Business process modelling and analysis using discrete-event simulation

Abstract

Globalisation and competitive pressure urge many organisations to radically change business processes. Although this approach can provide significant benefits such as reducing costs or improving efficiency, there are substantial risks associated with it. Using simulation for modelling and analysis of business processes can reduce that risk and increase the chance for success of business process re-engineering projects. This paper investigates the potential of simulation modelling to be used for modelling business processes and supports the case for a wider use of simulation techniques by the business community. Following a discussion on business process modelling methods and tools, the usability of simulation modelling for evaluating alternative business process strategies is investigated. Examples of simulation models representing business processes are presented and discussed.