How to drive LightsOutPlanning by bluecrux
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1. The document discusses how planning for supply chain operations is changing and will become more like planning for an autonomous vehicle experience, with real-time optimization, traffic anticipation, and safety improvements. 2. It presents a case study of a company called Coolwater that connected 500 sensors to integrate operational data and discover factors influencing asset performance, leading to increased throughput and efficiency. 3. The key steps taken were connecting the network data, linking the data to discover drivers of financial performance, and starting to consider external contextual data like weather that could optimize future operations.
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How to drive LightsOutPlanning by bluecrux
- 1. 1 HOW TO DRIVE LIGHTS OUT PLANNING
- 2. 22 Drones and self-driving cars become part of our everyday life
- 3. Winners & Losers Industry 4.0 Smart Siemens • Smart factory • Digital grid solutions Big Data & Algorithms Smart Google • Innovate or die • Innovation as a culture E2E Optimization Just Great Pictures Kodak • Not embracing technology & innovation • Stop creating value Smart Barcelona • Exploiting the full (city) network • Value creation for all stakeholders #WhereAreYou?
- 4. The world is changing fast… and you? Why don’t you expect the same for your supply chain planning & operations than for your driving experience? Waymo, the new way forward in mobility (a.k.a. Google Self Driving Car) Reallocation of time spent driving to value- added activities (reading, working, …) Better anticipation of future traffic Improved safety by reduced driver mistakes & risks Optimized grid utilization with smart algorithms & live data Reduced need for driving skills
- 5. 5 The end of Supply Chain as we know it… DEVELOP PLAN SOURCE MAKE DELIVER SELL SUPPORT DOWNSTREAM UPSTREAM
- 10. 10 #NoLongerASupplyChainParty Isolated Clustered Networked Connected InterConnected
- 12. 12 #MyNameIsBlob ERP DATA PLAN DATA FI DATA … CONTEXTUAL DATA POS DATA MARKET DATA SUPPLIER DATA SENSOR DATA OPERATIONS DATA CLIMATE DATA SOCIAL DATA YOUNAMEIT DATA
- 13. 13 The future will be AUTONOMOUS
- 15. 15 The future will be YOU
- 16. 16 Keeping the lights on Value Creation Traditional planning Smart planning Innovation Keeping the lights on #MyLife
- 17. 17 Qué?
- 18. Connect. Learn. Aim. Shine.
- 19. The digital CORE that meets your business needs Anticipated Demand Smart Supply Connected Production Dynamic Fulfillment Autonomous Planning Optimized Financials
- 20. 20 Create a DIGITAL TWIN and run scenarios
- 22. 22 Connect your data, discover & LEARN
- 24. 24 Use cases, creating value from day 1!
- 25. #Coolwater
- 26. 26 BUSINESS CONTEXT • Industrialized network • Increasing market variability • Margin pressure CASE: From Data to Business Value #Coolwater Supply Chain – Sales – Operations – Finance – Raw Materials DATA • 2 Year history • 500 Sensors • OSI-PI TECHNOLOGY
- 27. Step 1: connect & integrate the network #IBP #E2Ethinking
- 28. Step 2: link data & discover influencing factors #Coolwater
- 29. Step 3: start looking outside #HowIsTheWeather?
- 30. 30 PROCESS What are the key influencing parameters for my asset throughput? Trigger asset improvements What are the drivers in my (current) network ? Improve E2E financials What are best future conditions to maximize performance? Continously perform at optimum CASE: From Data to Business Value #Coolwater BUSINESS RESULTS / VALUE Operational performance increase through better data accuracy & use of assets Capacity 262 TDS/d 282 TDS/d Yield accuracy 49,9% 50,2% Increased throughput & reduced energy consumption through better tank temperature Pre-tank cooling Less in-line cooling required External temperature prediction Linking external to internal data Increased throughput by better anticipation of future tank conditions
- 31. Most companies spend 70% of their budget “keeping the lights on” (Gartner) Don’t be that company!
- 32. 32 Be a digital winner…
- 33. Connect. Learn. Aim. Shine. Think big. Start small. Scale fast.
Editor's Notes
- The world is changing fast. We experience it in our everyday lives, we hear it on the news we see it on social media. Drones, self-driving cars… digital innovation is going at an ever increasing speed.
- We believe that in this new world, there will be winners & losers. Winners like Siemens, who have jumped on the Industry 4.0 train fast to see how they can help companies to build smart factories and digital grids. Google, that we just heard earlier on, and who are leveraging big data & algorithms to become smarter than any other company in the world. But also cities are on the move, like Barcelona who are exploiting all the data that is generated in their cities to create more value for their citizens. By the way, we will hear a more local example of that during the Rombit presentation on Internet of Things in Antwerpen later today.
