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Improvements/Benefits

Improvements/Benefits. Typical Quantified Benefits. Delivery Performance Inventory Reduction Fulfillment Cycle Time Forecast Accuracy Overall Productivity Lower Supply-Chain Costs Fill Rates Improved Capacity Realization. 16% – 28% Improvement 25% – 60% Improvement

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Improvements/Benefits

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  1. Improvements/Benefits Typical Quantified Benefits Delivery Performance Inventory Reduction Fulfillment Cycle Time Forecast Accuracy Overall Productivity Lower Supply-Chain Costs Fill Rates Improved Capacity Realization 16% – 28% Improvement 25% – 60% Improvement 30% – 50% Improvement 25% – 80% Improvement 10% – 16% Improvement 25% – 50% Improvement 20% – 30% Improvement 10% – 20% Improvement • AMR Supply Chain Operations Reference Model: http://www.supply-chain.org • Patiglio Rabin Todd & McGrath: http://www.prtm.com

  2. A.E. Staley AGIP A. K. Steel ALCOA Aginomoto Gen. Foods Amoco Anheuser-Busch Packaging Asahi Chemical Asahi Glass Asahi Medical Ashland Petroleum BASF Ben & Jerry’s BOC Gases BP Oil Bridgestone/Firestone Bryan Foods (Sara Lee) Bush Boake Allen Cable Systems International Calgon Carbon Champion International Chichibu Onoda Cement CLH Pipeline ComCom Cosmo Oil Cypress Semiconductor Denki Kagaku Chem. De Ster Daelim Industrial Corp. DuPont Engelhard Excel Beef (Cargill) Exxon Chemicals Exxon Company Int’l . Exxon Research FEMSA Fort James Corp. Fuji Heavy Industries Fuji Film GARMCO Genref Goodyear Chemicals Grand Polymer Co. Gulf States Steel Hoechst A. G. Hoechst Celanese Corp. Hoechst Hostalen Hokai Can Honam Oil Hormel MEMC Japan (Confidential - Semi Mfg.) (Confidential - Disk Drives) Idemitsu Iggesund International Home Foods Irving Oil ISP IVECO (Fiat) Japan Elastomer Josiah Wedgwood & Co. J. R. Simplot Knoll Pharmaceuticals Konica Kraft General Foods Kyushu Oil LSI Logic LTV Steel Macronix Marathon Oil Mead Fine Paper Meiji Foods MEMC Methanex Miller Brewing Co. Mitsubishi Oil Mitsubishi Silicon America Mitsui Chemicals Molson Brewing Monsanto Motorola National Starch/Chem. Nihon Nippon Synthetic Chem. Supply Chain Clients

  3. NOVA Chemicals Ocensa Pharmacia & Upjohn Petro-Canada Plasmon Heinz Philip Morris Pétromont Petronas Repsol Praxair Phillips Chemical Phillips Petroleum Quimica Rhone P & G (Japan) Quaker Oats SARAS Poulenc Rockwell Semiconductor Rohm & Haas Sematech Schering-Plough Seiko Epson Corp. Shell Oil Shaw Industries Shell Chemical Shell Lubricants StatOil Shering-Plough Showa Shell Solutia Symbios Logic Stoldt Parcel Tanker Sumitomo Chemicals Sun Refining & Mktg. Thappline Taiyo Oil Taisil Texaco Toyo Tohoku Oil Tonen Tonen Chemical Comms. Equip. Trevira Ube Cement Union Camp Unocal U. S. Robotics Valero Refining Wellcome Foundation Weyerhaeuser Witco Yoshitomi Pharm Yukong Clients, continued

  4. Allied Signal • “Aspen says you can expect a 50% variability reduction and a 2-5% capacity increase . . . • Our experience: > 50% variability reduction and a 3 - 10% capacity increase - with minimal capital investment” • Jeff Yellets, Alliance Manager, AlliedSignal

  5. PROBLEM SOLUTION BENEFITS CORPORATE NETWORK OPTIMIZATION • 17 operating divisions with multiple, heterogeneous systems • 25,000 SKUs • 134 Shipping points • 15,000 ship-to locations • 956 million pounds shipped direct to customers • 696 million pounds shipped to customers through DCs Supply chain optimization model for packaged finished goods in North America • Reduced transportation facility costs by 10% • Next-day volume delivery increased from 77% to 96% • Reduced number of DCs from 86 to 15 • Generated $10 million/year savings in operating costs

