Production Planning Scheduler(CapKold Scheduling)

Video Presentation

• This presentation can be viewed as a video via the following

web link.

www.loftusit.com.au/repos/MOSSchedulerOverview.wmv

• Should you have any questions or require assistance with the video, please contact the Loftus Sales Team via:– Phone: 1300 LOFTUS (563 887)

– E-mail: sales@loftusit.com.au

Background

• CapKold = Controlled Atmospheric Packaging Kept Cold.

• Steam kettles and chill system used by food service industry.

• Enables long-life items to be efficiently produced.

ARV CapKold Production Facilities in Baulkham Hills, Sydney

The Problem

• Demand constraints:– Date for consumption is known.– Quantities ordered vary or are unknown.

• Production constraints:– Level of stock on hand and its age.– Shelf life is finite.– Production lead time can vary.– Item production capacity limits.– Overall production limits.– Only specific days are worked, holidays are excluded.

The Question

• Why not let computers do the hard work so you can do something more rewarding?

The Solution

• Production Planning Scheduler – CapKoldscheduling tool.

• Algorithm to optimally schedule production based on demand and production constraints.

• Integrates with Loftus Menu Ordering System (MOS) and CBORD Foodservice Suite (FSS) or operates as standalone system.

MOS FSS

Scheduler

Solution Architecture

Ingredient Setup (1)

Recipe Demand (2)

(1) = From FSS or CSV file.(2) = From MOS or CSV file. Can be current commitments and/or future orders.(3) = From FSS.

Future Production (3)

Future Transfers (3)

Solution Architecture

Ingredient Setup (1)

Recipe Demand (2)

Demand compute

Serves to Trays(optional)

Demand aggregation

and stock assessment

Computation engine

(4)

Optimisation engine

Audit and transfer

(1) = From FSS or CSV file.(2) = From MOS or CSV file. Can be current commitments and/or future orders.(3) = From FSS.

Future Production (3)

Future Transfers (3)

(4) = Considers work days, eg Monday to Friday, and non-worked holidays.

Solution Architecture

Ingredient Setup (1)

Recipe Demand (2)

Demand compute

Serves to Trays(optional)

Demand aggregation

and stock assessment

Computation engine

(4)

Optimisation engine

Make quantity converted to

trays/bags(5)

Schedule output in Excel/CSV

Audit and transfer

(1) = From FSS or CSV file.(2) = From MOS or CSV file. Can be current commitments and/or future orders.(3) = From FSS.

Future Production (3)

Future Transfers (3)

(4) = Considers work days, eg Monday to Friday, and non-worked holidays.(5) = Option to compute using same “tray” configuration as demand or specific

production “tray” configuration.

Key Benefits 1

• Agility to dynamically meet demand and therefore reduce wastage or shortages caused by over or under production, respectively.

• Flexibility to vary menus more often rather than setting one or two fixed menus per year.

Key Benefits 2

• Ability to redeploy administrative resources from production scheduling to high-value or revenue generating activities.

• Capability to understand situations where capacity constraints prevent demand from being met or stock shelf life is exceeded.

The Result

• Opportunity to pass cost savings on to end customers.

• Improved image with end customers through greater flexibility of operation.

• Greater market share by offering a differentiated service.

• More environmentally friendly production.

ROI Calculations

• Assuming it takes 20 hours to change the whole menu twice (2x) per year = 40 hours per year.• Assuming that weekly planning adjustments are made that take two (2) hours = 104 hours per year.• Assuming Scheduling / Planning Administrator costs $70 per hour (including WorkCover, Superannuation, Payroll Tax and general operational expenses).• Assuming that $200 of overproduced or past shelf life food is saved per week through more accurate production planning.

Current Process Amount Total Equivalent Cost

Menu Change 20 hrs x 2 a year 40 hrs $ 2,800

Weekly Adjust 2 x 52 weeks 104 hrs $ 7,280

Food Wastage Per week $ 200 $ 10,400

Total Cost $ 20,480

ROI Calculations

• Assuming previous costs in “Manual” process.

• Cost of Scheduler:– In Year 1 includes: Licence at $5,500; 25 hours of setup customisation and training at $4,375; and up to 15 hours of free support.

– In Year 2 includes: Licence at $3,800; up to 10 hours of free support.

– In Year 3 includes: Licence at $4,100; up to 10 hours of free support.

– Licence includes: Optional, free Scheduler engine and Administration GUI updates at no extra charge. Loftus strives for a minimum of one update per quarter. Note: ½ hour to 1 hour of remote installation time may be required per update. This time will be deducted from included support hours.

• Assuming CPI @ 3.30% for each year.

Year 1 Year 2 Year 3Manual $ 20,480 $ 21,156 $ 21,854 Scheduler $ 9,875 $ 3,800 $ 4,000

Savings $ 10,605 $ 17,356 $ 17,854

Technology

• SQL Server 2005 or later. Express Edition is OK.• Microsoft .NET Framework 3.0 or later for the

Administration GUI.• Standalone from or integrates with the Loftus Menu

Ordering System (MOS) and CBORD Foodservice Suite (FSS).• Reporting managed via Administration GUI into Excel/CSV

or SQL Server Reporting Services or SharePoint.• Automated computation is possible via SQL Job.

Further Information

• We would be pleased to answer any of your questions.

• Please contact the Loftus Sales Team via:– Phone: 1300 LOFTUS (563 887)

– E-mail: sales@loftusit.com.au

• A worked example of inputs to and outputs from the

Scheduler can be viewed via the following web link:

www.loftusit.com.au/repos/MOSSchedulerExample.wmv