Published: 28 April 2000
Analyst(s): Roddy Martin
Rockwell Automation bought privately-held Systems Modeling Corporation (SM) this week for an undisclosed amount. SM has approximately 5,000 software licenses in 21 countries worldwide and is estimated to have about $5M in annual revenue. SM is best known for its Arena simulation and modeling product and Tempo, the production scheduling software package. Industrial engineers use Arena to simulate applications, such as high-speed packaging and assembly lines, and then uses the resulting process analysis to improve line performance. Most SM revenue is split between Advanced Planning and Scheduling (APS), manufacturing, Business Process Reengineering (BPR), and supply chain process improvement. SM's strategy is to use the integration of Arena and Tempo products to perform modeling, simulation and planning applications against a common model of the manufacturing or business operation. The benefit is that manufacturers can use the combination to improve the performance of strategic business events such as a new product introduction. This is done by simulating processes in manufacturing and the supply chain, and then using the results to automatically generate plans and schedules and improve business processes.
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