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Hosted by: AIMMS Optimization Technology Gertjan de Lange VP Product Strategy, Marketing & Sales Paragon Decision Technology B.V. [email protected] November, 2011 November 8, 2011 1 AIMMS - Optimization Technology for Decision Making

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Page 1: AIMMS product presentation

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AIMMS Optimization Technology

Gertjan de Lange VP Product Strategy, Marketing & Sales

Paragon Decision Technology B.V.

[email protected]

November, 2011

November 8, 2011 1 AIMMS - Optimization Technology for Decision Making

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BUSINESS ANALYTICS

AIMMS - Optimization Technology for Decision Making

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There is a wave: Business Analytics

Analytics at Work (2010): Smarter Decisions, Better Results

Competing on Analytics (2007): The New Science of Winning

AIMMS - Optimization Technology for Decision Making

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Summary of the message …

Leading companies build their competitive strategies around data-driven insights by using analytics:

• Sophisticated quantitative and statistical analysis, predictive modeling and optimization

Leading companies compete on analytics

Need for business analytics expertise & tools will increase enormously!

“What’s left as a basis for competition is to execute your business with maximum efficiency and effectiveness, and to make the smartest business decisions possible.” because:

• Companies often offer similar products, use similar technology.

• Many previous bases for competition (geographical advantage / protective regulation) have been eroded by globalization.

• Proprietary technologies are rapidly copied.

• Breakthrough innovation in products /services seems increasingly difficult to achieve.

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Competitive Advantage

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Getting the optimization edge

Why do some companies become industry leaders, while others never rise to the top?

… these companies posses an ability to make complex decisions faster, more accurately, and more consistently than their competition

… because they are big users of Optimization!

(2011)

AIMMS - Optimization Technology for Decision Making

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HOW DOES THIS RELATE TO US

AIMMS - Optimization Technology for Decision Making

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Our Mission

Bring the benefits of optimization technology to society

To enable people to apply optimization technology successfully into their

organisations

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About Optimization Technology Example: Linear programming (‘simple’)

Reference: “AIMMS – Optimization Modeling”

http://www.aimms.com/downloads/manuals

Optimization Technology: • Operations Research (OR) • Mathematical Modeling

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Our Role

• Be a catalyst for organizations

– to make them aware of the benefits that OR can bring

– to determine where OR can have the largest impact

• Provide organizations with AIMMS and people to reap the benefits of OR

• Help organizations to create an ecosystem in which OR can be applied in an optimal way, by providing:

– partner network

– AIMMS specialists

– user community (industry peers)

– contacts in academia

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AIMMS: A FEW HIGHLIGHTS

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About AIMMS

AIMMS provides an optimization technology to cut through your complexity in an optimal way.

• for strategic, tactical, and operational decision making

• to make optimal decisions, using advanced analytics

• straight forward and beyond business intelligence

Its immense flexibility and ability to model problems or adjust models in days, or even in hours, gives a powerful decision support instrument to outperform increase performance and outperform the competitors.

AIMMS makes smartest business decisions possible

AIMMS - Optimization Technology for Decision Making

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AIMMS Product Vision

Model/Application Adjustments and Maintenance

Complex situation

Deployment Analysis &

initial development

Model development

Application development

Fast analysis & understanding

Ease of use

Fast validation

Intuitive

Growth path

Versatility of algorithmic capabilities

Integrated & familiar

environment

POC Optimization engine Application

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AIMMS Structure

• AIMMS, integrated & interactive modeling platform

– modeling language, integrated GUI, direct access to solvers, advanced deployment options, and extensive development support features

AIMMS - Optimization Technology for Decision Making

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AIMMS Usage

• AIMMS, integrated & interactive modeling platform

– modeling language, integrated GUI, direct access to solvers, advanced deployment options, and extensive development support features

• AIMMS supports the complete optimization chain

– from prototyping to large-scale deployment

– from development to operational use

– from single use to multi use

– from desktop to published (web) application

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AIMMS Features

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AIMMS-based Applications GDF Suez – Terminal Management

“Using AIMMS, and specifically its integrated GUI, helped us in our comprehension and analysis of the optimization model developed by the GDF Suez. During the model design phase, we have been able to explain easily what was fine in the model and what has to be modified. The discussion with the developers was facilitated by the flexibility of AIMMS.” Benoît Labaune, manager at Society of the Fos-Cavaou Gas Terminal

Production planning & flexibility allocation at multi-user LNG terminal

Benefits: LNG terminal plans lead to higher production levels and higher flexibility without incurring contractual penalties for unfairness, which could not have been achieved without the tool. In addition, the flaring of excess gas is reduced and the operation of the terminal is smoother, so the lifetime of the equipment is prolonged. http://www.aimms.com/references/case-studies/gdf-suez-opti-atm

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AIMMS-based Applications Arcelor Mittal – Strategic Planning Optimizer

Based on a MIP model and integrated to SAP APO (SNP Module of SAP), an AIMMS component was developed for ArcelorMittal´s Supply Chain Network Planning. This Optimizer supports the strategic decision process of obtaining the production mix optimization considering customer profitability as well the production and logistics capacities for ArcelorMittal and its subsidiary Vega do Sul.

“The AIMMS based Optimizer developed by UniSoma is the 'heart' of the System and the most important component of the project. It optimizes demand with basis on customer profitability - a request which we did not find in any 'package' - indicating the most lucrative flat steel customers for CST and Vega do Sul”.

Marcia Schwarz de Assis

Project Manager Information Technology Department of ArcelorMittal

http://www.aimms.com/unisoma

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AIMMS-based Applications INEOS – Simulation & Steam Optimization

The AIMMS modeling system has been used to redevelop the production planning and simulation tool DISPO that is essential in maintaining Ineos Cologne plant reliability and utilization at over 90% (actually 97%). Clemens Schwark Ineos Cologne Production Planning and Coordination

http://www.aimms.com/references/case-studies/ineos-koln-dispo

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Source: INFORMS Practice Meeting Baltimore, April’08

“AIMMS provided us an excellent platform to achieve fast prototyping, a 100% data – model separation for scalability, flexibility in solver usage, a common model for all six sites – in spite of all, and more the site specific exceptions, and more.” Sheila Schmitt, Paul Leggett LyondellBasell

www.aimms.com/applied-optimization

AIMMS-based Applications LyondellBasell – Olefins Furnace Feed Scheduling

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The Franz Edelman Award recognizes outstanding examples of innovative operations research that improves organizations, and often change people's lives. http://www.aimms.com/edelman

Franz Edelman award 2011

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Closing Questions

• Optimization technology supports decision making across industries and applications

• Simulation technology supports decision making across industries and applications

• When to use optimization?

• When to use simulation?

• Can we make even better decisions by integrating/connecting the optimization and simulation technology (1+1=3)?

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