Leveraging an Optimization Platform across the Air Liquide

Presenter: Jean André

Operations Research & Data Science Team Manager, International Expert

Research & Development

Leveraging an Optimization Platform across the Air

Liquide company

Supply Chain & Logistics

Barcelona Summit 2017

About me and Air Liquide

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Jean André

Operations Research & Data Science Team Manager

PhD in Operations Research , nearly 20 years of decision support tools development in different areas :

•road traffic simulation, gas pipeline design,

• supply chain optimization, energy risk management

Really passionate to make an impact on companies in the course of transformation (digital right now in Air Liquide)

I know AIMMS for more than 10 years

Air Liquide : The world leader in gases, technologies and services for Industry and Health. Oxygen, nitrogen and hydrogen are

essential small molecules for life, matter and energy.

Air Liquide | Key figures

More than

50000employees

Yearly Turnover

16,4Mds €

Present in

80countries

More than

2 millions

Customers & Patients

2015

Following Airgas acquisition

* as of May 2016

More than

68000employees

Yearly Turnover

>20Mds €

Present in

80countries

More than

3 millionsCustomers &

Patients



Supply modes@Air Liquide

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Supply Chain Stakes: Drivers for optimization

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https://www.airliquide.com/group/2016-sustainable-development-report



My vision & beliefs > My passion: Making easy access of optimization modeling to everyone across the company

> As of today: Supply Chain(s) Optimization(s)@Air Liquide

• Real Time Production Optimizer/Gas & Liquid Production planning

• Inventory Routing Problem www.challenge.roadef.org

• Tactical sourcing and asset management

• Cylinder Supply chain Dispatching

> What will the ‘relevant world’ look like 10 yrs from now?

• Enterprise Wide Optimization

• Streamlined data flow

• Full supply chains integration

• Shared data with customers

• Analytics tool everywhere

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http://www.challenge.roadef.org/



Our challenges for optimization projects

> Organization challenges

• Integration of decision support tools into day to day operational and business processes

• Make or buy : In house developments or leverage external expertise

• Transferring knowledge out of R&D

> Generating Buy-in

• Involvement from the beginning of an optimization project

• Training & Training

• No IT hurdles (streamlined installation, IT environment integration,

connections to databases)

• INTERACTIVITY!

> Overcoming resistance

• Complex modeling/coding for end-users

• Relying on one single reference platform against local optimization developments

• Prices vs short-mid term benefits

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Our Journey to bridge the gap with AIMMS > Getting started

• Early introduction of AIMMS through R&D proofs of concepts 8 years ago

• Affiliates developed and customized their own applications (Power Real Time Optimizer, Liquid Production Optimizer…) usually

supported with external partners linked to academia: Has helped to show the value

> Current state / maturity level

• AIMMS is THE OPTIMIZATION PLATFORM for the Large Industry (Gas Production) business line for any optimization projects:

Developers / AIMMS Specialist team are localized at platform and local levels

• AIMMS PRO has been used and implemented to the Benelux Pipeline Optimizers for Hydrogen and Air Gases with support from

external partner

> Personal reflection

• AIMMS is an attractive tool and a vector of optimization projects.

• Huge step: No more discussions /debates on the right tool only focus on optimization modeling now.

> Future vision/plans

• Expanding the concept of standard platforms to the Supply Chains Optimization (Industrial Merchant)

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HIGH

Yesterday

Today

Tomorrow



AIMMS applications example

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https://www.youtube.com/watch?v=oXtgZeDENWc



How AIMMS empowers: Core Engine NEW concept

> Collective learning is the main driver for developing the core engine

• How much experience has been re-used in terms of models, architecture,…?

• Have we learned sufficiently from failures and from each other ?

• Did we really build know how ?

> Core Engine concept enabled by AIMMS : Generic Plant Modeling to be used for all Air Plants

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Back to basics: 7 basic elements with standard parametric equations: - pipe - valves - compressor - cold box - liquefier - storage - backup pump

An architecture is an the assembly of basic elements with connection nodes and associated parameters.

After reading the architecture and parameters, the core engine automatically generates the mathematical model



How AIMMS empowers: Core Engine NEW concept

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> Benefits

• Fast model development and roll out

• Configuration of applications rather than programming

• Integration within data centers

• High maintainability since the program code is unique for all applications WW



Next steps with AIMMS

> Expand AIMMS as a full Descriptive, Predictive, Prescriptive Analytics platform

• Data handling/crunching and statistical toolkit to fit models and equations to real life data

• Predictive models/Machine Learning algorithms for demand forecasting for example

> Moving from Windows to Web User Interface

• Browser technology – app frontend can be run on a tablet

• Responsive design, your widget layout depends on screen size

• Quickly evolving, based on client preferences

> Digital use of AIMMS across Air Liquide Supply Chains

• Connected trailers

• Real time traffic information

• Mobile applications

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Questions?

Thank you!

www.airliquide.com Join us on Linkedin Open Innovation

http://www.airliquide.com/

Documents

Leveraging an Optimization Platform across the Air Liquide