This document describes the services provided for a.) Supply chain Diagnosis. b.) Processes Optimizations. c.) Strategic Procurement d.) Project Management for Efficiencies.

1. 1Copyrights OptimaIntegra SpA
Consultancy Services for Processes Optimization and Integration.
Cost Reduction on Transport, Fuel Consumption, Warehousing, Cost to Serve.
Inventory Management & Policies. The Right Inventory. SLOBs reduction.
Category Management, Tenders, Suppliers Negotiation & Contracting.
Analysis on Logistic Foot Prints: Localization, Infrastructure, Savings.
Diagnosis on Supply Chain: Processes, Organization, Technology.
Project Management: Pre-Feasibility, Feasibility, Implementation.
Training & Implementation of Best Practices: S&OP, PtP, OTC, MRP, DRP, Lean.
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2. More than 22 years of experience in the areas of Supply Chain and Procurement,
including Customer Segmentation and Services, Sales & Operations Planning
process, Purchases of Raw Materials, Spare Parts and Logistic Services, Maritime
Transport, Land Transport, Warehousing, Inventory Management, and Cost to Serve
reduction.
2
Solid Backround and Expertise
• Lean Management tools.
• Project Management: Pre-
Feasibility (Class D), Feasibility (Class C),
Implementation (Class B)
• Training Program based on 4 Key Processes for Supply Chain: Plan, Source, Make,
Deliver.
• Change Management: Individual (Reactive), Team (Proactive), Organization
(Facilitation). Right Competences.
• International experience in LATAM, USA, Europe, India, Egypt, & Australia.
• SHEC (Safety, Health, Environment &
Community) applied to Supply Chain.
• Experience on Dangerous Goods:
Chemicals, Pharma, Explosives, Cyanide.
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Distribution: Routes Engineering & Planning, Gravity Centres, Cargo Planning &
Maximization, Transport Cost Model, Routes Risk Assessments, Intermodal
Transport, Warehousing.
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3. 3
Working Experience
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4. 4
Sales &
Operational
Planning
process:
•Demand
Planning.
•Supply
Planning.
•Inventory
Planning.
•Shipment
Planning.
Purchases to
Pay process:
•Category
Management
•Tenders &
Negotiation.
•Contracting.
•Order
Creation.
•Receipts &
Invoice.
Production
Scheduling
process:
•Repetitive vs
Discrete
production.
•Lead Times.
•MTO, MTS,
ATO.
•MRP II
Order to Cash
process:
•Order
Creation
Confirmation.
•Follow Up .
•Distribution
Planning &
Call list.
•Goods Issue &
Invoice.
Cost & Capital
•Cost of
Inventory.
•Transport
Cost.
•Warehousing
Cost.
•Cost to Serve.
PLAN SOURCE MAKE DELIVER COST
Overall Supply Chain Flow Map
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5. 5
Basis of Safety:
•Basic Configuration
Design.
•Take 5: Stop, Think,
Identify, Plan, Proceed.
•Check Lists.
•Incidents Categorization.
•Incidents Management.
•Emergency Response
Teams.
•Performance KPIs
Route Risk
Assessment:
•Road Maps & Risks
identification.
•Central Database.
•Comunity Engagement.
•Permits & Regulations
Drivers Behaviour:
•Drivers License to
Operate.
•Individual Assessments:
who follow the rules,
who not? why?
•Training .
SHEC applied to Supply Chain
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6. Sales, Plan. &
Oper.( SOP ) PP
Demand Mgmt
PP
Master Plan
Schedule ( MPS ) PP
Material
Requirement
Plan. ( MRP ) PP
Production
PP
Purchasing
MM
Product Group PP
PP, SD, CO-PA
Bill of Material ( BOM ) PP
Critical Capacity
CO, MM, PP
Detailed
Capacity PP
Vendors MM
Materials MM
GR/GI
MM Postings
FI, CO
Strategic Planning
Operational
Planning
Execution
Inventories MM
Materials MM
Purchases
Requisitions MMPlanned Orders PP
Planned Firm Orders based on
Forecast or Sales Orders
Planned Dependent
Requirements
First Level Planning (S&OP, MPS, MRP):
6
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7. Manufacturing
Customer
Supplier
MRP II - DRP
(Manufacturing Resource Planning vs Distribution Resource Planning)
 Lot size
 Loading Capacity
 Delivery Schedules
 Trransport Cost
 Incoterms
Etc
.
 Capacity / Storage
 Demand Planning
 Shifts / Data SAP
 Reorder Points
 Etc.
 Storage Capacity
 Cycle Counting
 Cost & Freights
 Loading Times
 Carriers
 Transport Lanes.
 Production Routes
 Capacity Level
 Maintenance stops
 Schedules /Shifts
 Storage capacity
 BOMs.
DC: Distribution Centre
Inbound Logistic Outbound Logistic
Primary Distribution Secondary Distribution
7
Second Level Planning (MRP, DRP):
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8. Preparation &
Maintenance
Order
Intake
Prepare
Delivery
BillingDistribute Cash In
Customer/ Material
Master Data
Pricing
Planning
Credit
Management
Capture
Orders
Process
Orders
Changes
Back Orders
Delivery Due
List processing
Picking
Transport
Call Off
Loading
Billing
Method
Create a
Billing document
Monitor
Billing
Rebates &
Commissions
Payment
Methods
Banking
Structure
Payments
Dunning
CUSTOMERS
Delivery
Customer Service Centre (CSC) Logistic units at Sites Finance
1 2 3 4 5 6
CSC
High Level Order to Cash (OTC) Flow
8
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9. Inventory Management & Policies (1/2)
9
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MTS v/s MTO v/s ATO: how to define it?
HIGHLOW
LONG
Frequency of Deliveries
MTS - ATO
MTO (pure) MTS - MTO
ATO
Demand
Internal
Lead-Time
Replenishment Stock
SLAs for lead-time.
ELT > ILT
SHORT
Anticipate Stock
SLAs for lead-time.
SLAs for Order Size.

