Complexity Optimization Strategic advantage via cutting edge
mathematical optimization technology
Slide 3
Exponential growth of complexity Product cycle Product variants
Order sizes Stock finance Production efficiency Current trends
shift the ground towards gaining strategic advantage through
comprehensive complexity management.
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problem 1 Traditional ERP systems cannot deliver detailed plans
with the required efficiency. We use Excel which flexibly supports
planning with human intelligence but it fails at data enforcing and
efficiency controlling. Excel solutions become highly
individualized so planners never go on holiday.
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problem 2 To cope with complexity rules of thumb applied, the
planner prepares a weekly plan that reaches 90% the efficiency of
the one prepared with mathematical optimization. The planner has no
time to reschedule everything at the frequent changes, so plan
efficiency gradually decreases to 70% during the week. As a
consequence most companies plan 20% efficiency loss at an average
compared to mathematical optimization based planning.
Mathematically optimized plan 100% Original weekly plan 90% 70%
Gradual efficiency loss of plans reacting on frequent changes
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Based on actual tasks, rules, constraints and the goal
function, mathematical optimization tries millions of plans and
selects the best in a fraction of time compared to human planning.
As just one consequence, efficiency can immediately improve
20%.
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Besides one step efficiency improvement planners can: still
make manual changes in the calculated plan focus on the continuous
improvement of the planning model and the production and make
strategic what if analyses
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We work with the AIMMS mathematical optimization platform
because it Provides the most powerful optimization engine. Allows
building easy to use, intuitive user interfaces. Has easy KPI
monitoring and reporting interface. Can be scaled to strategic,
tactical and operative levels. Supports rapid co creation with
clients. Can be integrated with systems from Excel to SAP.
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In 6 months, mathematical optimization based production
planning would become a daily routine without the pains of
traditional IT projects 4 5 6 3 2 1 0 Start workshop on conceptual
design, discussion of challenges and team integration First version
of process and screens are designed and tested. Excel is replaced
by new, intuitive GUI Connections to other systems go alive
Optimizer used in daily routine Optimization engine roars up
Refining and testing
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130 12 countries 30 years of experience consultants Pragmatic,
efficiency focus The projects are coordinated by the members of our
strong, international lean and supply chain management consultant
team. Holistic solutions We can deliver solution for the strategic
design, operative supply chain planning and fine production
scheduling. Applied mathematics Our AIMMS based solutions are
developed by our mathematician software engineer team on site, in a
closed feedback loop of future users. Soft aspects A change will
only be successful if mindsets are also aligned. We understand and
care about the soft aspects during the co-creation process with the
joint client teams.