EUREKA PROJECT > 4105 INTERTRANS
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GERMANY
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GERMANY
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GERMANY
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Integrated scheduling and transportation planning for complex value creation networks
ACHIEVING REDUCTION AND HIGHER UTILISATION OF TRANSPORT IN INBOUND AND OUTBOUND AUTOMOTIVE LOGISTICS BY INTEGRATED PRODUCTION SCHEDULING AND TRANSPORTATION PLANNING.
Status > FINISHED - 20-Dec-2010 Technological Area Market Area Start Date > 30-Sep-2007 Duration > 38 Months Participating countries > GERMANY, AUSTRIA | Main contact4flow AG Dr. Ing. Christian Butz > Organisation type > SME |
Project Description
PROBLEM DESCRIPTION AND EVALUATION As a result of the EU expansion and ongoing globalisation, the logistics industry is being confronted with a growth rate of 6% and therefore a strong increase in traffic volume. In a global setting, procurement and distribution networks are widely spread. The increasing concentration on core competencies of the Original Equipment Manufacturers (OEM) leads to a higher number of value creation partners that have to be coordinated (see FAST2015). Customisation of products and shorter product life cycles result in a growing number of product variants and models. This leads to frequent changes in production programmes of plant and therefore fluctuating transport volumes on the one hand and lower transportation lots on the other hand. The result is the increased transport volume mentioned above. The potential of simple counteracting measures like the application of routing and packing software has recently been tapped into to a great extent. CONTRIBUTION TO THE GOALS OF 'INTELLIGENT LOGISTICS' AND 'LOGCHAIN+' GOALS Present-day long-term transportation planning determines transportation structures for a period of one to two years which are then stipulated in frame contracts with logistic service providers. Because of the dynamic business environment, these structures become inefficient within a short time. This occurs, for instance, when shifting volumes of product flows diverge from the capacities planned earlier. In a short planning approach, production scheduling determines the necessary transport. However, production scheduling in daily or weekly intervals only takes into account production relevant criteria like capacity utilisation and inventory levels and is therefore independent of procurement and distribution processes. This results in inefficient transportation processes with low capacity utilisation and extra transport. Consequently, the use of road haulage with only low proportions of rail and sea transport is required in order to guarantee the required flexibility. The effects are higher environmental impacts and higher transportation costs. The latter is aggravated by the current developments on the logistics market. For the first time in decades, the demand for logistics services exceeds the supply and therefore causes high transportation costs. The research project proposed will contribute to the realisation of more efficient transportation processes through integrated production scheduling. This includes the reduction of transport volume, the augmentation of capacity utilisation and increased transportation by sea and rail. The objective is to achieve an increase of 10% compared to the current state. NOVELTY COMPARED TO OTHER CURRENT ACTIVITIES The approach of this research project combines mid-term iterative transportation planning with an enhancement of order scheduling. The objective herein is to permit a dynamic adaptation of transportation structures and to tap into the potential of improving short-term transportation efficiency. This approach is examined not only in the field of the current build-to-forecast (BTF) system but also in the prospective area of a pure build-to-order (BTO) system. A BTF production system focuses on high capacity utilisation and leads to high stocks of finished goods and necessary sales discounts as well as long lead times. A pure BTO production system reduces finished product stocks and lead times and increases margins due to the abolition of sales discounts. In the producing industry, the migration into a BTO system has already been performed (see PC-producer DELL) or is being examined and predicted in current research projects (see automobile industry and the EU project 'Intelligent Logistics for Innovative Product Technologies', ILIPT, www.ilipt.org). Transportation planning and order scheduling are to be examined and optimised in both systems in order to ensure short-term potentials as well as sustainability of the concepts developed. POTENTIALS OF THE APPROACH REGARDING THE PROBLEM DESCRIBED. Transportation planning will be executed dynamically in order to achieve an adjustment of transportation structures to shifting conditions. These structures allow for handling transportation processes more efficiently. Order scheduling will be optimised so that temporally consolidated inbound deliveries lead to an increase in vehicle utilisation and mileage savings. The proposed approach will increase the efficiency of alternative transportation measures and foster a shift from road haulage towards rail and sea transport. Keywords: transport planning, scheduling, intermodal.
