Improvements/Benefits Delivery Performance Inventory Reduction


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  • This Johns Manville (from p. 24) wasn’t quite in the right format, so I had to take a stab at bucketing these things
  • The “title” for this one is unclear (p. 9)
  • There is no identified “problem” for this company
  • Note, I’m not really sure what the “problem” or what the “one-sentence” description should be here (from p. 11 in China PowerPoint)
  • The “title” for this one is unclear (p. 9)
  • Pharmacia & Upjohn is one of the world's leading pharmaceutical companies with more than 60,000 employees globally and annual sales exceeding $17 billion. In April, 2000, the new Pharmacia was created from the merger of Pharmacia & Upjohn and Monsanto. Pharmacia’s Kalamazoo Active Pharmaceutical Ingredient (KAPI) facility encompasses 20 production units in Kalamazoo, Michigan, producing a wide range of fine chemicals used as active pharmaceutical ingredients. Most of the company's products require 12 to 15 processing steps that can take up to a year or more to complete, placing a high level of importance on supply chain planning and scheduling. Pharmacia & Upjohn selected Aspen MIMI to streamline the entire production planning process and generate optimum production plans, considering all relevant variables and constraints. Aspen MIMI helped to improve the efficiency of the planners' jobs by enabling them to automate complex processes and perform quick what-if analyses on production plans. Prior to using Aspen MIMI, planners created production plans based on the bill of materials from the firm's material resource planning (MRP) system. These planning models incorporated only four or five major production variables and had limited ability to handle the interdependencies of many production processes. The plans took a considerable amount of time to generate because the sales forecasts, inventory values and production variables (such as processing time) all had to be entered manually into the model. Plans did not make the best use of available capacity and resources and were susceptible to data entry errors. Since Pharmacia & Upjohn could not accurately plan one year ahead, workcenters frequently switched from one product to another, creating a considerable amount of downtime. The production units built to inventory targets with no visibility of customer orders, causing Pharmacia & Upjohn to produced 10-15 percent more of some products than was needed to meet actual customer demand and resulting in expensive inventory storage and financing costs. The company also under produced other products, meeting only 80-90 percent of total customer demand and resulting in customers turning to alternate supply sources. To meet this challenge, Pharmacia & Upjohn evaluated multiple supply chain optimization software packages, ultimately selecting Aspen MIMI, the most fully developed and site-proven application. Aspen MIMI was the only system that provided an effective method for modeling multipurpose workcenters. Aspen MIMI also enabled users to configure the interface to fit a specific application, which Pharmacia & Upjohn highly valued. Pharmacia & Upjohn and AspenTech worked together to determine which workstations would produce certain products, the processing times for multiple manufacturing processes, and the secondary operations required for different products and processes. The team also developed rules for generating plans for the plants' batch operations. Using the Aspen MIMI Expert System, the team incorporated these rules into the planning models. The team also designed a graphical user interface (GUI) for the planners. The GUI used terms familiar to the planners, incorporated relevant procedures from their daily operations and provided buttons to generate the most common reports required at the plant level. After completing the implementation, Pharmacia & Upjohn assumed responsibility for enhancing and supporting the Aspen MIMI planning model. Now, the new planning process is a success. On the last day of the month, the plan is reconciled with the latest inventory status to find real inventory positions for all intermediates and finished products. Bill of materials information is downloaded from the legacy system. Then the Aspen MIMI planning software creates a new optimized production plan for the next 15 months. The software assigns production to workcenters based first on capacity and then uses production rules to resolve conflicts. The first two months of the plan are locked from the previous month. The third month rolls in from the new plan and is also locked. Maintenance, such as enhancements to production rules and changes to recipes, is performed on an ongoing basis. The Aspen MIMI implementation enabled Pharmacia & Upjohn to address data accuracy issues from forecasting to inventory and production data and to redefine the planning process. By incorporating capacity constraints and financial goals into the planning process, Aspen MIMI has become a valuable tool to the Pharmacia & Upjohn Kalamazoo Active Pharmaceutical Ingredient production facility.
