Improvements/Benefits
Delivery Performance
Inventory Reduction
Fulfillment Cycle Time
Forecast Accuracy
Overall Productivity
Lower Supply-Chain Costs
Fill Rates
Improved Capacity Realization
16% – 28% Improvement
25% – 60% Improvement
30% – 50% Improvement
25% – 80% Improvement
10% – 16% Improvement
25% – 50% Improvement
20% – 30% Improvement
10% – 20% Improvement
Typical Quantified Benefits
•AMR Supply Chain Operations Reference Model: http://www.supply-chain.org
•Patiglio Rabin Todd & McGrath: http://www.prtm.com
A.E. Staley AGIP A. K. Steel ALCOA
Aginomoto Gen. Foods Amoco Anheuser-Busch Packaging Asahi Chemical
Asahi Glass Asahi Medical Ashland Petroleum BASF
Ben & Jerry’s BOC Gases BP Oil Bridgestone/Firestone
Bryan Foods (Sara Lee) Bush Boake Allen Cable Systems International Calgon Carbon
Champion International Chichibu Onoda Cement CLH Pipeline ComCom
Cosmo Oil Cypress Semiconductor Denki Kagaku Chem. De Ster
Daelim Industrial Corp. DuPont Engelhard Excel Beef (Cargill)
Exxon Chemicals Exxon Company Int’l. Exxon Research FEMSA
Fort James Corp. Fuji Heavy Industries Fuji Film GARMCO
Genref Goodyear Chemicals Grand Polymer Co. Gulf States Steel
Hoechst A. G. Hoechst Celanese Corp. Hoechst Hostalen Hokai Can
Honam Oil Hormel MEMC Japan (Confidential - Semi Mfg.)
(Confidential - Disk Drives) Idemitsu Iggesund International Home Foods
Irving Oil ISP IVECO (Fiat) Japan Elastomer
Josiah Wedgwood & Co. J. R. Simplot Knoll Pharmaceuticals Konica
Kraft General Foods Kyushu Oil LSI Logic LTV Steel
Macronix Marathon Oil Mead Fine Paper Meiji Foods
MEMC Methanex Miller Brewing Co. Mitsubishi Oil
Mitsubishi Silicon America Mitsui Chemicals Molson Brewing Monsanto
Motorola National Starch/Chem. Nihon Nippon Synthetic Chem.
Supply Chain Clients
P & G (Japan) Quaker Oats
Repsol
Quimica Rhone
PoulencRockwell Semiconductor Rohm & Haas SARAS
Schering-Plough Seiko Epson Corp. Sematech
Shaw IndustriesShell Chemical Shell Lubricants
Shell Oil
Shering-PloughShowa Shell Solutia
StatOil
Stoldt Parcel TankerSumitomo Chemicals Sun Refining & Mktg.
Symbios Logic
Taiyo OilTaisil Texaco
Thappline
Tohoku OilTonen Tonen Chemical
Toyo
Comms. Equip. TreviraUbe Cement Union Camp Unocal U. S. RoboticsValero Refining Wellcome Foundation Weyerhaeuser Witco
Yoshitomi Pharm Yukong
NOVA Chemicals Ocensa Petro-Canada
Pétromont Petronas
Pharmacia & Upjohn
Philip Morris
Phillips Chemical Phillips Petroleum
Plasmon Heinz
Praxair
Clients, continued
Allied Allied SignalSignal
“Aspen says you can expect a 50% variability reduction and a 2-5% capacity increase . . .