Technological Development Envisaged
SCIENTIFIC STARTING POINT Scheduling of production orders is characterised by the trade-off between a multitude of restrictions and the objective of cost-efficient and on-schedule order fulfilment. Often, high capacity utilisation is a superior goal for ensuring the profitability of large investments made in plant equipment. As work content in one production cycle is limited in synchronised assembly lines, it is necessary to combine tasks with higher and lower durations in order to achieve minimum idle times. This 'Line Balancing' problem is an important aspect of production scheduling. Simultaneously, a classical lot sizing problem, dealing with the trade-off between fixed set up costs and inventory costs, is immanent. A production sequence which best combines restrictions and objectives can be located by scheduling algorithms. These algorithms mostly require a significant number of disposable orders to work efficiently. The accumulation of orders, however, leads to long delivery times for the final product. Production scheduling takes place in three planning horizons. In the long run the total amount of goods to be produced in a certain time period is determined through sales planning. Programme planning covers medium time ranges. Scheduling determines the production sequence in short planning horizons. The design of transportation networks is divided into two planning horizons. For longer periods, transportation structures are determined by demand forecasts based on sales planning and settled in frame contracts with logistic service providers. The redesign of these structures takes place about every one to two years. In the short-term, the LSP is informed about changes in transport and can react accordingly. However, flexibility is restricted to adjustments within the given transportation structures. Coordination between order scheduling and short-term transportation planning does not take place. HYPOTHESES LEADING THIS RESEARCH 1. In the long-term, sales planning determines transportation structures that quickly lose validity. With the help of dynamically adjusting transportation structures in transportation planning to arising mid-term changes, transportation mileage can be saved and the use of rail and sea transportation fostered. 2. Because of short-term scheduling adjustments efficient transports can be achieved in the given structures which lead to further mileage savings. 3. With the current and recently increasing levels of transportation costs both measures lead to lower transportation costs without increasing total costs. Additionally the environmental impact can be reduced by shifting and reducing transport. PROJECT PLAN Work Package 1: Analysis of procurement and distribution networks and analysis of parameters specific for production planning (situation as-is) WP 1.1: Mapping and evaluation of transportation networks WP 1.2: Mapping and simulation of scheduling. Work Package 2: Development of a transportation planning concept that transfers singular long-term transportation planning to an iterative mid-term update of transportation structures WP 2.1: Determination of iterative transportation structure planning requisitions. WP 2.2: Definition of processes for planning and update of transportation structures. Work Package 3: Development of advanced concepts to enhance scheduling by transportation planning parameters. WP 3.1.: Determination of production plan generation requisitions originating from procurement and distribution networks (e.g. lot size that is ideal for transportation) WP 3.2: Definition of a set of transportation network parameters that steer scheduling, besides conventional parameters such as delivery lead time, capacity utilisation and production restrictions. WP 3.3: Development of processes and solution algorithms for scheduling considering the above-mentioned parameters. Work Package 4: Integration of WP2 and WP3 planning processes into a consolidated concept. Work Package 5: Realisation of software prototypes for these planning processes. WP 5.1: Prototype for the dynamic evaluation of transportation structures WP 5.2: Prototype for the dynamic evaluation of scheduling. WP 5.3: Integration of both prototypes into an overall solution. Work Package 6: Evaluation of concepts based on case studies Work Package 7: Exploitation and dissemination Work Package 8: Project management and coordination
Main contactSchenker AG Dipl. Betreibsw Christiane Beimel > Key Account Management Organisation Organisation type > Large company |
Contribution to project
The Logistics Service Provider will act as executing service provider of the concepts. The LSP will support the evaluation of the transportation network through providing data, while the LSP will also support evaluation of the concepts.
