INTEGRATED PLANNING & SCHEDULING FOR GREATER AGILITY & RESOURCE OPTIMIZATION
Kuah Ann ThyeBRMS Practice Leader, IBM Websphere ILOG
Agenda
Illustrate ILOG Optimisation Portfolio1
Share ILOG PPO2
Share Case Studies3
ILOG: Leadership in Optimization
� Over 160 of the Global 500 build custom applications using ILOG Optimization engines and tools
– 65% in Manufacturing, Transportation & Investment Management
– 80 Manufacturers and 40 Transportation companies in the Global 2000
� Over 1,000 commercial customers under maintenance� Major ISVs reach thousands of others
– 8 of top 10 Supply Chain application vendors– SAP, Oracle, i2, Manugistics, Manhattan Associates, Infor, Quintiq, Kronos, Logic
Tools, DynaSys, Ariba, SmartOps, Cadence Design, Siebel, Tavant, Siemens, Areva, Sabre, PROS, Emptoris, CombineNet, ITG, Eclipsys, SPSS, etc...
� Most of our Modeling Tool competitors are CPLEX Resellers, reaching hundreds more
– GAMS, Paragon, Maximal
� Over 1,000 Universities using our optimization products in their research projects
– ILOG CPLEX is to Operations Research what SPSS and SAS are to statistics
Industry Views …No. 1 Optimization since 80s
Pioneered by ILOG/CPLEX
Optimization Technologies Evolution
DispatchRules
1960 1970 1980 1990
SA, GA, Tabu
CPMPERT
Constraint-based Scheduling
2005-20091947
Primal SimplexLP
ParallelLP/MIP
ConcurrentScheduling
Interior Point
ConstraintPropagation
Large MIPsMIP
ShiftingBottleneck
First CP Systems
CooperatingSolvers (MP/CP)
Global constraints
Barrier LPBarrier Crossover
Dual Simplex
Single ModelingLanguage
(MP,CP)
UnifiedObject
ModelParallel
CP
"ILOG is the leading provider of optimization software components." Larry Lapide, Research Director, AMR Research
"ILOG - The Optimizer Inside." Byron Miller, Analyst, Giga Group
“We selected ILOG because we judged their products to be the bestagainst competitive offerings, and because they are the market leader in most, if not all of their product categories.”
Richard Ratliff, Vice President, Sabre
Optimization Market Leadership
“The leading optimization component vendor is ILOG. ”
“ILOG is the world’s leading provider of software components”6/99, 6/00
CPLEX Across the World
1194 Cities – Excluding ISV deployments
Single Platform Collaborative Planning : Custom Who’s doing
what?Who’s doing
what?
Material Planning
Sales & Operations Planning
Transport Planning / Scheduling
Supply Programme
Production Planning
ILOG LogicTools Suite
Determine optimal number, location, territories, and size of warehouses, plants, and lines.Determine where products should be made.
Inventory Analyst: Strategic
Product Flow Optimizer
Transport PowerOps
Plant PowerOpsPlanning and detailed finite
scheduling for process manufacturing plants
Advanced routing optimization engine for on-going use.
Determine best flow considering inventory, transportation, and mode
Determine push/pull locations, buffer locations, postponement, and policy analysis
LogicNet Plus XE
Transportation AnalystStrategic routing for fleet
sizing, multi-stops, backhauls, and more.
