11-03-2025

Factory Simulation

Six benefits and use cases for factory simulation software

Robots assemble cars on a production line with support of factory simulation software
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SteveJones

Steve is the Global Leading Professional for Simulation at Royal HaskoningDHV. He's experienced in helping clients understand how simulation and digital technology can support their business to make the right decisions, gain efficiency and de-risk changes.

To stay ahead in the complex manufacturing world, you must anticipate and prepare for change effectively. This doesn’t just mean adapting to shifting demand patterns and market dynamics – or ensuring you can meet current and future production targets. It also involves making strategic decisions with confidence.

And that’s where factory simulation software comes in.

Delivering evidence-based insight that informs strategy, production and operations, it enables you to validate decisions in a risk-free environment.

What is factory simulation?

Factory simulation is a tool that creates virtual models of real-world operations, processes and workflows – your production lines, equipment, supply chains, logistics, layout, operator shifts and more. It therefore helps you analyse, design and optimise manufacturing systems across the CapEx and OpEx lifecycle – from design through to continuous improvement.

By enabling you to experiment in a risk-free environment, it allows you to test ideas, boost efficiencies and determine how strategic or resource changes will impact your facilities.

Let’s look at key benefits and use cases.

Benefit 1 – Effective capacity planning

Factory simulation software helps you determine whether current resources can meet demand and, if not, what adjustments are needed. By analysing production capabilities, it gives you the tools to optimise output without unnecessary investments.

Accurate capacity planning is essential to Mars Chocolate North America, given its complex production and supply chain processes. Using Twinn Witness simulation modelling software, Mars powered a Sales and Operations Planning tool to gain confidence that its new capacity investments would provide the required results at the right times.
A chocolate production line

Benefit 2 – Streamlined operations and reduced bottlenecks

By modelling workflows and identifying inefficiencies, factory simulation enables scheduling precision – accommodating fluctuating demand, reducing downtime and maximising throughput. It enables predictive maintenance planning and minimises unexpected breakdowns by identifying optimal maintenance schedules. Plus, factory simulation pinpoints production bottlenecks before they become costly, allowing for proactive solutions to improve efficiency.

Consider this example. Carrefour created virtual models of assets, operations and processes at its clothing distribution centre in Paris. Its goal was to understand the optimal way to respond to demand variations. Incorporating more than 17,000 variables, the model gave Carrefour an evidence-based way to understand how operational changes affected flows and service levels.

Benefit 3 – Significant cost savings

By analysing different process scenarios, you can use factory simulation software to identify savings opportunities. Simulation models can also demonstrate ROI for CapEx decisions, helping justify or avoid costly investments by validating decisions in advance.

Premium drinks manufacturer Diageo made multi-million-pound savings by creating a virtual model of its packaging facilities. It achieved 80% efficiency, avoided £80,000 of unnecessary CapEx, validated the business case for a £400,000 shrink wrapper, and saved millions of pounds by determining that a mid-line buffer would have little benefit.
An AGV in an automotive factory. AGV strategy can be supported through factory simulation software.

Benefit 4 – Powering strategic planning

You can also use factory simulation to assess long-term scenarios from expansion plans to market demand fluctuation, ensuring sustainable growth.

For example, Ford Valencia leveraged simulation to understand the feasibility of utilising Autonomous Guided Vehicles (AGVs) in manufacturing, transforming the plant into Ford’s leading AGV authority.

And by using 3D factory simulation, BAE Systems validated capital investment proposals and facility designs for a new high-volume munitions factory. The 3D virtual reality view across different scenarios made it easy to understand the impact of operational choices – and facilitated buy-in from staff and customers.

Benefit 5 – Meeting sustainability targets

Factory simulation software enables you to evaluate sustainability initiatives, such as reducing waste and energy consumption, while maintaining efficiency. Plus, you can use it to design or modify facilities to align with your sustainability ethos.

Here’s an illustration. Italian cosmetics company L’Erbolario needed to change its approach to production and logistics to accommodate rapid growth. Using simulation, it designed a new eco facility that ensured expansion aligned with its commitment to the environment.

Benefit 6 – Enhanced communication and understanding

Beyond ROI, strategy and operational efficiencies, factory simulation software delivers several soft, intangible benefits. For example, it provides a visual, data-backed way to convey plans to stakeholders. It also aligns teams with a common understanding of constraints, opportunities and optimal solutions.

These soft benefits are one of the key successes experienced by Ford over 40 years of utilising predictive simulation software. Delivering easy-to-understand analysis – sophisticated tables, charts and calculations – simulations have enhanced understanding among key stakeholders, helping embed simulation in everyday decision making.

Why choose Twinn for factory simulation software?

Twinn Witness simulation modelling software allows you to experiment with multiple what-if scenarios, unlock in-depth business insights and create immersive 3D simulations.

From short-term optimisations to long-term strategy, it enables you to respond with agility to shifting demands, market dynamics and operational environments while embracing sustainability – securing stakeholder buy-in and optimising production to keep you ahead in changing markets.

Request a demo to find out more.

Steve Jones - Technical Lead, Simulation Customer Success for Twinn

SteveJones

Technical Lead, Simulation Customer Success for Twinn

Twinn Witness Simulation Software

User-friendly, flexible and powerful, Witness gives you detailed insights into CapEx, continuous improvement and operational improvements before you invest.
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A Witness software screen over an assembly line