Selection of a Simulation-Service Vendor

Williams, Edward J. 1993. "Selection of a Simulation-Service Vendor." Industrial Engineering 25(11):18-19.

The competitive advantages of intelligent use of simulation are well documented, as are the pitfalls of simulation. To achieve the former and avoid the latter, you may choose to undertake simulation internally or contract the building, documentation, run ning and interpretation of simulation models out to a vendor. You may have an in-house simulation shop that can accommodate your schedule. If so, well and good, but if not, this article will help you select a simulation-services vendor intelligently.

If you are considering the purchase of equipment, upgrades or production-reorganization services from a vendor, that vendor may suggest doing the needed simulation for you. Run in the opposite direction.

This selection best proceeds unhurriedly through the following steps:

• examination of a vendor's promotional materials;
• a get-acquainted visit to the vendor's office;
• a discussion of contractual agreement for the next project you have in mind.

First, examine the vendor's brochures and promotional materials in detail, asking yourself the following questions:

• In what capability or capabilities does the vendor take the most pride? A vendor who emphasizes coding of a model to the near-exclusion of data-gathering, statistical analyses, documentation and training of your people is best avoided.
• Does the vendor have extensive experience in a wide variety of simulation contexts? Whether the vendor has specific experience in your particular industry or service is of minor importance. It is highly important that the vendor's personnel have a br oad range of experiences upon which to draw.
• Does the vendor have a liaison with simulation, statistical analysis, production engineering and process engineering experts at a university? If so, the vendor has a valuable, deep source of additional expertise to tap should your situation warrant i t.
• Does the vendor have employees covering a broad range of experience and expertise? A vendor employing all entry-level personnel will not have the intellectual "firepower" for solving difficult issues sure to arise during your work. A vendor employin g all senior-level personnel will have to bill you at premium rates for routine work.
• In addition to simulation-model development and consultation, does the vendor develop and market a software language or tool for simulation? If the vendor markets software tool X, the vendor will use tool X for your work. If the vendor markets langu age Y, the vendor will write your model in Y. To the workman with only a hammer, every problem looks like a nail. Hence, your strongly preferred answer to the above question is "No."
• Are the promotional materials free of typographical and grammatical errors? A vendor whose brochures are almost right will probably build and interpret your model almost right. You deserve better.

Second, visit the vendor's office, following Yogi Berra's advice "You can observe a lot just by watching." For example:

• Are your competitor's proposed floor plans lying carelessly askew atop a conference table? Are confidential production figures staring at you from a spreadsheet on an unattended microcomputer? Better to select a vendor who accords current customers' sensitive data the same confidentiality you wish accorded your own data.
• What literature do you see? You certainly will see manuals for the computer software tools the vendor uses, how varied are those tools? Do you see texts and reference works on industrial and production engineering and on statistical analysis? Do yo u see trade-press magazines and proceedings-volumes from recent simulation conferences?
• Does the office exude an air of competent professionalism? An analyst whose office-poster motto is "Hang in there 'til Friday" is not the analyst who should be building and interpreting the models from which you plan to make policy decisions.
• Does the office layout contribute to the productivity of the analysts? There should be separate areas for deep-concentration individual work and for informal technical discussions, and there should be a courteous, efficient receptionist to run the of fice infrastructure efficiently without distraction to the analysts.
• Does the vendor use a team approach to model building? Will your work have the benefits of structured walkthroughs and standardized internal responsibility checkpoints? Does the vendor have a "bookcase" of methods whose appropriate inclusion in your model will reduce the time and cost required to build it?

If the vendor passes scrutiny thus far, begin a discussion of the simulation work you wish done. Ask yourself the following:

• Does the vendor perceive my request for references as an opportunity or as a threat?
• Does the vendor cringe when I use the word "turnover" in a question? Such a question is important: you will not want to explain the same work over again to a new employee at six-month intervals.
• Am I speaking with an analyst who listens intently, or one who approaches every problem with an open mouth?
• Is the analyst eager to find a problem for the vendor's already-decided solution to fit, or eager to learn my problem?
• Does the analyst recommend modeling everything in sight, or does he or she recommend building a prototype? Building a prototype is wise; it is well-nigh vital if this is one of your own company's early forays into simulation. An early foray implies that your own management awaits being convinced of the value and practicality of simulation. Far better to begin with a small success than with a large, conspicuous failure.
• Does the analyst promise you everything while you presumably do nothing? Or does the analyst stress the importance of visiting your plant or shop floor, talking with your colleagues and needing your data? Successful simulations require close communi cation between customer and simulation-model developer throughout the project.
• While discussing generic contract terms, does the analyst accord high importance not only to building the model, but also to documenting it, making its data-entry convenient, correcting any deficiencies that may appear in it later and training your ow n personnel in the ongoing use of it?

If all has gone well, congratulations on your choice of a highly competent vendor and welcome to the club of successful simulation users!