Inventory Analyst: TacticalMaintain the correct inventory
levels on an on-going basis
Multi-SiteProductionSourcing
ProductionPlanning and
Scheduling
Supply Chain
Applications Transportation Planning
Inventory Optimization
StrategicNetwork Design
ILOG Plant PowerOps
� FMCG– Fresh dairy– Tobacco– Chocolate– Biscuits– Baby food– Beer, Soft Drinks
� Pharmaceutical– Biotech– Pharmaceutical
� Chemicals– Consumer chemicals– Industrial chemicals– Cosmetics
� Models key manufacturing constraints
� Designed as a decision support system
� Strength on optimization and performance analysis
� Integration in IT landscape
Integrated Planning and Scheduling solution
• High demand variability
• Complex manufacturing process
• Focus on performance management and cost control
• Product mix changes, new productintroduction, phase out
• Complex product quality issues
ILOG Plant PowerOps Overview
ManufacturingData
ManufacturingData
Supply Chain
Management
Supply Chain
Management
EnterpriseResourcePlanning
EnterpriseResourcePlanning
AdvancedProcessControl
AdvancedProcessControl
ManufacturingExecutionSystem
ManufacturingExecutionSystem
Production ordersDue datesDependenciesResourcesCalendarsModesSetup modelsRecipesShipment costs
PlanningScenarios
Interactive Graphical
Planning BoardInteractiveGantt Chart
• Production schedules
• Pegging arcs• Machine lineups• Resource loads• Safety stock• Tank levels
• Daily or weekly plans
• Calendar view• Plan validation• Exceptions• Alerts• Reports
• KPI Analysis• What-if analysis• Scenario comparison• Drag & drop (insert)• Partial Freeze & Solve• Undo/redo
DELLDELL
Integrated Planning & Scheduling
Integrated Planning & Scheduling
ILOG PlantPowerOpsILOG PlantPowerOps
ProductionPlanningProductionPlanning
DetailedSchedulingDetailedScheduling
BusinessRules
BusinessRules
GoalsConstraintsParametersFilters
Optimize:
• Order fulfillment
• Cycle time• Production
cost• Inventory• Utilization
ProductionPlanner
IntegrationPlanning
Model
Interactive planning
Inside the plant : Network Structure
Define the resources, resource groups and connectionsusing PPO’s plant layout
Multi-Plant: Planning Use Case
Distribution Planning View displays demand satisfaction by time and sourcing choices by location
Distribution Planning View displays demand satisfaction by time and sourcing choices by location
Multi-Plant: Planning Use Case
Planning Sheet View displays a schedule of resource utilization in the facility.
Planning Sheet View displays a schedule of resource utilization in the facility.
Planning Workload view shows the % utilization of the resources in the facility.
Planning Workload view shows the % utilization of the resources in the facility.
Master Data Maintained in ERP/SCM System
Planning & Scheduling Model
ERP / SCM
WebsphereSAP DataAdapter
ERP/SCM ModelInstantiation
ILOG Planning & Scheduling System
Mapping
Load/Refresh/Commit
ILOG Solution
Master Data
Transactional Data
Editing Planned Production with Automatic Configuration
Multi-step Recipes:
Automatic configuration of the possible modes function of previous choices
Multiple Optimization Profiles: Utilization, Inventory, Capacity
.
The different “optimization profiles” can be defined. E
Planners can choose an existing optimization profile or creating a new one.
Each optimization profile defines the goals of the schedule by setting the relative importance of different objectives
© ILOG, All rights reserved 205-May-10
Violation Panel• Show violations of
tank capacity and batch mixing
Violation Panel• Show violations of
tank capacity and batch mixing
Add a new production order
Add a new production order
Tank Level Display• Monitor tank levels
and uncover problems, such as insufficient intermediate products
Tank Level Display• Monitor tank levels
and uncover problems, such as insufficient intermediate products
5/5/2010 Internal ILOG Document21
Enforce maximum 36 hours between two cleanings
Enforce maximum 36 hours between two cleanings
Changeover with Cleaning In Place triggered by allergen transition
• These setups textured
Changeover with Cleaning In Place triggered by allergen transition
• These setups textured
Ordinary changeover with no major cleaning (installing fruit container, rinsing)
• These setups have no pattern
Ordinary changeover with no major cleaning (installing fruit container, rinsing)
• These setups have no pattern
Fixed Production Orders have a “brick” patternFixed Production Orders have a “brick” pattern
© ILOG, All rights reserved 235-May-10
Impact• Part of the additional
demand is left unsatisfied because of missing capacity
Impact• Part of the additional
demand is left unsatisfied because of missing capacity
KPI Comparison Panel • Provides an easy way to
compare scenario solutions• A plug-in mechanism allows
to define custom KPIs.