  6. PROBLEM SOLUTION BENEFITS 3-D TRIM OPTIMIZATION • Schedule fiberglass insulation • Thickness as well as width and length required optimization on a continuous process • No loss due to standard sizing of the finished goods • Need to optimize production of orders and inventory MIMI standard templates, using LP/MIP and Expert Systems • MIMI standard trim template handles problem naturally • LP/MIP optimizes patterns regardless of # of dimensions • Expert System finds patterns that can provide a better solution • Since process is continuous, mathematically global optimal is possible

  7. PROBLEM SOLUTION BENEFITS TRUCK LOADING & SCHEDULING • Determine truck loading schedule in two-hour window for entire week • Warehouse space for one day of inventory • 5,000 trucks/week Developed application using MIMI’s LP module and Expert System Shell • Increased palletizer to truck from 20% to 40% • Reduced warehouse inventory – volume and number of grades • Reduced warehouse overtime

  8. PROBLEM SOLUTION BENEFITS PRIMAL MANUFACTURING Scheduling of fermentation process • Convert experience into Configured Application Product (CAP) • Use CAP as basis for this application • Initial schedules in 6 days • Project focus on data issues – about two months • Domain experise delivered in CAP

  9. PROBLEM SOLUTION BENEFITS SUPPLY CHAIN BPR WITH MIMI • 10 business units • Billions of pounds/year • Continuous, semi-continuous, block and batch operations • Tank car, tank truck, trailers, ships and barges • High margin specialties and low margin commodities • One Supply Chain solution – MIMI • Each business unit redesigned their processes • Improved customer service • Target 2% reduction in supply chain costs: exceeded • Target 20% reduction in operating inventory: exceeded

  10. PROBLEM SOLUTION BENEFITS COLLABORATIVE SUPPLY CHAIN PROCESSES Supply Chain Management Across Two Enterprises. Integrate Systems and Processes to Improve Customer Service and Manufacturing Responsiveness • Collaborative Business Processes and Integrated Business Systems. Order Management and ATP Processes (Dow) • Linked to Scheduling Process (Solutia) • Improved Customer Service Responsiveness by Enabling Collaborative ATP Process • Reduced Manufacturing Upsets

  11. PROBLEM SOLUTION BENEFITS STRATEGIC BUSINESS PLANNING • Commodity chemicals (polymers) • Evaluating alternative business models and market strategies Long-term financial and capacity planning considering supply chain constraints and alternatives • Quickly identifies the highest margin, feasible market strategy • Builds consensus among competing stakeholders

  12. PROBLEM SOLUTION BENEFITS INTEGRATED SUPPLY CHAIN • Two production facilities, four business lines and six compounding facilities worldwide • Forecasting, inventory management, planning and scheduling • Reduced sludge inventory by 50% • Sharp reduction in forecast error (5-9% overall) • Enhanced business value of SAP R/3 implementation • Optimized grade switches • Decreased response time to upsets • 1000% ROI on project

  13. PROBLEM SOLUTION BENEFITS OVERALL SUPPLY CHAIN PLANNING & OPTIMIZATION • Collaborative scheduling of CH enterprise • 12 plants with 170 operating units • Optimizing manufacturing chains of 20,000 operations across 18-month horizon • Large-scale distributed MIMI • New collaborative scheduling work process implementation • Proprietary genetic algorithm for optimization • Overall increased capacity targeted at over 3% • Response to customer requests to be reduced to seconds instead of minutes or hours

  14. PROBLEM SOLUTION BENEFITS MANUFACTURING PLANNING & SCHEDULING Multi-plant, high volume consumer goods manufacturing • Integrated planning and scheduling • Audit demonstrates value of flexible supply chain modeling and advanced optimization techniques • Increased return on net working capital • Increased customer service levels

