Press Release - 1 February 2004
A Model of Change

The Computer simulation of key manufacturing processes is an effective improvement tool that is now a viable option for all sizes of business, as Burbidge & Son Ltd, has discovered. This SME is now gaining significant advantages from an investment in its own ProModel Simulation system, from Coventry based Production Modelling.

With all manufacturers continually striving to improve performance, operational change has now become a way of life within most factories. However, trying new ideas out in the factory is all very well, but it can take time, be disruptive, and be very costly, especially if they do not work first time. Similarly, in the present climate of extremely tight financial pressures, few companies can afford for new equipment investments to fail to deliver the anticipated benefits, for whatever reason. The obvious solution is to experiment with alternative layouts and evaluate new equipment on a computer model before making the changes for real. This type of simulation takes the risk out of change and investments, and provides users with clear advantages. Moreover, unlike static modelling tools, such as flowcharts, process mapping, and spreadsheets, simulation is the only tool that can take into account the combined effect of variability, uncertainty, and complex interdependencies between processes.

Yet, many companies still fail to take advantage of the benefits that simulation offers, often assuming that it is a tool just for big businesses with large budgets and highly developed IT skills. However, Burbidge & Son Ltd is one UK SME that has proved this assumption wrong, and which is now gaining significant advantages from an investment in its own ProModel Simulation system, from Production Modelling.

A long established woodworking manufacturer, Burbidge now produces wooden kitchen unit doors and wood features, which it supplies to the independent retailers, who then assemble these into complete ‘top of the market’ kitchens. It is a typically SME, employing120 people on two sites in Coventry, and with a turnover of about £12 million. In its niche market within the kitchen furniture industry the company is now the sole UK manufacturer, competing with distributors of imported kitchens. It was in finding ways to improve its competitiveness against these importers, during the late 90s, that the company first came across simulation technology.

As Graham Heaven, Burbidge’s financial director notes, “We found ourselves in a shrinking market, due to the housing market downturn, and in some service aspects we had become uncompetitive in comparison with the importers. Realising that we needed to significantly improve our ability to deliver complete orders and reduce delivery lead times, we started an investigation into our manufacturing and warehouse practices. As part of this change process we approached a local provider for help, who offered to undertake a simulation exercise for us. This modelling was a major success, providing us with a far better understanding of the business, and enabling us to make a number of key operational improvements. These changes have subsequently delivered significant productivity gains, and delivered crucial improvements in terms of the company’s ability to service the product and its profitability.”

A Key Investment
Today, Burbidge is facing new challenges that have been created by a strong, but fashion driven market, where customers are demanding far more product variety. “Our policy has always been to offer a product range that will meet customer choice requirements, but in providing more product options, while sales remain relatively constant, we have seen our cost base rise,” reports Graham Heaven.

The main problem is that some of the company’s key operations require large batch sizes to remain efficient. Yet, more product variety has meant an increase in the number of small production batches being processed, and so the time and cost for these operations has increased.

In looking to find long term solutions for the more efficient handling of smaller production runs, the company soon found that the issues involved were extremely complex, and realised that coming to a definite, and agreed, answer on the required process changes would need some form of detailed analysis. Therefore, based on its previously successfully experience, the company has again turned to simulation technology as the most effective way to fully assess specific changes, and to help justify equipment investment. However, this time, rather than have all of the work done by an outside ‘agency’, the company made the decision to invest in its own simulation capability, and work with a partner company who could supply the software, training and additional consultancy when required.

Graham Heaven explains, “Although we have only a limited in-house IT resource, we felt that with the reduced cost of the hardware needed to run even advanced simulation software (a standard PC), and the far more user friendly nature of modern systems, bringing the technology in-house would be feasible and practical. This approach also meant that we would not be paying for a one-off project, and that we would be able to apply the technology to a range of business problems, some of which could not justify using the technology in their own right.”

After investigating a number of suppliers and products, Burbidge turned to Production Modelling and the ProModel software to meet their simulation needs. Despite being one of the most advanced system’s in the field of dynamic simulation modelling, and used by many of the world’s major manufacturers, the software is cost effective and easy to use. As Graham Heaven Reports, “We have found ProModel to be very intuitive to use, and this enabled our in-house staff to become proficient after the core training programme. It also means that it will be possible for users to quickly get back up to speed on it, even if there are long periods between projects.”

