Danone case study

Filippo Focacci (ffocacci@ilog.fr)

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

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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

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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

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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

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Managing plant floor constraints at Danone

With improved plan reliability

Continuous process Multi-purpose storage tank

Max duration on storage tank Cleaning policies

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Optimal tradeoff between Supply Chain and Manufacturing goals

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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

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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

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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

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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.

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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
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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

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Extend ERP/SCM

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