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Presented by: Dino Stamatiou Director, Business Intelligence and Analytics John Reichert Sr. Director SCE Solutions The Next Big “Smarter” Thing Predictive Analytics Join Real-Time Floor Execution © 2016 MHI® Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.

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Page 1: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Presented by:

Dino Stamatiou Director, Business Intelligence

and Analytics

John Reichert Sr. Director SCE Solutions

The Next Big “Smarter” Thing

Predictive Analytics Join Real-Time Floor Execution

© 2016 MHI® Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.

Page 2: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Today’s Agenda

• The Case of the Sliding Forklift

• Predictive Analytics Explained – Internet of ‘Anything’

– Big Data Technology

– Machine Learning Themes

– Benefits from Predictive Analytics

• Putting Predictive Analytics into Action – Next Peak Season Planning

– Predicting Errors to Prevent Errors

– Get Home on Time Today

Page 3: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

3

Slippery When Wet

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4

Census

Page 5: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

5

The Internet of

‘Anything’

Page 6: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Technology

Page 7: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Machine Learning • Classification

• Regression

• Association Rule Learning

• Clustering

• Anomaly Detection

• Sequential Pattern Mining

Page 8: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Methodology – CRISP DM

Page 9: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Benefits of Analytics for Supply Chains

Source: Accenture

Page 10: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Get home

on time for

dinner

Put Predictive Analytics into Action

Page 11: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Late Again?

• Not sure why, but always something

– Late arriving orders

– Correcting inventory errors

– Abnormal order spikes again

– Unexpected labor shortage

– Machine downtime

– Unexplainable productivity

– No clue, just a bad day

Page 12: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Next Peak Season Planning

Operations

“I want to be home on time for dinner.”

“I need additional staff”

“ Sales forecast is up.”

“ The warehouse will be too full.”

“ Productivity will be down.”

“ We must double check more orders.”

“ I need additional staff.”

“I won’t be home on time for dinner”

CFO

“Me too.”

“Why”

“That’s good!”

“You said that last year.”

“Why? You need to improve.”

“Then why are errors up?”

“Sales up 5%, you get 5%”

“Be optimistic!”

Page 13: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Next Peak Season Planning

65

XMAS1 XMAS2 XMAS3 Next

XMAS1

XMAS2

XMAS3

Next

Historical Pick Rate Trend

Rates w/o Predictive Analytics

Page 14: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Next Peak Season Planning

65

15

XMAS1 XMAS2 XMAS3 Next

Just Do It

Predicted

NOT Home for Dinner on Time

Management Edict: “Work Smarter”

Page 15: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Next Peak Season Planning

Predictive Analytics

Customer Errors

Pick Rates

Space Usage

Page 16: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Next Peak Season Planning

Space Utilization

Pick Rates

SpaceUtilization

Pick Rate

Space Constraint Trending Impact 65 drops to 51 Pick/Hr

Predictive Combination Results

Page 17: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Next Peak Season Planning

Pick Rates

Customer Errors 0

50

100

150

200

250

XMAS1 XMAS2 XMAS3 NEXT

Error $$

Labor $$

Building $$

Additional Variables

Page 18: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Next Peak Season Planning

XMAS1 XMAS2 XMAS3 Next

Space Utilization

Pick Rate

Building Expansion Predictive Results

Page 19: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Next Peak Season Planning

XMAS1 XMAS2 XMAS3 Next

Space Utilization

Pick Rate

Building Expansion Predictive Results

Page 20: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Next Peak Season Planning

XMAS1 XMAS2 XMAS3 NEXT

Error $$

Labor $$

Expand Bldg

Building $$

0

50

100

150

200

250

XMAS1 XMAS2 XMAS3 NEXT

Predictive and Measurable

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Predicting Errors to Prevent Errors

WMS History

High Error Risk

Visual / Audio Caution

Current Pick Risk Prediction

(Item – Quantity – Operator)

Repetitive Errors

Page 22: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Predicting Errors to Prevent Errors

0

20

40

60

80

100

120

140

160

Prior 60 Days Post 60 Days

Re

po

rte

d E

rro

rs

Errors per 10,000 Picks

Highest Reported Error SKU’s

Absolute Zero!

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Predicting Errors to Prevent Errors

What if no history of errors?

Page 24: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Get Home on Time Today

What If…. …Danger heard early

…Environment considered

…Results are predicted

…Optimum scenarios automated

…New situations are learned

Page 25: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Get Home on Time Today

Transfers

Mom &Pop

Big Box

E-Com

Amazon

Order Cut-Off Time

Predicted Additional

Orders

5:30 PM

6:00 PM Machine Capacity

Scheduled Labor

70

80

90

100

110

Wk1Wk2Wk3Wk4Wk5Wk6

John

Fred

Sam

Calvin

Tim

Individual Rates

Predicted Total Orders

Page 26: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Get Home on Time Today

Transfers

Mom &Pop

Big Box

E-Com

Amazon

Order Cut-Off Time

Predicted Additional

Orders

5:30 PM

6:00 PM

Scheduled Labor

Machine Capacity

70

80

90

100

110

Wk1Wk2Wk3Wk4Wk5Wk6

John

Fred

Sam

Calvin

Tim

Individual Rates

Predicted Total Orders

Page 27: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

Get Home on Time Today

Revised Projection – Assign top performers most critical

– Project / notify over-time needs

– Engage workers in bid process

– Continuous feedback loop

Monitor and Adapt – Measure against predictions

– New data for future

Page 28: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

The Next Big

“Smarter”

Thing

Predictive

Analytics

The Next Big

“Smarter”

Thing

Predictive

Analytics

Page 29: The Next Big “Smarter” Thingcdn.modexshow.com/seminars/assets-2016/1073.pdf · XMAS1 XMAS2 XMAS3 Next XMAS1 XMAS2 XMAS3 Next Historical Pick Rate Trend Rates w/o Predictive Analytics

For More Information:

[email protected]

[email protected]

website: www.tecsys.com

Or visit MODEX 2016 Booth #1547