Businesses have issues with location of plant, with deciding which products to manufacture in which locations, with scheduling the use of their staff and with planning for their long term human resource needs. These all have certain features in common:
- There are many activities that need to use the same set of resources (e.g. people’s time, machine time, money or raw materials).
- There are constraints on the uses of some of the resources that mean that if one requirement is satisfied, meeting some of the others will be harder.
- Usually, although not in every case, there is an objective, such as expected profit or cost, that needs to be maximised or minimised.
All of these can be tackled using optimisation models, and, given that the problems involve large scale resources, these models will deliver substantial benefits.
Moreover, once an optimisation model has been developed it can be simply maintained and re-used, bringing sustainable value.
Our Expertise
Capgemini’s Optimisation capability lies within the Operational Research (OR) group, which has unparalleled experience of solving problems and delivering solutions within a wide variety of industry sectors. This experience includes
- Optimising workforce planning in the armed forces
- Maximising manufacturing profitability in the steel industry
- Selecting production locations to minimise distribution costs for a government agency
- Production planning around vehicle launches in the automotive industry.
Capgemini also has world-class technology partners:
- Dash Optimisation is the leading vendor of software for modelling and optimisation.
- Radical Limited produce specialised software that is applicable to the network optimisation problems relating to the Supply Chain.
We offer optimisation work in three key and distinct areas.
- Supply Chain Optimisation: Models can be built to allow clients to consider strategic options around supply chain design. Such models can evaluate alternatives and find an optimally profitable solution subject to the constraints of meeting customer demand. In doing this they provide answers to questions about where production and distribution facilities should be located, and which customers should be supplied via which routes.
- Resource Planning: A model can allow an organisation to work out the most cost effective skill mix needed to carry out required tasks, and to identify whether it is on track to have the skill mix available or whether it needs to take action in the areas of recruitment and retention. This model can be left with the client in the form of a user-friendly operational tool that can be re-used on an ongoing basis.
- Workload Allocation. Rules for workload allocation can be determined that minimise cost while ensuring that service standards are met. These rules can then be embedded in operational systems.
The diagram above shows the output from a strategic supply chain model. It includes production units, distribution centres and the areas served by those centres.
Our Approach
There are three key aspects to our approach to optimisation modelling.
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Data gathering |
All available data is gathered from relevant systems or plans. At the same time, the optimisation problem is formulated through discussions with key stakeholders. The nature of the data to be gathered depends on the type of problem under consideration: For example, in a Human Resource Planning Problem, it will include understanding the future need for skills. For a Workload Allocation problem it will involve understanding what kind of staff are required to carry out a range of different kinds of task. |
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Model building |
Having been formulated, the model is built and tested. There is often iteration with the data gathering stage as the possibilities associated with modelling throw new light on the problem being analysed. |
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Optimisation and Scenario Analysis |
The model is run to allow identification of an optimal configuration. Often it is run under a range of scenarios to identify how that configuration depends on external factors. For example in optimising a Supply Chain problem it is important to be sure that the solution will be robust if patterns of customer demand changes. The techniques used at this stage depend on the type of problem being considered: Linear and mixed integer programming are used for Supply Chain problems – for others the focus will be on thinking carefully through a number of distinct options and then comparing them using database or spreadsheet applications. |
Business Benefits
There are many potential business benefits to be realised from Capgemini’s approach to Strategic Optimisation:
- The ability to make informed strategic decisions
- Improvement of tactical and operational plans
- Efficient use of assets within a company
- Reduction in operational costs
- Improved service levels and customer service
- Effective centralised workforce planning
- Balancing financial considerations against “soft” factors such as staff morale and productivity.
- Improved workforce satisfaction at the same time as sustainable reductions in staff costs.
Our Experience Capgemini has successfully delivered Optimisation work for a wide range of sectors and clients, as illustrated by our case studies (see below).
Resource Tracking Database
Built a database to support the scoping, assignment and deployment of Human Resources,
and streamline existing processes for recording, monitoring and generating financial
& manpower reports.
Download – 43kb
Workforce Planning at the Navy
Analysis of how new ways of working could balance the twin objectives of (a)
maximising staff utilisation and (b) fulfilling contractual obligations to allow
those staff to spend time in their home locations.
Download - 32kb
Improving distribution logistics
Built an optimisation model to minimise the total cost of collection and delivery,
which demonstrated that the optimal allocation of zones to depots and depots to
hubs would save more than £1m p.a.
Download - 42kb
Also a demonstration overview. (Delivery Network Optimisation Model)
Download – 594kb
Bringing Workforce decisions to the centre of business planning
Built a workforce planning model for use by local planners at a time of extraordinary
pressure and change. The model enabled plans to be developed and shared at different
levels in the organisation.
Download - 120kb
Production & distribution modelling for passports issues overseas
Use of a mathematical model to identify the most appropriate locations for passport
production, minimising costs. Full account was taken of “soft” factors such as
the need to minimise number of locations for security reasons.
Download - 121kb
Optimal distribution and replenishment strategies
Comparison of alternative approaches to supply chain operation to identify the
most cost effective. Stock holding costs, costs of stock-outs and costs of working
capital were all considered, and savings of over £3m were realised.
Download – 168kb
