what if simulation rework

Overview

The What-If Simulation: Rework calculator shows potential savings from reducing activity repetitions (rework) in your process. This interactive simulation tool helps you model the financial and time impact of eliminating or reducing rework by allowing you to specify reduction targets and see the projected benefits.

By analyzing repeated activities and their associated costs, you can quantify the value of process improvements and make data-driven decisions about where to invest in reducing rework.

Common Uses

Model the financial impact of reducing rework by specific percentages
Calculate potential time savings from eliminating repeated activities
Quantify the business case for process improvement initiatives
Compare different rework reduction scenarios
Support strategic decisions about quality improvement investments
Prioritize which repeated activities to address first based on potential savings

Settings

Rework Attribute: Select the attribute that identifies whether a case contains rework. This is typically a boolean or flag attribute created by an enrichment that detects repeated activities.

Time Impact Attribute: Select the attribute that represents the additional time added due to rework (typically measured in hours or days).

Cost Impact Attribute: Select the attribute that represents the financial cost of rework (typically measured in currency).

Rework Reduction Target (%): Use the interactive slider to specify the percentage of rework you want to eliminate (e.g., 25%, 50%, 75%, 100%).

Examples

Example 1: Analyzing Purchase Order Rework Reduction

Scenario: Your procurement process has significant rework due to incomplete purchase orders requiring revisions. You want to model the savings from reducing this rework through better training and validation.

Settings:

Rework Attribute: Has PO Rework
Time Impact Attribute: Rework Time Added (hours)
Cost Impact Attribute: Rework Cost
Rework Reduction Target: 50% (using slider)

Output:

The calculator displays an interactive panel with a slider at the bottom. Adjust the slider to model different reduction scenarios.

Current State (0% Reduction):

Cases with Rework: 1,245 cases (28% of total)
Total Time Impact: 3,738 hours
Total Cost Impact: $187,000
Average Rework per Case: 3.0 hours

Scenario: 50% Rework Reduction:

Cases with Rework: 623 cases (14% of total)
Total Time Impact: 1,869 hours
Total Cost Impact: $93,500
Time Savings: 1,869 hours
Cost Savings: $93,500

Scenario: 75% Rework Reduction:

Cases with Rework: 311 cases (7% of total)
Total Time Impact: 935 hours
Total Cost Impact: $46,750
Time Savings: 2,803 hours
Cost Savings: $140,250

Insights:

This simulation helps you:

Quantify improvement value: See exact dollar and time savings for different reduction targets
Build business cases: Use data to justify process improvement investments
Set realistic goals: Model achievable reduction targets based on resources
Track progress: Compare actual results against simulated targets
Prioritize initiatives: Focus on high-impact rework reduction opportunities

Example 2: Invoice Processing Rework Analysis

Scenario: Your accounts payable process experiences rework due to missing information on invoices. You want to understand the potential impact of implementing automated validation to reduce these issues.

Settings:

Rework Attribute: Invoice Requires Rework
Time Impact Attribute: Additional Processing Time
Cost Impact Attribute: Rework Cost
Rework Reduction Target: 80% (using slider)

Output:

Current State:

Cases with Rework: 856 invoices (19% of total)
Total Time Impact: 2,568 hours
Total Cost Impact: $128,400
Average Rework per Case: 3.0 hours

Scenario: 80% Rework Reduction:

Cases with Rework: 171 invoices (4% of total)
Total Time Impact: 514 hours
Total Cost Impact: $25,680
Time Savings: 2,054 hours (80% reduction)
Cost Savings: $102,720 (80% reduction)

Insights:

An 80% reduction would save over $100,000 annually and 2,000 hours of processing time. This data supports:

Investment justification: The savings easily justify automated validation systems
ROI calculation: Compare savings against implementation costs
Resource planning: Understand FTE impact of rework reduction
Performance targets: Set specific reduction goals for the team

Strategic Applications:

Evaluate automation opportunities with clear ROI projections
Model the impact of training programs on rework rates
Assess value of process redesign initiatives
Support quality improvement program planning

Output

The calculator provides an interactive visualization with:

Slider Control: Adjust the rework reduction percentage from 0% to 100% to model different scenarios.

Metrics Display: Shows current state and projected state for the selected reduction target, including:

Number of cases with rework (current and projected)
Total time impact (current and projected)
Total cost impact (current and projected)
Time savings from the reduction
Cost savings from the reduction
Percentage of cases affected

Visualization: The output typically includes charts or graphs showing the relationship between reduction targets and savings, making it easy to communicate the business case for improvement initiatives.