  • Rhône-Poulenc Rorer, part of Aventis which is a $18B global pharmaceutical company with 107,000+ employees in over 150 countries   Executive Summary   “ AspenTech batch process modeling tool was the unique way to rapidly model the complete batch process with different alternatives on different manufacturing sites”   The current project development in the pharmaceutical industry highlights a need for a global batch tool-kit system to be used by chemists, cost managers, pilot plant managers, industrial operation managers, chemical engineers and production engineers. Particularly, development needs to take into account Process & Industrialization studies information, which increases in quantity and accuracy during the development timeline.   The challenge was to scale up a primary process and select the production sites based on strategic, environmental and specific criteria. We had to look at the considered production in terms of batches, facilities and productivity with a minimal investment and comply with the environmental and the facilities constraints.   A 4 step process of a very strategic ingredient was studied. The Active Pharmaceutical Ingredient (or API.) could be manufactured in 6 facilities. After studying 29 alternatives, with different scales of batches, the results showed that we could eliminate some facilities and finally end up with 2 major manufacturing sites. The next step was to design the gas treatment system based on the air emission calculation provided by Batch Plus™.   By using Batch Plus™, we can measure a gain of time and build a common database for the batch process. Batch Plus was very helpful for the process development and the process fit analysis studies. We automatically generate results files with the same format and can share information with the concerned team using these files.   Company Profile The essential mission of the CRVA is the discovery, the development, the industrialization and the manufacturing of effective active ingredients, most effectively and as quickly as possible.   Business Climate In 2000, Vitry-Alforville Research Center becomes the major pole of Chemical engineering activity within the development of the primary processes (Clinical studies in Phase II and Phase III) for the group Aventis Pharma.   The new global organization is pressuring these chemical engineering entities to be more responsive and more efficient in how they transfer the processes to plants. To achieve greater efficient chemical engineering entities must unite the workflow, from the research labs through the scale-up , engineering, and manufacturing, by adopting standard practices. Standard can assist in a more efficient communication from the research labs through development and engineering, through production operations, and manufacturing.     Business Challenges The Rhone-Poulenc Rorer Vitry-Alforville Research Center chemical engineering entities has gone through an analysis of their workflow and value chain, focusing on the scale up and technology transfer from the research labs to the manufacturing environment. The scale-up activity is a key for improving the industrialization work efficiency of chemical processes.   A study for modeling tools needed in the batch area was handled at the Rhone-Poulenc Rorer Vitry-Alforville Research Center and it appeared that from the laboratory tests to the manufacturing of the new Active Pharmaceutical Ingredient, the needs in modeling increase significantly from short-cut models where rapid answer is waited, to predictive models for scaling, to rigorous models for design.   The other objectives of the study were to have a common modeling tool at the different levels of the development and a common technical database for easier sharing and technical data transfer. For this kind of project, people from different departments with different cultures were involved.   The Rhone-Poulenc Rorer Vitry-Alforville Research Center was the pilot for the Batch Plus™ use. Due to the success encountered after the project, it was decided to use the software for all the batch processes. For a most effective use of the software, the success of the CRVA site will be rolled out to the other sites that work closely with the CRVA.   Benefits The major stated benefits of utilizing technology are the following:   1.      Uniformity of information  Facilitates easy sharing of information Equipment - Products - Components - Reactions 2.      Homogeneity of correlation  Comparable results of scale-up Integrated estimate of V.O.C. 3.      Quick creation & comparison of alternatives Faster communication by using a common format for models and results generation documents. Easy and fast way to describe the process and to study many alternatives.   The development group will use these databases to develop and scale-up a recipe from research into a manufacturing plant(s).   4.      Accelerated communication  Compilation & generation of Technology Transfer Document and Operating Procedure  Common Models & Formats   The use of BatchPlus, in order to perform industrialization tasks allows to bring drugs to market with greater velocity and more efficiently.   Why was Aspen selected ? AspenTech was selected for strategic reasons.   The first one is the strong relationship that we built from the beginning of the software development, and our participation in improving it to fit to our needs. AspenTech is listening to our concerns. We are still working together on important projects that we would like to finalize.   The second one is that Batch Plus™ could answer most of the current needs for development projects. The future development announced can really bring an added value for technology data transfer and for a further use in manufacturing. Based on work carried out once and the organized storage of the data, we can exploit the receipt for other studies and produce documents of operating instructions.
  • Improvements/Benefits Delivery Performance Inventory Reduction

    1. 1. 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 <ul><ul><ul><li>AMR Supply Chain Operations Reference Model: </li></ul></ul></ul><ul><ul><ul><li>Patiglio Rabin Todd & McGrath: </li></ul></ul></ul>
    2. 2. Supply Chain Clients 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.
