Facility Planning
Client: ICI
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| Computer simulation allowed ICI to
plan the expansion of the expansion of their facilities with greater certainty |
In new or expanding competitive industries, there is often the need to upgrade, expand
or re-locate facilities. But how can you be assured that new or upgraded facilities will
provide high quality service at a minimum cost?
Computer simulation provides an excellent tool for decision making in facilities
planning exercises. It allows planners to test and evaluate various alternatives and
options – such as the siting, operation and supply to and from the new or expanded
plant. It allows facilities to be planned which have already been tested for their
efficiency, ensuring they will deliver a high level of customer service, before they
are built.
ICI (now Orica), a major supplier of chemicals to the mining industry, was faced with a
facility planning problem. They were planning to expand production, by building a new
plant, and wished to evaluate the consequences of various alternative sites. They also
needed to expand operations at another plant and so wanted to determine optimum supply
amounts and optimum capacities of various facilities of the plant.
CSIRO developed two computer simulation models to address the needs of ICI.
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A model of the production and distribution of the product which allowed ICI to evaluate
three alternative locations for the new manufacturing facility.
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A model of production and distribution of another product, to evaluate storage options,
capacities at various stages and supply amounts of raw materials at the existing plant.
The models simulate demand, production and distributions, enabling ICI to experiment
with various scenarios. They provide a range of output measures, including:
The models incorporate operation details associated with the production and
distribution of the products, such as:
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Inventories, production capacities, production controlling functions
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Order prioritising and processing systems
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Trains and truck schedules as well as loading and transport times
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Uncertainties (breakdowns) associated with production facilities, trucks and trains
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Scheduled maintenance of plants, trucks and trains
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Demand modelling: Detailed modelling of product demands to capture seasonal variations,
daily variations and trends.
The models were designed with an Excel spreadsheet interface to fit easily into
ICI’s existing work practices.
ICI were able to objectively evaluate the three alternative locations for their new
production facility using the simulation software, helping them to choose between the
sites. The software also allowed ICI to experiment with various storage sizes and raw
material supply amounts for the existing plant, allowing the best combination, for most
efficient functioning, to be found.
Client Feedback
We are using the model to assist us in making some capital investment decisions. We have not yet completed our analysis but to date the model has been used to evaluate storage issues ($3.5 million investment) and in this area has proved to be a useful tool.
Adrian Hall, Commissioning Manager, ICI
Further Information
For further information, please contact
Andreas Ernst
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