Simulation of The Production Line Repair Time Via Dynamic Systems Professor Mohammad Namazi 1 + , Hamed Forougozar 2 and Navid Reza Namazi 3 1 Accounting Department, Shiraz University, Iran 2 M.A, Department of Industrial Management, “Islamic Azad University, Shiraz Branch”, Iran 3 M.A, student of Accounting, Department of Accounting, “Shiraz University”, Iran Abstract. The major aims of this study are to analyze and study the optimal repair time of the production line of a manufacturing company. The relationship between timing failure, downtime, repair time, machine performance, sales and profit status of a dynamic system is also analyzed. It utilizes simulations (“Vensim Software”) and dynamic systems in a vegetable oil manufacturing firm in Iran. At first, the cause and effect diagrams of the model are shown via “Delphi techniques”, and then the statistical distribution of different factors affecting various parts of the model is determined by the “Arena Software”. Consequently the effect of different parts of the model on other parts is analyzed via the dynamic system. Then, by obtaining financial data relating to a digital generator, the cost- benefit of the model is determined from profit status views. The results of this study exhibit that the designated simulation model is potent and was able to indentify 5 factors influencing the repair time. The power disconnection (C.V=1.48), is indeed the most negative factor affecting the system. In addition, the profitability of the model can be enhanced 8.66% by investing in a digital generator. Keywords: Repair Time; Timing Failure; Downtime; Simulation; Dynamic Systems; Profitability 1. Introduction The desire of industries and manufacturing companies for implementing a reliable and efficient repair and maintenance system is enhanced with increasing their activities. In effect, the existence of a modern and well suited repair and maintenance system is crucial because by exerting such a system the control of the company’s operations, evaluation of its performance, measuring productivity on building, machinery, equipment, maintenance and profitability would be possible. Consequently providing the best repair services and maintenance and continuation of the services can be attained when a minimum costs and a maximum productivity is exerted [5]. The repair time of the production, due to stopping production line and none completed products, impose significant costs to organizations. Hence, predicting machines repair time is very important in maintenance planning. Furthermore, due to the high cost of repair time, it is really important to adopt a reliable system for predicting such times in order to establish an appropriate maintenance system [2]. The major purpose of this study is to introduce a suitable production repair time model for manufacturing firms. Since a significant obstacle in implementation of an efficient repair and maintenance cost system is identifying various exogenous and endogenous factors affecting the system, the major aims of this study are as follows: 1) To identify the most important factors affecting the production line system in the manufacturing realm 2) To determine how can profitability of the repair time system be enhanced? Do to the fact that in establishing this model, simulation and dynamic systems are exerted and applied in a real oil manufacturing company in Iran (Shiraz), it is applicable to real cases and hence can be implemented in other situations. Ironically, it will also enhance the frontier of existing knowledge in this area. + Corresponding author. Tel.: + 987116460520; fax: +987116460520 E-mail address: mnamazi@rose.shirazu.ac.ir 2011 International Conference on Financial Management and Economics IPEDR vol.11 (2011) © (2011) IACSIT Press, Singapore 373