STEM help / Training / Two-hour tutorial demo

Exercise 14: Location is not implied by requirement

Watch the video presentation and/or read the full text below

Now let’s look at the results:

  1. Run the model. (Still skip the warnings about the last resource which we haven’t connected yet.) The Results program is activated.
  2. Change selections for the existing Capacities and Utilisation Ratio graphs to show the Access chassis instead of the Access card.
  3. Draw Installed Units as a table for Optical interface, Access card and Access chassis, using the option in the corner of the Draw dialog to Show Graph as Table.
  4. Add Access chassis to the stacked Capital Expenditure and Operating Costs graphs.

Figure 33: Capacities and Utilisation Ratio for the Access chassis, plus inventory of resources

The Capacities and Utilisation Ratio graphs may be suspicious, but it is immediately clear from the Installed Units table (inventory) that there are only have five chassis for 25 cards in Y1, and still only 15 chassis in Y10, whereas we should have chassis at all 25 sites.

STEM is aware that the cards are in different places, but not that the chassis are too. Collocation cannot be inferred from the dependency between the elements; e.g., some management software could be virtualised and shared in a separate data centre location.

Therefore, we must tell STEM about the deployment of the chassis too:

  1. Connect the location to the Access chassis resource, as we did for the Access card.
  2. Double-click the location link and set Distribution = Extended Monte Carlo.
  3. Re-run the model (still skipping warnings) and review the impact on the results.

Figure 34: One Access chassis per site at the start, and then a few more later at the busier sites

Now there is a chassis at every site from Y1, with very low utilisation at the start, and then just a few more are added from Y5 onwards. There is an average of c. three cards per site in Y10 (74/25), but the simulation suggests a few of the busier sites actually need a sixth card, and thus an extra chassis. In contrast, some of the quieter sites might only need one or two cards, but still need one, under-utilised chassis.

Figure 35: Stacked Capital Expenditure and Operating Costs graphs for all the resources so far

You might wonder why the location for the cards is not based on the number of chassis. In this example, the number of Central offices is a given, and more than one chassis might be needed eventually at some sites, as shown above. An extra chassis should not demand further cards; it is the cards that need a chassis, not the other way round!

The remaining commentary explores refinements beyond the scope of this tutorial.

The number of locations is really part of the marketing plan. With more time, we could compare the merits of a phased roll-out; perhaps launching at only five sites (to limit the initial capex), and then adding the others gradually. This would spread the capex, but also delay revenue, so it is not obvious which would yield the greater return.

With more data about the distribution of potential customers, we could also model the dimensioning of cards and chassis at individual sites, rather than estimating the impact with the deployment feature. This can be done very efficiently and consistently using a feature called template replication.

With such an approach, the choice of specific locations could be tailored such that none would ever require more than one chassis. However, the number and location of viable sites may not bear any correlation to the proximity of potential customers, so this may not be possible in practice.

As it is, the aim for this short exercise is to keep things simple, and to estimate the impact of geography, as you might for an initial business plan, rather than being specific about where the chassis are. We might re-visit the ideas above in a future sequel!

Things that you should have seen and understood

Show Graph as Table

 

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