Uncover Process Variation: Place Your Bets on Monte Carlo Simulation
Trish Borzon
1374 Posts

Presented by: Stephanie Parker, Boon Edam

Area of Focus: Basics and Session Level: Advanced

Every process has some inherent variation. Monte Carlo simulation can be a powerful tool to understand how variation in the individual components of a process can collectively affect the long-term output or total performance of a process. Most people who have heard of Monte Carlo simulation only think of it as a product design tool, but it can be used to analyze processes as well. Monte Carlo simulation can be used to model variation in processes as disparate as cycle time in a multi-step process or tolerance stackup of assembly parts received from multiple suppliers. This session will provide a step-by-step process for using Monte Carlo simulation. Real-world examples will also be presented to demonstrate how this method can be used to understand the sources of process variation in different types of production processes, with an eye toward variation reduction to achieve process improvement.

Replies