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Dispatch Optimization FOR DUMMIES CC-001. James Wagner [email protected] Cell 612-991-5912. Optimization . Optimization Continuously finding the optimum solution to a set of logistical problems. Ready Mixed Concrete Optimization

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Dispatch optimization for dummies cc 001

Dispatch Optimization FOR DUMMIESCC-001

James Wagner

[email protected]

Cell 612-991-5912


Optimization

Optimization

  • Optimization

    • Continuously finding the optimum solution to a set of logistical problems.

  • Ready Mixed Concrete Optimization

    • Finding the optimum solution to a set of logistical problems - then recalculating the solution at each order or truck status change.

Optimization for Dummies


Optimization is not new to other industries

Optimization is not new to other Industries

Optimization for Dummies


Optimization is new to the ready mixed concrete industry

Optimization is new to the Ready Mixed Concrete Industry.

Optimization for Dummies


How is ready mixed concrete similar to other industries using optimization

How is Ready Mixed Concrete similarto other industries using optimization?

  • Orders have different start times and durations.

  • Due time and “gaps” in service are critical.

  • Specific products are required.

  • Specific trucks are specified.

  • Overtime must be controlled.

  • Delivery receipts are required.

  • Customer must sign for delivery.

  • Trucks return to domicile location at days end.

  • Lowest cost plant is used when possible.

  • Union rules must be followed.

Optimization for Dummies


How is ready mixed concrete different from other industries using optimization

How is Ready Mixed Concrete different from other industries using optimization?

  • Just- in-Time delivery.

  • Often short notice.

  • Made to order product.

  • The product has a short shelf life.

  • Order can have multiple loads.

  • The loads must be accurately spaced.

  • Unload rate often changes & must be matched.

  • A truck makes 1 delivery of 1 product/load.

Optimization for Dummies


How is ready mixed concrete different from other industries using optimization1

How is Ready Mixed Concrete different from other industries using optimization?

  • Production & transport work close together.

  • Focus on service level (time) and costs.

  • High cost, low profit industry.

  • Uncertain dynamic schedule.

  • High quality is crucial.

  • An inexpensive product (2.5¢/ lb)that can have high removal costs

  • Customer controls final results.

Optimization for Dummies


Concrete dispatching is like playing chess

Concrete dispatching is like playing chess.

No move stands alone.

Every move impacts another.

Take a small loss now to extract a big win.

Optimization for Dummies


Dispatch decision complexity

Dispatch decision complexity

Job #4

Plant A

Job #1

Job #5

Plant B

Job #3

Job #2

Optimization for Dummies

The Future of Concrete Dispatching


Average dispatcher trucks go to and from same order to same plant

Average dispatcherTrucks go to and from same order to same plant

Job #4

Plant A

Job #1

Job #5

Plant B

Job #3

Job #2

Optimization for Dummies

The Future of Concrete Dispatching


Dispatch optimization for dummies cc 001

Good dispatcherTrucks return from order and are redeployed to other orders thus “juggling” trucks

Job #4

Plant A

Job #1

Job #5

Plant B

Job #3

Job #2

Optimization for Dummies

The Future of Concrete Dispatching


Dispatch optimization for dummies cc 001

Better dispatcherReturning Trucks are redeployed to other Plants & orders

Job #4

Plant A

Job #1

Job #5

Plant B

Job #3

Job #2

Optimization for Dummies

The Future of Concrete Dispatching


Dispatch optimization for dummies cc 001

Best dispatcherTakes into account all orders, plants, trucks and drivers in all delivery areas, juggling to minimize time and overtime.

Job #4

Plant A

Job #1

Job #5

Plant B

Job #3

Job #2

Optimization for Dummies

The Future of Concrete Dispatching


Dispatch optimization for dummies cc 001

Best dispatcherTrucks and drivers return to their domicile plant taking into consideration time at the other plants.

Job #4

Plant A

Job #1

Job #5

Plant B

Job #3

Job #2

Optimization for Dummies

The Future of Concrete Dispatching


Dispatch optimization for dummies cc 001

Best dispatcher

  • Problem;

  • Most humans cannot think this many moves ahead

  • The situation & solution keep changing.

Job #4

Plant A

Job #1

Job #5

Plant B

Job #3

Job #2

Optimization for Dummies

The Future of Concrete Dispatching


Dispatch optimization for dummies cc 001

OptimizationTakes all this into consideration, constantly.

Job #4

Plant A

Job #1

Job #5

Plant B

Job #3

Job #2

Optimization for Dummies

The Future of Concrete Dispatching


You already have optimization guidelines

You already have optimization “guidelines”

  • Use the larger trucks first.

  • Avoid overtime.

  • Avoid deadheading trucks.

  • Always use full loads when possible.

  • Area “A” jobs should come from plant “A”.

  • Plant “X” has less expensive materials.

  • Don’t load too early for a job.