    3. 3. Clients, continued P & G (Japan) Quaker Oats Repsol Quimica Rhone Poulenc Rockwell Semiconductor Rohm & Haas SARAS Schering-Plough Seiko Epson Corp. Sematech Shaw Industries Shell Chemical Shell Lubricants Shell Oil Shering-Plough Showa Shell Solutia StatOil Stoldt Parcel Tanker Sumitomo Chemicals Sun Refining & Mktg. Symbios Logic Taiyo Oil Taisil Texaco Thappline Tohoku Oil Tonen Tonen Chemical Toyo Comms. Equip. Trevira Ube Cement Union Camp Unocal U. S. Robotics Valero 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
    4. 4. <ul><li>Supply Chain optimisation for packaged finished goods in N. America </li></ul><ul><li>17 operating division with multiple, heterogeneous systems: </li></ul><ul><ul><li>25,000 stocked products </li></ul></ul><ul><ul><li>134 shipping points </li></ul></ul><ul><ul><li>15,000 ship to locations </li></ul></ul><ul><ul><li>956 million lbs shipped direct to customers </li></ul></ul><ul><ul><li>696 million lbs shipped via Distribution Centres </li></ul></ul><ul><li>Benefits from implementing Mimi </li></ul><ul><ul><li>Reduced transportation, facility costs by 10% ($10m /per year) </li></ul></ul><ul><ul><li>Next day volume deliveries increase from 77% to 96% </li></ul></ul><ul><ul><li>Reduced number of Distribution Centres from 86 to 15 </li></ul></ul><ul><ul><li>Generating $10 million/year savings in operating costs </li></ul></ul>BASF North America
    5. 5. Goodyear Chemicals <ul><li>Environment: </li></ul><ul><ul><li>2 Plants, 300 products, approx. 650 MM lbs./year; </li></ul></ul><ul><ul><li>Multiple production stages: 100 reactors, 12 finishing lines, holding tanks and dryers; </li></ul></ul><ul><ul><li>Regional Distribution Centers (DC’s). </li></ul></ul><ul><li>Objectives: </li></ul><ul><ul><li>Improve customer service, increase capacity, reduce inventories, operating and transportation costs. </li></ul></ul><ul><li>Benefits: </li></ul><ul><ul><li>Increased scheduler productivity, timely information; </li></ul></ul><ul><ul><li>$1 MM / year in reduced transportation costs; </li></ul></ul><ul><ul><li>20% inventory reduction; </li></ul></ul><ul><ul><li>Changeover coordination = 2% increase in capacity; </li></ul></ul><ul><ul><li>Improved product quality = 10% reduced raw material usage. </li></ul></ul>
    6. 6. Truck Loading & Scheduling <ul><li>Problem </li></ul><ul><ul><li>Determine truck loading schedule in 2 hour windows for entire week </li></ul></ul><ul><ul><li>Warehouse space for 1 day of inventory </li></ul></ul><ul><ul><li>5,000 trucks/week </li></ul></ul><ul><li>Solution </li></ul><ul><ul><li>Developed application using MIMI’s LP module and Expert System Shell </li></ul></ul><ul><ul><li>Increased palletizer to truck from 20% to 40% </li></ul></ul><ul><ul><li>Reduced warehouse inventory - volume & # grades </li></ul></ul><ul><ul><li>Reduced warehouse overtime </li></ul></ul>Miller Brewing
    7. 7. Finite Scheduling & ATP <ul><li>MIMI used for production scheduling of all manufacturing at all North American plants </li></ul><ul><li>Reductions in scheduling man-power of 40% </li></ul><ul><li>Tightly integrated with ERP for scheduling and on-line Available-To-Promise </li></ul><ul><li>85% of orders confirmed at order entry </li></ul><ul><li>96% of orders confirmed within 24 hours </li></ul><ul><li>On-time shipments improved from 90% to 99+% </li></ul>Hoechst Celanese Acetate
    8. 8. DuPont P&IP <ul><li>Working capital reduced 25% </li></ul><ul><li>Customer service increased from 87% to 97% </li></ul><ul><li>Product coordination headcount reduced from 6 to 4 </li></ul><ul><li>Operations Efficiency (throughput) Increased by 30% </li></ul><ul><li>Schedule stability increased </li></ul><ul><li>Expedited transportation decreased </li></ul><ul><li>Problems now foreseen and prevented </li></ul><ul><ul><li>Jane Lee, World Batch Forum, April 1999 </li></ul></ul>
