Here at Profit Point, we typically put in a fair amount of effort up front to scope out a project together with our client. This typically helps us and our client to set appropriate expectations and develop mutually agreeable deliverables. These are key to project success. But another key element to project success is getting good quality data that will allow our clients to make cost effective decisions from the analysis work we are doing or the software tool we are implementing.
Decision support models are notoriously data hogs. Whether we are working on a strategic supply chain network design analysis project or implementing a production scheduling tool or some optimization model, they all need lots and lots of data.
The first thing we do (which is usually part of our scoping effort) is identify each of the data types that will be required and what will be the source of this data. To do this we start with what decisions are trying to be made and what data is required to make them successfully. From there we identify if the data currently exists in some electronic form (such as an MRP system) or whether it will have to be collected and entered into some system (say a spreadsheet or database program) and then figure out how the data will get into the tool we are developing.
Second, we try to get sample data from each data source as early as possible. This allows us to see if the assumptions that were made as part of the scoping effort were valid. There is nothing like getting your hands on some real data to see if what you and your team were assuming is really true! Often there are some discoveries and revelations that are made by looking at real data that require design decisions to be made to be able to meet the project deliverables.
Third, to help with data validation we find it extremely helpful to be able to visualize the data in an appropriate way. This could take the form of graphs, maps, Gantt charts, etc. depending on the type of data and model we are working on. On a recent scheduling project, we had the schedulers review cycle times in a spreadsheet but it wasn’t until they saw the data in Gantt chart form that they noticed problems with the data that needed correcting.
Identifying data sources, getting data as early as possible and presenting the data in a visualized form are absolutely required to make a project successful. Omitting any of these steps will at least add to the project cost and / or duration or possibly doom the project to failure.
Profit Point is helping several large chemical manufacturers upgrade their many Aspen SCM scheduling models with a goal to achieving long term support-ability in the new Aspen architecture of ver 8.5. An Aspen SCM (MIMI) Upgrade is no small undertaking, but we have been helping people manage, support, and enhance their scheduling models for over 20 years.
I have seen many Mimi scheduling models over the last 20 years, in many different businesses, and it is still amazing to me how well these scheduling models work. Their superior applicability is primarily due to creativeness of the their original modelers and their efforts to incorporate all the important aspects of the plants which they schedule, and most that I have seen have remained relevant and useful all these years. Their longevity is due is no small part to the flexibility of the scheduling environment which is Aspen SCM (AKA Mimi). This allows for many minor changes to the tool as equipment characteristics change or are upgraded, or as the business needs change, or indeed as the scheduler changes. This new version retains that flexibility which has made Aspen SCM scheduling models still relevant today.
In previous version changes, Aspen SCM has always been backward compatible; meaning that with nominal effort a newer Aspen SCM version would open an older version’s scheduling model. This was true up to ver 8.x released earlier this year. With this version, the older scheduling models, especially those that were developed in house, will not be able to function properly without a more substantial effort. Version 8.x brings a new XML based architecture and with it a new look and feel, more compatible with today’s applications. In addition, it has some useful new features that can make scheduling easier. Link here https://www.aspentech.com/products/aspen-plant-scheduler/ Aspen SCM remains, in my opinion, the best tool for the job of scheduling plants of all types and sizes. This new version is no break from that long history of being the best, indeed it has just been made even better.
With plants around the world, our customers trust Profit Point to upgrade their effective scheduling models to the latest version of Aspen SCM (Mimi) so they can enjoy many more years of effective scheduling at their plants.
We love doing this work. Call us if you are facing the same upgrade challenge, we may be able to help get you going.
Profit Point, a leading supply chain optimization firm, adds total delivered cost and margin at the customer location-product level of detail to its supply chain network design software.
Profit Point, the leading supply chain optimization consultancy, today announced the release of an update to Profit Network™, a supply chain network design software that is used by supply chain managers all over the world to gain visibility in to the trade-offs they will face when designing or optimizing a global supply chain. In addition to several other new enhancements, Profit Network now allows users to analyze and report on the total delivered cost and the resulting gross profit margin for all products delivered to each customer location.
“With the ever-increasing availability of granular data across the supply chain, many of our clients have expressed a strong interest in analyzing and reporting on the total delivered cost of a single product or set of customer products,” said Alan Kosanksy, Profit Point’s President. “Previously, it was quite a challenge to understand how costs accumulate over time from raw material procurement through manufacturing, inventory, transportation and customer delivery. Now our customers are able to see the true total cost for each unit of product delivered to each customer. This will be a powerful tool in helping them evaluate their product and customer portfolios.”
In addition to total delivered cost, now Profit Network also enables more control over source-destination matching, as well as inventory levels by establishing minimum and maximum number of days of inventory demand.
