Tag Archives: Throughput

Production value chain – Production management business simulation

The role of the production facility in a corporation is to convert materials and parts into a product. The product is previously priced and sales department has put an internal order for production. Materials and parts are also with defined prices and in most of cases production facility could not influence these prices.

Having “defined sales prices” and “determined costs of materials, parts, energy etc.”, the main question for the production facility is: How its management can create value?

To answer this question we should look at the variables that are in control of the management of the production facility, or what should they do to create value. The mantra is very simple: “Produce more with less!” It is easier said than done.

The production volume is function with constraints: production capacity of equipment, supply chain efficiency and effectiveness, employees’ capacity and skills, etc. Having all that said, the key aspect that the management of the production facility should focus on is the throughput, which on the other hand is a function of production planning, materials release, human resources management and training, risk forecast and management.

Not an easy task that usually requires years to learn, decades to understand and lifetime to master. Without wanting, we come to the conclusion: “At last they mastered it, but they will retire in a month.”

We have understood the previous conclusion as our challenge and we have created the Production value chain business simulation.

Participants manage all variables that production management is required to manage during their day to day job. Different challenges contest their decisions, and results are measured in financial, qualitative and quantitative KPIs. Production Value Chain business simulation simulates several years of business and can be used as an instrument for general business processes understanding, learning business acumen, understanding finance and value creation, as well as, laboratory for testing of different decisions.

The seminar is designed for all level of managers and experts in the production companies, corporate analysis and bankers.