COMMANDoptimize: Dispatch Optimization Andrew Dyment Adyment@commandalkon.com (905) 870 1410

Session Objective This session introduces COMMANDoptimize, our newest dispatch technology. In this course, attendees will receive an introduction to the concepts of optimization; the basis behind the ROI that can be achieved; and the challenges the industry faces to achieve more cost-effective use of their fleet. We will also cover the prerequisites necessary to get your company ready for optimization; the status of our progress in this discipline; and the future business intelligence vision this solution will offer. Owners, Comptrollers, General Managers, and Dispatch Managers will all benefit from this session. MGT-001 COMMANDoptimize: Dispatch Optimization

Agenda Introduction Scan Name Tags Optimization Brief Primer Dispatch/Logistics Optimization Requirements to Implement Changes to processes Product development MGT-001 COMMANDoptimize: Dispatch Optimization

Housekeeping Introduction 1.5 hour class MGT-001 COMMANDoptimize Introduction Break 10 min Evaluation MGT-001 COMMANDoptimize: Dispatch Optimization

Command Alkon Optimization Teams CmdSeries Product Development -Mandy Cherry -Wayne Silva -Eric Godsey -Kasthuri Kona -Jimmy Mbiye -Rajiv Verma -Sunita Bagga -Cindy Bishop MGT-001 COMMANDoptimize: Dispatch Optimization

Command Alkon Optimization Teams CmdSeries Optimization Service Team -John Kirkpatrick -Bob Berryhill -Amy Hughes -Bob Watson -Lisa Calamusa MGT-001 COMMANDoptimize: Dispatch Optimization

Command Alkon Optimization Teams Integra Team -Tim Muenstermann -Sue Conckus -Rest Of the Integra Team MGT-001 COMMANDoptimize: Dispatch Optimization

Ready Mix Optimization Optimization -Calculating the independent costs of every viable dispatch decision so to generate the best value for a given set of constraints Function Value - Lowest combined Delivery and Material cost plan per yard of concrete that meets your conditions Independent Variables – 88% - Raw materials Costs - Driver Cost - Truck Cost (mile, minute) - Plant Cost (fixed, minute) Conditions - Order Requirements and Location - Plant Locations and Capacities - Raw Material Locations - Truck/Drivers Capacity, Availability, Configuration, Call in scheme MGT-001 COMMANDoptimize: Dispatch Optimization

COMMANDoptimize Realtime Optimization: Optimizing your current & future delivery plan every minute of the day. (changing Rubik’s Cube) Generates a consistent plan in alignment with your company goals MGT-001 COMMANDoptimize: Dispatch Optimization

Concrete Paradigms Order/Project belongs to a plant $ Loading trucks in the order they arrive at the yard. $ If we are constantly late on the first round, call the driver’s in earlier $$ Trucks idle in the yard need to be loaded now! $ Holding trucks in the yard for balance loads $$ Push our customers to get trucks back earlier $ Dispatch delivery model is static. $ Past performances should not affect future orders $ Same focus on well/problem serviced orders/plants/drivers $ We need to call a new truck for all early loads $ MGT-001 COMMANDoptimize: Dispatch Optimization

Why Are They Difficult To Shift? Concrete Paradigms Why Are They Difficult To Shift? Time Complexity Toolset MGT-001 COMMANDoptimize: Dispatch Optimization

The Problem IS Significant Consider only Round Trip Time: Using Truck/Driver Costs at $60 per hour For a fleet of 60 trucks, each average minute of “wasted” time during a load is really 60 minutes because it’s not happening to 1 truck, but 60. Each minute of “wasted” time therefore costs $60.00. If each truck averages 3.5 loads per day and we save (or waste): 1 min/load = $ 210 per day * 250 days = $ 52,500 per year. 2 min/load = $ 420 per day * 250 days = $105,000 per year. 4 min/load = $ 840 per day * 250 days = $210,000 per year. 6 min/load = $1260 per day * 250 days = $315,000 per year. The average on-job waiting time in North America is 26 minutes per load…… There is still some room for improvement MGT-001 COMMANDoptimize: Dispatch Optimization

