This script is untended as a talking point guide for the SCS instructor. It could also be useful as a supplement to the @home self-paced training course. Please direct questions to Steve Ellet (617)551.2871 or Abraham Joseph (770)xxx-xxxx. INTRODUCTIONS/ADMIN 1) Introduce instructor; provide title, background, why instructor is qualified to give course. 2) Admin issues: tell students location of bathrooms, phones, fax machines. Describe format -- breaks, lunch, etc. 3) Student intros -- each student introduces himself; tells why he is at the course and any background he has with the app or similar apps 4) Cover course agenda -- 10 minutes max.
This focus has allowed us to capture business from the global “Who’s Who” of leading companies across all industries. In fact, i2’s customer list includes about 80% of the Fortune 500 companies. Customer stats: 13 of 18 top Semiconductor companies 6 of 9 top contract manufacturers 7 of 7 top communication equipment manufacturers 11 of 11 top PC manufacturers 5 of 5 top consumer electronic companies 8 of 20 top global pharmaceutical companies
Additionally, Gartner Group, a leading technology focused research and advisory company, has consistently recognized i2 as a visionary leader with the ability to execute in their “Magic Quadrant”—placing i2 in their leaders’ quadrant for 9 consecutive quarters. This Magic Quadrant is a graphic description of global vendor performance in a market segment based on viability, service and support, features and functionality and technology. Ability to execute shows Gartner’s view of how well a vendor performs today. Vision is their view of how well a vendor will do in the future based on where the market is headed. So, what does this mean to you? It means that with i2, you can gain competitive advantage by leveraging our vision and ability to execute—helping you to solve your toughest business challenges. Also, partnering with i2 lowers your risk. Our proven solutions have been implemented at over 9000 sites. If you have unique value chain challenges, we’ve probably seen and solved them before.
The need to do something must to be stressed in light of the prospect’s needs and business case context. SALES/PRESALES: PLEASE send your slides with “current practices”, including any competitive information back to Product Management and to Solutions Marketing. We’ll use the SOA’s business analysis methodology: identify Pain Points and Opportunities; for example, inefficient supply-demand match generate losing orders and hence deteriorates customer service levels map them out to the current way of conducting business and the capabilities that traditional methods do not offer (this is the opportunity to start introducing arguments against the competition you are currently facing) relate to the problems you are proposing to solve with SCS Take the opportunity to customize this slide within prospect’s context. Pick and choose key areas from this slide and the Appendix and relate to prospect’s business case
Stress the current practices that the prospect is currently conducting. Focus on stressing i2’s competitive functionality advantages relevant to the prospect.
The third fundamental strategy for achieving competitive advantage focuses on customer intimacy. This strategy involves an intense focus on understanding and rationalizing your customer base and tailoring your product and service offerings to each segment. Fundamental to this strategy is the ability to tailor promotional, merchandising and assortment plans to a highly segmented customer base. While this can be expensive from an operational perspective, these companies are typically willing to absorb higher costs in exchange for long term customer loyalty. Companies who have employed this strategy include IBM in their glory years and Home Depot, more recently. Traditional management consulting theory has been that the most successful companies will be those who focus on excelling in one of these disciplines, while meeting industry standards in the others.
i2 has many types of solutions. SCS is a strategic planning tool. Decision making tools are “live” tools. An example: Consider a factory scheduling tool; it creates a schedule for every day -- what to run on each line at each time. It is effectively making the decision. Decision support tools allow the user to learn about trade-offs among multiple scenarios and make an educated decision. The user/mananger/consultant uses the tool to gain insight. The tool supports analysis that will lead to a recommendation, but does not spit out the answer. If you want to do the things on the right side of the list, talk to your sales rep, we have tools for those, too.
OK, we’ve talked for an hour about the concepts, now I want to talk about how SCS models the supply chain.
SCS uses a set of basic building blocks called entities as the foundation of the model. They are listed at the upper right. The modeler uses these to design the network that reflects the reality of the physical network. The modeling paradign is extremely flexible -- you can fit the model to the problem rather than trying to fit the problem into a rigid model. The user can allow any facility to ship to any other facility or demand region, regardless of “echelon” or reverse-logistics rules. Within a facility, a processes and products can be placed and customized to reflect the costs and capacities within the walls of a plant/dc/supplier/etc.
Each facility has a set of properties. Processes and Products are added to the facility; each with its own set of properties. Many products and many processes can exist in a single facility. THIS IS PROBABLY THE MOST IMPORTANT SLIDE OF THE COURSE. THIS IS THE MODELING PARADIGM FOR SCS. The flexibility this paradign enables is significant as we will see later.
Here is an example of some complexity that can be modeled. Notice that the first process takes in As & Bs and uses them to make Xs and Ys. Notice that Ys are demanded and Xs are used at other facilities downstream. Notice that the 2nd process can make As from Bs and Cs. The solver will decide if it makes more sense to bring As in from the “supplier” facility at the top-left or make As in the 2nd process. It is possible that it will choose to do some of each. IMPORTANT takeaway: Outputs of one process can be inputs to processes in the same facility. This enables quite a bit of functionality and flexibility.
Example: In this model, each process represents a type of activity at the plant. Notice that the output of one process can be the input of another and how that could be used in this situation to illustrate bottlenecks in the overall flow. Cooking must be done prior to coating and mixing which must be done prior to packing. If packing is constrained, all the preceding processes will also be constrained. This model could also be used to consolidate functions among several plants. For example: assume that coating has a fixed cost of $1 million at this plant as well as the plant down the street. The model might choose to coat only at one of the plants in order to save $1 million in fixed cost, thus consolidating the functions into a single process.
Processes can be of a vairety of types. They can have any number of inputs and any number of outputs.
Welcome MIT MLog Program Steve Ellet Product Marketing Manager, Strategic Planning [email_address]
SCS Modeling Paradigm Product Process Facility Demand Region Transportation Link Key:
A generalized modeling approach:
flexible structure: no rigid echelon structure
facilities play multiple roles by supporting all types of processes (sourcing, assembly, packaging, etc.)
The modeler customizes and assembles model components to represent scenarios
SCS Modeling Paradigm Min Max Fixed Cost Closing Cost* FACILITY PROCESS Min Max Fixed Cost Closing Cost* Variable Cost Components (Recipe) PRODUCT Min Max Fixed Cost Closing Cost* Variable Cost
Schematic Overview A B C X Y A Process Parameters
lower/upper bounds (cycles)
Transportation Link Parameters
Product Handling Parameters
handling rate (cost/unit)
Product Process Facility Demand Region Transportation Link Key:
Serial Processes - Cereal Production MIX Plain Cereal Coated Cereal Mixed Cereal Packed Cereals PLANTS Corn, Bran, Oat, Wheat Sugar, Maple, Honey, Raisins, Cinnamon Packaging Materials S U P P L I E R S With SCS I can reflect the required details of our operations! PACK COOK COAT
Process Components - Bill of Materials Many to One (automobile assembly) One to Many (petroleum cracking) Many to Many (flour production) Zero to One (raw material sourcing) One to Zero (consumption/disposal)