"I’ve done cost/benefit analysis my entire life with spreadsheets, and when I saw that Simio could make my business case, I literally saw hundreds of hours of work disappear." J. Spencer Williams, CEO
J. Spencer Williams, CEO at Retirement Clearinghouse, needed to crunch some numbers. He turned to his trusty spreadsheets, but this problem was so complex that a spreadsheet couldn’t do the job. So he tried a less common approach: he used Simio discrete event simulation -- software more likely to be found in an engineering department.
He used the Simio model to evaluate the industry as a whole. At a EBRI Policy Forum, the simulation was presented and showed how widespread adoption of seamless plan-to-plan transfers for small-balance accounts can significantly increase Americans' retirement prospects by retaining more savings in employer-sponsored plans. If auto portability is widely adopted, within one generation small cash-outs could be reduced by two-thirds, from $7 billion annually to less than $2.5 billion annually. As a result, auto portability could generate more than $115 billion in new employer-plan savings for the current and next generation of plan participants. Read the Full Case!
Simulation is the process of creating an abstract representation (a model) to represent important aspects of the real world. Just as flight simulators have long been used to help expose pilots and designers to both routine and unexpected circumstances, simulation models can help you explore the behavior of your system under specified situations. Your simulation model can be used to explore changes and alternatives in a low risk environment.
Cost savings and/or cost avoidance in a typical simulation project are often 10 to 20 times the initial investment within four to six months of initial use.
Any process that needs optimized. Simio works with processes across to answer the "what ifs" and optimize the process without expensive capital expenditures.
Systems where it is too expensive or risky to do live tests. Simulation provides an inexpensive, risk-free way to test changes ranging from a "simple" revision to an existing production line to emulation of a new control system or redesign of an entire supply chain.
Large or complex systems for which change is being considered. A "best guess" is usually a poor substitute for an objective analysis. Simulation can accurately predict their behavior under changed conditions and reduce the risk of making a poor decision.
Systems where predicting process variability is important. A spreadsheet analysis cannot capture the dynamic aspects of a system, aspects which can have a major impact on system performance. Simulation can help you understand how various components interact with each other and how they affect overall system performance.
Systems where you have incomplete data. Simulation cannot invent data where it does not exist, but simulation does well at determining sensitivity to unknowns. A high-level model can help you explore alternatives. A more detailed model can help you identify the most important missing data.
Systems where you need to communicate ideas. Development of a simulation helps participants better understand the system. Modern 3D animation and other tools promote communication and understanding across a wide audience.
$115 Billion 401K Boost Predicted with Simio Process Model. Click here to read the entire case study.