**6. Simulation experiment of production processes**

Simulating the manufacturing processes and business activities with corresponding resources, the goal is locating the congestion and bottlenecks with the proposal and reference to the solutions that to optimize production flows. Furthermore, the simulation of production is expected to set up connections that define the production cycle with effective results in terms of competitive price and quality ratio of finished product. Also, simulation of production flows

datebase

Resource 1

Job Order

Correction of input setup calculative value

Resource 2

Resource n

production environment

Feed back production

the total cost of production, and thus to more competitive on the market.

**6. Simulation experiment of production processes** 

Fig. 5. Model of feedback production information

of the entered production elements.

informations

that the same work order to occupy a different time-workload of particular resources after entering corrective factors received with backward connections. It wills also feedback production information will impact on change workflows in manufacturing the product in terms of seeking alternative and profitable work processes. With that comes to correcting

In such a model, the input for calculating the production of the final product can be done by the external client (Figure 4) or internally by the person in charge within the organization (Figure 1, 2, or 3). Further creation of business documents is automatically generated based

Simulating the manufacturing processes and business activities with corresponding resources, the goal is locating the congestion and bottlenecks with the proposal and reference to the solutions that to optimize production flows. Furthermore, the simulation of production is expected to set up connections that define the production cycle with effective results in terms of competitive price and quality ratio of finished product. Also, simulation of production flows

Elements for calculations of Production calculation

suggests to new proposals and solutions for improving, standardizing, managing and planning process through support of information systems. Results of the simulation research is expected to obtain the order of cost effectiveness individual resources, and make the necessary investment to renew (extend or reduce) the productive capacity of the organization.

According to the presented organizational models an IT system was constructed which experimentally correlated production resources, materials, work time, supporting production activities and appropriate financial values. Production processes encompass necessary materials and logs which define particular production orders, and new production resources which expand the existing organizational structure. At the end of the production process there is always a new product, show on Figure 6.

Fig. 6. Model of experimental simulation process

In information defined resources are installed a real properties of production, and is set informatics description of the working environment within which the simulation was tested. Research has focused on projecting of virtual manufacturing of components with all parameters and defined the production norms. The results of simulations of production contribute to the establishment of new ways to manage the existing work processes, and upgrading on overall planning of the production cycle. This tends to find a stable production plan, which is characterized by flow without delay from one side, and on the other side the financial profitability and competitiveness in the total price of the product. With simulation is also possible a planning and designing the working environment which is actual realization is predicted in future for a particular time period. With this approach it influence on opening and planning of new workplaces, on new organizational structures, and to increase the level of knowledge for managing production. Applying such approach allows the predictions of new work structures without causing damage and material costs.

Reorganization of Existing Business-Information

Fig. 7. Changes of finance value on different qualtity

production process of a product can be anticipated.

Model in Purpose to Improvement Production Process 167

price of working resource and appropriate activities, price of production operations, necessary materials in the production process. In simulating changes of prices for the appropriate series, the proportion of change by which the accuracy and control of cost of the

Figure 7 indicates changes in financial value of a particular series for the entire production costs and materials costs in the production process. From the data obtained, it can be concluded that with the increase in the number of articles in a series there is a higher proportion of total costs and material costs, taking into consideration that the proportion was stabilized in the last series where there was the largest number of products. On the production series of 1000 unit total value of production without the cost of materials amounted to 61.86% of the total cost, on a series of 5000 pieces was 55.38%, for 25000 units was 49.68%, of 100000 pieces is 48.77% for 500000 was 48.52%, for 1 million amounted to 48.49%, and for 2 million has measured 48.47%. It may be noted that the biggest difference between the total cost of production and the share price of materials was up to the quantity

Figure 8 presents a curve indicating changes in the proportion of total production costs and costs of materials for all experimental series. According to the model and the results it can be concluded and predict that it will further increase production quantities to maintain the current ratio, with a slight change in the share prices of materials in total cost of production. Only in production to 25000 units was recorded considerable changes in the ratio of total production and share materials, and it is area for new further research to develop a new product. It is possible to use the suggested model as a control mechanism in production processes which encompass relating the group of products. At the level of production organization it would be necessary to design models for each group of specific productions

of 25000 units, and then there was a stabilization and slight decrease in the ratio.

in appropriate series for obtaining proportions as control value mechanisms.

The goal is to automated generating production flows for a new product with a focus in finding the most profitable working operations and corresponding resources. Studying the bottlenecks of production requires the collection of accurate data about all production components, working people and materials from real production conditions. This allows the finding of extreme risk situations and the maximum production capability of the entire work environment, and therefore projecting a coordinated set of production elements in production.

