Lean Six Sigma Application of @RISK in Process Industries

The use of Monte Carlo simulation is growing in Lean Six Sigma applications. The ability to model actual data and then apply proposed changes to the model before modifying brick and mortar has significant appeal in capital-intensive industries including steel making. In this paper, the Lean Six Sigma approach is detailed for a project to reduce steel inclusions in billet stock. Specifically, the modeling of the various queues in the process is analyzed to determine the potential impact of several proposed capital and process improvements. The team’s high level approach to the problem, their use of various tools including @RISK, as well as a detailed review of the queuing analysis are covered. Finally, the presentation explores the lessons learned and additional applications of simulation in this and similar projects.