Simulation in daily factory operation: 'setting the line bogey in Augusta'

The John Deere Augusta Works uses discrete event simulation in predicting assembly line output as a function of varying model and option mix quantities in daily production schedules. The most unique aspect of this application is not necessarily how it is used but who uses the model. Prior to each production day, a Union representative executes the model, and the simulation results establish the target production goal for the day. Day-to-day wages are based on the actual production attained relative to the simulated target. This paper describes the simulation tool structure designed for Augusta, and discusses the circumstances surrounding this unique simulation application. Included in the discussion are the benefits derived from the application; the critical success factors enabling its use; lessons learned in converting a simulation analysis into an operating tool; and future improvements envisioned.