commandoptimize: dispatch optimization andrew dyment [email protected] (905) 870 1410

COMMANDoptimize: Dispatch Optimization

Andrew [email protected](905) 870 1410

MGT-001 COMMANDoptimize: Dispatch Optimization2

• This session introduces COMMANDoptimize, our newest dispatch technology. In this course, attendees will receive an introduction to the concepts of optimization; the basis behind the ROI that can be achieved; and the challenges the industry faces to achieve more cost-effective use of their fleet. We will also cover the prerequisites necessary to get your company ready for optimization; the status of our progress in this discipline; and the future business intelligence vision this solution will offer. Owners, Comptrollers, General Managers, and Dispatch Managers will all benefit from this session.

Session Objective

Agenda

• Introduction• Scan Name Tags• Optimization Brief Primer • Dispatch/Logistics Optimization• Requirements to Implement• Changes to processes• Product development


Housekeeping

• Introduction• 1.5 hour class

MGT-001 COMMANDoptimize Introduction Break 10 min• Evaluation


Command Alkon Optimization Teams

• CmdSeries Product Development

-Mandy Cherry-Wayne Silva-Eric Godsey-Kasthuri Kona-Jimmy Mbiye-Rajiv Verma-Sunita Bagga-Cindy Bishop



• CmdSeries Optimization Service Team

-John Kirkpatrick-Bob Berryhill-Amy Hughes-Bob Watson-Lisa Calamusa



• Integra Team

-Tim Muenstermann-Sue Conckus-Rest Of the Integra Team


Ready Mix Optimization

Optimization-Calculating the independent costs of every viable dispatch decision so to

generate the best value for a given set of constraints

Function Value- Lowest combined Delivery and Material cost plan per yard of concrete that

meets your conditions

Independent Variables – 88%- Raw materials Costs- Driver Cost- Truck Cost (mile, minute)- Plant Cost (fixed, minute)

Conditions- Order Requirements and Location- Plant Locations and Capacities- Raw Material Locations- Truck/Drivers Capacity, Availability, Configuration, Call in scheme

MGT-001 COMMANDoptimize: Dispatch Optimization

MaterialsPlantDel-VarDel-FixDisp-SalSellingAdminProfit

8

COMMANDoptimize

• Realtime Optimization: Optimizing your current & future delivery plan every minute of the day. (changing Rubik’s Cube)

• Generates a consistent plan in alignment with your company goals


Concrete Paradigms

• Order/Project belongs to a plant $• Loading trucks in the order they arrive at the yard. $• If we are constantly late on the first round, call the

driver’s in earlier $$• Trucks idle in the yard need to be loaded now! $• Holding trucks in the yard for balance loads $$• Push our customers to get trucks back earlier $• Dispatch delivery model is static. $• Past performances should not affect future orders $• Same focus on well/problem serviced

orders/plants/drivers $• We need to call a new truck for all early loads $


Concrete Paradigms

Why Are They Difficult To Shift?

• Time• Complexity

• Toolset


The Problem IS Significant

Consider only Round Trip Time:• Using Truck/Driver Costs at $60 per hourFor a fleet of 60 trucks, each average minute of “wasted”

time during a load is really 60 minutes because it’s not happening to 1 truck, but 60. Each minute of “wasted” time therefore costs $60.00.

If each truck averages 3.5 loads per day and we save (or waste):1 min/load = $ 210 per day * 250 days = $ 52,500 per year.2 min/load = $ 420 per day * 250 days = $105,000 per year.4 min/load = $ 840 per day * 250 days = $210,000 per year.6 min/load = $1260 per day * 250 days = $315,000 per year.The average on-job waiting time in North America is 26

minutes per load…… There is still some room for improvement


Areas For Increased Profits

• Driver Call in• Jobsite Wait Time• Driver End Of Day• Lower Cost Raw Materials• Driver Plant Queuing• Leveraging Plant Network• Coherent Accurate Plan• Crisis Management• Lower dispatch stress• Streamline Processes• Focus on the exceptions


COMMANDoptimize is a Game Changer!


What software is needed?Software

– Map Order Entry– Truck Tracking – Driver Login– Functioning Map Pages with travel times to and from each

plant– COMMANDconcrete– COMMANDoptimize

MGT-001 COMMANDoptimize: Dispatch Optimization

15

What hardware is needed?

Hardware– Status system– GPS with autostatusing (preferred)

• High percentage of accurate and timely statuses– Dedicated Optimization server (Virtual Server is fine)


How does COMMANDoptimize work?

Changes

•Quantity

•Time

•Rate

•Status

•Breakdowns

•Delays

•Etc.