Expertise
The organisation, a Deutsche Bahn subsidiary, is one of the world�s leading integrated logistics service providers with revenues of 8.9 billion euro, 42,000 employees and 1,100 locations. It offers land based transport, air and sea transport, as well as comprehensive logistics solutions and global supply chain management. SCHENKER AG works closely with the optimisation of its global logistics streams. Therefore, SCHENKER AG applies the Supply Chain Modeller that will be applied as a database for case studies within INTERTRANS. The logistics market expects a modular and demand flexible range of offers from its logistics service provider. It also demands sufficient capacities at any time - this is valid for singular projects as well as for global procurement and distribution concepts. SCHENKER AG develops and produces custom-made logistics concepts for the automotive industry: supply security, calculable lead times, and inventory minimisation by transport optimisation - while ensuring the highest levels of service quality. SCHENKER faces growing customer demands for multimodal logistics solutions. This demand is offered by railway departments specialised in automotive solutions. SCHENKER owns a densely knotted network of national and international locations in European land based transport. These locations are connected by direct connections or highly-developed hub-traffics and therefore offer competitive lead times. The sea freight department within SCHENKER AG offers worldwide services in the field of FCL/FCL, LCL/LCL and LCL/FCL as well as bulk and heavy cargo transport.
Main contactFraunhofer-Institute fuer Material Flow and Logistics (IML) Prof. Dr. Ing. Bernd Hellingrath > Head of Main Department Organisation type > Research Institute |
Contribution to project
The Institute will contribute to the concepts for logistics planning and scheduling and the model-based valuation of these concepts. Furthermore, the FRAUNHOFER IML will enhance the software OTD-NET within the project.
Expertise
The Institute possesses has vast experience in built-to-order manufacturing within the automotive industry as well as within other branches. Besides the above-mentioned research project ILIPT, the FRAUNHOFER IML has accomplished numerous projects and is thus suitable for contributing its expertise in the area of network analysis and Supply Chain Management to INTERTRANS. The FRAUNHOFER IML has developed the simulation software OTD-NET which allows for the simulation of complex supply networks. OTD-NET has already proven its applicability in several consultancy and research projects respectively. Additionally, the FRAUNHOFER IML provides ISMOD, i.e. a tool for distribution planning and Greenfield optimisation. Experience in both development and application of these tools is an inevitable basis for the set-up of a prototype which evaluates transportation structures and scheduling routines.
Main contactVolkswagen AG Dipl. Ing. Sevket Akinlar > Kundenauftragsprozess Fahrzeuge Organisation type > Large company |
Contribution to project
The OEM (Original Equipment Manufacturer) will act as a focal user of the concepts. The OEM will provide data about production plan generation, while the OEM will also provide transportation networks for procurement and distribution.
Expertise
The organisation is the largest European car manufacturer. In 2006, more than 5.7 million cars worldwide were sold under the corporate brands VOLKSWAGEN, VOLKSWAGEN ENUTZFAHRZEUGE, AUDI, SEAT, SKODA, LAMBORGHINI, BUGATTI and BENTLEY. Among the 126 different models offered by VOLKSWAGEN AG are state-of-the-art sportscars like the Bugatti Veyron and multi-million sellers such as the Golf. 44 production sites are connected in an international production network, employing 325,000 workers, generating a turnover of 105 billion euro in 2006. The extremely wide variety of products makes VOLKSWAGEN the ideal industrial partner in the INTERTRANS research project. With the process- and data resources that exist at VOLKSWAGEN, it will be possible to generate, evaluate and apply multiple strategies for the integration of production and transport planning. The department 'ITP Vehicle Order Planning and Processing' and 'Volkswagen Logistics' will be a partner in a joint participation in the INTERTRANS project. 'ITP Vehicle Order Planning and Processing' has responsibility for the IT (Information Technology) infrastructure in the order-to-delivery-process. Hosted systems range from ordering support, through planning tools to car distribution. Besides systems administration, process consulting and simulation services are offered for all brands and departments, particularly for logistics and sales departments within the VOLKSWAGEN Corporation. Long lasting relationships with a number of German and international research institutions has lead to the generation of up-to-date knowledge that in many cases will be directly adopted by VOLKSWAGEN AG. In fact, OTD-NET, one of the tools to be used in the proposed research project INTERTRANS, was co-developed with FRAUNHOFER GESELLSCHAFT and has been successfully used throughout the corporation for several years now. Managing an international production network calls for extended know-how especially in production planning and logistics processes. VOLKSWAGEN AG's experience of 70 years in building cars has lead to a sophisticated process structure. 'Volkswagen Logistics' is the internal logistics service provider that offers planning and managing services throughout the corporation. In 2006, more than 3.7 million built vehicles, more than 100,000 container TEU (Twenty Foot Equivalent Unit) and more than 10 million boxes were handled.
