| Nippon Steel Corporation |
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| Tokyo, Japan |
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- Reduces production stocks
- Saves inventory costs
- Cuts steel waste
- Shortens lead time for deliveries
- Automates planning process
- Limits planning staff size
- Curtails training time for planners
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| "Our ability to deliver high-performance, cutting-edge applications that give our customers a significant competitive advantage is the key to our success. These requirements mean that we must seek out the best technology partners. We have enjoyed a long association with ILOG for the high quality of its products and because of the company�s acknowledged leadership in supply chain and manufacturing optimization solutions." |
Hiroshi Namie
Group Leader
NS Solutions Corporation |
Business
Nippon Steel Corporation is one of the world�s largest integrated steel makers. Steel bars, sheets, pipes and specialty steel account for some 60 percent of revenues. Typically, the company makes products that exactly match manufacturers� specifications, and delivers them on tight deadlines. Markets include chemical, IT, communications, real estate and transportation. Nippon Steel operates 258 subsidiaries worldwide.
Goal
One of Nippon Steel Corporation's auto-industry customers relies on precise production. Steel coils Nippon Steel supplies must fit perfectly when delivered, so they can go directly into production. Meeting these specifications was wasting considerable metal. Nippon Steel�s goal was to reduce those losses by improving planning and cutting waste.
Application
NS Solutions Corporation, Nippon Steel Corporation�s IT arm, has developed a supply-chain management solution to automate and optimize auto-parts production. The application was developed using ILOG Solver and ILOG CPLEX. It accurately matches automobile coil production to exact specifications. By automating planning, the system shortens production cycles and increases efficiency.
Results
Optimizing supply-chain management for its rolling mill helped Nippon Steel Corporation reduce waste metal, inventories and costs. ILOG Solver and CPLEX work together to create production plans based on order specifications and available steel stocks. Plans cover steel mills, the coil center and other facilities, reducing inventories at every level of production. The solution also generates cutting plans that minimize wasted steel.
Technical
ILOG Solver and ILOG CPLEX run algorithms specifically written for the problem. The algorithms compute a production plan for each order. They also determine the cutting patterns for the coils, exactly matching the customer�s dimensions.
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