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Chemical Engineering Department Lyon, France2008 Enhancing Sustainability Performance of the whole supply Chain Management in the Chemical Process Industries.

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Presentation on theme: "Chemical Engineering Department Lyon, France2008 Enhancing Sustainability Performance of the whole supply Chain Management in the Chemical Process Industries."— Presentation transcript:

1 Chemical Engineering Department Lyon, France2008 Enhancing Sustainability Performance of the whole supply Chain Management in the Chemical Process Industries Luis Puigjaner Chemical Engineering Department Universitat Politècnica de Catalunya

2 Chemical Engineering Department Lyon, France Index Introduction- Sustainability criteria and the SC Integrated SC: actual challenges and oportunities Integrated platform architecture DSS components: forecasting, negotiation, financial, environmental, control & diagnosis Tutorial example Education on Sustainability: Pioneer experience (UC)

3 Chemical Engineering Department Lyon, France Index Introduction- Sustainability criteria and the SC Integrated SC: actual challenges and oportunities Integrated platform architecture DSS components: forecasting, negotiation, financial, environmental, control & diagnosis Tutorial example Education on Sustainability: Pioneer experience (UC)

4 Chemical Engineering Department Lyon, France Introduction: Sustainability criteria Enterprise sustainibility considers fundamental aspects: Innovation Economy and finances Environment and safety Productivity and quality Social responsibility In a integrated way in its production and supply chains At different levels: Bussines Multi plant Production chain

5 Chemical Engineering Department Lyon, France Sustainability Global Index-AIChE Value-Chain Management Social Responsibility Safety Performance Innovation Strategic Commitment Environmental Performance Product Stewardship Chemical companies from Global Fortune 500 U.S. Chemical Manufacturing Sector

6 Chemical Engineering Department Lyon, France Index Introduction- Sustainability criteria and the SC Integrated SC: actual challenges and oportunities Integrated platform architecture DSS components: forecasting, negotiation, financial, environmental, control & diagnosis Tutorial example Education on Sustainability: Pioneer experience (UC)

7 Chemical Engineering Department Lyon, France Integrated SC: Challenges and opportunities Production within a Supply Chain: a complex management issue Supply Chain Management (SCM) includes decision making aiming to integrate plants with their suppliers and customers so that can be managed as a single entity.

8 Chemical Engineering Department Lyon, France supply chain network ISA SP 88 ISA SP 88 others finances Single site Supply chain time horizon & spatial scope control production ISA SP 95 Strategy SC configuration Operation SC planning and coordination: production, logistics, distribution Tactic SC planning Supervisory control Monitoring, fault diagnosis Local control Unit coordination & local control Global supervision Operational accounting Strategic financial planning Production Scheduling Detailed plant production planning Execution Systems and equipment execution Production Planning Approximated plant production planning Strategy Plant design, retrofit equipment production line manufacturing plant Integrated SC

9 Chemical Engineering Department Lyon, France  weeks for transport  hours or days for storing  minutes for chemical reactions  manufacturing plants  production lines  individual equipments Wide temporal scale Multiple spatial scale High degree of uncertainty  market level: demand, prices, stock availability  plant level: yield, quality, processing time  business level: reliability, profitability Integrated SC: Challenges and opportunities

10 Chemical Engineering Department Lyon, France Basic questions to production engineering Integrated SC: Challenges and opportunities How much? Demand forecast? Where? Logistics planning When? Planning and Scheduling

11 Chemical Engineering Department Lyon, France Integrated SC: Challenges and opportunities Environmental Impact? Social Impact? Financial Impact? Management/Environmental Engineering Optimization? Intelligent Negotiation Intelligent Financial Engineering Multi-objective optimization Advanced questions:

12 Chemical Engineering Department Lyon, France Integrated SC: Challenges and opportunities Present Applications Partial Forecasting? Finite capacity planning Advanced questions? Optimization? Rigid architecture Absent standards High cost Challenges & Opportunities Integrated Forecasting under uncertainty Detailed planning resource constrained Answers to advanced questions Multi-objective optimization Open, reconfigurable architecture Standard compliant (GCO, CO, ISA...) Accessible to SME e-bussiness oriented

13 Chemical Engineering Department Lyon, France Software vendors AspenTech i2 ILOG Manugistics SAP Industrial Efforts INFOR Industrial Applications Air Products BASF Bayer Dow Dupont ExxonMobil Mitsubishi Shell Integrated SC: Challenges and opportunities

14 Chemical Engineering Department Lyon, France Index Integrated SC: actual challenges and oportunities Introduction- Sustainability criteria and the SC Integrated platform architecture DSS components: forecasting, negotiation, financial, environmental, control & diagnosis Tutorial example Education on Sustainability: Pioneer experience (UC)

15 Chemical Engineering Department Lyon, France Integrated Platform architecture Software Agents An agent is an encapsulated computer system that is situated in some environment, and that is capable of flexible, autonomous action in that environment in order to meet its design objectives. Wooldridge and Jennings, 1995 An agent is an encapsulated computer system that is situated in some environment, and that is capable of flexible, autonomous action in that environment in order to meet its design objectives. Wooldridge and Jennings, 1995  Autonomy. It should have some control over its actions and should work without human intervention.  Social ability. It should be able to communicate with other agents and/or with human operators.  Reactivity. It should be able to react to changes in its environment.  Pro-activeness. It should also be able to take initiative based on pre-specified goals.

