Case Study · Packaging & CPG

Consolidating a Soap Maker’s Plants Into One
The Model Catches a $4 Million Quality Problem First

A household-products manufacturer is moving its soap production from several plants into one facility that will make over 300 products. Its logistics manager needs to know whether the plan will work once demand, product mix, breakdowns and schedules all come into play. A simulation of the whole plant shows that the planned machine assignments would hold some products in the system too long and cause a quality problem. Other routings, tested in the model, avoid it and the $4 million retrofit it would need.

The business
A household-products manufacturer · soap plants consolidated into one, 300+ products
The question
Will the consolidated plant work, given how demand, mix and equipment vary over time?
The model
The whole plant, run from multi-stage production schedules
What it is worth
$4 million retrofit avoided; simulation required before major capital spending
Source
SDI project sheet

What the plant is up against

The company is collapsing manufacturing from multiple sites into a single optimized facility. Between them, the existing sites make over 300 different products, and the new plant has to absorb all of them.

Whether the plan is feasible depends on equipment design and sizing together with how the plant will be run. It also depends on conditions that change over time:

The logistics manager chooses simulation to see how these play out together and to understand the plant as a whole. It wins over other analysis tools because it captures real-world variability and the way events in one part of the plant affect another. A spreadsheet can size a machine, but it can’t show what happens when a seasonal peak, a changeover sequence and an unreliable upstream stage land in the same week.

How it is modeled

The manager partners with Simulation Dynamics (SDI) to build a model of the entire plant. It uses discrete rate technology, which is built for high-volume processes. An embedded database feeds the model the dynamic factors that affect throughput. Production schedules are defined in multiple sequential stages, and the model plays them out across every line.

The plant view shows the status of all lines as the schedule ran: blocking and starving, changing over, emptying and surge. Each line opened into a more detailed sub-model nested inside it.

The plant model on screen: raw materials feeding two making lines, a bank of surge tanks, and three packing lines running to a warehouse. Each line shows its current product and system status, and a legend maps colors to blocked, satisfied, starved and rate-zero flow states plus running, emptying, changing and ready control states.
The model of the whole plant, from the project, showing the status of every line as the production schedule plays out. Making lines feed a bank of surge tanks, then the packing lines, and finished cases run to the warehouse. The legend covers the flow states blocked, satisfied, starved and rate = 0, and control states for running, emptying and changing over. Packing 3 is mid-changeover in this frame.

What the model shows

Running the model gives the team confidence in the consolidation strategy. It shows the balance of the plant and gives the optimal buffer size between processing and packaging.

The costliest finding is about time in system. For a given set of products, the planned machine assignments would leave material in the system too long, and for these products excess time in system means a quality problem.

One configuration shows severe long-term quality problems that would require a $4 million retrofit. The team tests other product routings and machine assignments in the model and shows how to avoid the problem, so the retrofit is never needed.

A nested sub-model of one packing line in detail: product in, conversion, containers, filler, sealer, conveyor and case packer, with cases out.
One line opened up: the detailed sub-model nested inside its node on the plant view above. It holds the containers, filler, sealer, conveyor and case packer.

What changes

The project changes how the company spends capital. It requires a simulation study before committing to any major capital expenditure. The logistics manager then widens the simulation’s scope to the supply and distribution policies across the division.

Where this work comes from

The project is recorded in SDI’s project sheet, “Soap Manufacturer Saves Over $4 Million.”

Built by Simulation Dynamics, the team behind ReliaSim®, with the discrete-rate method ReliaSim is built on, an embedded database for the dynamic factors and multi-stage sequential schedules · source: SDI project sheet.

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