Updated Plan

• Capacity Plan

• Real Time Schedule

Costs

Service Penalties

Priority

Ticketing

Optimization

Truck Req’ts

Schedule Req’ts

Order Req’ts

DRCI

COMMANDseries

Plant capacity Route plan

Truck capacity Labor constraints


COMMANDoptimize considers

• Haul cost by time and distance

• Dead head costs• Plant loading speeds• Loading speed by mix• Plant opening times• Driver seniority• Union rules• Driver call in rules• Time of day• Trucks Alternate Cap.• Age Of Concrete

• Cost of being late• Cost of not recycling trucks

to same job• Truck attributes• Mix cost• Job priority• Job start time ranges• Linked orders• Need to load early• Trucks on tasks• Plant Opening Time


COMMANDoptimize – An Expert System

• Planning Scenarios– Future Day (Capacity Plan)– Driver Call In Rules– Current Day (Real Time)

• Order Scenarios– Fixed Delivery Rate Orders– Adjustable Delivery Rate

Orders– Multiple Delivery Rate Orders– Single Product Orders– Multi Product Orders– Linked Orders (Finish – Start)– Hold Orders (Unconfirmed)– Truck Size Constraints– Load Size Constraints– Unknown Quantity Orders– Suspicious Rate Orders– Load by Load Adjusted

Orders– Plant Restricted Orders – Range Committed Time

Orders

•Delivery Scenarios (Job Site)

–Pour Rate Slower than Ordered

–Pour Rate Faster than Ordered

–Pour Rate Variable

–Job Site Holds

–Rejected Loads

–Job Site Not Ready

–Travel Time Variable (Traffic)

–Truck BreakDowns

–Plant BreakDowns

–Status Changes

19MGT-001 COMMANDoptimize: Dispatch Optimization

Differences in SchedulingSchedulingScheduling a virtual truck from

the scheduled plant to an order at a given time with a default load size

Optimized SchedulingScheduling the best “real” truck

to the right order from the most economical available plant at the most appropriate time with the proper quantity so that costs are minimized and order requirements are satisfied.


How does order entry change?

• Most of the fields are the same• The look and feel is similar


If the plant is expected to be down for a couple of

hours enter the time


Driver Call in Report

Use this report to post or audio record call in

times.

Better yet, use ScheduleCom.


How does Tracking change?

A counter shows the number of minutes and seconds since

the last optimized update, in this case 00:32 seconds.

Optimization usually occurs within 1 minute



Ord – Ordered rate in quantity/hr

Esr – Effective Service Rate – rate of loaded trucks

Unl – Actual unload rate in quantity/hr

Opt – Optimized rate for remaining, unticketed loads



Optimization shows the actual status times from

each truck.MGT-001 COMMANDoptimize: Dispatch Optimization

38

If returning to an alternate plant is required in the

reschedule the truck is displayed in blue


A text message can be sent to the truck to

direct it to the other plant


Sometimes one will wonder why a truck is suggested

for a certain order.


Right click on the truck and select “Show Plan”


Implementation

• Configure system• Redefine Dispatch roles and Company processes• Train Order Takers, Dispatchers, Schedulers• Verify solution – Monitoring suggestions• Measure • OptimizeDispatch


Changed Responsibilities

Impact Order Taking

Planning Shipping

Managing config. of capacities, costs N Y N

Additional order requirements Y N N

Diligent review of future orders Y Y N

Managing availability of resources N Y Y

Tighter management of driver call in & requests

N Y Y

Assignment of order priorities when needed

N Y N

Tighter management of wash out N N Y

Tighter management of driver tasks N N Y

Team focus on performance metrics Y Y Y



COMMANDtrack Dashboard

2010/11 Optimization Enhancements

• Rental trucks• Schedule Drivers Lunch breaks• Age Of Concrete• Scalability• Locking In Optimizer Suggestions• Locking In First Round Deadheads• Union Rules• Round Trip Trucking• Driver Call In based on hours worked• Foreign Trucks…..


Driver Hours


Resource Attributes


Enhanced Driver Call In



Please Complete Your Evaluation

• Be sure to circle the session you are evaluating on the back of your card– MANAGEMENT (Track Name)– MGT-001 (session code)– Optimization (session title)

• Thank You!

• All breakout session materials can be accessed at: www.commandalkon.com/cc2011/update/index.htm

http://www.commandalkon.com/cc2010/update/index.htm

http://www.commandalkon.com/cc2010/update/index.htm

commandoptimize: dispatch optimization andrew dyment [email protected] (905) 870 1410

Documents

concepts of optimization

dispatch managers

commandoptimize work

fine mgt

exceptions mgt

evaluation mgt

scheme mgt

improvement mgt