16 Chemical Engineering Department Lyon, France Modular, adaptable solution Intelligent architecture (software agents) Learning, reconfigurable, updated, reactive… Supplier Manufacturer Warehouse Retailer Client Real (Phisical) Agents (reproduce chain echelons) Utilities (Modules) (decision support) Financial Environ- mental Fore- casting... Integrated Platform architecture

17 Chemical Engineering Department Lyon, France Tactical and operational level deci- sions updated monthly to quarterly:  which products are manufactured  which factory produce each product  which supplier is selected ... Integrated Platform architecture

18 Chemical Engineering Department Lyon, France2008 Integrated Platform architecture

19 Chemical Engineering Department Lyon, France Agent-Based Simulation Model Built on a client – server paradigm  Programming language: C#,.NET by Microsoft ®.  SC Model: XML extension.scm.  Network structure.  Parameters for production, storage and transportation. Structure of time & costs.  Client demand model. Integrated Platform architecture

20 Chemical Engineering Department Lyon, France Index Integrated SC: actual challenges and oportunities Introduction- Sustainability criteria and the SC Integrated platform architecture DSS components: forecasting, negotiation, financial, environmental, control & diagnosis Tutorial example Education on Sustainability: Pioneer experience (UC)

21 Chemical Engineering Department Lyon, France Demand forecasting Obtention of future demand based on historical data Complex decisions Reduction of inventory costs Optimal planning of resources ¿How much must I produce? Demand forecasting module

22 Chemical Engineering Department Lyon, France Determines contractual optimal parameters Negociation module Fair commercial relationship Higher customer satisfaction Increase of future sales ¿What conditions must I fix with customers and suppliers? Negociation module

23 Chemical Engineering Department Lyon, France Evaluation of the economic impact of chain activities Financial Agent Incorporating production decisions Optimization of portfolio ( financial engineering) Bank debt management ¿What is the financial impact of my decisions? Financial Impact module

24 Chemical Engineering Department Lyon, France Evaluation of environmental impact of chain activities Environmental agent Environmental respectful decisions Process sustainability Incorporates current legislation ¿Which is the environmental impact of my chain? Environmental Impact model

25 Chemical Engineering Department Lyon, France Execution of production operations Monitoring of production process Detection and diagnosis of perturbances and alarm management Control, coordination and supervision of productivity activites Control/Supervision plant agent ¿How to execute decisions taken in a robust way? Coordination and supervision module Reaction to incidences

26 Chemical Engineering Department Lyon, France Index Integrated SC: actual challenges and oportunities Introduction- Sustainability criteria and the SC Integrated platform architecture DSS components: forecasting, negotiation, financial, environmental, control & diagnosis Tutorial example Education on Sustainability: Pioneer experience (UC)

27 Chemical Engineering Department Lyon, France Tutorial Example

28 Chemical Engineering Department Lyon, France Utilities Modules: chain managementForecasting Financial Enviromental Planning/optimizationNegociation Resheduling Physical Agent: Execute & Supervise PROCEL Plant Plant management Supervisory control Paris Lisboa Multi-product plants manufacturing Final product storage warehouses Distribution to retailers Sales to Clients Representative example Tutorial Example

29 Chemical Engineering Department Lyon, France Flexible Pilot Plant PROCEL

30 Chemical Engineering Department Lyon, France The Global Picture Coordination Control Forecasting: ForeST Fault Diagnosis: ExSit-M Parameter estimation and data reconciliation Planning & scheduling: MOPP Central Agent Negotiation, Financial & Environmental Opt. Warehouse

31 Chemical Engineering Department Lyon, France

32 Chemical Engineering Department Lyon, France Index Integrated SC: actual challenges and oportunities Introduction- Sustainability criteria and the SC Integrated platform architecture DSS components: forecasting, negotiation, financial, environmental, control & diagnosis Tutorial example Education on Sustainability: Pioneer experience (UC)

33 Chemical Engineering Department Lyon, France Master on Process sustainability (UC) Summary of Master Contents (60 ECTS)  Process Intensification (9 ECTS)  Process Integration in the Supply Chain (9 ECTS)  Sustainability Indicators (metrics) (9 ECTS)  Case Studies (12 ECTS)  Laboratory/Master’s Final Project de Grado(12 ECTS)  Free electives (9 ECTS)

34 Chemical Engineering Department Lyon, France Sponsors SOPTIA Z. A. Pulawy URQUIMA

35 Chemical Engineering Department Lyon, France Thanks for your attention further information:

36 Chemical Engineering Department Lyon, France References  Musulin, E., Benqlilou, C., Bagajewicz, M., Puigjaner, L. “Instrumentation design based on optimal Kalman filtering”, Journal of Process Control, 15, pp (2005).  Tona, R.V., Benqlilou, C., Espuña, A., Puigjaner, L. “Dynamic Data Reconciliation Based on Wavelet Trend Analysis”, Ind. Eng. Chem. Res, 44, pp (2005).  Guillén, G., Pina, C., Espuña, A., Puigjaner, L. “Optimal Offer Proposal Policy in an Integrated Suply Chain Management Environment”, Ind. Eng. Chem. Res, 44, pp (2005).

