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AIMMS
                   Optimization Technology

                                                                            Gertjan de Lange
                                                       VP Product Strategy, Marketing & Sales
                                                            Paragon Decision Technology B.V.
                                                                     g.de.lange@aimms.com

                                                                                November, 2011

                                                                                    Hosted by:

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

                                                             Hosted by:

       AIMMS - Optimization Technology for Decision Making
There is a wave: Business Analytics




Competing on Analytics (2007):                   Analytics at Work (2010):
 The New Science of Winning                   Smarter Decisions, Better Results


                                                                        Hosted by:

            AIMMS - Optimization Technology for Decision Making
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.

                                                                         Hosted by:

                   AIMMS - Optimization Technology for Decision Making
Competitive Advantage




                                                           Hosted by:

     AIMMS - Optimization Technology for Decision Making
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)



                                                            Hosted by:

      AIMMS - Optimization Technology for Decision Making
HOW DOES THIS RELATE TO US

                                                             Hosted by:

       AIMMS - Optimization Technology for Decision Making
Our Mission


        Bring the benefits of
   optimization technology to society



To enable people to apply optimization
    technology successfully into their
             organisations




                                                            Hosted by:

      AIMMS - Optimization Technology for Decision Making
About Optimization Technology
    Example: Linear programming (‘simple’)




Optimization Technology:                                                                     Reference:
• Operations Research (OR)                                              “AIMMS – Optimization Modeling”
                                                               http://www.aimms.com/downloads/manuals
• Mathematical Modeling
                                                                                   Hosted by:

               AIMMS - Optimization Technology for Decision Making
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


                                                                      Hosted by:

                AIMMS - Optimization Technology for Decision Making
AIMMS: A FEW HIGHLIGHTS

                                                             Hosted by:

       AIMMS - Optimization Technology for Decision Making
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

                                                                     Hosted by:

               AIMMS - Optimization Technology for Decision Making
AIMMS Product Vision


                      Model/Application Adjustments and Maintenance
                                  Fast validation     Versatility of
                                                      algorithmic
                                                       capabilities
            Fast analysis &
            understanding             Intuitive
                                                             Integrated &
                                                                familiar
                  Ease of use           Growth path          environment

             Analysis &
Complex                                 Model                Application
               initial
                                     development            development
                                                                            Deployment
situation   development




               POC              Optimization engine         Application




                                                                                    Hosted by:

            AIMMS - Optimization Technology for Decision Making
AIMMS Structure
• AIMMS, integrated & interactive modeling platform
    – modeling language, integrated GUI,
      direct access to solvers, advanced
      deployment options, and extensive
      development support features




                                                                          Hosted by:

                    AIMMS - Optimization Technology for Decision Making
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
                                                                           Hosted by:

                     AIMMS - Optimization Technology for Decision Making
AIMMS Features




                                                                                   Hosted by:

November 8, 2011        AIMMS - Optimization Technology for Decision Making   16
Some of our customers




                                                            Hosted by:

      AIMMS - Optimization Technology for Decision Making
AIMMS-based Applications
Shell - Cat Cracking



                                                        SHARC is currently used in more
                                                        than 35 refineries and has been
                                                        instrumental in improving the
                                                        performance of their FCCUs. In
                                                        an average unit this can equate to
                                                        an annual margin increase of $2–
                                                        3 million.

                                                        Weijian Mo
                                                        Shell Global Solutions (US) Inc.
                                                        Senior Staff Technologist


                                                        http://www.aimms.com/references/
                                                        case-studies/shell-global-solutions-
                                                        sharc




                                                                              Hosted by:

           AIMMS - Optimization Technology for Decision Making
AIMMS-based Applications
                  GDF Suez – Terminal Management
                                                            Production planning & flexibility allocation at multi-user LNG terminal



“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




 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
                                                                                                                             Hosted by:

                                  AIMMS - Optimization Technology for Decision Making
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
                                                                                                     Hosted by:
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
                                                                Hosted by:
AIMMS-based Applications
                  LyondellBasell – Olefins Furnace Feed Scheduling




 “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




 Source: INFORMS Practice
 Meeting
 Baltimore, April’08

www.aimms.com/applied-optimization
                                                                                        Hosted by:

                                  AIMMS - Optimization Technology for Decision Making
Franz Edelman award 2011

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




                                                                                Hosted by:

                          AIMMS - Optimization Technology for Decision Making
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)?
                                                                                    Hosted by:

November 8, 2011         AIMMS - Optimization Technology for Decision Making   24

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AIMMS product presentation

  • 1. AIMMS Optimization Technology Gertjan de Lange VP Product Strategy, Marketing & Sales Paragon Decision Technology B.V. g.de.lange@aimms.com November, 2011 Hosted by: November 8, 2011 AIMMS - Optimization Technology for Decision Making 1
  • 2. BUSINESS ANALYTICS Hosted by: AIMMS - Optimization Technology for Decision Making
  • 3. There is a wave: Business Analytics Competing on Analytics (2007): Analytics at Work (2010): The New Science of Winning Smarter Decisions, Better Results Hosted by: AIMMS - Optimization Technology for Decision Making
  • 4. 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. Hosted by: AIMMS - Optimization Technology for Decision Making
  • 5. Competitive Advantage Hosted by: AIMMS - Optimization Technology for Decision Making
  • 6. 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) Hosted by: AIMMS - Optimization Technology for Decision Making
  • 7. HOW DOES THIS RELATE TO US Hosted by: AIMMS - Optimization Technology for Decision Making
  • 8. Our Mission Bring the benefits of optimization technology to society To enable people to apply optimization technology successfully into their organisations Hosted by: AIMMS - Optimization Technology for Decision Making
  • 9. About Optimization Technology Example: Linear programming (‘simple’) Optimization Technology: Reference: • Operations Research (OR) “AIMMS – Optimization Modeling” http://www.aimms.com/downloads/manuals • Mathematical Modeling Hosted by: AIMMS - Optimization Technology for Decision Making
  • 10. 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 Hosted by: AIMMS - Optimization Technology for Decision Making
  • 11. AIMMS: A FEW HIGHLIGHTS Hosted by: AIMMS - Optimization Technology for Decision Making
  • 12. 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 Hosted by: AIMMS - Optimization Technology for Decision Making
  • 13. AIMMS Product Vision Model/Application Adjustments and Maintenance Fast validation Versatility of algorithmic capabilities Fast analysis & understanding Intuitive Integrated & familiar Ease of use Growth path environment Analysis & Complex Model Application initial development development Deployment situation development POC Optimization engine Application Hosted by: AIMMS - Optimization Technology for Decision Making
  • 14. AIMMS Structure • AIMMS, integrated & interactive modeling platform – modeling language, integrated GUI, direct access to solvers, advanced deployment options, and extensive development support features Hosted by: AIMMS - Optimization Technology for Decision Making
  • 15. 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 Hosted by: AIMMS - Optimization Technology for Decision Making
  • 16. AIMMS Features Hosted by: November 8, 2011 AIMMS - Optimization Technology for Decision Making 16
  • 17. Some of our customers Hosted by: AIMMS - Optimization Technology for Decision Making
  • 18. AIMMS-based Applications Shell - Cat Cracking SHARC is currently used in more than 35 refineries and has been instrumental in improving the performance of their FCCUs. In an average unit this can equate to an annual margin increase of $2– 3 million. Weijian Mo Shell Global Solutions (US) Inc. Senior Staff Technologist http://www.aimms.com/references/ case-studies/shell-global-solutions- sharc Hosted by: AIMMS - Optimization Technology for Decision Making
  • 19. AIMMS-based Applications GDF Suez – Terminal Management Production planning & flexibility allocation at multi-user LNG terminal “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 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 Hosted by: AIMMS - Optimization Technology for Decision Making
  • 20. 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 Hosted by:
  • 21. 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 Hosted by:
  • 22. AIMMS-based Applications LyondellBasell – Olefins Furnace Feed Scheduling “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 Source: INFORMS Practice Meeting Baltimore, April’08 www.aimms.com/applied-optimization Hosted by: AIMMS - Optimization Technology for Decision Making
  • 23. Franz Edelman award 2011 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 Hosted by: AIMMS - Optimization Technology for Decision Making
  • 24. 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)? Hosted by: November 8, 2011 AIMMS - Optimization Technology for Decision Making 24