Making the Right Decision
The first application of the ProModel software by Burbidge, and the project against which the investment was justified, has been an analysis of the company’s paint and finishing processes.
At present the staining and lacquering of doors is undertaken on a single line that is about 70 metres long, and which is split into a staining and drying section and a lacquering and drying section. As each door requires three coats on each side - a colour stain, base lacquer and then a top lacquer - this means that each door from a batch has to be fed through the line four times, with set up changes after the first two passes. With large batch sizes of around 200 doors, this line effectively becomes an efficient continuous process, with the last doors being put into the line as the first come out. However, with batches of only 50 -100 doors increasingly being put through, and no way to reduce the overall processing time, the result, at times, has been almost empty lines, operators waiting for parts to come through, and a prohibitive rise in costs per door.

To assess potential changes that would optimise the painting process’s efficiency for a wider range of batch sizes, the company has modelled - with model development support from Production Modelling - a number of options for splitting up the existing line. This has also included the option of introducing an additional lacquering pen. With the models created, and with additional process analysis input from the local university, the company has now undertaken a complete simulation exercise, running actual production data.

As well as creating a far better understanding of the existing process, and finding some obvious unnecessary and wasteful activities, the analysis of the modelling data has provided the company with two clear choices. Simply by splitting up the line, which would require minimal capital investment, output would be increased by 17%. However, by combining these changes with a major investment in a new lacquering pen, the simulation predicts that output could be increased by 33%.

“The simulation project has provided exactly what we needed, clear and detailed answers about what proposed changes could achieve. We now have to make the final decision, incorporating other business factors, as to which way to proceed. But, either way, we can now put forward to the company board a firm proposal for major alterations to the paint line that we know will significantly increase our efficiency and reduce costs,” states Heaven.

He adds, “With these improvements potentially costing upwards of £500 000 to implement, we need to be certain that we make the right changes, the first time. This is what using simulation is helping us to achieve, at a cost that is just a small fraction of our proposed process investment. Furthermore, simulation has not only helped with assessing the options, the visual accuracy and animation of the model is a powerful communications tool that is proving extremely useful for explaining the proposed changes and getting commitment to them.”
Ongoing Benefits

The benefits to Burbidge of its decision to invest in its own simulation system have also been proven, with the company having already completed another important modelling project, and this time without the need for outside support.

In looking to replace an old door-edge profiling machine, the justification process had again came up against the issue of batch sizes, and the company found itself facing a choice between two very different options - a single or twin cutter machine. With door profiles changing more frequently due to greater product variety, and with the twin cutter machine requiring more adjustments but less cutting time per door, the choice became quite a complex batch size, cycling and set up time issue. However, by using ProModel to create a model for each machine and associated process, plus using detailed operation times for each activity, the assessment became a simple matter of running each model with actual production requirements.

In fact, by undertaking the model development and then the analysis, what the company achieved was a far greater understanding of the activities involved within the overall process. As a result, while initial findings suggested that the twin cutter machine was far more efficient with existing production demands, it was also found that the variations in batch size had a marked effect on the performance, with the single cutter machine being the more efficient when the batch sizes are below 100. Using this detailed data, a justifiable decision was made to actually purchase two machines, one of each type, and this has been combined with the consolidation of another activity into this machining process.

Again the data from the modelling proved crucial in helping management make a better decision, and justify it, which is no small issue as the capital spend for this project has been in excess of £350 000 for the two machines.

“We may not be the type and size of company typically associated with simulation, but our investment in ProModel has already proved very beneficial to the company, especially in terms of significantly better decision making, and will continue to do so. It is far more versatile than many would assume, and it is very easy to get real benefits from the modelling system, even for relatively simple projects,” states Graham Heaven.

He concludes, “Too often companies still make process change or investment judgements based on gut feel, or extremely simplified and inaccurate assessments, and then wonder why these changes fail to meet expectations. Yet, as we have found, the tools for enabling important operational decisions to be based on realistic data are now readily available, easy to use, and require only a relatively small investment - especially compared to the cost of getting it wrong.”

End.