KPI Comparison Panel • Provides an easy way to
compare scenario solutions• A plug-in mechanism allows
to define custom KPIs.
PPO Integrates Production Planning and Scheduling
Gantt Chart shows the
schedule for each resource
Workload Table shows the
utilization of resource
Managing Plant Floor Constraints
With improved plan reliability
Max duration on storage tankCleaning policies
Multi-purpose storage tank
Continuous process
Re-planning: Reducing System Nervousness
Enforce Fulfillment in Next Production Run� Enforce that next run of planning engine fulfill at least the same
percentage of a demand as in the current planning solution
� If the delivery window is larger than the time bucket then the planned delivery may be occur later
Reducing Re-planning nervousness
� Fix planned productions in current planning solution
� Fix planned deliveries in current planning solution
Scenario Creation and Comparison
� Create and manage scenarios
� Copy scenarios
� Test different planning strategies
� Define and apply business policies
� Define and compare custom KPIs
� Compare Gantt charts and solutions side by side
What-if analysis with precise KPIs
© ILOG, All rights reserved 305-May-10
Available-To-Promise
� Without changing the planning solution we can promise 187 pallets Dec 7th
Capable-To-Promise� Could we produce more bio-strawberry on December 7th with a
different trade-off?
Prioritize the customers using non-delivery costsand re-optimize
Prioritize the customers using non-delivery costsand re-optimize
1000 achievable ?1000 achievable ?
Capable-To-Promise
We can promise 751We can promise 751
We can promise 75% of the 1000 requiredWe can promise 75% of the 1000 required
We let 249 unsatisfiedWe let 249 unsatisfied
You can use a What-If scenario, not to clutter the repository withthis simulation of demand
You can use a What-If scenario, not to clutter the repository withthis simulation of demand
Asset UtilizationAsset utilization by resource
Asset utilization by resource family
Asset Utilization
� Detailed workload table including total changeover time, total productive time etc. by resource or by resource family
PPO provides Fully Configurable Reporting Capabilities
Pre-defined measures
Pre-defined reports
Inventory alerts in PPO
Inventory excess with respect to max days of supply
Inventory deficit with respect to min days of supply
Stock Coverage ViewInventory levels for intermediates and finished good s expressed in quantity and days of supply
Stock Summary ViewSummary of inventory levels for intermediates and finished goods expressed in quantity and days of su pply
Planning with UncertaintyService Level Type = “Fill Rate Dynamic”: safety stock not based
on average lead time but on next production time bucket
Unique feature: not only graphical but also taken into account in optimization !!!
Case Study : Leading Milk Producer
� Customer in FMCG– Manufacture Yogurt and Diary Products
� Manufacturing process – Tank-based processes
– continuous equipments
– storage tanks– filling and packaging
� Compared the manual plan vs optimized plan
Case Study - Challenges
� High Product Mix
� Shared resources (production and cleaning equipments)
� Volatile demand
� High service level requirements
� Shelf life, maturation time for both intermediates and finished products
� Multi-step recipes in continuous equipment, production tanks and storage tanks
� Cleaning in place
� Traceability Regulations
Fresh dairy products
Milk Pasteurizers
Filling Lines
Extending PP/DS with Plant PowerOps
Powder milk
Sugar
Yogurt preparation
Packing lines
Cream Low-fat milk
Fermentation
CoolersStorage of final products
Factory Layout
PASTO
FERMENTER 4
TANK 4
LINE
4
FERMENTER 5
TANK 5
LINE
5
FERMENTER 9
TANK 9
LINE
9
FERMENTER 10
TANK 10
LINE
10
FERMENTER 11
TANK 11
LINE
11
FERMENTER 3
TANK 3LIN
E 3
FERMENTER 8
TANK 8
LINE
8FERMENTER 7
TANK 7
LINE
7
BioPrune
BioSoyRed
Fruits
BioSoy
Natural
Vital.PeachChunk
Vital.Strawberry
Chunk
BioSkimPrune
WMBio
Skim
Vital.Limon
Vital.Natural
Vital.PinappleChunk
Vital.Peach
Vital.Strawberry
BioKiwi
Cereals
BioMuesli
BioStrawberry
BioPrune
Vital.MelonChunk
BioStrawberry
BioKiwi
Cereals
BioMuesli
WMVital.
