The article presents a method of defining costs of a gradual shaft production process using FlexSim simulation software. One of the key concepts used in the article is a computer simulation, which is necessary for the efficient and quick implementation of this type of research. The objective of the article was to determine the costs of the production process at a given size of the production lot and to present the possibilities of FlexSim software. To create a computer simulation, first a product that will be produced must be chosen. Then, the positions on the program's working field are selected and placed. The next step is to set the parameters of the machines or positions, and finally to perform a simulation. Conducted simulation showed, that the biggest costs are generated by lathes and milling machines, while the lowest – by quality control station. Thanks to the experiment, it is possible to determine how to reorganize the production process in a way enabling cost minimization. Moreover, it has been demonstrated that computer simulation allows to illustrate the virtual production process with the lack of risks associated with the real process, as well as it enables analysis of individual results and subsequent optimization.Keywords: computer simulation, FlexSim, flexible simulation, costs, production, gradual shaft
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