At Tata Steel we worked together on a project with the On Site Logistics department in IJmuiden. The topic was about strategic network optimization, on a small scale: modelling the flows between the different production locations and the warehouses on the site in IJmuiden. A model has been made in Llamasoft’s Supply Chain Guru, which gives insights in the effects and bottlenecks within the on-site logistics and which is able of calculating what-if scenarios. A periodic model is created, which can find the bottlenecks in the network by using detailed forecast data on production and sales. The impact of S&OPs on the capacities and processes on site can now be evaluated in a structural way.
There are several business questions to be answered by the model, all about providing insight in the effect on the on-site capacities of the stock locations and the internal transportation assets being train wagons. Tata Steel is looking for a way to calculate their forecasting from the S&OP, and what the effect can be on the capacity utilization. Potential growth in the production and calculating the effect of a periodic break down in production are one of scenarios. The model uses both historical and forecasting data of production and sales, which is collected on product level.
The knowledge of this on-site network model has been transferred to an analyst at the OSL department at Tata Steel. In this way the knowledge and maintenance of the model is inside the company and new calculations can be done when there is new business information or changes. We setup a central automated database which helps in updating the model relatively easy. To give insights in the results a dashboard is made in Spotfire.