    9. 9. Bridgestone/Firestone <ul><li>Inventory </li></ul><ul><ul><li>Finished Goods (AG) at Distribution Centers reduced by ~ 25% </li></ul></ul><ul><ul><li>Work in Process at the Plant red4ced by ~20% </li></ul></ul><ul><ul><li>Output per man-hour increased by 5% </li></ul></ul><ul><li>Standardization and Cleaning of Data </li></ul><ul><ul><li>Materials, Bills and Routings </li></ul></ul><ul><ul><li>Equipment and Tooling </li></ul></ul><ul><li>Standardization of Methodology </li></ul><ul><ul><li>Repeatable and consistent across business units & plants </li></ul></ul><ul><ul><li>Induced discipline in operations improving schedule compliance </li></ul></ul><ul><ul><li>Reduction of 4 planners & schedulers in a $365MM business </li></ul></ul><ul><li>Visibility of Information </li></ul><ul><ul><li>Input/Output now visible across business units one one platform </li></ul></ul><ul><ul><li>Standardized and therefore less apt to dispute </li></ul></ul>We are now poised to offer our customer not just quality products, but consistent information as well.
    10. 10. Allied Signal <ul><li>“ Aspen says you can expect a 50% variability reduction and a 2-5% capacity increase . . . </li></ul><ul><li>Our experience: > 50% variability reduction and a 3 - 10% capacity increase - with minimal capital investment” </li></ul><ul><ul><li>Jeff Yellets, Alliance Manager, AlliedSignal </li></ul></ul>
    11. 11. CORPORATE NETWORK OPTIMIZATION <ul><li>17 operating divisions with multiple, heterogeneous systems </li></ul><ul><ul><li>25,000 SKUs </li></ul></ul><ul><ul><li>134 Shipping points </li></ul></ul><ul><ul><li>15,000 ship-to locations </li></ul></ul><ul><ul><li>956 million pounds shipped direct to customers </li></ul></ul><ul><ul><li>696 million pounds shipped to customers through DCs </li></ul></ul>Supply chain optimization model for packaged finished goods in North America <ul><ul><li>Reduced transportation facility costs by 10% </li></ul></ul><ul><ul><li>Next-day volume delivery increased from 77% to 96% </li></ul></ul><ul><ul><li>Reduced number of DCs from 86 to 15 </li></ul></ul><ul><ul><li>Generated $10 million/year savings in operating costs </li></ul></ul>PROBLEM SOLUTION BENEFITS
    12. 12. 3-D TRIM OPTIMIZATION <ul><li>Schedule fiberglass insulation </li></ul><ul><ul><li>Thickness as well as width and length required optimization on a continuous process </li></ul></ul><ul><ul><li>No loss due to standard sizing of the finished goods </li></ul></ul><ul><ul><li>Need to optimize production of orders and inventory </li></ul></ul>MIMI standard templates, using LP/MIP and Expert Systems <ul><ul><li>MIMI standard trim template handles problem naturally </li></ul></ul><ul><ul><li>LP/MIP optimizes patterns regardless of # of dimensions </li></ul></ul><ul><ul><li>Expert System finds patterns that can provide a better solution </li></ul></ul><ul><ul><li>Since process is continuous, mathematically global optimal is possible </li></ul></ul>PROBLEM SOLUTION BENEFITS
    13. 13. TRUCK LOADING & SCHEDULING <ul><ul><li>Determine truck loading schedule in two-hour window for entire week </li></ul></ul><ul><ul><li>Warehouse space for one day of inventory </li></ul></ul><ul><ul><li>5,000 trucks/week </li></ul></ul>Developed application using MIMI’s LP module and Expert System Shell <ul><ul><li>Increased palletizer to truck from 20% to 40% </li></ul></ul><ul><ul><li>Reduced warehouse inventory – volume and number of grades </li></ul></ul><ul><ul><li>Reduced warehouse overtime </li></ul></ul>PROBLEM SOLUTION BENEFITS
