SIMULATION STUDIES

The logistical analysis associated with conceptual designs and feasibility studies typically involves the development of simulations of various operations using an Excel spreadsheet analysis based on a static set of parameters.  However, for large projects, ignoring the random nature of schedules, mechanical breakdowns, and other uncertain events can lead to significant errors in the performance expectations, design criteria, and operating costs. A simulation study using specialized software to create a dynamic model of the operation can be developed to introduce the random nature of certain events over a long duration of time.  The model can track the performance of key functions, and the results can be linked to relevant costs, providing an effective tool for validating design criteria and projected production levels for various alternatives.