Technology Overview
Digital Twin
Route Optimizer Tool
Software Overview
How it Works
Why Simulate CAPEX Investments?
Simulating CAPEX investment decisions before implementation offers significant benefits, helping organizations make informed, strategic choices. Here are three potential outcomes from these simulation projects:
1. Identifying Oversized Investments
One clear outcome of simulation is the revelation that the initial CAPEX investment plan may be oversized. This could mean having too much equipment, a tank that’s larger than necessary, or an overly designed buffer zone. In such cases, the simulation's value is evident: it enables CAPEX avoidance. By refining the investment plan, organizations can significantly reduce unnecessary expenditures.
2. Avoiding Undersized Plans and the Associated Risks
Conversely, simulations may show that the initial CAPEX investment is undersized. This insight is crucial for preventing potential disasters—such as investing substantial amounts of capital but failing to meet targeted throughput.
Imagine this scenario: millions are spent, months of implementation occur, and despite mobilizing internal HR resources for change management, the results fall short. The project team then faces months of frustration as they scramble to understand the shortcomings, potentially leading to more investments and HR mobilization just to achieve the initial goals.
The true cost here isn’t just the additional funds spent; it's the opportunity cost of resources wasted on fixing a problem that could have been identified during the design phase. This situation can also diminish team morale and create hesitance in future initiatives, as HR may become skeptical of new proposals. In short, simulation plays a critical role in avoiding these costly pitfalls.
3. Validating a Perfect Plan
The third outcome, while ideal for the client, can be viewed as the "worst" for the simulation consultant. Sometimes, simulations reveal that the original plan is indeed perfect, requiring no changes. Although this outcome is relatively rare, it does occur. In such cases, quantifying the ROI of the simulation can be challenging. However, the key benefit remains: the client gains confidence and clarity to move forward with their CAPEX project, effectively eliminating doubt and hesitation.
By leveraging simulation, organizations can navigate the complexities of CAPEX investment decisions more effectively, ultimately leading to better outcomes and more strategic resource allocation.
Discover more and Join Our Upcoming Webinar
Maximize efficiency, minimize risks, and prepare your operations for success by understanding how to use dynamic simulation in your stockpile management.
We invite you to join our upcoming webinar, where we’ll walk you through a live demonstration of how Simio dynamic simulation can be leveraged to accurately determine the stockpile size requirements in a coal mining operation. You’ll see firsthand how the inclusion of process variability impacts decision-making and learn why this approach is far superior to traditional methods.
Don’t miss out—register today!
About SimWell
We are here to take a holistic approach across ore logistics with Value Chain Integrated Planning (VCIP), as an industrial grade digital twin application that is tailored to your needs as the Value Chain Leader.
SimWell Consulting and Technologies is a global company specializing simulation, optimization, and digital twin technology. Our core mission is to unlock simulation at scale. We empower leaders and operators to maximize their current resources, optimize their operations, and elevate their performance with simulation. We build models of our customers operation, test scenarios, and predict how it will perform in a risk-free environment.
With SimWell as your partner, your team will have the tools to make confident decisions, optimize your process, and press fast forward on your business.
Send me a note at aouellet@simwell.io
Alexandre Ouellet, CEO at SimWell