- So why don’t we expect the same for supply chain planning & operations? And actually, one of the comparisons we often make is to look at the self driving car. Waymo – who you see here on the screen – is the self driving car initiative of Google. Now, for years we have been continuously improving the way we drive. Of course, it all started with the initial invention of the mechanical car. But throughout the years we have been automating the way we move from point A to B by putting in an automatic gear, a GPS, automatic distance control, automatic line control and so on. Now this is all still I would say continuous improvement of an existing process. Automating the way we move from A to B. So what is then game changing about the self driving car? Well it no longer about automation, it is about a whole new framework: It is about reallocating time from drivers to more value adding activities like working, reading, … It is about better utilization of the grid because all these connected cars are fed with smart algorithms and live data It is about better anticipating future traffic It also changes the required skillset of the person as it reduces the need for driving skills And so on …
- And with supply chain, we are at the start of a very similar evolution. Because as supply chain professionals, we all grew up with the good-old APICS frameworks and mantras like PLAN-SOURCE-MAKE-DELIVER, UPSTREAM-DOWNSTREAM and the PLANNING HIERARCHY . And this gave us the possibility to structure our lives. We were able to position ourselves in this clear linear chains of events. We could identify clear roles customer, producer, distributor, supplier, … And most importantly, it gave us the ability to plot very clearly how information was flowing throughout the network. It was nicely handed over from node to node and going from the right to the left and triggering a physical flow in exactly the opposite direction.
- Well, these days are over. This nicely structured and comprehensive scheme is becoming less and less relevant as data and information is flowing everywhere these days. And it is no longer used or handed over from 1 node to the other… It reminds a bit to the kids game you might know where at one end of the line - you could say the customer - starts to tell a story which end up at the other end of the line - you could say procurement - and the 3 stories just don’t add up anymore right?
- For 1 thing the future doesn’t look linear anymore, it looks circular.
- It you take it back to the kids game, you could say that we are going to have a group discussion and it will be based on the same data which is central and digital to all of us.
- Then, the next step is even to move further and to start thinking about what they call “the network of networks” or in other words the interoperability between networks. Or in more simple words - what if we could integrate the E2E SC network of your customer, your own network and your suppliers networks.
- The way we handle data is changing drastically. We are starting to combine more and more data from different sources. And this goes beyond traditional Data Warehouses or Data Grids. It is about bringing different types of data together and truly finding new insights that can drive a real stepchange in our ways of working. By
- Which brings us to the fact that actually if not already we will start reversing the picture here behind. Where today we all probably have the feeling that we have a lot of knowledge & experience which we put into technology. For example by designing certain processes or procedures. Tomorrow it will start going the other way. Smarter and smarter algorithms will bring us insights that with our mind we would not have been able to see. And we see it already sometimes within our company when we look at each other and say ‘hey? This is strange, or this is new… but then it turns out it actually is… true.
- And this brings us to probably the most important element of the evolution of LightsOutPlanning. And that is you, or better us.
- Today, most of the time that planners spend is actually geared to keeping the lights on. It is about: Continuous (master) data errors Disconnected planning Fixed parameter assumptions No financial optimization Functional focus instead of E2E Limited scenario capabilities And sometimes you hear people say that future looks even worse, with all these new technologies coming in to disrupt their planning functions. Well good news, the future looks actually better. And it is filled with: Dynamic master data Connected planning Smart parameter algorithms Financial optimization E2E thinking and acting Scenario driven So that you can focus on what you are good at: thinking creatively about how to create value for the company!
- Now, how are we going to take this jump together? We are building a platform that enables companies to take that leap forward, to take that jump. And it is based on all kinds of new Technologies. Which are no longer called SAP, JDA or BI but Spark, Python and Scala.
- And yes we do a lot of things with it, but actually you can summarize it in 2 main elements: 1) We help business to create a virtual twin of their network
- And second: we help companies to connect their data and discover new insights. And I am not talking about just visualizing data that is already there!
- No, I am talking about using smart algorithms to help companies to understand what their most important planning parameters are. Like lead times, capacities, golden batches, scrap rates, ... And what for each of these parameters the most influencing factors are so that we can influence them proactively and drive towards constantly operating under the optimal conditions.
- Of course this is not going to be done overnight. And for 1 thing, it will be driven by use cases. Use cases that build further up on the previous one and build towards that digital core by adding more and more data on the same platforms. Today, several use cases will be discussed in the breakout sessions, but in order to set the scene and also ground this presentation a bit more I want to show you 1 case already.
- The case is called #coolwater, and you will understand in a few minutes better why … but ok, it has something to do with water and the temperature of it
- So when you leave this event tonight, after a couple of drinks… I want you to remember 2 things: Most companies spend 70% of their budget keeping the lights on, don’t be that company! Try to be a digital winner. And get started! And don’t forget to Think Big, but to Start Small and to Scale Fast. Thank you very much.