing the process.
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Also a demonstration overview.
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Distribution Centre Operations Simulation Modelling
A two-stage simulation model of alternative operating configurations for a distribution
centre, to provide a low risk and low cost evaluation of the costs and performance
impacts.
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Using Intelligent Call Routing to improve Call Centre Productivity
A visual simulation of alternative Intelligent Call Routing options. Risk-free
evaluation of alternative options, to identify those which maximise call centre
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Banking Loans Processing Modelling
The client wanted to be able to plan the resourcing required to support servicing
of defaulting loans. A simulation model was developed which helped the client
plan marketing campaigns for new loans as well as effort required for existing
loans.
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Benefit Claims Process Modelling
Proof of concept use of a process modelling tool to demonstrate its potential
to deliver cost savings. Detailed process modelling demonstrates and confirms
that a new decision support system can deliver the planned productivity improvements.
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Assessing cost and regulatory compliance in waste water treatment
A two-stage simulation model to identify costs and consent failure probabilities.
Provided theoretical failure rates and a sound basis for evaluating how changes
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