Our experience: > 50% variability reduction and a 3 - 10% capacity increase - with minimal capital investment”
Jeff Yellets, Alliance Manager, AlliedSignal
CORPORATE NETWORK OPTIMIZATION
17 operating divisions with multiple, heterogeneous systems
• 25,000 SKUs• 134 Shipping points• 15,000 ship-to
locations• 956 million pounds
shipped direct to customers
• 696 million pounds shipped to customers through DCs
Supply chain optimization model
for packaged finished goods in
North America
PROBLEMPROBLEM SOLUTIONSOLUTION BENEFITSBENEFITS
• Reduced transportation facility costs by 10%
• Next-day volume delivery increased from 77% to 96%
• Reduced number of DCs from 86 to 15
• Generated $10 million/year savings in operating costs
3-D TRIM OPTIMIZATION
Schedule fiberglass insulation
• Thickness as well as width and length required optimization on a continuous process
• No loss due to standard sizing of the finished goods
• Need to optimize production of orders and inventory
MIMI standard templates, using
LP/MIP and Expert Systems
PROBLEMPROBLEM SOLUTIONSOLUTION BENEFITSBENEFITS
• MIMI standard trim template handles problem naturally
• LP/MIP optimizes patterns regardless of # of dimensions
• Expert System finds patterns that can provide a better solution
• Since process is continuous, mathematically global optimal is possible
TRUCK LOADING & SCHEDULING
• Determine truck loading schedule in two-hour window for entire week
• Warehouse space for one day of inventory
• 5,000 trucks/week
Developed application using
MIMI’s LP module and
Expert System Shell
PROBLEMPROBLEM SOLUTIONSOLUTION BENEFITSBENEFITS
• Increased palletizer to truck from 20% to 40%
• Reduced warehouse inventory – volume and number of grades
• Reduced warehouse overtime
PRIMAL MANUFACTURING
Scheduling of fermentation
process
• Convert experience into Configured Application Product (CAP)
• Use CAP as basis for this application
PROBLEMPROBLEM SOLUTIONSOLUTION BENEFITSBENEFITS
• Initial schedules in 6 days
• Project focus on data issues – about two months
• Domain experise delivered in CAP
SUPPLY CHAIN BPR WITH MIMI
10 business units
• Billions of pounds/year
• Continuous, semi-continuous, block and batch operations
• Tank car, tank truck, trailers, ships and barges
• High margin specialties and low margin commodities
• One Supply Chain solution – MIMI
• Each business unit redesigned their processes
PROBLEMPROBLEM SOLUTIONSOLUTION BENEFITSBENEFITS
• Improved customer service
• Target 2% reduction in supply chain costs: exceeded
• Target 20% reduction in operating inventory: exceeded
COLLABORATIVE SUPPLY CHAIN
PROCESSES
Supply Chain Management Across
Two Enterprises. Integrate Systems and Processes to Improve Customer Service and
Manufacturing Responsiveness
• Collaborative Business Processes and Integrated Business Systems. Order Management and ATP Processes (Dow)
• Linked to Scheduling Process (Solutia)
PROBLEMPROBLEM SOLUTIONSOLUTION BENEFITSBENEFITS
• Improved Customer Service Responsiveness by Enabling Collaborative ATP Process
• Reduced Manufacturing Upsets
STRATEGIC BUSINESS PLANNING
• Commodity chemicals (polymers)
• Evaluating alternative business models and market strategies
Long-term financial and capacity
planning considering supply chain constraints and alternatives
PROBLEMPROBLEM SOLUTIONSOLUTION BENEFITSBENEFITS
• Quickly identifies the highest margin, feasible market strategy
• Builds consensus among competing stakeholders
INTEGRATED SUPPLY CHAIN
Two production facilities, four business lines and six compounding facilities worldwide
Forecasting, inventory management, planning and scheduling
PROBLEMPROBLEM SOLUTIONSOLUTION BENEFITSBENEFITS
• Reduced sludge inventory by 50%
• Sharp reduction in forecast error (5-9% overall)
• Enhanced business value of SAP R/3 implementation
• Optimized grade switches
• Decreased response time to upsets
• 1000% ROI on project
OVERALL SUPPLY CHAIN PLANNING & OPTIMIZATION
• Collaborative scheduling of CH enterprise
• 12 plants with 170 operating units
• Optimizing manufacturing chains of 20,000 operations across 18-month horizon
• Large-scale distributed MIMI
• New collaborative scheduling work process implementation
• Proprietary genetic algorithm for optimization
PROBLEMPROBLEM SOLUTIONSOLUTION BENEFITSBENEFITS
• Overall increased capacity targeted at over 3%
• Response to customer requests to be reduced to seconds instead of minutes or hours
MANUFACTURING PLANNING & SCHEDULING
Multi-plant, high volume consumer
goods manufacturing
• Integrated planning and scheduling
• Audit demonstrates value of flexible supply chain modeling and advanced optimization techniques
PROBLEMPROBLEM SOLUTIONSOLUTION BENEFITSBENEFITS
• Increased return on net working capital
• Increased customer service levels
Shell Shell ChemicalChemical
• Company Background– Norco, LA & Deer
Park, TX– Olefins & Derivatives
• Why AspenTech– “Advisor”
– Model based approach
– Inherent Expert System
– NT Platform• Business Problem
– Production Accounting business process broken
– Mainframe program
– Very expensive to maintain and operate
– Daily Production Accounting still justified
• Proven Benefits
• Confidential but “a dot mover”
• (reduced costs by an order of magnitude)
CONDEA Vista CONDEA Vista
• Company Background– Olefins Plant
– Lake Charles, LA
• Why AspenTech– World leader in APC
• DMCPlus
– Willing to provide performance guarantee• Business Problem
– “Sold Out” on ethylene
– Need to increase production
– Need to minimize risk
• Proven Benefits
• Exceeded guarantee of +2.5% production
• Exact results confidential
Borealis Success StoryBorealis Success Story
• Company Background– Integrated Petrochemical /
Polymer company based in Copenhagen, Denmark
– World scale ethylene plant located in Stenungsund, Sweden
• Business Problem– Recent expansion required
modifications to existing technology to maintain competitive advantage
– New operating flexibility with posed more complicated optimization problem
• Why AspenTech?– Unique experience in
advanced control and real-time optimization of olefins plants
– Proven technology and track record
• Proven Benefits– Increased average ethylene
production by over 5%– On-line system provides
validated model as a basis for off-line case studies
Huntsman (formerly ICI) Success Story Huntsman (formerly ICI) Success Story
• Company Background– Huntsman is the largest privately
owned chemical company in the world (formerly ICI/BP Amoco JV)
– Wilton, UK Site contains the largest Naphtha Cracker (900,000 ton/year Ethylene) in Europe
• Business Problem– Integrated manufacturing
improvement required as part of a plant instrumentation upgrade
– Replacement of legacy, hard to maintain technology required to be competitive
• Why Aspentech– Had the complete solution for
information management, advanced process control, and real-time optimization
– Proven technology and experienced application specialists
• Proven Benefits– Dependable, reliable and uniform
information– Actual performance is
confidential, but set new daily and monthly production record
– High stream factors indicating strong operations support
ROHM & HAAS ROHM & HAAS
• Company Background– Diversified chemical
company
• Why AspenTech– World leader in Process
Industries Supply Chain Management
• Business Problem
– Reduce supply chain costs while improving performance
• Proven Benefits
– On-time delivery performance risen more than 10% at many facilities.
