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Bringing Profitability Into Focus Optimizing the Chemical Value Chain

Bringing Profitability Into Focus Optimizing the Chemical Value Chain. Chemical Executive Briefing December 6, 2001. The AspenTech Vision.

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Bringing Profitability Into Focus Optimizing the Chemical Value Chain

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  1. Bringing Profitability Into FocusOptimizing the Chemical Value Chain Chemical Executive Briefing December 6, 2001

  2. The AspenTech Vision • To make our customers more profitable by enabling them to design, optimize, and execute their entire value chain – from the supply of raw materials to the delivery of final product.

  3. Enterprise Overall Business System Landscape in Process Manufacturing Plant ERP Enterprise Resource Planning SRM Supplier Relationship Management CRM Customer Relationship Management SCM Supply Chain Management e-business e-business FCS Finite Capacity Scheduling APS Advanced Planning & Scheduling MES Manufacturing Execution System Engineering Plant Simulators Design DCS Distributed Control System

  4. Enterprise AspenTech Footprint in the Business System Landscape Plant Aspen Footprint ERP Enterprise Resource Planning SRM Supplier Relationship Management CRM Customer Relationship Management SCM Supply Chain Management e-business e-business FCS Finite Capacity Scheduling APS Advanced Planning & Scheduling MES Manufacturing Execution System Engineering Plant Simulators Design DCS Distributed Control System

  5. Logistics Providers Buy-side Marketplaces Value Chain Planning Value Chain Planning Value Chain Planning Supply-side Optimization Production Optimization Demand-side Optimization Supply-side Optimization Supply-side Optimization Production Optimization Production Optimization Demand-side Optimization Demand-side Optimization SUPPLIERS CUSTOMERS Operating Company E X E C U T I O N E X E C U T I O N E X E C U T I O N Asset Optimization Asset Optimization Engineering & Construction Firms Sell-side Marketplaces Asset Optimization Value Chain Profit Opportunities

  6. How Aspen Tech Increases Economic Profit Value Chain Design Value Chain Planning & Management Production Optimization Supply-side Optimization Demand-side Optimization

  7. Typical Economic Value-Add: Increase Revenue by 3% - 5% Increase Revenue Asset Optimization Value Chain Planning Production Optimization Supply-side Optimization Demand-side Optimization

  8. Reduce Raw Material Costs • Reduce Variable Cost • Reduce Distribution Costs • Reduce SG&A Costs • Reduce Costs • Reduce Fixed Cost • Reduce Inventory Carrying Cost • Reduce Energy Cost • Reduce Capital Cost • Reduce Capital Cost Typical Economic Value-Add: Reduce costs 5% - 30% Reduce Costs Asset Optimization Value Chain Planning Production Optimization Supply-side Optimization Demand-side Optimization

  9. Rationalize Manufacturing • Optimize Fixed Asset Utilization • Optimize Inventory • Improve Capital Efficiency • Reduce Capital Cost • Reduce Cash Operating Cycle • Reduce Cycle Time Typical Economic Value-Add: Increase Capital Utilization 2%- 6% Decrease capital expenditures 5%- 20% Improve Capital Efficiency Asset Optimization Value Chain Planning Production Optimization Supply-side Optimization Demand-side Optimization

  10. The Value of Optimizing : Improved Profit Performance • AspenTech partners with chemical and polymer manufacturers to help better manage and optimize their value chains.This can increase ROCE by 1-4% : • Increase revenue by 3-5% • Reduce costs by 5-30% • Increase capital utilization and reduce capital expenditure by 5-20%

  11. Implementation Partners • AspenTech partners with major consulting and systems integration specialists to develop and deliver profit improvement through: • Business process improvement • Change management • Applications and systems integration • IT consulting • Enterprise consulting and solutions implementation • IT management and application hosting • Post-implementation benefit analysis to ensure results….

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