Quintiq Sept 2014 Forum

Quintiq Natural Resource supply chain integration

Dean TsouManaging Consultant, Perth

Lee HochbergSenior Advisor

September 2014

2© 2014 Quintiq 2© 2014 Quintiq

Quintiq founding vision

Develop a single application capable of solving any type of planning puzzle

© 2014 Quintiq. All rights reserved. Quintiq is a registered mark of Quintiq Holding B.V.

17 years on…

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Retail Express delivery

ANSP E.U. Rail Freight

Powder coatings

Glass production

Steel production

EnergyRolled

aluminum production

Quintiq customers rank #1 in:

produce 80% of theworld’s rolled aluminum 1997

Aluminum

Include 2 of Europe’s top 3 rail companies with combined 150,000 rolling stock units

Rail2001

include 2 of the world’s top 3 companies and deliver over 1 million packages per day2002

Logistics

roster air traffic controllers that manage 65% of the world’s airspace2005

Air traffic

Today, our customers:

From first customer to dominant industry supplier.

4 of the top 5 O&G producers plan with Quintiq

3 of the 5 global Tier One Miners plan with Quintiq

Market Leaders around the world trust Quintiq


Quintiq market expansion

RailCorp


PUZZLES!

The common thread


A “simple” puzzle…

• In how many different ways can these people be queued up?

3,628,800

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Covering the Mining Supply Chain

Mine planning

Process / refineTransportation

BlendingPorts & shipping

Manufacturing

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Mining Capability Map

Strategic (5+ years)

Tactical (2‐5 years)

Operational plan1‐24 months

Operational scheduling0‐12 weeks

Post‐operational

Mine Design & Planning

Strategic Demand & Capex

planning

Master MineProduction Plan

STP (Short Term Plan)

Dynamic Scheduling

Planned vs. scheduled vs. actual analysis

reporting

ProcessingProductionForecasting/

Capex Planning

Processing & Stockpile Planning

Short Term Processing planning

Processing andmaintenance scheduling

Rail NetworkNetworkCapacityAnalysis

Rail and Maintenance

plan

Rail and Maintenance schedule

Rail activitiesand variation/

disruption mgmt

Port OperationsCapacity

Forecasting/Capex Planning

Port and stockpile

operations plan

Port and stockpile scheduling

Port and stockpile activities

Shipping Capacityforecasting

Berth and VesselPlanning

Berth & Vesselscheduling

Dispositionmanagement

Crew Hiring/Training Cyclic rostering Scheduling Crew disposition

Act Plan Do Check

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Systems of record

NOW FUTURE

Past Performance

Future Performance

ERP MES OPERATIONS PLANNING & OPTIMIZATION

Results

Best

Future and KPI Focused

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Technology Foundation

Optimise

Propagation

Visualisation

Integration

Business Model: functions

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Working the Plan, Managing Disruptions & Variation

Integration layer

Optimisation

Disruption/variation management

and propagation

Visualisation

Integration

Business functions

ROC KPIs Operation map Networkschematic

Scenario analysis

Weighted scoring

Control actions

Dynamic scheduling

Train control

Work execution

Overheadmonitoring

TMS Stockpile management

Rolling stock Workforce Management Maintenance

Production execution

Safety service cost

++

Sense/detect flow

IncidentDetection

Response

Analysis

Assessment

Response

Implementation

Decision

Response

Validation/Verification

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SELECTDemurrage Tons per shift / person

DEFINECreate loading rotation Assign berthsAssign resources

MODELCranes, birthsStock piles, conveyors

MEASUREThis week’s demurrageThis week’s productivity

OPTIMIZETwenty Foot Equivalent Unit/acre

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Supply Chain Configuration

User created units, stocking points and

attributes

Fundamental planning data and constraints which drive the model

Supply Chain View• Mines• TLOs• Processing Facilities• Transport

(Rail/Barge)• Unloaders• Ports• Berths• Etc.

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Visual Planning & Scheduling

Supply Chain View

Always on screen KPIs to facilitate planning decisions

Gantt Charts to plan and track usage of supply chain assets e.g. Trains,

Barges, Berths, Loader/Unloaders, etc.