For a successful simulation of production processes it is necessary to establish correct and realistic elements which make up the entire production flow. Through the simulation method, new ways to maximum production capabilities, improvement, upgrading and planning processes, and thus highly risky situation are placed in a controlled production framework. One information-simulation system tested at variable changes production amounts of 1000, 5000, 25000, 100000, 50000, 1000000 and 200000 items. By simulation of the production flow, the financial change of the total costs of a particular financial amount on value of the materials used wanted to be established.


Table 1. Result of simulation testing

The results obtained through simulation testing can establish the relationship of the total work of the production resources with the appropriate work activities and on the other hand with the necessary raw materials for obtaining a finished product. It is expected that the results obtained will yield new production processes which can be influenced in a sense of improving and optimizing the production flow. Furthermore, simulation and assessment of products in a product cycle elements which demand change of existing value standards can be located. Such standards can cover appropriate completion time of particular operations, financial values allocated to a particular resource or through necessary number of work activities on a particular resource. The aim was to investigate to what extent, how and in which time come up significant difference in the change ratio of the value of the material in the production process with a total production value of the product.

Table 1 shows the results of simulation experiments with different quantities of products in production, and the total value of the product, the share prices of materials and ratio of price change for individual quantity.

Experimentally, a different number of completed products in a series were tested (series of 1000, 5000, 25000, 100000, 50000, 1000000 and 200000 products), in order to find the proportion of change of financial value of the total costs and material costs of each series. Total costs include all production activities which describe the production of a product:

The goal is to automated generating production flows for a new product with a focus in finding the most profitable working operations and corresponding resources. Studying the bottlenecks of production requires the collection of accurate data about all production components, working people and materials from real production conditions. This allows the finding of extreme risk situations and the maximum production capability of the entire work environment, and therefore projecting a coordinated set of production elements in

For a successful simulation of production processes it is necessary to establish correct and realistic elements which make up the entire production flow. Through the simulation method, new ways to maximum production capabilities, improvement, upgrading and planning processes, and thus highly risky situation are placed in a controlled production framework. One information-simulation system tested at variable changes production amounts of 1000, 5000, 25000, 100000, 50000, 1000000 and 200000 items. By simulation of the production flow, the financial change of the total costs of a particular financial amount on

> material cost [finance value]

The results obtained through simulation testing can establish the relationship of the total work of the production resources with the appropriate work activities and on the other hand with the necessary raw materials for obtaining a finished product. It is expected that the results obtained will yield new production processes which can be influenced in a sense of improving and optimizing the production flow. Furthermore, simulation and assessment of products in a product cycle elements which demand change of existing value standards can be located. Such standards can cover appropriate completion time of particular operations, financial values allocated to a particular resource or through necessary number of work activities on a particular resource. The aim was to investigate to what extent, how and in which time come up significant difference in the change ratio of the value of the

Table 1 shows the results of simulation experiments with different quantities of products in production, and the total value of the product, the share prices of materials and ratio of

Experimentally, a different number of completed products in a series were tested (series of 1000, 5000, 25000, 100000, 50000, 1000000 and 200000 products), in order to find the proportion of change of financial value of the total costs and material costs of each series. Total costs include all production activities which describe the production of a product:

material in the production process with a total production value of the product.

1000 9149 3489 0.3814 5000 22235 9921 0.4462 25000 83615 42078 0.5032 100000 317541 162677 0.5123 500000 1565364 805857 0.5148 1000000 3125113 1609831 0.5151 2000000 6244662 3217779 0.5153

ratio of total production cost and cost of material

value of the materials used wanted to be established.

[finance value]

quantity total cost

Table 1. Result of simulation testing

price change for individual quantity.

production.

Fig. 7. Changes of finance value on different qualtity

price of working resource and appropriate activities, price of production operations, necessary materials in the production process. In simulating changes of prices for the appropriate series, the proportion of change by which the accuracy and control of cost of the production process of a product can be anticipated.

Figure 7 indicates changes in financial value of a particular series for the entire production costs and materials costs in the production process. From the data obtained, it can be concluded that with the increase in the number of articles in a series there is a higher proportion of total costs and material costs, taking into consideration that the proportion was stabilized in the last series where there was the largest number of products. On the production series of 1000 unit total value of production without the cost of materials amounted to 61.86% of the total cost, on a series of 5000 pieces was 55.38%, for 25000 units was 49.68%, of 100000 pieces is 48.77% for 500000 was 48.52%, for 1 million amounted to 48.49%, and for 2 million has measured 48.47%. It may be noted that the biggest difference between the total cost of production and the share price of materials was up to the quantity of 25000 units, and then there was a stabilization and slight decrease in the ratio.