37 Chemical Engineering Department Lyon, France References  Guillén, G., Badell, M., Espuña, A., Puigjaner, L. “Simultaneous optimization of process operations and financial decisions to enhance the integrated planning/scheduling of chemical supply chains”, Computers and Chemical Engineering, 30, pp (2006).  Mele, F.D., Espuña, A., Puigjaner, L. “Supply Chain Management through Dynamic Model Parameters Optimization”, Ind. Eng. Chem. Res, 45, pp (2006).  Musulin, E., Yélamos, I., Puigjaner, L. “Integration of Principal Component Analysis and Fuzzy Logic Systems for Comprehensive Process Fault Detection and Diagnosis”, Ind. Eng. Chem. Res, 45, pp (2006).

38 Chemical Engineering Department Lyon, France References  Mele, F.D., Guillén, G., Espuña, A., Puigjaner, L. “A Simulation-Based Optimization Framework for Parameter Optimization of Supply-Chain Networks”, Ind. Eng. Chem. Res, 45, pp (2006).  Guillén, G., Espuña, A., Puigjaner, L. “Addressing the scheduling of chemical supply chains under demand uncertainty”, AIChE Journal, 52 (11),, pp (2006).  Guillén, G., Mele, F.D., Espuña, A., Puigjaner, L. “Addressing the Design of Chemical Supply Chains under Demand Uncertainty”, ”, Ind. Eng. Chem. Res, 45 (22), pp 7566 – 7581 (2006).

39 Chemical Engineering Department Lyon, France References  Heluane, H., Colombo, M., Hernández, M.R., Graells, M., Puigjaner, L. “Enchancing sugar cane process performance through optimal production scheduling”, Chemical Engineering and Processing, 46, pp (2007).  Guillén, G., Badell, M., Puigjaner, L. “A holistic framework for short term supply chain management integrating production and corporate financial planning”, International J. of Production Economics, 106, pp (2007)  Ferrer-Nadal, S., Yélamos Ruiz, I., Graell, M., Puigjaner, L., “An integrated framework for on-line supervised optimization”, Especial Issue : Escape-15, Editor: Luis Puigjaner, Computers and Chemical Engineering, 31, pp , (2007).

40 Chemical Engineering Department Lyon, France References  Mele, F.D., Guillén, G., Espuña, A., Puigjaner, L., “An agent-based approach for suppy chain retrofiting under uncertainty”, Especial Issue : Escape-15, Editor: Luis Puigjaner, Computers and Chemical Engineering, 31, pp , (2007).  Badell, M., Fernandez, E., Guillén, G., Puigjaner, L. “ Empowering financial tradeoff with joint financial and supply chain planning models”, Mathematical and Computer Modelling, 46, pp (2007).  Yélamos, I., Mendez, C., Puigjaner, L., “Enhancing dynamic data reconciliation performance through time delays identification”, Chemical Engineering and Processing, 46, pp , (2007).

41 Chemical Engineering Department Lyon, France References  Ferrer-Nadal, S; Méndez, C; Graells, M; Puigjaner, L; “Optimal reactive scheduling of manufacturing plants with flexible batch recipes”, Ind. Eng. Chem. Res., 46, ISSN: , pp , (2007).  Yélamos, I.; Graells, M.; Puigjaner, L.; “ Simultaneous fault diagnosis in chemical plants using a multilabel approach”, AIChE Journal, 53, ISSN: , pp , (2007).  Laínez, J.M.; Guillén-Gonsálbez, G.; Badell, M.; Espuña, A.; Puigjaner, L.; “Enhancing corporate value in the optimal design of chemical supply chains”; Ind. Eng.Chem. Res., 46, pp , (2007)

42 Chemical Engineering Department Lyon, France References  Arbiza, J.M., Bonfill, A., Guillén,G., Mele, F., Espuña,A., Puigjaner, L. “Methauristic multiobjective optmisation approach for the scheduling of multiproduct batch dinamical plants”, Journal of cleaner productions, 16, ISSN: , pp , (2008).  Puigjaner, L.; Guillén-Gonsálvez, G.; “Towards an integrated framework for supply chain management in the batch process industry”; Computers and Chemical Engineering, 32, pp , (2008).  Ferrer-Nadal, S.; Puigjaner, L.; Guillén-Gonsálvez, G.; “Managing risk through a flexible recipe framework”, AIChE Journal, 53(3), pp , (2008).

43 Chemical Engineering Department Lyon, France References  Bonfill, A., Espuña, A., Puigjaner, L., “Decision support framework for coordinated production and transport scheduling in SCM”, Computers and Chemical Engineering, 32, pp , (2008).


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