Danone case study
Filippo Focacci (ffocacci@[Link])
Product Manager ILOG Plant PowerOps
The Danone Story
The Yogurt Production Process
Setup times Semi-finished product
Milk
Cow Soy
Pasteurizers Fermentation tanks Storage Tanks
Capacity Batch size Connectivity Compatibility
Safety stock Shelf life
Filling Lines Finished Product
Multi-purpose Setup times Cleaning in place
16-Jul-13
ILOG, All rights reserved
The 3 Major Business challenges
Meeting Demand
High demand variability Short shelf life of intermediate products and finished goods
Relatively long production lead times (3 to 4 days)
Manufacturing Efficiency
Maximize resource utilization, operational efficiency and throughput Minimize waste Maximize manufacturing predictability Management of tanks, fill rate, equipment connections Management of batching and cleaning policies
Quality
Compliance to traceability and sanitary regulations
16-Jul-13
ILOG, All rights reserved
Integrated planning and scheduling
Improves agility, visibility & profitability
Supports analysis of the impact of scheduling decisions on stock coverage and demand satisfaction
minimizes surpluses and stock-outs Smoothes factory operations, making them more predictable & efficient
Simultaneously optimizes demand satisfaction, stock coverage and operational efficiency
16-Jul-13
ILOG, All rights reserved
Integrated planning and scheduling at Danone
Improve agility and visibility
Reach operational efficiency while respecting min and max days of supply
Analyze demand variation, inventory, min and max days of supply
16-Jul-13
ILOG, All rights reserved
Managing plant floor constraints at Danone
With improved plan reliability
Continuous process Multi-purpose storage tank
Max duration on storage tank Cleaning policies
16-Jul-13
ILOG, All rights reserved
Optimal tradeoff between Supply Chain and Manufacturing goals
16-Jul-13
ILOG, All rights reserved
Key benefits for Danone
Information System Full SAP integration User Very good user acceptance Easy to learn, easy to use Decision support system for planners with plan editing capabilities
Modeling of both finished and semifinished products
Repeatable core-model
Organization Manufacturing and Supply Chain are using the same tool Daily (weekly before) planning
Improve reactivity
Process Improve
Operation Efficiency/Utilization Service level Inventory corridor
Detailed planning delivered to manufacturing
Deliver executable Plan
Finished products & white mass Cleaning & changeovers
Planning and scheduling integrated
16-Jul-13
ILOG, All rights reserved
Benefits
Visibility and reactivity
Integrated planning and scheduling Designed as a decision support system for planners
Plan reliability
Detailed models of the plant floor constraints
Optimized plan
Taking advantage of ILOG leadership in optimization
16-Jul-13
ILOG, All rights reserved
What excellence in scheduling means
Improved operational efficiency & throughput
Improved return on asset Increase sales in capacity constrained plants
Improved inventory coverage
Improved service level Reduced product waste in products with shelf life
Improved scheduling and re-scheduling processes
Better response to demand variability Improved requirements for raw materials
Scheduling reliability and coordination between intermediate and finished products
Reduction of WIP or intermediate product waste Better response to demand variability
16-Jul-13
ILOG, All rights reserved
10
PS is key to success
Professional Services
Consultants are specialists in planning & scheduling problems
Advanced degrees Average ILOG experience is over 5 years PS has direct access to the R&D and Product Management teams
> 15 years experience building custom solutions
$200K to $2 mil projects Supported by a methodology specifically designed to manage risks and increase efficiency in optimization based projects
KPI Definition, Optimization Model design, Data Integration, GUI Design, Testing, Deployment Architecture
Custom application maintenance contracts
Tech Support, Model Adjustments, GUI Adjustments, Upgrades to next engine releases, etc.
16-Jul-13
ILOG, All rights reserved
11
ILOG Plant PowerOps integrated in APO PP/DS
ILOG Plant PowerOps
Planning & Scheduling Model
Mapping
SAP APO
Master data
Data Adapter
PP/DS model instantiation
Load/Refresh/Commit
Transactional data
ILOG Solution
16-Jul-13 ILOG, All rights reserved
12
Extend ERP/SCM
PPO can be launched from an ERP such as SAP or Oracle as a planning and scheduling extension Or used as a standalone application
16-Jul-13
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13
Extend ERP/SCM
16-Jul-13
ILOG, All rights reserved
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