Chunk
WMVital.
Chunk
WMVital.
Chunk
WMBioSoy
WMBioFat
WMBioFat
BioSkimKiwi
WMVital.
Sweet.
down
down
BAT I BAT II BAT IVBAT III
CowMilk
SoyMilk
ferment
fruit
Pasteurized Milk
Intermediates : different White Masses obtained from fermentation of milk in batches and stored in cold storage tanks
Intermediates : different White Masses obtained from fermentation of milk in batches and stored in cold storage tanks
Connectivity to be managed between tanks and linesConnectivity to be managed between tanks and lines
Final products : fruit adding and packagingNot all products can be made on all lines
Final products : fruit adding and packagingNot all products can be made on all lines
Fermenter 7, Tank 7, Line 7 downFermenter 7, Tank 7, Line 7 down
2 kinds of raw materials : cow milk and soy milk, a setup time is incurred to clean the pasto after soy milk
2 kinds of raw materials : cow milk and soy milk, a setup time is incurred to clean the pasto after soy milk
On conditioning lines:•Setup times when product switching (labeling, fruit container plugging etc.)•Cleaning In Place triggered on:
• transition from product with allergens• elapsed time since previous CIP
On conditioning lines:•Setup times when product switching (labeling, fruit container plugging etc.)•Cleaning In Place triggered on:
• transition from product with allergens• elapsed time since previous CIP
Results – Manufacturing Operations
� Production Smoothing– Stable production frequency
– Frequency is determined by the min and max days of supply
Manual plan VS optimized plan
Results – Manufacturing Operations
� Operational efficiency– operational time / net production time– between 2% and 5% increase
� Improved throughput� Reduced cycle time (reduced non-productive operations)
� Cleaning costs and changeovers– Between 10% and 40% reduction
5/5/2010
Case Study : Pharmaceutical IndustryChemical Substances Micro-organic cultures Vegetable or animal tissues
Fermentation & purificationSynthesis
Pharmacologically active ingredient
Extraction
PREPARATION OF THE PHARMACEUTICAL PRODUCT
Proportioning
Mixing
Direct use
Packaging
Capsules, Granules
Tablets, Pills, …
P ACK AGING
PREP ARATION OF
THE ACTIVE
INGREDIENT
Biotech Manufacturing Process
Micro-organic cultures Cell culture and harvest Purification Bulk, fill, freeze, dry
Example
Cell growth & harvest
Upstream purification
Purification vaccine A
Purification vaccine C
Purification
vaccine B
Purification vaccine D
Cleaning in place
Conclusion: Benefits of PPO
� Reduce waste, work-in-process inventory and cycle time
� Increase throughput via improved resource utilization
� Generate realistic schedules by taking into accounts true manufacturing constraints
� Improve the synchronization between intermediate products and finished goods
� Align manufacturing execution with demand sensing
� Reduce planning and scheduling cycle time
� Improve production smoothing by generating plans with stable production frequency and low production variability
� Quickly align manufacturing strategies to changing market conditions
INTEGRATED PLANNING & SCHEDULING FOR GREATER AGILITY & RESOURCE OPTIMIZATION
Kuah Ann [email protected]