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Simulation and Lean Six Sigma HKSQ(模拟和精益六西格玛HKSQ)
Simulation and Lean Six Sigma
Hilary Emmett, 22 August 2007
Improve the quality of your critical business decisions
Simulation and Lean Six Sigma
Agenda
• Simulation and Lean Six Sigma
• What is Monte Carlo Simulation?
• Loan Process Example
• Inventory Optimization Example
2
Simulation and Lean Six Sigma
Models and Simulation
• Models are an attempt to capture behavior and performance of
business processes and products.
• Simulation is the application of models to predict future outcomes
with known and uncertain inputs.
MODELS SIMULATION
2 LO HI
1 3
Control Noise
Inputs Variables
F m ∗a
Y = f (x)
Y = f (x)
Outcome
Predictions
3
Simulation and Lean Six Sigma
What Is Monte Carlo Simulation?
• A system that uses random numbers to measure the effects of
uncertainty.
• The inputs are variable or uncertain X’s represented by probability
distributions (assumptions).
• The outputs are responses / Y’s / formulas / effects (forecasts).
• A computer:
1. Samples input values from the assumptions (PDFs) and puts them in
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