2014 Software Global Client Conference

Transcription

1 014 Software Global Client Conference

2 Dynamic optimization: delivering superior supply chain performance Daniel Spitty

3 Realize Your Resource-to-Market Potential Costly decisions due to unreliable data (Inventory, Grade) Maintenance & Production conflicts cause delays Excess energy & water consumption Poor Asset Performance (OEE) Lack of dynamic and optimized extraction sequencing Poor Process Performance (Quality, Recovery) Non conformance to load out plans High cost of poor utilization Mineral resources and commodity prices are externally determined Only HOW the resource-to-market chain is managed is controllable Goal is to deliver to the market at the right quantity, right time, right grade, right quality and right cost Make the most of your Resources by: Planning and scheduling to optimise the Resource-to-Market chain (local plans are driven by the global plan, not vice versa) Making production, asset and process performance more RELIABLE and more capable Making better decisions through reliable and timely infomation Reducing cost and improving environmental performance by reducing excess energy and water usage 014 Software Global Client Conference 6

4 Enabling an Optimal Supply Chain Business Objectives Plan Horizons Supply Chain Solutions Landscape Structure and Measure Science Applicability 014 Software Global Client Conference

5 Decision support > Businesses are interested in two fundamental things > Knowing what is likely to happen in the future (prediction); and > Making the best decision right now (optimization) > Schneider Electric specialises in innovative software addressing these fundamental needs for enterprise supply chains > Planning & Scheduling & Execution > Simulation, Optimization and Predictive Modelling > Feasible, Best, Prediction 014 Software Global Client Conference 8

6 What are your business objectives? 9

7 Optimizing Business Objectives Objectives Efficiency Waste Throughput Quality Yield Utilization Fulfilment Cost Profit Safety Power Water and Environmental Consumables Renewable Demand Capacity Supply Quantity Quality Blending Assembly 014 Software Global Client Conference Energy Production Integrate Automate Optimize Assets Workforce Fixed Mobile Maintenance Downtime Performance Competencies Rosters and Schedules Tasks Training Safety Travel

8 What are your decision time horizons? 11

9 Examples of current client decisions What date should we commence harvest? What stockpile should we plan to unload the next train to? What products should I produce today in order to meet demand? 014 Software Global Client Conference What products should we blend in order to meet the ship specification? Whilst also minimizing demurrage? What is the optimal packing combination to maximise loads within truck constraints? What juice should we transfer from in order to maximise tank utilisation? Whilst ensuring enough supply for the bottling plant. When should I perform maintenance on my assets to maximise availability? Who should I roster on this trains schedule?

10 Examples of current client decisions What varieties should we plant next year based on demand? How many locomotives do we need to haul 350mT in 016? 014 Software Global Client Conference What is the daily capacity of my plant for the next 1 months? What is the best sequence of ships for the next 3 months to minimize demurrage? When and what products will we fall short on? Do we have spot opportunities? Should we pack near each plant? Or send to a central packaging plant? Based on new products, do we need more tanks? What happens when we have this configuration of tanks? Should we invest in this CAPEX option? What is the ROI? How many people of what skill set will we need of we want to run this many trains?

11 Aligning to Planning Horizons Actuals Execution Scheduling Planning Report on activities performed Reconcile Impact assessment Corrective actions Activity driven Individual activities and resource utilization Planned events i.e. fixed granularity of minutes, hours Can be aggregated to compare with Planning Forecast & capacity driven Aggregated resources and/or activities Granularity can vary in different time horizons e.g. shift, week, month, etc. Granularity: Time Horizon: History Execution Scheduling Planning Short-term Medium-term Long-term + All R R1 R Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Week 7 Week 8 March April Activity driven Time/Capacity driven Tactical Strategic 014 Software Global Client Conference

12 Typical Supply Chain Planning Functions Long Term Years 3 Months Life of Asset 5 Year, Long Term Plan Year, Medium Term Plan Weeks 13 Week, Short Term Plan Days 14 Day, Operational Schedule 0-48 Hour, Execution Schedule 014 Software Global Client Conference

13 How complex is your supply chain? 014 Software Global Client Conference

14 Integrated Supply Chain Industry Alignment Material Logistics Processing Plants Finished Product Inventory Warehouse Demand Planning 014 Software Global Client Conference

15 One Resource/Equipment Activity Source(s) Material Inflow Resource Material Outflow Destination(s) Supply Demand Outages 014 Software Global Client Conference

16 Supply Chain Function - Mining Unloader 1 Stacker 1 Stockpile 1 Conveyor 1 Inventory Target Supply Demand Train Conveyor Stacker Stockpile Unloader Schneider Electric Supply and Demand Optimisation Activity Conveyor Stacker 3 19

