cio xian - keynote presentation 2014

SCP&OBIG CALCULATIONS

2© 2014 Quintiq© 2014 Quintiq 2

3© 2014 Quintiq

“How fast you are moving is moreimportant than where you are.”

- Guy Kawasaki, Rules for Revolutionaries

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

- Sr. Richard Branson

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“The U.S. stock market (is)a class system, rooted inspeed, of haves andhave-nots. The haves paidfor nanoseconds; the have-nots had no idea that ananosecond had value.”

- Michael Lewis, Flash Boys

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8© 2014 Quintiq© 2014 Quintiq 8

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SCP&O“Big Calculations”

is the act of optimizing your business in real-timeto achieve fast and efficient results.

© 2014 Quintiq 9

DATA KNOWLEDGEDECISIONSUPPORT OPTIMIZATIONINFORMATION

BIGDATA

BIGCALCULATIONS

TIME MILLISECONDSNONE

CALCULATIONS NONE

SECONDS

SIMPLEPATTERN

RECOGNITION OPTIMIZATIONDYNAMIC

OPTIMIZATION

HOURSPERIODIC

Data value spectrum

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DATA KNOWLEDGEDECISIONSUPPORT OPTIMIZATIONINFORMATION

BIGDATA

BIGCALCULATIONS

TIME MILLISECONDSNONE

CALCULATIONS NONE

SECONDS

SIMPLEPATTERN

RECOGNITION OPTIMIZATIONDYNAMIC

OPTIMIZATION

HOURSPERIODIC

Data value spectrum

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12© 2014 Quintiq

WORKFORCE

MANUFACTURING

LOGISTICS

Task data

Buy/sell data

GIS data

Compliance report

Demand/supply report

Traffic patterns

Task norms

Demandforecasting

Predicted trafficpatterns

Rosters/schedules

S&OP

Logistics plans

Real-time workforceplanning

Real-time S&OP

Real-time transportplanning

DATA KNOWLEDGEDECISIONSUPPORT OPTIMIZATIONINFORMATION

BIGDATA

BIGCALCULATIONS

TIME MILLISECONDSNONE

CALCULATIONS NONE

SECONDS

SIMPLEPATTERN

RECOGNITION OPTIMIZATIONDYNAMIC

OPTIMIZATION

HOURSPERIODIC

© 2014 Quintiq

Data value spectrum

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DATA KNOWLEDGEDECISIONSUPPORT 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 trafficpatterns

Rosters/schedules

S&OP planning

Logistics plans

Real-time workforceplanning

Real-time S&OP

Real-time transportplanning

Database&

Storage

BusinessIntelligence

&ERP

SCP&O

TIME MILLISECONDSNONE

CALCULATIONS NONE

SECONDS

SIMPLEPATTERN

RECOGNITION OPTIMIZATIONDYNAMIC

OPTIMIZATION

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 trafficpatterns

Rosters/schedules

S&OP planning

Logistics plans

Real-time workforceplanning

Real-time S&OP

Real-time transportplanning

Database&

Storage

BusinessIntelligence

ERP

SCP&O

DATA KNOWLEDGEDECISIONSUPPORT OPTIMIZATIONINFORMATION

BIGDATA

BIGCALCULATIONS

TIME MILLISECONDSNONE

CALCULATIONS NONE

SECONDS

SIMPLEPATTERN

RECOGNITION OPTIMIZATIONDYNAMIC

OPTIMIZATION

HOURSPERIODIC

Database&

StorageSCP&O

BusinessIntelligence

&ERP

What makes it difficult to optimize?

© 2014 Quintiq

Data value spectrum

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ERP TOS

The butterfly effectCHALLENGE #1

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

Major disruptionsCHALLENGE #2

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

Buzz Lightyear effectCHALLENGE #3

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

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19© 2014 Quintiq 19© 2014 Quintiq

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VRPTW

VRPTW Dantzig Ramser1959

1,000

9744,806.73

97——43,772.66

1970 VRPTW

80 500

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FJSSP

110

(FJSSP)20 60

FJSSP

313 300

110 110

110 90

80

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"

T. Payne 2014 3 6

“...”

5SCP

2013 Chad Eschinger YannaDharmasthira 2014 5 9

“... ”

2012 2013 5 2

16.8

1.8

25.7

9.6

1.8

2.0

14.7

#1 SAP

Oracle

JDA

Epicor

#2

#3

#4

#5 -11.0

2013

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Steps to deliver “Calculated Decisions” and BIG value

Select Define Model MeasureStrategic

goalsPlanningdecisions

Supplychain

PlanningKPIs

OptimizeReal-timeplanning

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SELECTDemurrageTons per shift / person

DEFINECreate loading rotationAssign berthsAssign resources

MODELCranes, birthsStock piles, conveyors

MEASUREThis week’s demurrageThis week’s productivity

OPTIMIZETwenty Foot Equivalent Unit/acre

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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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SELECTOTIFInventoryProductivity

DEFINEFurnace batchingHot-mill sequencingCampaignsFinishing flow

MODELWidth jumpsGauge jumpsCool down

MEASURELate orders w/ingot not scheduled

OPTIMIZEAvailability and cost

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35© 2014 Quintiq

SCP&O“Big Calculations”

is the act of optimizing your business in real-timeto achieve fast and efficient results.

© 2014 Quintiq 35

36© 2014 Quintiq

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