data & analytics @ work in tata steel · 2019-09-25 · –data & analytics platform...

Tata Steel

Data & Analytics @ Work in Tata Steel

Dr. Svend Lassen, Reporting & Analytics Commercial, Tata Steel in Europe

Future Steel Forum, Budapest 25/26th September 2019

Tata Steel

Tata Steel in Europe: One of Europe’s leading steel producers

Future Steel Forum Budapest, 25th September 2019 1

Products and services that create advantage

Our advanced capabilities

▪ Comprehensive range of steel products

and related services supplying into

demanding markets

▪ Operations in 26 countries like the UK

and the Netherlands, Germany, France,

Canada, the US and Belgium

▪ Commercial presence in more than 50

countries

▪ More than 9.6 million tons deliveries

▪ Turnover ~7.1 £ billion (2018/19)

▪ ~20,700 employees

Tata Steel

Our key markets


PackagingAutomotiveConstruction &

Infrastructure

Direct

Engineering

Serving the most demanding markets

worldwide – through a variety of

channels, including ‘owned’ and

independent channels

Indirect

Serving the most demanding markets worldwide

Tata Steel

World Economic Forum identified TSE globally as a lighthouse in 2018


Tata Steel

Steel Products, NL

Sandvik Coromant

Industrial Tools, SE

Rold

Electrical Components, IT

Danfoss

Industrial

Equipment, CNBMW Group

Automotive, DE

Saudi Aramco

Gas Treatment, SA

Phoenix Contact

Industrial

Automation, DE

Procter & Gamble

Consumer

goods, CZSiemens

Industrial Automation

Products, CN

Haier

Home

Appliances, CN

Bosch

Automotive, CNSchneider Electric

Electrical

Components, FR

Bayer

Division Pharmaceuticals,

IT

Johnson & Johnson

DePuy Synthes

Medical Devices, IR

Foxconn Industrial

Internet

Electronics, CN

Fast Radius with UPS

Additive

Manufacturing, US

Criteria: Significant impact, roll-out at scale, injectors of human capital (training)

Tata Steel

Customer feedback indicated supply chain as highest priority


Late delivery

Long lead time

Low predictability of orders

Timely response to issues

Little connection to TSE

No responsiveness

Coping with grade variations

Systems integration

'Real-time' order progress

SME constraints

Market efficiency

Volatility in orders

Differentiating in end market

Where is my steel?

Data & analytics is the main lever for additional business value

Source: TSE Strategic Marketing Customer Satisfaction Survey 2015

Tata Steel

Future Value Chain (FVC) program to create business value from data


Optimal demand-supply balance Agile deviation management

Effective fulfilment

and delivery

Aligned system

design

Integrated portfolio

steering

Create the best possible plan by

better forecasting future demand and

capacity

Intervene fast when deviations

happen to maximize value

Ensure

smooth execution

Design the most efficient set-up to reliably deliver the plan

Optimize micro mix and create long term value

for our customers

Tata Steel

FVC use cases – Comprehensive, interconnected set of use cases


Optimal demand-supply balance Agile deviation management

Effective fulfilment

and delivery

Aligned system

design

Integrated portfolio

steering

Dynamic

Pricing

PVM –

Fact-pack

PVM –

Sales

Navigator

Demand

Fore-

castingS&OP

Navigator

S&OP Eco-

system

Contract/

Sector

Navigator

Sales

Analytics

Trading

Desk

Weekly

S&OP

Capacity

Fore-

casting Digital twin

Virtual

Mill

Order

Fulfilment

Outbound

Logistics

Depannage

Flow

System

Design

Sustainable

Inventory

Mgmt.

SKU

Design

Tata Steel

Demand Forecasting: Advanced analytics (AA) models generate more accurate forecasts


PlansPlans

Sector

forecasts

Sector

forecasts

Customer

invoices

Customer

invoices

Data processing Forecast generation Output

Input Input Input

Weighted average + seasonality = AA forecast Weighted average + seasonality = AA forecast

Blending

9 forecast models

Blending

9 forecast models

Visual output in

Spotfire

Visual output in

Spotfire

Demand planning in

Anaplan

Demand planning in

Anaplan

Un-con-

straining

Un-con-

strainingFilteringFiltering

Why?

What?

How?

▪ Understand business

opportunities

▪ Evaluate portfolio mix and

profitability

▪ Increase demand planning

accuracy

▪ Apply predictive analytics

▪ Forecast with granularity of

customer, product and country

▪ Capture seasonality patterns

Increasing profitability and performance with more accurate sales & operations plans

Demand

Forecas-

ting

Tata Steel

Virtual Mill Design: Digital twin of the supply chain to simulate scenarios


Why?

What?

How?

▪ Create realistic supply plans

▪ Understand supply chain risks

▪ Optimize bottleneck assets

▪ Intervene on supply chain

issues

▪ Model supply chain assets

and linkages

▪ Capture asset performance

volatility

▪ Simulate possible scenarios

Virtual

Mill

RISK FLOW DIAGRAMOVERALL SYSTEM KPIS SYSTEM OUTPUT

Material flow diagram

showing constraints

Simulation resulting

in confidence intervals

Top-level indication of

risks based on system

simulation – and

different time horizons

Confidence levels

provide detailed view

on risk by asset

Reducing supply chain risks and acting better on deviations

Tata Steel

Business

functions

IT

At the start of FVC, external support

filling the inhouse capability gap

FVC approach for business value requiring new capabilities


Data/IT

architecture

Sort it

Combine data/

advanced analytics

(AA)

Improve it

Tooling/

integrated

planning

Show it

Process &

behaviours

Embed it

Impact on profit/

performance

Celebrate it!

