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Value Maximizer

Value Maximizer is a McKinsey tool to optimize production planning, scheduling and logistics in complex manufacturing environments

Value Maximizer

Value Maximizer is a McKinsey tool to optimize production planning, scheduling and logistics in complex manufacturing environments

What it is

A decision support toolkit for Supply Chain planning optimization supported by accelerated best in class model development and backed by a modular, client customizable UI framework.

The tool can be rolled out at scale across sites and fully linked to IT systems through a multi-platform user interface.

Advanced Analytics from complex problems

Customized to perfectly fit the problem

Cloud solution for easy interface and access

Rapid and agile development

Focus on value capture

Value Maximizer can be used in the future digital supply chain based on end-to-end optimization which will enable transparency and fast and accurate decision making across functions

How it works

Value Maximizer creates a digital twin of complex system to enable real time optimization by various digital tools

Diagnose & Scope

Conduct site visits and interviews to assess the value at stake

Define tool requirements and scope (MVP and Business grade prototype)

Design & Prototype
(Digital twin method)

Build mathematical optimization model of the operations including technical and market constraints based on Python

Develop basic user interface for data input (e.g., Excel) and output visualization (e.g., Tableau)

Refine & Optimize

Challenge assumptions and constraints to unlock additional value (sensitivity analysis)

Run scenarios to identify high-yield investments and build their business case

Integrate model with UI platform with scenario creation and comparison functionality coupled with custom output visualizations

Integrate & Transform
(Roll-out at scale)

Embed the tool in the IT system (e.g., ERP, MES)

Fast roll out to other sites based on archetypes

Value Maximizer is mainly used to solve 3 main types of supply chain issues

Footprint/Network optimization

Simultaneously optimize production setup, external and internal logistics routes, procurement of raw materials, vs. sales forecast across a network of interlinked production sites or within a complex plant

Production planning (S&OP)

Optimize sequence of products and production flows of a complex batch or continuous production process to meet sales requirements, accounting for logistics and production constraints

Detailed scheduling optimization

Assess feasibility of future production plan in case of volume/ mix changes and simulate different debottlenecking scenario by providing an optimal calendar at day/shift level

What the output looks like

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A cloud-based platform allows simple and direct access to the optimization solutions

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Production scheduling interface

Advanced discrete simulation tools allow to optimize production scheduling at plant level

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Production network planning

Standardized modeling architecture enables quick development and customize interface for ease of use

Value Maximizer is being used across many industries in various areas for decision making

+3-5%

EBIT Margin

20+

Clients in different industry sectors

Applicable industry list for Value Maximizer

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Value Maximizer planning and scheduling impacts 4 dimensions: Profitability, Capacity, Reliability and Lead-time

+5%

Profit per hour

Increased profit per hour of the plant by 5% by producing the most profitable products ordered by clients

+9%

Capacity

Increased capacity by 9% by loading bottleneck requirement to maximum capacity through dynamic identification of bottlenecks

-50%

Scheduling issues

Reduced number of issues in production schedule

-60%

Scheduling lead-time

Reduced lead-time to produce production weekly schedule from 3 days to 1 day

Here are some client examples

A large flour milling company optimized complex footprint to improve EBITA profitability by 70% by relocation and closure of sales points leveraging Value Maximizer

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A large industrial company was able to optimize their outbound logistics by 5-10% annual saving using a customized supply network planning tool

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A dairy company optimized supply chain planning by integrating country and global S&OP planning process to achieve 5-10% profit improvement

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A European chemical company optimized complex production/ supply system by advanced analytics to model, design and train the employees achieving EBITDA increase by 55%

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A European chemical company optimized complex production/ supply system by advanced analytics to model, design and train the employees achieving EBITDA increase by 55%

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We contributed to an equivalent to 2% of EBIT margin at a leading chemical company

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The largest Northern Europe sugar producer achieved EUR 5M extra profit leveraging Value Maximizer

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A European food processing company was able to optimize its sourcing mix and generate a +3M Euro EBITDA increase

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End to end supply chain optimization solution with custom use interface and user flow deployed on Client’s cloud infrastructure enabled to reduce transportation costs by 3% for Grain Client in APAC

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Manpower Planning Optimization solution built for leading Hi-Tech Client based in APAC helped reduce manhours by ~23% and generate ~$1-3M impact annually

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By working with us, you will have access to

Experts

Our industry and functional experts will be on the ground where and when you need them.

Helpdesk

Our helpdesk will keep doors open and commit to addressing your concerns efficiently and effectively.

Training

We offer coaching and build capabilities for your teams to deliver sustained improvements.

Implementation

We partner with you and co-create a firm path to implementation as part of the project.

Connect with us to find out more

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