USE AND

USE AND SKILLS

SKILLS
OF THE
FROM SIMULATOR
THE SIMULATOR
SIMPRO
SIMPRO
CCORI MANCO HARIETH APRIL
HANCCO HUALLPA IRMA
IZQUIERDO ARTEAGA HAYMET
Taipei Star Maker
GABRIEL MANRIQUE LOAIZA
PRIETO SANTOS BERLY
CONCEPT
SIMPRO is a simulation of production and operations through
people and machines

The programming techniques are covered

production, marginal analysis, optimal batches EOQ,
reorder points and systematic order cycles
 OBJECTIVES
The central activity of Operations and Production Managers is decision-making.
decisions on inventory control and labor assignments to machines
To make those decisions correctly, it is essential to understand certain
fundamental concepts, ideas, and analytical techniques such as incremental analysis,
production scheduling and economic batch models.
Thus, the fundamental objective of SIMPRO is to facilitate learning and mastery of
certain concepts and basic techniques of Operations and Production Management
offering an opportunity to apply them. According to this objective, the others
functional areas of the company, marketing and finance, have been included in SIMPRO
only to the extent that they have some relevance to Operations Management and
Production.
.
CHARACTERISTICS

The simulator environment of

SIMPRO is abstract

The decision variables included in it

are general and the simulated environment does not
specifically replicate no industry or
particular real-world company

The horizon of etoma of

Decisions in SIMPRO are daily
 The relationships between the decisions made and
The results obtained only reflect principles
of Business Administration and Economics
generally accepted

SIMPRO has been designed for decision-making problems

that presents the participants have the same
fundamental characteristics presented to those who
the Operations and Production Managers of life and the
real worlds
 BENEFITS
Facing Interrelated Decisions

Take Decision Dynamics through the

Time

There is no direct analytical solution

Decision Making under Conditions of

Uncertainty
 THE
PRODUCTS AND
THE LINES
DE
PRODUCTION
 The production operation of SIMPRO
comprises two production lines:
Raw materials are first transformed into rough and unfinished products in the
Line 1. These unfinished products will be referred to as X', Y', and Z'.
2. Then X', Y' and Z' that have been manufactured on Line 1 are converted into products.
finals and finished on Line 2.
Each period (or day), the SIMPRO executive must decide which
product must be
programmed in each machine in each of the two lines of
Each period (or day), the executive of production. X', Y' and Z' can be programmed in any of
SIMPRO must decide which product to the machines of Line 1 and the same applies to X, Y, Z in the
to be programmed in each machine in Line 2. Only one product per day, however, can be
each of the two production lines. programmed on a given machine.
X', Y' and Z' can be programmed in
any of the machines from Line 1
and the same applies to X, Y, Z in the Line
Only one product per day, however, Si el ejecutivo decidiera programar un producto
different from the one that was being produced in a machine
can be programmed in a machine
dada. in the previous period, time will be required to
prepare and adjust the machine according to the
product specifications distinct.
The preparation and adjustment times are the
next for each product:
Figure 2.1 The Process For X', X, one hour
(2) Y' and Y, two hours
of Production of From Z to Z', three hours.
SIMPRO
 Plant Maintenance and
Machine Stops

Any period, one or all The probability of a stop

the eight machines can stop of the machine is inversely
unexpectedly due to the failure related to the efforts
of one or more of its of plant maintenance
components. It can only happen each period. The executive in
a stop on any machine SIMPRO can spend the
by period, that is, the same amount you wish for in
the machine cannot fail and stop plant maintenance, until
twice in the same period. a cap of 9,999 Dollars per
period and these expenses have
an immediate effect on the
probability of it happening
unscheduled machine stoppage.
 Each period, numerous units X, Y, and Z produced in the
Line 2 may be rejected, that is, they may not arrive at
meet quality specifications. There are never products
rejected on Line 1.

The percentage of the total units of X, Y, and Z that will be rejected

in a period depends on, and is inversely related to, the
investments in quality control both past and present.

