Keynote presentation: The Evolution of Optimization in Business
Monday, February 25th, 2008In this session, Bob Bixby, ILOG Chief Science Officer, discussed how optimization has become a key component in addressing common business and manufacturing problems today. He explained what has and hasn’t changed in approaches to optimization over the many years that he has been in the business.
Bob used IBM’s East Fishkill 300mm semiconductor wafer manufacturing plant as an example to explain the benefits that optimization and automated scheduling can bring to highly complex manufacturing processes.
People have been trying to find ways to improve process optimization for years, of course. The difference today is that processes are now so complex that traditional methods can no longer cope. It’s no longer feasible to try and optimize an entire project. Instead, optimization solutions must break down processes into separate sub-processes and optimize those individually. The old generation of solutions, despite enormous progress in processing capacity, required too much time to generate optimum solutions. even with a turnaround time of less than 24 hours, solutions would often be obsolete before they could even be implemented.
By combining constraint programming optimization, process modeling and decision management systems, ILOG’s optimization suite can be used to build real-time optimization solutions. Bob’s slides contained plenty of statistics from the IBM Fishkill application, showing how this approach has been used to bring dramatic optimization improvements.
He highlighted, for example, the 25.3% reduction in cycle time (production time + waiting time) that the ILOG solution was able to achieve in certain plant sub-processes, which contributed to overall efficiency improvements of around 6%. Considering that the plant handles some 15,000 batches a day, that’s a considerable achievement and represents considerable cost savings for the plant.
These cutting-edge optimization solutions are no longer a nice-to-have. They are essential for survival in today’s white hot competitive environments.



