Abstract
The objective of this research study is to predict throughput and material flow requirements under a number of different scenarios with a focus on designing flexible capacity. The use of discrete-event simulation integrated with Excel provides proactive decision support for strategic, long-term capacity planning. This study presents a comprehensive capacity analysis of a Focus Factory at 3M, a Fortune 500 manufacturing company. Traditional capacity analysis typically provides throughput per given time over a set time horizon. The simulation model developed predicts monthly throughput, identifies bottleneck areas, and determines resource requirements for the Focus Factory while properly sizing storage and staging areas of raw materials, work-in-process, and finished goods. The decision support model provides a tool to the business team that links the sales plan with the 'best' operational scenario. It is also used in cost-benefit and sensitivity analyses to predict capacity shortfalls and plan for capital investment as the business grows.