– Inventory costs dropped $40 million.
– Better inventory visibility enabling streamlined operations.
– Some business units have cut warehouse usage from 12 facilities to 2.
– Planning cycle time reduced
AspenTech – Rohm & Haas Supply Chain ManagementAspenTech – Rohm & Haas Supply Chain Management
“Now that we are more effective planners, many crises have gone away.”
Joe Gilbert, Materials Manager
On-time delivery performance risen more than 10% at many facilities
Inventory costs dropped $40 million. Better inventory visibiliy enabling streamlined operations. Some business units have cut warehouse usage from 12 facilities to 2
Planning cycle time reduced
On-time delivery performance risen more than 10% at many facilities
Inventory costs dropped $40 million. Better inventory visibiliy enabling streamlined operations. Some business units have cut warehouse usage from 12 facilities to 2
Planning cycle time reduced
Economic Potential
Areas of Economic Potential Factor ImprovementsIncreased Sales
Increased Demand (Improved order fulfillment and customer service)
Increases Average Sales Price (Yield of Most valuable product, optimum product mix, improved consistency)
Increase Production Volumes (Utilization, On-stream factor)
1.0% - 3.0%
0.4% - 1.3%
2.0% - 5.0%
Reduced CostsReduced Variable Costs Raw materials consumption Additives, energy, catalysts, etc. Distribution and logisticsReduced Fixed Costs Inventory Carrying Costs General & Administration Production Staff
1.0% - 3.0%1.0% - 3.0%5.0% - 10.0% 5.0% - 30.0%0.0% - 5.0%1.0% - 5.0%
Increased Capital Utilization
Reduced Capital Expenditures
5.0% - 20.0%
Chevron Chevron PhilliPhillipsps
• Reduced dead inventory by 98%• Forecast accuracy improvement
of 25% (5-9% overall)• Enhanced business value of
SAP R/3 implementation• Optimized grade switches• Decreased response time to
upsets• 300% ROI on project
• Business Challenge:• Business Challenge:
• Solutions Applied:• Solutions Applied:
• Value Chain Planning • Production Optimization• Demand-side Optimization•
• Proven Benefits:• Proven Benefits:
Polyolefin Complex, Texas, USA
• Forecasting, inventory management, planning and scheduling
Union CarbideUnion Carbide
• Leverage ERP investment• Increased revenue• Improved Customer loyalty
• Derive SAP investment• Provide differentiating service
value to Unipol licensee
• Business Challenge:• Business Challenge:
• Solutions Applied:• Solutions Applied:
• Asset Optimzation• Value Chain Planning • Production Optimization
• Proven Benefits:• Proven Benefits:
Polymers Producer and Licensor
“By standardizing on AspenTech’s software across our entire enterprise, we expect to derive exceptional value from our SAP investment by coordinating our business and manufacturing processes,”
William Joyce, Chairman and CEO of Union Carbide
NOVA ChemicNOVA Chemicalsals
• Reduce capital Investment by 35% or about 25 million USD
• Reduce capital cost to compete with established technologies
• Business Challenge:• Business Challenge:
• Solutions Applied:• Solutions Applied:
• Asset Optimization• Used Polymers Plus to
study process alternatives to identify optimal reactor configurations & minimize solvent recovery costs
• Proven Benefits:• Proven Benefits:
Polymers Producer and Licensor
EquistarEquistar
• 5 times ROI• $20 million benefits in two years
• Business Challenge:• Business Challenge: • Solutions Applied:• Solutions Applied:
• Production Optimization• Value Chain Planning
• Proven Benefits:• Proven Benefits:
HDPE plant, Matagorda , Texas
• Integrate long chain business processes that encompass SAP, MES, and DCS
• Develop a standardized configuration that enables replication of best business practices
• Determine value of MES integration