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Demand FulfilmentMeeting Contract Specifications

Track contract/vessel fulfilment

e.g. we see that there is one shipment which will incur

contract penalties

Supply from user created stocking points is been consumed from the plan and the best plan is selected from the available stocking

points

Specification achieved against

the target

Railings planned to meet the spec. The quality for reach train is the weighted average at the

time

Stockpiles used to supply for this shipment

The shipment specification demanded for each parcel (which could be represented by a product)

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Planned Delays included in plan

UpdatesBerth Plan

UpdatesVessel Plan

Auto propagates changes

Highlights issues

Auto re‐plans according to the

rules

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Voyage Planning

Unavoidable delays(tides, daylight and stevedore,

winds) are calculated by the system

Opportunity for cost reductionsCalculate Start/End

times and durations of voyage components

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Berth Planning

Wind restrictions at berth

Quarantine Inspection only allowed in Daylight

Waiting times for pilotage calculated by system

Smart filtering to show Berth Vessel

compatibility

Allocation of berth to loading / unloading /

cleaning tasks

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Tug Planning

Tidal Chart shows pilotagewindows

Smart filtering to show exactly what the planners need to see

Allocation to Tugs to Barges when

movement required

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Detailed KPI Gap Analysis

Summary overview of all Vessels

Gap Analysis for tracking planned delivery to destination vs target

delivery

KPIs showing “time leakage” on key marine resources

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Shipment Planning

List of Shipments List of Parcels / Cargo

Reclaim InstructionsHatch Plans

Planned yard machines

Shiploader tasks

Berth Usage

Reclaimer Tasks

Planned loading based on parcels or on based

on hatch plans

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Stockpile Allocation / Creation / ExceptionsFor Dedicated Terminals

Form is automatically filled based on configured rules

Exceptions on Stockpile limits highlighted instantly on data

entry

Warnings / Suggestions such as CAM date

Time – Metreage Stockpile Diagram

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Examples in Oil & Gas

Upstream

Wells

Production

Lifting

Processing

Refining

Distribution


Summary

Manual planning Decision support

• Conflicts and consequences• Clear visualization

• KPIs

Automatic planning

Interactive automatic planning

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Reference customers

“Organizations implementing Quintiq report good project management capabilities from the company, with projects being completed on time and within budget. Users are generally satisfied with the vendor across a range of criteria, but especially with its approach to proof of concepts and responsiveness to user suggestions for enhancements and improvements.”

Source: Gartner Magic Quadrant: Supply Chain Planning for Process Automation 2010

Analysis

Phase 1

Modeling

Phase 2

Initialization

Phase 0

Iterative development

Phase 3

Implement

Phase 4

Post go‐livesupport

Phase 5

The Quintiq Project Life Cycle (QPLC) methodology ensures repeatable success

Customerretention

90+% 83%

We have a track record of delivering successful outcomes


Questions


Large‐scale vehicle routing with time windows

10^2,429options

100 trucks 1,000 delivery locations

1 depot


A good solution

42,479miles


1 depot


A world‐record solution


1 depot39,469miles

• 10% fewer trucks• 7% fewer miles

• Est. $1M ann. savings

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KPI‐based planning

Quintiq is an enabler for excellent results. It allows you to measure manyKPIs and drive improvements in the critical ones. Quintiq has exceeded our expectations every step of the way.”Novelis

Return on assets

Mining cost

Operating cost

Processing cost

Uptime

Tons per hour

Cost per load Fuel consumed

Effective production time

Delivery time

Order fulfillment %

Measure plan quality, balance conflicting goals, achieve optimal business outcome


Quintiq in Mining

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Examples in the Mining Supply Chain

Mine planning



Manufacturing

Blending

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Mine planning



Manufacturing

Rail Network – Path constraints

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Mine planning



Manufacturing

Stockyard Management


Solution map supply chain planning

DistributeMakeSource

Strategic network design

Aggregate planning

Material management

Master scheduling

Transport scheduling

Production schedulingMine scheduling

Demand planning

Workforce planning

S&OP

MPS

Detailed scheduling

Strategic

Demand management

Sell Employ