Source

systems

Get it

Sustainable solution

Minimum viable product (MVP)

1

2

3

Concept development (user stories)

Tata Steel

PRODUCT OWNER

Develops, implements and

runs use case

BUSINESS OWNER

Sets objectives and

ensures delivery

USERS

Uses tools in business

processes

DATA

SCIENTIST

Applies statistical

methods/machine learning

DATA

STEWARD

Ensures data fitness

DATA

ENGINEER

Builds and manages data

pipelines

DIGITAL PROCESS

MODELLER

Designs and implements

planning processes

AGILE COACH

Coaches agile process

and resolves issues

ARCHITECT

Develops IT and data

architecture

Business

functions

IT / other

functions

New data & digital roles driving developments


Tata Steel

R&A teams in “The Loft” – a new co-working environment


▪ Activity-based, open-plan

work environment

▪ Co-location of R&A teams

to link data & analytics

▪ Close interactions for agile

ways of working

▪ More flexibility and better

space utilisation

▪ External partners

becoming part of the teams

Working together with business teams on Commercial use cases

Tata Steel

One data platform needed for sustainability and scalability


Use cases

building on

same data

Demand

Fore-

casting

Capacity

Fore-

casting

Other

use

cases

▪ Solution for sustainability and scalability of use cases

and value delivered (platform-supported)

▪ Caveat: Potentially conflicting demands from different

use cases to balance

To: Linking use cases to one platform

Illustrative

Use cases

with

individual

data feeds

From: Realizing individual use cases

▪ Focus on speed of use cases and value delivered

(fully use case-driven)

▪ Difficulty to ensure consistency across sites and

reusability of data in use cases

Illustrative

Demand

Fore-

casting

Capacity

Fore-

casting

Other

use

cases

DnA breaking the compromise of speed versus consistency

Stocks and orders data

Customer master data

...

Data &

Analytics

(DnA)

Platform

Tata Steel

Data & Analytics (DnA) Platform set up in the cloud


Business Insights

Master Data

Meta Data

Data Repository (Hadoop)

Enterprise Data Warehouse (SQL DB)Data

Management/

Quality Control

Data Loading (ETL)

Advanced Analytics (AA)Reporting/Data Exploration

Data Access Control

Data Source 1 Data Source 2 Data Source …

MS Azure Spotfire, WebFOCUS, etc.Python / RInformatica Cloudera

Heterogeneous systems and

data landscape across entities

Tata Steel

Ecosystem of value creation tools growing rapidly


Examples

Value driver

Teams encouraged to use DnA data for value creation

Data Exploration

Sales Deviation

Analyses

Order Book

Review

Depannage Tool

Order Fulfilment

Analyses

Stocks

Performance

Product mix

Value retention

Business Planning

Demand

Planning

Sales &

Operations

Planning

Supply Chain

Planning

Stock Target

Setting

Portfolio mix

Portfolio mix

Performance

Stocks

Advanced Analytics

Demand

Forecasting

Capacity

Forecasting

Logistics

Predictions

Virtual Mill

Design

Portfolio mix

Performance

Costs

Deviations

Reporting

Order Status

Dashboards

Deviations

Aged stocks

Performance

Performance

Weekly

Operational

Flash

Weekly

Operational

Forward View

Aged Stock

Reporting

Tata Steel

Extracting the full business value by changing the way of working

2016

Minimum Viable

Products

▪ First 10 algorithms

launched

▪ MVPs in use

▪ S&OP process redesign

▪ Agile methodology

applied

Prove new concepts &

quick wins

~xx €m

Day-to-day operation

▪ New S&OP tools in BaU

▪ Data- and AA-based

decision-making

▪ Alignment with other

functions

▪ DevOps teams set up

Achieve sustainability

& alignment

~xx €m

Transformation

▪ Growing ecosystem of value

creation tools:

– Data & Analytics platform

– Integrated, scalable and

maintainable tools

▪ Agile transformation

– Tribe and squad structure

– Empowered teams

Transform &

create more value

~xx €m

2017 2018 2019

Tools scale-up

▪ >15 FVC solutions ready

▪ Reporting & Analytics

function set up

▪ Advanced analytics (AA)

training academy started

▪ Agile teams in place

Land value & build

capabilities

~xx €m


Steady-state business value of triple-digit € million over 4 years

Tata Steel

Four beliefs on Data Governance shaping the future direction


Data is the most valuable

resource for modern business

Business requires

a data-driven culture

and data ownership

One Chief Data Officer (CDO)

should lead the change

Governance is instrumental to

unlocking the value of data

▪ Main additional business value comes from data & analytics

▪ Business must transform data into actionable insights

▪ In a data-driven culture, business treats data as an asset

▪ Business needs to take ownership for qualitative data

▪ Data must be shared across functional silos

▪ One CDO leads the change to a data-driven culture company-wide

▪ All business functions and IT must align on a common data vision and strategy

▪ Mission is to make data a competitive advantage

▪ Data governance enables the business with qualitative data

▪ Master data and meta data form the backbone

1

3

4

2

Open challenges with company-wide data governance (in bold)

Tata Steel

Key points summarized


❑ Data & analytics delivering hard results in the steel value

chain through multiple use cases

❑ Extracting value from data requires new people

capabilities and agile ways of working

❑ A company-wide data & analytics platform can break

the compromise of speed versus consistency

❑ Business and IT need a common approach for

managing agile teams and speeding up

❑ Outlook: Challenges with company-wide data

governance are still to address

data & analytics @ work in tata steel · 2019-09-25 · –data & analytics platform...

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