Areas For Increased Profits Driver Call in Jobsite Wait Time Driver End Of Day Lower Cost Raw Materials Driver Plant Queuing Leveraging Plant Network Coherent Accurate Plan Crisis Management Lower dispatch stress Streamline Processes Focus on the exceptions MGT-001 COMMANDoptimize: Dispatch Optimization

COMMANDoptimize is a Game Changer! MGT-001 COMMANDoptimize: Dispatch Optimization

What software is needed? Map Order Entry Truck Tracking – Driver Login Functioning Map Pages with travel times to and from each plant COMMANDconcrete COMMANDoptimize MGT-001 COMMANDoptimize: Dispatch Optimization

What hardware is needed? Status system GPS with autostatusing (preferred) High percentage of accurate and timely statuses Dedicated Optimization server (Virtual Server is fine) MGT-001 COMMANDoptimize: Dispatch Optimization

How does COMMANDoptimize work? Optimization Plant capacity Route plan Truck capacity Labor constraints Costs Service Penalties Priority Updated Plan Capacity Plan Real Time Schedule Truck Req’ts Schedule Req’ts Order Req’ts DRCI COMMANDseries Changes Quantity Time Rate Status Breakdowns Delays Etc. The system will take the existing information that we capture in Cmd and pass it to the optimizer software Optimizer software will have various additional configuration tables and rules which will be added before the data is “optimized”. Optimizer will recalculate and send back to CommandSeries a new schedule in both real time and for future planning. i.e. Which order, which plant, which truck at what time. Dispatcher can accept the optimized recommendation or override it. The process will be automatically repeated in real time for any change that could affect a schedule. Status changes, order quantity changes, breakdowns, slow downs, etc. Ticketing MGT-001 COMMANDoptimize: Dispatch Optimization

COMMANDoptimize considers Haul cost by time and distance Dead head costs Plant loading speeds Loading speed by mix Plant opening times Driver seniority Union rules Driver call in rules Time of day Trucks Alternate Cap. Age Of Concrete Cost of being late Cost of not recycling trucks to same job Truck attributes Mix cost Job priority Job start time ranges Linked orders Need to load early Trucks on tasks Plant Opening Time MGT-001 COMMANDoptimize: Dispatch Optimization

COMMANDoptimize – An Expert System Planning Scenarios Future Day (Capacity Plan) Driver Call In Rules Current Day (Real Time) Order Scenarios Fixed Delivery Rate Orders Adjustable Delivery Rate Orders Multiple Delivery Rate Orders Single Product Orders Multi Product Orders Linked Orders (Finish – Start) Hold Orders (Unconfirmed) Truck Size Constraints Load Size Constraints Unknown Quantity Orders Suspicious Rate Orders Load by Load Adjusted Orders Plant Restricted Orders Range Committed Time Orders Delivery Scenarios (Job Site) Pour Rate Slower than Ordered Pour Rate Faster than Ordered Pour Rate Variable Job Site Holds Rejected Loads Job Site Not Ready Travel Time Variable (Traffic) Truck BreakDowns Plant BreakDowns Status Changes MGT-001 COMMANDoptimize: Dispatch Optimization

Differences in Scheduling Scheduling Scheduling a virtual truck from the scheduled plant to an order at a given time with a default load size Optimized Scheduling Scheduling the best “real” truck to the right order from the most economical available plant at the most appropriate time with the proper quantity so that costs are minimized and order requirements are satisfied. MGT-001 COMMANDoptimize: Dispatch Optimization

How does order entry change? Most of the fields are the same The look and feel is similar MGT-001 COMMANDoptimize: Dispatch Optimization

How does order entry change? MGT-001 COMMANDoptimize: Dispatch Optimization

How does order entry change? MGT-001 COMMANDoptimize: Dispatch Optimization

How does order entry change? MGT-001 COMMANDoptimize: Dispatch Optimization

How does order entry change? MGT-001 COMMANDoptimize: Dispatch Optimization

How does order entry change? MGT-001 COMMANDoptimize: Dispatch Optimization

How does order entry change? MGT-001 COMMANDoptimize: Dispatch Optimization

How does order entry change? MGT-001 COMMANDoptimize: Dispatch Optimization

How does order entry change? MGT-001 COMMANDoptimize: Dispatch Optimization

How does order entry change? MGT-001 COMMANDoptimize: Dispatch Optimization

How does order entry change? MGT-001 COMMANDoptimize: Dispatch Optimization

MGT-001 COMMANDoptimize: Dispatch Optimization

If the plant is expected to be down for a couple of hours enter the time MGT-001 COMMANDoptimize: Dispatch Optimization

