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Operations Control of the Future

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Operations Control of the Future
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  • In a connected world not too far away...
  • Our SCGM who is working from home...
  • Hey John, Mark the Global Supply Chain GM here. In my Simple Logistics dashboard I noticed some deviations in our key financial indicators.
  • TOUCHDOWN 49ers!!
  • Meanwhile in Santa Clara...
  • Our sensors are detecting anomalies in the plant, as I am sure you guys are aware...
  • Yes, you got the plant manager and supply chain VP on the line.
  • In a supply chain connected by sensors
  • Our sensors are detecting an abnormally high energy consumption from our air ventilation machines. Analyzing the logs confirms a risk of overheating.
  • Inventory Allocation
  • Scenario 1
  • If we take the machines offline for preventative maintenance, let's have a look at the impact of the reduced production capacity
  • Scenario 2
  • Scenario 3
  • The capacity was already reserved to AB, a key strategic buyer. We definitely don't want to risk that relationship given their expected spend.
  • Abno Lama Inc.
  • They decide to call the AB account rep for confirmation
  • Thanks for the update guys. As you can see in the forecast there is more than $100M at stake!
  • I do not recommend this mitigation plan
  • Thanks to the dynamic inventory application...
  • Therefore, let's explore alternate mitigation options. How about we look into reallocating inventory? Let's optimize the allocation model now
  • Run simulation
  • And some real-time what-if analysis
  • NPV: ...
  • NPV: ...
  • Definitely #2!
  • NPV: ...
  • Awesome! Let's do the same for a variety of production planning alternatives.
  • Run simulation
  • Production Schedule
  • Thanks to the MRP cockpit
  • And some real-time analysis
  • Variables
  • As you can see, how we choose to complete the new schedule has significant bottom line implicatons
  • Output
  • Financial Impact
  • Well done team, let's summarize the meeting and agree on next steps
  • Inventory Allocation
  • Scenario 2
  • NPV: ...
  • Production Schedule
  • Hewlett Packard
  • And the financial impact of our decisions is already visible in my dashboard. Let me send that off to Bryan so that he can be aware of revised planned margins.
  • Fist of 5!
  • Agile thinking...
  • Decision Made!
  • 49ers win in OT!!
  • As the game draws to a close, time to relax...
  • The end
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