Palisade’s Monte Carlo Simulation Software Featured in Quality Magazine

Palisade Corporation got a shout-out in the August edition of Quality Magazine, a monthly business publication serving the quality assurance and process improvement needs of more than 64,000 manufacturing professionals. The article, “Simulation City” by Michelle Bangert, discusses Monte Carlo simulations and how they can be used in a variety of industries and situations.

Randy Heffernan, Vice President of Palisade is quoted in the story, explaining why companies use simulation software. “A lot of times, it comes out of a larger cost-cutting or waste reduction at the company as well as quality improvement,” he said in the piece. He goes on to explain that software like @RISK can help reduce material waste and the time, and that the cost and availability of a material can have a huge impact on production. “The risk of not having what you need when you need it is big,” Heffernan said. “But this is not intuitive…There is an assumption that raw material is just there waiting for you. But that’s not really true.”

The article continues, “with global supply chain issues caused by the floods in Thailand a few years ago or the tsunami in Japan, more people are becoming aware of the supply chain risks and the related quality of manufacturing. 'How do you maintain quality in the face of uncertain suppliers?” Heffernan asks. Though companies can find backup suppliers, they don’t want to use too many in order to maintain economies of scale. This is where software can step in to help find a solution.'”

The software can provide models using three different suppliers, such as sourcing 70% from supplier number one and seeing the uncertainty level.  “Software can do those calculations for you,” Heffernan said. “There’s no way people can do that manually.”

Read the original article here.

See also: "Risk Analysis Will Drive Better Decisions Across the Supply Chain" in Supply Chain Digital magazine

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s