17 Integrated Supply Chain F&B Plant 1 Rail DC 1 Demand Plant Packaging Plant DC Plant 3 Road Supply 014 Software Global Client Conference DC 3

18 Global Supply Chain 014 Software Global Client Conference

19 Sources Number of products Warehouse Options Number of despatch points Routing possibilities Plant A Plant B Plant C Plant D Plant E 1 1 Synergy 014, 6 th to 8 th August, Gold Coast, Australia 131,07 The number of hairs on your head: 90, ,000

20 Sources Number of products Port stockpile options Number of berths at port Routing possibilities Mine A Mine B Mine C 3 3 Mine D 3 3 Mine E 3 3 Synergy 014, 6 th to 8 th August, Gold Coast, Australia 139,314,069,504 The number of stars in the Milky Way galaxy: 100 to 400 billion

21 Sources Number of products Port stockpile options Number of berths at port Routing possibilities Mine A Mine B Mine C Mine D Mine E Synergy 014, 6 th to 8 th August, Gold Coast, Australia The number of atoms in the observable universe: to 10 8

22 What is available to help you optimize? 5

23 SDO vision To move industrial software from disparate systems and processes to an integrated, automated decision making solution. 014 Software Global Client Conference 6

24 What your solutions landscape could look like? 7

25 Integrated Planning and Optimization Solution for Mining Stock Management Act Plan Do Mine Planning Concentrator Check & Smelter Planning Metal Balancing Supply Chain Operations APS Cathode Production Plant Operations Ampla Logistics Planning Rail, Road & Port 014 Software Global Client Conference 8

26 IPOS - Industry Example - Mining 014 Software Global Client Conference

27 How can you use the power of science? 30

28 Use science to Better understand why events have occurred in the past Better predict what events will happen in the future Make better decisions to plan for future events based on this prediction Learn from the variance between plan and actual events 014 Software Global Client Conference 31

29 Using the power of science in planning Science Science Last reported state Deployments will utilize analysis and prediction capabilities to provide inputs into SCO from MES systems Plan Start State Deployments will utilize science to assist in generating multiple scenarios in SCO to provide decision support What if Scenarios Historical Performance Planning Configuration Planning Result Science Historical unplanned Events Loss Calendar Deployments will enable science to make suggestions on tactical/strategic decisions Strategic Intelligence Conformance to Plan 014 Software Global Client Conference Conformance to Plan utilizes science to adjust and provide near real time decision support Science Conformance to Plan Past Current Future

30 How to explore the opportunities? Granularity: Time Horizon: History Science Execution Science Science Scheduling Planning Short-term Medium-term Long-term + All R R1 R Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Week 7 Week 8 March April Science 014 Software Global Client Conference

31 Apply optimization Non-linear optimization techniques are required to solve non-linear models: Genetic Algorithms Simulated Annealing Hybrid Neural Networks Evolutionary Strategies Hill-Climbers Ant Systems Tabu Search Evolutionary Programming Schneider Electric s Optimization Platform 014 Software Global Client Conference 34

32 Where is the right place for you to start? 35

33 Scale of Planning Maturity Level 3 Optimized Decision Support Multiple objective optimization Level Partially Integrated Decision Support Simple Heuristics Multiple Supply Chain functions integrated with partially automated decision support to multiple KPI s Level 1 Constrained Manual Multiple constraints satisfied, manual plan generation Level 0 Unconstrained Manual Single KPIs, unconstrained behaviour, no integration, highly manual, prone to error 014 Software Global Client Conference Calculated / Simulated Results Reduced scenario generation timeframe Next Phase Interim State Old State

34 Sophisticated Optimization As sophistication increases, KPIs change to align to a global view of the business. Single integrated system for planning and scheduling across multiple time horizons from Mine to Port Level 4 Automated Decision Making Future Phase Level 3 Integrated and Optimized Decision Support Advanced meta-heuristic optimization, Trade-off analysis, variance analysis 014 Software Global Client Conference

35 Key takeaways and Conclusion Business Objectives Plan Horizons Supply Chain Solutions Landscape Structure and Measure Science Applicability 014 Software Global Client Conference

36 Related Support, Services, Training & Expo Demos Support Global Support Center Live Chat Knowledge Base Guided troubleshooting Training Classroom training Onsite training Custom training Online training and How to videos Services Business consulting Project management Implementation services Post implementation Maintenance services Expo Demos Industry wall: Mining, Metals & Minerals Inventory Accounting for Mining, Metals and Minerals (station #6) Integrate and optimize your supply chain operations (station #7) 014 Software Global Client Conference

37 014 Schneider Electric. All Rights Reserved. All trademarks are owned by Schneider Electric Industries SAS or its affiliated companies or their respective owners. 40