CONTROL OF
QUALITY AND Each period the SIMPRO executive can spend the amount
PRODUCTS
up to a maximum of 9,999 Dollars in control of
REJECTED
quality and all those expenses have an immediate effect on the
period in which they are carried out.

It should also be noted that the percentage of rejections in a period

It will be approximately the same on all machines of Line 2, no
it matters whether X, Y, or Z is occurring. For example, if the rejection rate
10% outside in Period 2 and 400 units of X were being produced in
machine 1 of Line 2 and 320 units of Y on machine 2,
approximately 40 units X and 32 units Y would be rejected.
Labor
•Los ejecutivos de SIMPRO tienen
access to workers to assign from a
'pool' of 28 workers whose work
they designate them as 'Operators'. From
these, 8 Operators, with keys 1 to 8, already
they have been hired by the company and
assigned in Period 1 of the
simulation, the initial period of Simpro.
If a worker has been hired
is not assigned to work on a day
determined, he is considered suspended
and the collective contract with the union
It stipulates that 8 must be paid.
Dollars in suspended payment during
that day.
ASSIGNMENT OF WORKERS

Any worker, except those who have been fired, can be assigned to any
machine on either of the two production lines at any period.

● For each hour up to and including 8 hours a day, a worker receives

2 Dollars, except that the collective bargaining agreement specifies that the
The worker must be paid for at least 4 hours no matter what.
how many hours have been assigned.
● For each hour over 8 hours, each worker is paid
time and a half, overtime of 3 dollars per hour.
● In all cases, workers are paid by the hour.
scheduled, not simply by hour worked.
LABOR PRODUCTIVITY

The standard production rates for the products are

the following:
For the two X in the two Lines, 50 units/hour.
2. For the two Y in Lines 1 and 2, 40 units/hour.
3. For the two Z in the two Lines, 30 units/hour.

The efficiency of a worker is a function of three variables:

His potential or innate ability.
2. The number of working days, of previous experience
3. The number of training days that have been given.
INVENTORIES, MATERIAL ORDERS
PRIMA

One unit is required

to produceX‘.

Two units for Y‘.

Three units for

each unit of Z'.
INVENTORIES
INTERMEDIATES
The Production of X, Y and Z
Each unit of X', Y' and Z' enters the inventory of work in progress.
(or intermediate) at the end of the period in which they were produced.
Each period the company incurs a cost of storing parts.
in the process of 0.02 for each X', 0.03 for each Y' and 0.04 for each Z'
that remains in inventory at the end of the period.
 INITIAL INVESTMENT
PRODUCTION PRODUCTION
WHAT COULD AVAILABLE REAL
PRODUCT to become
WORKER
ASSIGNED

1 X 500 X´ 375

5 X 300 600 UND 225

7 Z 240 Z' 200

13 Z 240 400 UND 200

 Inventories
Finals: Demand
After its production, each unit of product
finished enters the inventory of finished products.
The firm incurs storage costs of
finished product at a rate of 0.03 for each X,
0.05 for each Y and 0.07 for each Z that are in
this inventory at the end of the period.
Entering decisions into SIMPRO: All the signatures
simulated that participate in this version of
SIMPRO starts from the same position. (REPORT
FROM THE PERIOD 1) To register your decision you must
read the Instruction Manual for Decision Registration in the
Main Menu of Labsag.
EXPLICACIÓN DE LOS RESULTADOS
IMPRESSIONS At the end of each period, the company
You will be able to download a list from the website.
produced by the computer which
he simulated what would have happened as
results of the day's operations
01 Costs elapsed. The information will have
sections:

02 Production

03 Demand

04 Inventories

05 Comparative data from others

simulated companies
 DECISION MAKING IN SIMPRO

Decisions in SIMPRO

● The decisions of the executives

● The same decisions will determine the costs that will be incurred by a company in each period of
the simulation.

Setting Goals

● The Basic Objective of SIMPRO: Cost Minimization.

● The Sub-objectives in SIMPRO
● Generation, Evaluation, and Selection of Decision Alternatives
THANK YOU!