Modeling and Improvement of the Production System of a Company in the Automotive Industry with Simulation

Digitalization, which began with Industry 4.0 and has grown with great momentum due to the pandemic, is becoming significantly important to industries. Companies seeking to take their place in fierce competition with the global economy have begun to integrating digitalization into processes to increase their profitability and ensure operating excellence in this regard. In this study, simulation modelling was performed by using ARENA software, which accelerates decision-making processes completely objective, and allows determining and choosing the best possible scenarios without implementing any change in present system. The proposed method was applied to reduce the penalty costs in a company operating in the automotive sector by determining operational and strategic improvement with design of experiment. The main aim of this study is maximizing the profitability of a company by decreasing penalty cost and eliminate waste and bottlenecks. As distinct from literature studies, this study provides the opportunity to optimize any production process by following the steps explained elaborately, regardless of the sector. As a result of the study, the production factors were optimized by design of experiment and the recommendations regarding the investment decisions and production factors were given to the company to minimize penalty costs within the framework of the company’s constraints.