10. Inventory Management & Policies (2/2)
10
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SS: Safety
Stock
Stock
Averag
t
RS:
Replenishment
Stock
to be protected against
fluctuations in Supply or
Demand.
LS: Lot Size.
An established
lot size or
order quantity.
DLT: Demand
Through
Lead time
LT: Lead
Time required
to replenish
DLT: the amount of inventory to be used during the replenishment lead-time.
Q
RS = DLT + SS
Stock Average = ½ * LS + SS
DLT = (Average Tons/day) * LT
SS = % DLT
[Tons] [Tons]
[Tons][Tons]
TARGET

11. Lead Times Analysis (1/2)
11
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Customer
send
an Order
t1
Requested
Delivery
Date
Order is
Entered
t2
Planned
Delivery
Date
Order is
Confirmed
t3
Confirmed
Delivery
Date
Production
Starting
date
t4
Reaction time
In CSC
Confirmation time
Needed by Site
t5
Goal:
t1 = t2
Goal:
t2 = t3
(products MTS)
Production time
Needed by Site-Product
combination
Loading
date
t7
Production
Finishing
date
t6
Picking
date
Expedition time
Needed by Site-Product
combination
Delivery
Date at
Customer Site
(Real)
t8
Transport time
Needed from the Site to the
Customer
t9 t10
Planning
Inefficiency
Transport
Inefficiency
Goal:
t8 = t9
% Capability
Goal:
t9 = t10
% Reliability
MTO – Lead-times conflicts (1):

12. Lead Times Analysis (2/2)
12
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MTO – Lead-times conflicts (2):
MTO: D1 D2 D3 DX DX DX DY DY DY DZ DZ DZ
orders handling
frozen zone
RM call-off
RM preparation
production time
finishing time
packaging time
transport call-off
pick list
loading
Total 4 days + X + Y + Z + W
(minimum 6 days; maximum 15 days)
Production Time days Finishing Time days Packaging Time days
ISO 1 Max Standard 1 Max Tankcar 0 Max
SMC 1 Max Thixo 2 Max Drums 2 Max
Ortho 1 Max Pigmented IBC 1 Max
VE 2 Max LES
VE TDI 1 Max Halogenated
D Resins 2 Max LPA/ Polystyren 1 Max
DCPD Light initiator 1 Max
LPA reactor 2 Max Storage tank 1 Max
LPA mixer 1 Max
Equipment availability time = W
ISO 5 Max
SMC 5 Max
Ortho 5 Max
VE 5 Max
VE TDI 3 Max
D Resins 3 Max
DCPD
LPA reactor 5 Max
LPA mixer 5 Max