    14. 14. PRIMAL MANUFACTURING Scheduling of fermentation process <ul><ul><li>Convert experience into Configured Application Product (CAP) </li></ul></ul><ul><ul><li>Use CAP as basis for this application </li></ul></ul><ul><ul><li>Initial schedules in 6 days </li></ul></ul><ul><ul><li>Project focus on data issues – about two months </li></ul></ul><ul><ul><li>Domain experise delivered in CAP </li></ul></ul>PROBLEM SOLUTION BENEFITS
    15. 15. SUPPLY CHAIN BPR WITH MIMI <ul><li>10 business units </li></ul><ul><ul><li>Billions of pounds/year </li></ul></ul><ul><ul><li>Continuous, semi-continuous, block and batch operations </li></ul></ul><ul><ul><li>Tank car, tank truck, trailers, ships and barges </li></ul></ul><ul><ul><li>High margin specialties and low margin commodities </li></ul></ul><ul><ul><li>One Supply Chain solution – MIMI </li></ul></ul><ul><ul><li>Each business unit redesigned their processes </li></ul></ul><ul><ul><li>Improved customer service </li></ul></ul><ul><ul><li>Target 2% reduction in supply chain costs: exceeded </li></ul></ul><ul><ul><li>Target 20% reduction in operating inventory: exceeded </li></ul></ul>PROBLEM SOLUTION BENEFITS
    16. 16. COLLABORATIVE SUPPLY CHAIN PROCESSES Supply Chain Management Across Two Enterprises. Integrate Systems and Processes to Improve Customer Service and Manufacturing Responsiveness <ul><ul><li>Collaborative Business Processes and Integrated Business Systems. Order Management and ATP Processes (Dow) </li></ul></ul><ul><ul><li>Linked to Scheduling Process (Solutia) </li></ul></ul><ul><ul><li>Improved Customer Service Responsiveness by Enabling Collaborative ATP Process </li></ul></ul><ul><ul><li>Reduced Manufacturing Upsets </li></ul></ul>PROBLEM SOLUTION BENEFITS
    17. 17. STRATEGIC BUSINESS PLANNING <ul><ul><li>Commodity chemicals (polymers) </li></ul></ul><ul><ul><li>Evaluating alternative business models and market strategies </li></ul></ul>Long-term financial and capacity planning considering supply chain constraints and alternatives <ul><ul><li>Quickly identifies the highest margin, feasible market strategy </li></ul></ul><ul><ul><li>Builds consensus among competing stakeholders </li></ul></ul>PROBLEM SOLUTION BENEFITS
    18. 18. INTEGRATED SUPPLY CHAIN <ul><ul><li>Two production facilities, four business lines and six compounding facilities worldwide </li></ul></ul><ul><ul><li>Forecasting, inventory management, planning and scheduling </li></ul></ul><ul><ul><li>Reduced sludge inventory by 50% </li></ul></ul><ul><ul><li>Sharp reduction in forecast error (5-9% overall) </li></ul></ul><ul><ul><li>Enhanced business value of SAP R/3 implementation </li></ul></ul><ul><ul><li>Optimized grade switches </li></ul></ul><ul><ul><li>Decreased response time to upsets </li></ul></ul><ul><ul><li>1000% ROI on project </li></ul></ul>PROBLEM SOLUTION BENEFITS
    19. 19. OVERALL SUPPLY CHAIN PLANNING & OPTIMIZATION <ul><ul><li>Collaborative scheduling of CH enterprise </li></ul></ul><ul><ul><li>12 plants with 170 operating units </li></ul></ul><ul><ul><li>Optimizing manufacturing chains of 20,000 operations across 18-month horizon </li></ul></ul><ul><ul><li>Large-scale distributed MIMI </li></ul></ul><ul><ul><li>New collaborative scheduling work process implementation </li></ul></ul><ul><ul><li>Proprietary genetic algorithm for optimization </li></ul></ul><ul><ul><li>Overall increased capacity targeted at over 3% </li></ul></ul><ul><ul><li>Response to customer requests to be reduced to seconds instead of minutes or hours </li></ul></ul>PROBLEM SOLUTION BENEFITS
    20. 20. MANUFACTURING PLANNING & SCHEDULING Multi-plant, high volume consumer goods manufacturing <ul><ul><li>Integrated planning and scheduling </li></ul></ul><ul><ul><li>Audit demonstrates value of flexible supply chain modeling and advanced optimization techniques </li></ul></ul><ul><ul><li>Increased return on net working capital </li></ul></ul><ul><ul><li>Increased customer service levels </li></ul></ul>PROBLEM SOLUTION BENEFITS
