Supply Chain Planning Blog

Attribute-Based Planning for a Green Supply Chain

Posted by Cyrus Hadavi on Wed, Dec 07, 2016

d0863753-41c8-405a-884f-eef4cc8755d8.jpgAdexa solutions deploy attributes to define the characteristics of machines, processes customers and suppliers, in order to mold the solution to a particular environment. Furthermore, as the supply chain changes and business or business priorities change then attributes are used to adjust to the new conditions. This has been extensively covered in a number of white papers that can be referenced by clicking HERE.  In this paper, we discuss the use of attributes for a greener supply chain and how they may be deployed to improve on the carbon footprint and use of hazardous materials.

Consider a process or an equipment that has more CO2 emission than other alternatives. The value, or relative value of the CO2 emission becomes one of the attributes of that process. On the other hand, cost might be another attribute of the process in a way that the lower cost process may contribute more to CO2 emission. Attributes, once defined, form dynamic constraints that are used by the system’s search strategy to find the optimal solution. The optimal solution can vary depending on the region, government regulations, carbon use quotas and even customer. Within the framework of such restrictions as defined for the attributes, the system can recommend the highest use of lower cost process without going over the CO2 emission limits as decided by the company policy. As alternatives, the system may recommend higher cost processes, use of substitute materials or manufacturing in a different region.

Another example, is the use of different transportation means in order to deliver gas or oil to different regions in Europe. The choices are by sea or land as well as pipelines. Each has attributes of cost, carbon footprint (depending on the distance travelled) and of course time to destination as well as associated risks. For example, it is imperative that oil gets from A to B if it is to be used for heating in the middle of North European winter. Land delivery has a much higher risk of road closures in certain regions.

As a final example, some customers or retailers may have a preference to sourcing products that are eco-friendlier. This kind of requirement is sent to the suppliers as an attribute that is then built into the BOM of the product. On the manufacturing side, the use of such embedded materials in the product is treated as an attribute of the material as well as the product. This attribute is then taken into account and honored as a constraint when plans are made by the system for making and delivery into those customers.

As it can be seen, attributes can be used in order to define local and global constraints on the operations of the entire supply chain including tariffs, carbon usage, supplier types, transportation means and material properties depending on the regions, government/international regulations, and company policy. For instance, a company can reduce the global value of an attribute (say, CO2 emission) by 10% per year by region and product. The system would then plan production of the entire supply chain by making sure that the local attributes used in every region does not exceed the maximum defined by the management of the company. We welcome your feedback and sharing innovative uses of attributes in your supply chain operations.

Topics: Supply Chain Planning, Attribute Based Planning, Attributes, Green Supply Chains

In-Memory Computing—Only the beginning

Posted by Cyrus Hadavi on Thu, Jul 21, 2016

In-Memory_Computing.jpgIn a few recent sessions with industry analysts, we were surprised that we were asked if our software is in-memory computing! Given the fact that for over 20 years we designed our applications to have all the data in-memory for computation, our immediate response was: Is there any other way of doing it? The response was, yes, there are others which bring in the data from the database when they need it but now they are changing and they are getting orders of magnitude improvement in speed! This improvement in speed must have caught the attention of the analysts which brings us to the core subject of this article. There is more to speed of application than just having all the data in memory. The latter is the easy part. There are also some vendors, try to improve speed by abstraction and over-simplification. I am sure you are aware of quite few who deploy “Spread-sheet” type of capacity planning in their S&OP applications. That is forming weekly or monthly buckets with fixed lead-times! This approach typically either dumbs down how to deal with capacity, or ignores it altogether. It is the old method, with NO notion of product mix and real processing time, that has been around for decades but with a new user interface which makes it slightly more attractive. Therefore, any gain in speed is offset by a very inaccurate and unrealistic plan. In addition, it has no order level information OR any order level pegging functionality. You might as well use your spreadsheets since they give you even more control!

 

To gain real improvement in speed with proper representation of capacity of resources and equipment, deep modeling capability is needed and the mix of products must be taken into account. In addition, to IMC, one needs to have data representations and algorithms that provide real-time answers to very complex supply chains at order level. As an example, if one material is not available, does the system go back to search all over again for a new method of making or will it just backtrack one step to find an immediate substitute pegged to that order? If a resource is a bottleneck, will it look for a whole new routing or will it look for an alternative, process or equipment. How this data is represented and how the algorithms divide and conquer in parallel processing is what makes the application fast. Just using IMC is only the beginning, there is a lot more that goes into a comprehensive planning system that can analyze tens of millions of data points from material availability to resources and tools and skill levels, to say a few, in almost real-time.

Topics: Supply Chain Performance Management, Planning Data Integration, Supply Chain Data, Spreadsheets, Attributes, Sales & Operations Planning, SCP System, S&OP, Adexa

Planning Proliferation Of Products In A Fabless World

Posted by kameron hadavi on Wed, Oct 13, 2010

Semiconductor Supply Chain Palnning“Complex” is the common word we hear from many of our Fabless Semiconductor customers in describing their supply chains.  We talked a bit about that in our last blog posting entitled: Fabless Semiconductor Planning: Between a-rock-and a-Hard-place!  In this article, I want to touch on another culprit in complexity of a Fabless enterprises (or Semiconductors in general), proliferation of products

It’s no secrete that Fabless supply chain are faced with ever increasing number of products, and with that comes a lot more part#’s.   It’s one thing to deal with 3 products, and another thing to deal with 30.  The part#’s involved increases exponentially with every end-product.  Imagine this, in most cases our fabless customers are dealing with 100’s of end-products.  This makes crunching through the numbers for a supply chain “plan” very difficult and slow.  Remember, in planning the entire supply chain, these part#’s have to be used for demand planning (when the customers order it), operations planning (how to build it), inventory planning (what to keep on hand), and Supply planning (which suppliers to use and when).   The level of complexity is mind-boggling.

One of the new trends in dealing with this level of complexity is through Attribute Based Planning.  We have written a lot about this in the past but it seems like our readers can’t get enough of it, and for good reason--it works.  Attributes really simplify modeling the entire supply chain by utilizing the “characteristics” of products to describe them, rather than using unique part#.  For example, you may have a grade A, B, and C chips, at speeds of 1.66Ghz, 2.66Ghz, and 3.0Ghz.  You can give all 9 potential combinations a unique product name, or you can have only 3 product names by referring to the attributes of (Grade + Speed).  This is a very simple example, but you can learn a lot more about this by either reading the Attribute Based Planning ePaper or watching the “What is Attribute Based Planning” video on the Supply Chain Planning Channel

You can apply attributes to all levels of planning but there is a catch--your planning system has to be able to handle attributes for the process its intended for.  For example, for Demand Planning, the customer orders have to be described by their attributes within the system.  For Production planning, the product routes have to defined by attributes within the same system, and so on.  Basically, the entire logic and algorithms of your planning system has to be attribute-based, or you are stock with the unique part#’s. 

For fabless companies, who deal with massive product proliferations, attributes will make life a lot easier on your many planners.  They get to collaborate together much faster, and avoid a lot of clutter.   Below, see how Silicon Laboratories is using attributes in their planning environment.  Also, For more information on this topic download: Overcoming The Shortcomings Of Fabless Planning Systems ePaper.

 

Kameron HadaviAbout the Author:  Kameron Hadavi is the Vice President of Marketing & Alliances at Adexa, for more information about him please click here.

Topics: Supply Chain Planning, Demand Planning, Attribute Based Planning, Fabless, Attributes, Semiconductor