Steel and Cutting Optimization
With the in-memory based ORSOFT solution for cutting optimization as an add-on to SAP ERP, steel distributors can check for ATP (quantity and desired or higher quality being on stock), CTP (available to cut or to make ready) and PTP (is the result commercially profitable) in real time. The optimum result will be calculated based on the target definition set in the program. The target definition includes timely delivery and reduction of production cost, which depends on the cutting cost, amount of waste (material value) and the cutting duration. Additionally, prioritization settings considering batch expiration are possible.
Results are determined based on the total cost function. Thus, production costs are reduced and planning security of the production is increased. As an additional and important benefit, customer relations improve due to the solutions’ full integration, which allows executing during the process of order taking. When the cutting optimization has been completed, reliable delivery dates can be confirmed directly via telephone.
A Capable-To-Promise (CTP) solution, which was developed by ORSOFT, is used by a leading producer, processor and seller of high-quality steel products since 2011 and provides their Sales departments worldwide reliable and fast information about the short-term availability of suitable batches. The determination of suitable batches considers available stock, planned production, available production capacity and external suppliers. Batch allocation is triggered from the SAP ERP Sales Document and works as a service that is fully integrated into SAP ERP. Information with regard to delivery date and price is provided to the sales person almost in real time, based on the selected batch and the respective costs for material, cutting and waste. This enables the sales person to discuss delivery dates and prices directly with the customer by phone and enables them to adapt the purchase order directly. The CTP application itself, which uses an in-memory database and a sophisticated solution algorithm, is transparent and not visible to the user. All results are integrated into the used SAP ERP sales transactions directly. Results of a sales CTP check are at first in a simulated state and only displayed in the sales transaction. They remain reserved for the user until the result is either confirmed or rejected. Confirmation of the results leads to the creation of production orders and residual batches in SAP ERP by the CTP application.