    21. 21. Shell Chemical <ul><li>Company Background </li></ul><ul><ul><li>Norco, LA & Deer Park, TX </li></ul></ul><ul><ul><li>Olefins & Derivatives </li></ul></ul><ul><li>Why AspenTech </li></ul><ul><ul><li>“ Advisor” </li></ul></ul><ul><ul><li>Model based approach </li></ul></ul><ul><ul><li>Inherent Expert System </li></ul></ul><ul><ul><li>NT Platform </li></ul></ul><ul><li>Business Problem </li></ul><ul><ul><li>Production Accounting business process broken </li></ul></ul><ul><ul><li>Mainframe program </li></ul></ul><ul><ul><li>Very expensive to maintain and operate </li></ul></ul><ul><ul><li>Daily Production Accounting still justified </li></ul></ul><ul><li>Proven Benefits </li></ul><ul><ul><li>Confidential but “a dot mover” </li></ul></ul><ul><ul><ul><li>(reduced costs by an order of magnitude) </li></ul></ul></ul>
    22. 22. CONDEA Vista <ul><li>Company Background </li></ul><ul><ul><li>Olefins Plant </li></ul></ul><ul><ul><li>Lake Charles, LA </li></ul></ul><ul><li>Why AspenTech </li></ul><ul><ul><li>World leader in APC </li></ul></ul><ul><ul><ul><li>DMCPlus </li></ul></ul></ul><ul><ul><li>Willing to provide performance guarantee </li></ul></ul><ul><li>Business Problem </li></ul><ul><ul><li>“ Sold Out” on ethylene </li></ul></ul><ul><ul><li>Need to increase production </li></ul></ul><ul><ul><li>Need to minimize risk </li></ul></ul><ul><li>Proven Benefits </li></ul><ul><ul><li>Exceeded guarantee of +2.5% production </li></ul></ul><ul><ul><li>Exact results confidential </li></ul></ul>
    23. 23. Borealis Success Story <ul><li>Company Background </li></ul><ul><ul><li>Integrated Petrochemical / Polymer company based in Copenhagen, Denmark </li></ul></ul><ul><ul><li>World scale ethylene plant located in Stenungsund, Sweden </li></ul></ul><ul><li>Business Problem </li></ul><ul><ul><li>Recent expansion required modifications to existing technology to maintain competitive advantage </li></ul></ul><ul><ul><li>New operating flexibility with posed more complicated optimization problem </li></ul></ul><ul><li>Why AspenTech? </li></ul><ul><ul><li>Unique experience in advanced control and real-time optimization of olefins plants </li></ul></ul><ul><ul><li>Proven technology and track record </li></ul></ul><ul><li>Proven Benefits </li></ul><ul><ul><li>Increased average ethylene production by over 5% </li></ul></ul><ul><ul><li>On-line system provides validated model as a basis for off-line case studies </li></ul></ul>
    24. 24. Huntsman (formerly ICI) Success Story <ul><li>Company Background </li></ul><ul><ul><li>Huntsman is the largest privately owned chemical company in the world (formerly ICI/BP Amoco JV) </li></ul></ul><ul><ul><li>Wilton, UK Site contains the largest Naphtha Cracker (900,000 ton/year Ethylene) in Europe </li></ul></ul><ul><li>Business Problem </li></ul><ul><ul><li>Integrated manufacturing improvement required as part of a plant instrumentation upgrade </li></ul></ul><ul><ul><li>Replacement of legacy, hard to maintain technology required to be competitive </li></ul></ul><ul><li>Why Aspentech </li></ul><ul><ul><li>Had the complete solution for information management, advanced process control, and real-time optimization </li></ul></ul><ul><ul><li>Proven technology and experienced application specialists </li></ul></ul><ul><li>Proven Benefits </li></ul><ul><ul><li>Dependable, reliable and uniform information </li></ul></ul><ul><ul><li>Actual performance is confidential, but set new daily and monthly production record </li></ul></ul><ul><ul><li>High stream factors indicating strong operations support </li></ul></ul>