Figure 8 presents a curve indicating changes in the proportion of total production costs and costs of materials for all experimental series. According to the model and the results it can be concluded and predict that it will further increase production quantities to maintain the current ratio, with a slight change in the share prices of materials in total cost of production. Only in production to 25000 units was recorded considerable changes in the ratio of total production and share materials, and it is area for new further research to develop a new product. It is possible to use the suggested model as a control mechanism in production processes which encompass relating the group of products. At the level of production organization it would be necessary to design models for each group of specific productions in appropriate series for obtaining proportions as control value mechanisms.

Reorganization of Existing Business-Information

new areas for investments.

**8. Acknowledgment** 

demands.

**9. References** 

Bosna i Hercegovina, 2011

Model in Purpose to Improvement Production Process 169

unacceptable on the side of the client. It is also suggested that internal tools be introduced which will construct the inquiry and based on them certain conclusions can be made for new strategic decisions. This opens up a new area for improving production, introducing the system of real simulation of workers according to the effort and productivity in the organization. The system of analysis, comparison and monitoring has to be based on set and realistic values in both information systems, and the results obtained are expected to open

Such a mechanism demands immediate interaction between users through a web interface with desired time periods and loads in needed resources and workers, comparative prices of production calculations with the post-calculation part, total inquiry calculation, accepted offers, visual representation and numerical values. The results influence daily business decision-making as well as strategic directions in improving the business system. The implementation of such a tool on the existing information structure is possible at the level of the basic model shown in Figure 1, but since such a system does not have qualitative quantitative information from the production of a product itself, adequate conclusions on the production flow is not possible. A concrete application of the suggested mechanism in its full use would be through the model described in Figure 2 where independent inquiries can be placed either to the financial or production system, and can be most outright with

targeted inquiries through the integration of both system of the production structure.

The process of developing complex information structure through the suggested scheme is based on organization structures and resources with high ICT standards. As the existing structure developed, the relationships became more complex and the level of applied knowledge for its maintenance became higher. The last of the suggested models on Figure 4 presents a self-learning structure. Its maintenance requires current knowledge which is constantly subject to further upgrade and change. In that respect the likelihood of survival of structures based on informatics descriptions of production processes is the greatest as is the modification of existing capacities for developing new products based on market

Nježić, Z. (2011). Prijedlog razrade informacijske strukture grafičkog proizvoda sa

Nježić, Z.; Šimović, V. & Kosić, T. (2009). Projecting of Information System to improve

Nježić, Z.; Šimović, V. & Maletić, F. (2009). Managing IT Systems in a Production

*Educational Technology (EDU '09)*, ISSN 1790-5109, Genova, Italy, 2009

*Knowledge Society*, ISBN 978-953-7210-22-9, Zadar, Croatia, 2009

normiranjem osnovnih grafičkih procesa*, Zbornik radova Drugoga međunarodnog naučno-stručnog simpozija grafičke tehnologije i dizajna*, ISSN 2232-8831, Kiseljak,

Production Processes, *PRE-CONFERENCE PROCEEDINGS of the Special Focus Symposium on 8th ICESKS: Information, Communication and Economic Sciences in the* 

Environment, *Proceedings of the 8th WSEAS International Conference on Education and* 

Fig. 8. Change of ratio of total production and cost of material

Analyzing the obtained results, it can be concluded that the total cost of materials on small quantities of one thousand pieces has a smaller share in total price of the product (38.14%), and increasing the amount of two million pieces of material share price increases (51.53%). It's determined that the share prices of materials in the total costs of production has stabilized on quantity of 100000 pieces at 51.23%, for 500000 pieces on 51.48%, and for one million on 51.51%. It also imposes the conclusion that in production of large quantities at one moment comes to stabilizing the ratio of materials cost and total production costs. The moment in which will be stabilized this ratio also depends on the necessary replacement components required in production, or about possible terms of delivery; which condition the additional production capacity. That change of terms of delivery determines the activation of additional production resources, either from its own structure, or from external sources. Compliance the defined terms of planning on the individual resources and departments inside the production structure is one of the main elements of stability in production process.

Further research should be based on the use of new materials and currently available information - production technology. It is also possible that some new materials with good quality characteristics do not satisfied requirements of the market in high production quantities, but in a small zone of production be acceptable. It is also one of the main directions of development of digital - information productions, making a complex and unique products in the minimum quantity (even 1 product) whose realization is fully automated. This includes an acceptable competitive price of finished product.