Main contact4flow AG Dr. Ing. Christian Butz > Organisation type > SME |
Contribution to project
Overall project management and the coordination of project partners will be part of the contribution of 4FLOW AG. 4FLOW AG will conduct concept development and model-based evaluation as well as the necessary enhancement of the standard software 4FLOW vista.
Expertise
The organisation offers consulting services and software within the field of logistics and supply chain management. From the headquarters in Berlin, 4FLOW serves international clients and works on projects all over the world. More than 50 4FLOW employees work together uniting logistics and software know-how. 4FLOW consulting offers one-stop-shopping for management consulting, concept design and support during the implementation process in the fields of logistics and supply chain management. 4FLOW vista is the first integrated standardised software for logistics planning. It automates and accelerates the often-repeated and time-consuming activities of designing and planning logistic structures and processes. 4FLOW turn is the web-based software of 4FLOW AG for inventory optimisation through dynamic scheduling. 4FLOW has worked on more than 150 successful projects for large and medium-sized companies. 4FLOW clients and projects are located all around the world. Reference customers from the automotive industry are amongst others BMW, AUDI, DAIMLERCHRYSLER, VW, OPEL, PORSCHE, MANN, MITSUBISHI, SMART, MAGNA STEYR and NEDCAR. Customers from automotive supplying industries are DELPHI, JOHNSON CONTROLS, BLAUPUNKT and GRAMMER. Within the branch of logistic service providers, the 4FLOW AG has worked with FIEGE, KUEHNE+NAGEL, RHENUS, USCO LOGISTICS and VOLKSWAGEN TRANSPORT. 4FLOW operates a research and development branch, 4FLOW research, which is dedicated to publicly and privately funded research in the field of Supply Chain Management. Reference research projects include ILIPT (Intelligent Logistics for Innovative Product Technologies, www.ilipt.org), an EU 6th framework programme project in the automotive industry, and BAU-MO 2008, a project in the construction machinery industry funded by the German MINISTRY OF EDUCATION AND RESEARCH (BMBF). 4FLOW won the e-logistics award with MAGNA STEYR and was nominated for the National Prize for transport logistics, again with MAGNA STEYR. In 2006, 4FLOW was named as one of the Top Supply & Demand Chain Solution providers and honoured by one of GERMANY's fastest growing technology companies with the Technology Fast 50 Award. Furthermore, 4FLOW was honoured as one of the 500 fastest-growing companies of EMEA with the Technology Fast 500 EMEA. The engagement in this research project is a great opportunity for 4FLOW AG to further strengthen its expertise, to contribute to the growth of the European economy and to sustain employment.
Main contactTU-Wien/ The Institute of Management Science
The Vienna University of Technology Prof. Dr. Ing. Wilfried Sihn > Head of Institute http://www.imw.tuwien.ac.at/bt/ Organisation type > University |
Contribution to project
The Austrian partner, the Institute of Management Science at VIENNA UNIVERSITY OF TECHNOLOGY, will support the consortia during concept development and evaluation. A direct transfer of results serves as an evaluation tool for the concepts.
Expertise
The University (TU WIEN) was founded in 1815 as k.u.k. Polytechnical Institute and afterwards developed to a full-scale university (1975). Both nationally and internationally, TU WIEN is a renowned research institution. Through cooperation of fundamental research and technical development in different faculties, TU WIEN covers research activities in virtually any technical discipline. The department of Industrial Engineering, which is located within the Institute of Management Science, works on tasks concerning planning and optimisation of structure, organisation and management of industrial enterprises or service providers and their respective logistic networks. The exploration, development and application of intelligent solutions as well as the preparation of scientific methods and results for use in business lies at the heart of the research activities. The Institute of Management Science will contribute its expertise in designing logistic networks and process planning to the research project INTERTRANS.