    25. 25. ROHM & HAAS <ul><li>Company Background </li></ul><ul><ul><li>Diversified chemical company </li></ul></ul><ul><li>Why AspenTech </li></ul><ul><ul><li>World leader in Process Industries Supply Chain Management </li></ul></ul><ul><li>Business Problem </li></ul><ul><ul><li>Reduce supply chain costs while improving performance </li></ul></ul><ul><li>Proven Benefits </li></ul><ul><li>On-time delivery performance risen more than 10% at many facilities. </li></ul><ul><li>Inventory costs dropped $40 million. </li></ul><ul><li>Better inventory visibility enabling streamlined operations. </li></ul><ul><li>Some business units have cut warehouse usage from 12 facilities to 2. </li></ul><ul><li>Planning cycle time reduced </li></ul>
    26. 26. AspenTech – Rohm & Haas Supply Chain Management “ Now that we are more effective planners, many crises have gone away.” Joe Gilbert, Materials Manager <ul><li>On-time delivery performance risen more than 10% at many facilities </li></ul><ul><li>Inventory costs dropped $40 million. Better inventory visibiliy enabling streamlined operations. Some business units have cut warehouse usage from 12 facilities to 2 </li></ul><ul><li>Planning cycle time reduced </li></ul>
    27. 27. Economic Potential 5.0% - 20.0% Increased Capital Utilization Reduced Capital Expenditures   1.0% - 3.0% 1.0% - 3.0% 5.0% - 10.0%   5.0% - 30.0% 0.0% - 5.0% 1.0% - 5.0% Reduced Costs Reduced Variable Costs Raw materials consumption Additives, energy, catalysts, etc. Distribution and logistics Reduced Fixed Costs Inventory Carrying Costs General & Administration Production Staff 1.0% - 3.0% 0.4% - 1.3% 2.0% - 5.0% Increased 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) Factor Improvements Areas of Economic Potential
    28. 28. Chevron Phillips <ul><li>Reduced dead inventory by 98% </li></ul><ul><li>Forecast accuracy improvement of 25% ( 5-9% overall) </li></ul><ul><li>Enhanced business value of SAP R/3 implementation </li></ul><ul><li>Optimized grade switches </li></ul><ul><li>Decreased response time to upsets </li></ul><ul><li>300% ROI on project </li></ul><ul><li>Business Challenge: </li></ul><ul><li>Solutions Applied: </li></ul><ul><li>Value Chain Planning </li></ul><ul><li>Production Optimization </li></ul><ul><li>Demand-side Optimization </li></ul><ul><li>Proven Benefits: </li></ul>Polyolefin Complex, Texas, USA <ul><li>Forecasting, inventory management, planning and scheduling </li></ul>
    29. 29. Union Carbide <ul><li>Leverage ERP investment </li></ul><ul><li>Increased revenue </li></ul><ul><li>Improved Customer loyalty </li></ul><ul><li>Derive SAP investment </li></ul><ul><li>Provide differentiating service value to Unipol licensee </li></ul><ul><li>Business Challenge: </li></ul><ul><li>Solutions Applied: </li></ul><ul><li>Asset Optimzation </li></ul><ul><li>Value Chain Planning </li></ul><ul><li>Production Optimization </li></ul><ul><li>Proven Benefits: </li></ul>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
    30. 30. NOVA Chemicals <ul><li>Reduce capital Investment by 35% or about 25 million USD </li></ul><ul><li>Reduce capital cost to compete with established technologies </li></ul><ul><li>Business Challenge: </li></ul><ul><li>Solutions Applied: </li></ul><ul><li>Asset Optimization </li></ul><ul><li>Used Polymers Plus to study process alternatives to identify optimal reactor configurations & minimize solvent recovery costs </li></ul><ul><li>Proven Benefits: </li></ul>Polymers Producer and Licensor
    31. 31. Equistar <ul><li>5 times ROI </li></ul><ul><li>$20 million benefits in two years </li></ul><ul><li>Business Challenge: </li></ul><ul><li>Solutions Applied: </li></ul><ul><li>Production Optimization </li></ul><ul><li>Value Chain Planning </li></ul><ul><li>Proven Benefits: </li></ul>HDPE plant, Matagorda , Texas <ul><li>Integrate long chain business processes that encompass SAP, MES, and DCS </li></ul><ul><li>Develop a standardized configuration that enables replication of best business practices </li></ul><ul><li>Determine value of MES integration </li></ul>