13. 13
Supplier Assessment and Negotiation Preparation Negotiation and ImplementationCategory Analysis and Strategy Development
Define
Category
Analysis
Approach
100-1
Perform
Industry
Analysis
100-2
Analyze
Customer
Requirements
100-3
Perform
Supplier
Analysis
100-4
Category
Strategy
Development
100-5
Screen
Suppliers
200-1
RFP
Process
200-2
Qualify
Suppliers
200-3
Prepare
Implementation
Plan
200-4
Negotiate
Business
Agreement
300-1
Finalize
Implementation
Plan
300-2
Implement
Program
300-3
Prepare Financial Analysis /
Fact Based Negotiation Case
200-5
Define
Negotiation
Approach
200-6
Categories Suppliers Contracts
Strategic Sourcing:
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14. 14
Supply Chain Analysis & Diagnosis (SCAD):
Setup
Project Roadmap
7
THEPLAN
Prepare
Business Cases
6
THEVALUE
Execute!
8
DO
EVALUATE
Measure!
9
CHECK
ACT
Define
Routes
towards Solution
5
THECURE
Define
Root Causes
4
DIAGNOSE
Prepare
SCA Project Plan
1
CONTEXT
VALUEPROP
Understand
Gaps Business
Position
2
Understand
Supply Chain
Position
3
EXECUTION
X-RAYCURE
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15. Project Management
15
Business
Study
•Demand Analysis.
•Supply Analysis.
•Proposed Supply
Chain Configuration.
•Cost Composition
•Savings Expected
•Investment Required
•Business Case (Class
D)
•Initial Risk
Assessment
•Scope Definition
•Resources for Pre-
feasibility study
•Gate Approval
Pre-
Feasibility
Study
•High level project
schedule
•Risk Assessment
•Supply Chain Design
•Business Case
Review (Class C).
•Tests Execution &
Learnings.
•Scope review.
•Resources for
Feasibility Study
•Funding Strategy
•Gate Approval.
Feasibility
Study
•Review Risk &
Control.
•Last Review Supply
Chain Design
•Final Business Case
(Class B)
•Final Scope Review
•Permits & Regulations
•Detailed Project
Schedule &
Resources for
Implementation.
•Detailed Design for
building &
construction.
•Final Gate Approval.
Implementati
on
•Contracting Suppliers,
Resources and
equipment.
•Procurement
•Execution of
Implementation Plan
(PO´s generation)
•Construction &
equipment installation
•Physical completion
•Permits and
Regulations
Handover
•Final Operational
Procedures.
•Knowledge Transfer to
the organization.
•Resource
Deployment.
•Project Closure.
Ambiguity
Number
of Ideas
Time
Concept Pre-Feasibility Feasibility
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16. 16
Lean Management
 Delivering Value from Customers perspective.
 Eliminating Waste.
 Continuously improving the processes.
 PULL. Defining Value from the standpoint of the end customer.  Minimize
Inventory, Over-production and Assets.
 ONE STEP FLOW. Step by Step, and eliminating those that are not creating
value.  Minimize WIP, Process interruption and Waiting time.
 TAKT. Vale-creating steps occur in a tight sequence.  Balancing Production
according to Demand, achieve continuous flow and respond flexibly to changes.
 ZERO DEFECTS. Continuous basis until all waste has been eliminated. 
Mistakes from previous steps must be fixed before going on.
Lean is:
Based on following principles:
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17. 17
TIM WOOD
Concept Description + / -
T ransport unnecessary transport/ movement
of products.
Excess
I nventories in excess inventories of Raw
Materials, Finished Goods and/ or
Semi-finished.
Excess
M ovement unnecessary movement of people. Excess
W aiting Resources that are waiting a cycle
to be to finished.
Lack of
O ver-Process Processing beyond what is required
by customers.
Excess
O ver-Production Producing earlier or faster o higher
volume that is required by Demand.
Excess
D efects Forcing a step repetition or product/
process correction, causing
additional time or resources.
Lack of
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18. 18
Change Management Curve
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19. 19
pedro.angulo@optimaintegra.cl F: +56 9 9949 4489
www.optimaintegra.cl
Contact Information
OptimaIntegra
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