cscmp 2014: big calculations

BIG CALCULATIONSthe key to solving the efficiency puzzle

the key to solving the efficiency puzzle

the key to solving the efficiency puzzle

BIGCALCULATIONS

TC Baker, Director of Sales North America

3© 2014 Quintiq

“How fast you are moving is more important than where you are.”

- Guy Kawasaki, Rules for Revolutionaries

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“The past is only open to interpretation. The present is fleeting. The future can be shaped.”

- Frank Appel, DHL Deutsche Post

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“'If we get it right, New York to Tokyo could be less than an hour.”

- Sr. Richard Branson

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“The U.S. stock market (is) a class system, rooted in speed, of haves and have-nots. The haves paid for nanoseconds; the have-nots had no idea that a nanosecond had value.”

- Michael Lewis, Flash Boys

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“Big Calculations”is the act of optimizing your business in real-time

to achieve fast and efficient results.

© 2014 Quintiq 10

DATA KNOWLEDGEDECISION SUPPORT

OPTIMIZATIONINFORMATION

BIGDATA

BIGCALCULATIONS

TIME MILLISECONDSNONE

CALCULATIONS NONE

SECONDS

SIMPLEPATTERN

RECOGNITIONOPTIMIZATION

DYNAMICOPTIMIZATION

HOURSPERIODIC

Data value spectrum

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DATA KNOWLEDGEDECISION SUPPORT

OPTIMIZATIONINFORMATION

BIGDATA

BIGCALCULATIONS

TIME MILLISECONDSNONE

CALCULATIONS NONE

SECONDS

SIMPLEPATTERN

RECOGNITIONOPTIMIZATION

DYNAMICOPTIMIZATION

HOURSPERIODIC

Data value spectrum

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WORKFORCE

MANUFACTURING

LOGISTICS

Task data

Buy/sell data

GIS data

Compliance report

Demand/supply report

Traffic patterns

Task norms

Demandforecasting

Predicted traffic patterns

Rosters/schedules

S&OP

Logistics plans

Real-time workforce planning

Real-time S&OP

Real-time transport planning

DATA KNOWLEDGEDECISION SUPPORT

OPTIMIZATIONINFORMATION

BIGDATA

BIGCALCULATIONS

TIME MILLISECONDSNONE

CALCULATIONS NONE

SECONDS

SIMPLEPATTERN

RECOGNITIONOPTIMIZATION

DYNAMICOPTIMIZATION

HOURSPERIODIC

© 2014 Quintiq

Data value spectrum

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DATA KNOWLEDGEDECISION SUPPORT

OPTIMIZATIONINFORMATION

BIGDATA

BIGCALCULATIONS

WORKFORCE

MANUFACTURING

LOGISTICS

Task data

Stock/buy/sell/process data

GIS data

Compliance report

Demand/supply/process report

Traffic patterns

Task norms

Demand prediction, process knowledge

Predicted traffic patterns

Rosters/schedules

S&OP planning

Logistics plans

Real-time workforce planning

Real-time S&OP

Real-time transport planning

Database &

Storage

Business Intelligence

&ERP

SCP&O

TIME MILLISECONDSNONE

CALCULATIONS NONE

SECONDS

SIMPLEPATTERN

RECOGNITIONOPTIMIZATION

DYNAMICOPTIMIZATION

HOURSPERIODIC

© 2014 Quintiq

Data value spectrum

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WORKFORCE

MANUFACTURING

LOGISTICS

Task data

Stock/buy/sell/process data

GIS data

Compliance report

Demand/supply/process report

Traffic patterns

Task norms

Demand prediction, process knowledge

Predicted traffic patterns

Rosters/schedules

S&OP planning

Logistics plans

Real-time workforce planning

Real-time S&OP

Real-time transport planning

Database &

Storage

Business Intelligence

ERP

SCP&O

DATA KNOWLEDGEDECISION SUPPORT

OPTIMIZATIONINFORMATION

BIGDATA

BIGCALCULATIONS

TIME MILLISECONDSNONE

CALCULATIONS NONE

SECONDS

SIMPLEPATTERN

RECOGNITIONOPTIMIZATION

DYNAMICOPTIMIZATION

HOURSPERIODIC

Database &

StorageSCP&O

Business Intelligence

&ERP

What makes it difficult to optimize?

© 2014 Quintiq

Data value spectrum

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Long campaigns

Individual ordersTake-out delivery

Scheduled delivery

Shift 2

Shift 1

Shift 3

Fixed shifts

Dynamic schedule

Haste makes wasteCHALLENGE #1

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The butterfly effectCHALLENGE #2

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“Everyone has a plan until they get punched! ”- Mike Tyson

Major disruptionsCHALLENGE #3

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“Everyone has a plan until they get punched! ”- Mike Tyson

Buzz Lightyear effectCHALLENGE #4

“To infinity and beyond! (infinite options of course)”- Buzz Lightyear

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Steps to deliver “Calculated Decisions” and BIG value

Select Define Model Measure

Strategic goals

Planning decisions

Supply chain

PlanningKPIs

Optimize

Real-time planning

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SELECTDemurrage Tons per shift / person

DEFINECreate loading rotation Assign berthsAssign resources

MODELCranes, birthsStock piles, conveyors

MEASUREThis week’s demurrageThis week’s productivity

OPTIMIZETwenty Foot Equivalent Unit/acre

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SELECTSupply fulfillment

DEFINEForecast heads by type and gradeProduction plan

MODELCut treeConversionsOrder fulfillment priorities

MEASURESupply utilization %

OPTIMIZEProduct fulfillmentReal-time ATP/CTP

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SELECTTons produced

DEFINESequences, tank assignments“Machine” assignmentsLine assignments

MODELChangeoversRestrictionsDuration

MEASURETons / hourLost time

OPTIMIZEAsset utilization

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Route plan

Dri ve r 00 3

Dri ve r 00 3

Route planRoute plan

Driver 003

SELECTOutbound on-timeInbound on-timeEmpty miles

DEFINEassign trip to drivers

MODELTime windowsDriver rules (11, 14, 70) etc.

MEASURE24 hour KPIs

OPTIMIZETotal mileage

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Driver 003

SELECTOTIFInventory Productivity

DEFINEFurnace batchingHot-mill sequencingCampaignsFinishing flow

MODELWidth jumpsGauge jumpsCool down

MEASURELate orders w/ingot not scheduled

OPTIMIZEAvailability and cost

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“Big Calculations”is the act of optimizing your business in real-time

to achieve fast and efficient results.

© 2014 Quintiq 31

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Questions?

THANK YOU

TC Baker, Director of Sales North America

33© 2014 Quintiq 33© 2014 Quintiq

Quintiq World Tour: PhiladelphiaCo-hosted by:

When

8 A.M. – 7 P.M.

October 15, 2014

Where

Cira Centre

2929 Arch St

Philadelphia

Hear from speakers such as:

Bart Pieper, Marquis Management

Marc Bombet, Western Digital

Brian Blodgett, American Public University System

Ben Campbell, Glencore

Register today:

www.quintiq.com/world-tour/philadelphia-usa.html

Discover how smart planning is taking the world’s most successful companies to the next level