“Profit Network software has been helping Fortune 500 companies around the world build more robust and profitable supply chains for more than 10 years,” said Jim Piermarini, Profit Point’s CEO and CTO. “Over that time, the dramatic increase in data availability across the supply chain has provided us tremendous opportunities to solve unique and critical problems in a variety of supply chain networks.”
In addition to Profit Network, Profit Point’s line of supply chain software also includes Distribution and Vehicle Planning, Sales and Operations Planning (S&OP), Production Planning, Scheduling and Order Fulfillment software.
About Profit Point
Profit Point Inc. was founded in 1995 and is now the leading supply chain software and consulting company. The company’s team of supply chain consultants includes industry leaders in the fields infrastructure planning, green operations, supply chain planning, distribution, scheduling, transportation, warehouse improvement and business optimization. Profit Point has combined software and service solutions that have been successfully applied across a breadth of industries and by a diverse set of companies, including Dow Chemical, Coca-Cola, Lifetech, Logitech and Toyota.
This month’s IndustryWeek features an article by Alan Kosansky and Ted Schaefer entitled Margin-based Supply Chain Optimization.
“To effectively implement margin-based supply chain optimization, it is important to have three key components in place: data, optimization technology and alignment with strategic business objectives.
Margin-based supply chain optimization is a new business process based on two key business priorities: 1) the desire to deliver more high profit products to customers, and 2) the ability to stop serving customers and products with low profit yield. This supply chain decision support process quantitatively shows companies which customers to serve and what products to produce in order to maximize profit and margin. For companies with complex supply chain operations, this is often easier said than done. Recent advances in the availability of data and optimization modeling, however, enable a growing number of companies to implement more efficient and effective supply chain systems.
A company’s portfolio of customers and products typically changes more quickly than the assets used to meet the customer demand. These situations include changes in the macro-economic environment that precipitate significant increases or decreases in customer demand, shifts in a company’s product portfolio, development of new markets, or changes in the cost to produce and/or deliver products or services. In each scenario, margin-based supply chain optimization is a key tool to help companies manage supply to achieve maximum profitability.
To effectively implement margin-based supply chain optimization, it is important to have three key components in place. They are: data, optimization technology and most importantly, alignment with strategic business objectives.”
Supply Chain Survey 2013:
Gaining Competitive Advantage
If you’re reading our blog, you are probably someone who is deeply interested in supply chain improvement. So we’d like to invite you to participate in this brief survey. And in return, we will send you exclusive, early access to the results of the survey along with our analysis .
Your insights and experiences are very important to us. And we are hosting the survey on a trusted, 3rd-party site so your responses will remain completely confidential. The survey is relatively short and should take only 3-4 minutes to complete. Please take a few moments to complete the Supply Chain Competitive Advantage Survey.
Start the Supply Chain Survey:
Gone are the days that supply chain was merely an expense. These days, savvy decision makers are gaining advantages over the competition by leveraging the data and tools available to them. In this survey, we will be exploring the methods, tools and processes that supply chain professionals utilize to gain competitive advantage via their supply chain.
September 9th, 2011 5:31 pm Category: Optimization, by: Gene Ramsay
I recently saw this short post on a supply chain-oriented LinkedIn group:
I am responsible for 17 warehouses around the GCC. I want to create 4 major “Hubs” instead. Which would you choose and why, centralized or decentralized warehousing?
This post elicited a variety of responses. Suggestions ranged from looking at the details
Is it a circle route covering all four hubs or direct to and from specific hubs? Because backhaul opportunities can impact the overall costs within your network.
to broader advice, such as
Success of this depends on demand of product category and lead time importance.
When I am faced with a supply chain network design problem, like the one implied here, my first step is to develop a clear definition of the question to be answered – not to hastily jump to a solution. Along with defining the question, you need to determine
• the objective (minimizing cost, maximizing profit, or something else?),
• the options available (the current and potential locations for warehouses in the area, in the context of the post above),
• the constraints that are of importance (service requirements, warehouse capacity, transportation lanes),
• the time horizon, and related criteria.
Then, in the case of a complex supply chain, I find that building a model and using it to evaluate options can give insight regarding both the quantities and the qualities associated with a given solution. Modeling requires effort – you need skills, as well as various data, such as the sales forecast, warehouse location options, transportation and duty costs, etc. – but with the help of a model, and good quality information to populate it, you are able to estimate the implications of different supply chain options, and know whether operating with four hubs is more cost effective than five, or three; where should the hubs best be located; or whether you should have hubs at all. A model can help you make evaluate a variety of trade-offs so that you arrive at a better-informed, and more profitable, decision on how to proceed.