Use this report to post or audio record call in times. Driver Call in Report Use this report to post or audio record call in times. Better yet, use ScheduleCom. MGT-001 COMMANDoptimize: Dispatch Optimization

How does Tracking change? A counter shows the number of minutes and seconds since the last optimized update, in this case 00:32 seconds. Optimization usually occurs within 1 minute MGT-001 COMMANDoptimize: Dispatch Optimization

How does Tracking change? Ord – Ordered rate in quantity/hr Esr – Effective Service Rate – rate of loaded trucks Unl – Actual unload rate in quantity/hr Opt – Optimized rate for remaining, unticketed loads MGT-001 COMMANDoptimize: Dispatch Optimization

How does Tracking change? MGT-001 COMMANDoptimize: Dispatch Optimization

How does Tracking change? Optimization shows the actual status times from each truck. MGT-001 COMMANDoptimize: Dispatch Optimization

If returning to an alternate plant is required in the reschedule the truck is displayed in blue MGT-001 COMMANDoptimize: Dispatch Optimization

MGT-001 COMMANDoptimize: Dispatch Optimization

A text message can be sent to the truck to direct it to the other plant MGT-001 COMMANDoptimize: Dispatch Optimization

MGT-001 COMMANDoptimize: Dispatch Optimization

MGT-001 COMMANDoptimize: Dispatch Optimization

MGT-001 COMMANDoptimize: Dispatch Optimization

MGT-001 COMMANDoptimize: Dispatch Optimization

MGT-001 COMMANDoptimize: Dispatch Optimization

MGT-001 COMMANDoptimize: Dispatch Optimization

MGT-001 COMMANDoptimize: Dispatch Optimization

Sometimes one will wonder why a truck is suggested for a certain order. MGT-001 COMMANDoptimize: Dispatch Optimization

Right click on the truck and select “Show Plan” MGT-001 COMMANDoptimize: Dispatch Optimization

MGT-001 COMMANDoptimize: Dispatch Optimization

MGT-001 COMMANDoptimize: Dispatch Optimization

MGT-001 COMMANDoptimize: Dispatch Optimization

MGT-001 COMMANDoptimize: Dispatch Optimization

Implementation Configure system Redefine Dispatch roles and Company processes Train Order Takers, Dispatchers, Schedulers Verify solution – Monitoring suggestions Measure OptimizeDispatch MGT-001 COMMANDoptimize: Dispatch Optimization

Changed Responsibilities Impact Order Taking Planning Shipping Managing config. of capacities, costs N Y Additional order requirements Diligent review of future orders Managing availability of resources Tighter management of driver call in & requests Assignment of order priorities when needed Tighter management of wash out Tighter management of driver tasks Team focus on performance metrics MGT-001 COMMANDoptimize: Dispatch Optimization

COMMANDtrack Dashboard MGT-001 COMMANDoptimize: Dispatch Optimization

2010/11 Optimization Enhancements Rental trucks Schedule Drivers Lunch breaks Age Of Concrete Scalability Locking In Optimizer Suggestions Locking In First Round Deadheads Union Rules Round Trip Trucking Driver Call In based on hours worked Foreign Trucks….. MGT-001 COMMANDoptimize: Dispatch Optimization

Driver Hours MGT-001 COMMANDoptimize: Dispatch Optimization

Driver Hours MGT-001 COMMANDoptimize: Dispatch Optimization

Resource Attributes MGT-001 COMMANDoptimize: Dispatch Optimization

Resource Attributes MGT-001 COMMANDoptimize: Dispatch Optimization

Resource Attributes MGT-001 COMMANDoptimize: Dispatch Optimization

Enhanced Driver Call In MGT-001 COMMANDoptimize: Dispatch Optimization

Please Complete Your Evaluation Be sure to circle the session you are evaluating on the back of your card MANAGEMENT (Track Name) MGT-001 (session code) Optimization (session title) Thank You! All breakout session materials can be accessed at: www.commandalkon.com/cc2011/update/index.htm   MGT-001 COMMANDoptimize: Dispatch Optimization