Spar Bakery - bread production section: equipment replacement and simulation modelling

Abstract

Renbro Spar requires information that a simulation model will provide regarding the process to determine where the problem areas and bottlenecks are situated and why the bread department currently has problems in reaching the optimal production levels. The Simulation of the process will highlight the areas where improvement is required and also eliminate the unnecessary use of resources and determine the maximum production level of breads per day that the current system can deliver. It will also help to see what effects the replacement of the equipment will have on the overall flow of the system and to address the problems that may occur. Currently the Renbro Spar is considering the replacement of the mixer equipment with a new mixer unit or a baking plant accordingly to the results of the simulation modelling and physically requires the operation research equipment replacement calculations as this will have a large impact on the costs, the equipment’s prices are very high. Thus concluding the best option regarding the equipment replacement model which will affect the costs and eliminate some of the other processes in the flow and have effects on a lot of other aspects such as: • The layout of the bakery, considering factors like space, electricity and water points. • Employees and labor involving the process • Management involvement • Training involved in replacing equipment etc. • Capital and depreciation factors • Return on Investment • Payback Time of implementation of the project