Simulating the Work of a Tendering Technical Company

Abstract

Preparing tenders usually requires the technical staff who would otherwise be preparing manufacturing drawings for products that have been ordered. Work that will be paid for and work that may not be paid for are thus competing for the same resources. Tendering is essential, however, in the type of company discussed, because it is the successful tenders which generate future company revenue.

The simulation explores the allocation of technical resources to tendering and the problem is seen to have something in common with job shop scheduling. There is, however, the additional complication that, since a tender is likely to be unsuccessful, the complete number of activities and costs cannot be predicted.

It is found that, if we attempt to load a technical department so heavily that a man is required to work more than about 80% of his available time, unacceptably long job turn-round times are created. Long turn-round times reduce the probabilities of tenders generating orders.

Increasing the design effort spent on tenders eventually has a bad effect, ending in reduced numbers of orders.

It is necessary for the manager to refuse work when the system is overloaded.