  15. Company Background Norco, LA & Deer Park, TX Olefins & Derivatives Why AspenTech “Advisor” Model based approach Inherent Expert System NT Platform Shell Chemical • Business Problem • Production Accounting business process broken • Mainframe program • Very expensive to maintain and operate • Daily Production Accounting still justified • Proven Benefits • Confidential but “a dot mover” • (reduced costs by an order of magnitude)

  16. Company Background Olefins Plant Lake Charles, LA Why AspenTech World leader in APC DMCPlus Willing to provide performance guarantee CONDEA Vista • Business Problem • “Sold Out” on ethylene • Need to increase production • Need to minimize risk • Proven Benefits • Exceeded guarantee of +2.5% production • Exact results confidential

  17. Company Background Integrated Petrochemical / Polymer company based in Copenhagen, Denmark World scale ethylene plant located in Stenungsund, Sweden Business Problem Recent expansion required modifications to existing technology to maintain competitive advantage New operating flexibility with posed more complicated optimization problem Why AspenTech? Unique experience in advanced control and real-time optimization of olefins plants Proven technology and track record Proven Benefits Increased average ethylene production by over 5% On-line system provides validated model as a basis for off-line case studies Borealis Success Story

  18. Company Background Huntsman is the largest privately owned chemical company in the world (formerly ICI/BP Amoco JV) Wilton, UK Site contains the largest Naphtha Cracker (900,000 ton/year Ethylene) in Europe Business Problem Integrated manufacturing improvement required as part of a plant instrumentation upgrade Replacement of legacy, hard to maintain technology required to be competitive Why Aspentech Had the complete solution for information management, advanced process control, and real-time optimization Proven technology and experienced application specialists Proven Benefits Dependable, reliable and uniform information Actual performance is confidential, but set new daily and monthly production record High stream factors indicating strong operations support Huntsman (formerly ICI) Success Story

  19. Company Background Diversified chemical company Why AspenTech World leader in Process Industries Supply Chain Management ROHM & HAAS • Proven Benefits • On-time delivery performance risen more than 10% at many facilities. • Inventory costs dropped $40 million. • Better inventory visibility enabling streamlined operations. • Some business units have cut warehouse usage from 12 facilities to 2. • Planning cycle time reduced • Business Problem • Reduce supply chain costs while improving performance

  20. AspenTech – Rohm & Haas Supply Chain Management • On-time delivery performance risen more than 10% at many facilities • Inventory costs dropped $40 million. Better inventory visibiliy enabling streamlined operations. Some business units have cut warehouse usage from 12 facilities to 2 • Planning cycle time reduced “Now that we are more effective planners, many crises have gone away.” Joe Gilbert, Materials Manager

  21. Economic Potential

  22. Reduced dead inventory by 98% Forecast accuracy improvement of 25% (5-9% overall) Enhanced business value of SAP R/3 implementation Optimized grade switches Decreased response time to upsets 300% ROI on project Chevron Phillips Polyolefin Complex, Texas, USA • Business Challenge: • Proven Benefits: • Forecasting, inventory management, planning and scheduling • Solutions Applied: • Value Chain Planning • Production Optimization • Demand-side Optimization

  23. Leverage ERP investment Increased revenue Improved Customer loyalty Derive SAP investment Provide differentiating service value to Unipol licensee Union Carbide Polymers Producer and Licensor • Business Challenge: • Proven Benefits: • Solutions Applied: “By standardizing on AspenTech’s software across our entire enterprise, we expect to derive exceptional value from our SAP investment by coordinating our business and manufacturing processes,” William Joyce, Chairman and CEO of Union Carbide • Asset Optimzation • Value Chain Planning • Production Optimization

  24. Reduce capital Investment by 35% or about 25 million USD Reduce capital cost to compete with established technologies NOVA Chemicals Polymers Producer and Licensor • Business Challenge: • Proven Benefits: • Solutions Applied: • Asset Optimization • Used Polymers Plus to study process alternatives to identify optimal reactor configurations & minimize solvent recovery costs

  25. 5 times ROI $20 million benefits in two years Equistar HDPE plant, Matagorda , Texas • Business Challenge: • Solutions Applied: • Integrate long chain business processes that encompass SAP, MES, and DCS • Develop a standardized configuration that enables replication of best business practices • Determine value of MES integration • Production Optimization • Value Chain Planning • Proven Benefits:

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