Download - Nick Davis (Hobsons - UK)
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Enhancing Digital Transformation in Manufacturing SMEs
22nd of MayBrussels
2015
Nick DavisHobsons Brewery
Gary PattisonSaker Solutions
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INDEX1. WHAT WE ACHIEVED
2. HOW WE DID IT
3. HOW I4MS HELPED
4. HOW WE WILL TAKE IT FORWARD
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WHAT WE ACHIEVED
1. Quality is the key to success
• All beer has unique characteristics
• Each beer is at its best within a specific age window
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels
• Client sites consume casks at different rates• Some much faster than others
• Need to ensure that casks will be opened at the optimum time so beer is consumed when it is neither too young nor too old
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WHAT WE ACHIEVED
2. Craft brewers embrace benefits of simulation modelling
• Corporate brewers are long standing proponents of simulation• High capital investment• Strategic business change
• Less than 20 large breweries in the UK• Most of which have used simulation
• In contrast, craft brewers:• c. 1,350 in the UK• Estimated 15,000 across the EU
• Simulation enables• Better operational decisions
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels
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• Assuming a 15,000 HL/PA production with a spoilage rate of 0.5% eliminates the following negative economic effects:
• Loss of beer sales revenue c. 18,000 Euros / PA
• Extra energy requirements 5,000 Euros / PA
• Barrel utilisation costs 3,000 Euros / PA
• Increased carbon footprint
• Reputational costs, HUGE
• C. 15,000 European craft brewers, multiplying the losses creating significant deficit to the industry and creditability.
WHAT WE ACHIEVED
3. Economic Impact
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels
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• Traditionally all stock was picked on an ‘oldest used first basis’
• Approach did not take into account:• The age at beer is at its best • When beer will be consumed
• Application generates:
• Delivery schedule – which casks are to be delivered to whom today
• Are future deliveries covered (considers future orders & forecast)
• Simulation used to test robustness of allocations:
• Variations in consumption times
• Variations in demand forecasts
HOW WE DID IT?
Application
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels
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HOW I4MS HELPED
Removal of barriers and opportunity to embrace benefits
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels
• Removal of all barriers preventing craft brewers making use of leading edge, simulation based decision support tools.
• Simulation was seen as
• Too costly• Software• Services• Skills
• However, benefits and value of decision support are highly desirable
• Qualitative
• Quantitative
• Off-the-shelf decision support tool to allow Craft Brewers to maximise quality and leverage sales.
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HOW I4MS HELPED
Application User Interface
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels
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• Hobsons ‘Case Study’ / Reference site
• Initial targeting of specific key craft brewers through Hobsons
• Wider proactive marketing campaign through SanderWerbung GmbH
• Potential already identified for uptake in other food and beverage industries – strong analogy with diary industry
• Further initiative underway through InnovateUK to extend capabilities.
HOW WE WILL TAKE IT FORWARD
Exploitation
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels
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• For the same size 15,000 HL / PA brewery controlling quality a 50% reduction in spoilage is attainable.
• Saves 13,000 Euros annually in production costs, energy and loss of sale revenue.
• Improves carbon footprint.
• We believe that within year three 10% of the UK breweries (130) will adopt the simulation template saving approximately 1.7M Euros per year.
• Additional sales will also accrue along with a stronger reputation.
• Beer Duty
HOW WE WILL TAKE IT FORWARD
Economic Benefits
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels
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THANK YOUFOR YOUR ATTENTION
Nick DavisHobsons Brewery
Gary PattisonSaker Solutions