  • React quickly to jobsite conditions.

  • Wash up trucks when no longer needed.

Optimization for Dummies


Current guidelines

Current Guidelines

  • But what if delivering a load from a different plant reduces overtime at the first?

Optimization for Dummies


Current guidelines1

Current guidelines

  • What if a very high priority customer can be serviced by juggling orders and loads to other plants?

Optimization for Dummies


Current guidelines2

Current Guidelines

  • What if the additional material cost for a small load at plant “B” is insignificant compared to the lower delivery cost from that plant?

Optimization for Dummies


Current guidelines3

Current Guidelines

  • What if having a truck return to another plant would eliminate the queuing at the original plant and improve utilization and service?

Optimization for Dummies


Current guidelines4

Current Guidelines

Waiting a few minutes for the correct truck reduces delivery costs?

Optimization for Dummies


Why can t i do this

Why can’t I do this?

  • Decision Complexity

  • Too much math involved.

  • The inability to analyze the entire day.

  • The inability to analyze the entire market area.

  • Inability to improve with current tools.

  • Constantly changing situation.

  • Lack of time

Optimization for Dummies


Dispatch challenges

Dispatch Challenges

The “weak link” to further improving service and reducing delivery costs is you, the dispatcher.

You are among the very best but can be overwhelmed by the amount of decisions and impediments.

Optimization for Dummies


Dispatch challenges1

Dispatch Challenges

Dispatching tools have also “hit a wall” in improved utilization and service.

Optimization for Dummies


Dispatch challenges2

Dispatch Challenges

We have been using the same tools for the last decade.

Optimization for Dummies


Dispatch challenges3

Dispatch Challenges

If one’s only tool is a Hammer . . .

Optimization for Dummies


Dispatch challenges4

Dispatch Challenges

All problems tend to be viewed as a nail.

Optimization for Dummies


Dispatch challenges5

Dispatch Challenges

  • Dispatching is a high stress profession.

  • The situation keeps changing.

  • The plan needs constant re-evaluation.

  • Re-scheduling is exhausting.

Optimization for Dummies


Dispatch decision complexity factors

Dispatch decision complexity - factors

  • Haul cost by time

  • Haul cost by distance

  • Dead head costs

  • Plant loading speeds

  • Loading speed by mix

  • Plant opening times

  • Driver seniority

  • Union rules

  • Driver call in rules

  • Time of day

  • Cost of being late

  • Cost of not recycling trucks to same job

  • Truck attributes

  • Mix cost

  • Job priority

  • Job start time ranges

  • Linked orders

  • Need to load early

  • Trucks on tasks

Optimization for Dummies


Dispatch decision challenges

Dispatch decision challenges

  • New orders

  • Changing orders

  • Cancelling orders

  • Delayed orders

  • Orders running short

  • Orders increasing

  • Orders unloading slowly

  • Drivers lost

  • Breakdowns

  • Traffic

  • Weather

  • Phones ringing

  • Radio

  • Questions from Sales

  • Reports required

  • Questions from billing

  • Angry customers

  • Long hours

  • Ever changing schedule

  • Non-dispatch phone calls

Optimization for Dummies


Customer order challenges

Customer order challenges

  • Must have trucks types (front discharge, long chutes, all wheel drive, conveyors.

  • Cannot use truck types (semi, heavy).

  • Truck attributes required (admix dispenser, multi state license plates, paving mixer)

  • Driver attributes required (airport clearances, refinery safety training, etc.)

  • Plant materials constraints.

  • Plant doesn’t matter but once started all loads must come from that plant.

Optimization for Dummies


Is it any wonder you sometimes have trouble making good consistent decisions

Is it any wonder you sometimes have trouble making good, consistent decisions?

Optimization for Dummies


Dispatch optimization for dummies cc 001

Dispatch Challenges

  • Overwhelmed, dispatchers have no choice but to rely on your past experience.

  • Often without consideration of its effectiveness.

  • Company policies often dictate their course of action.

Optimization for Dummies


Dispatch challenges6

Dispatch Challenges

  • By Friday, you are mentally fatigued.

  • Angry customers provide immediate feedback - thus over-influencing your decisions.

  • Your reward is often to be second guessed about the decisions made.

  • Dispatchers surmise that volume seems more important to management than service or utilization.

Optimization for Dummies


What is optimization

What is optimization?

  • Optimization is the next level tool to improve service and reduce delivery costs

  • Optimization assists you by calculating the overall lowest cost, highest service plan.

  • Optimization produces a plan in seconds

  • Optimization automatically re-plans at each change and displays the results.

Optimization for Dummies


Optimization takes into account the effect of each solution on the entire day and market area

Optimization takes into account the effect of each solution on the entire day and market area.

What is optimization?

  • Not just one load.

  • Not just one order.

  • Not just one plant.

  • Not just one region.

Optimization for Dummies


What is optimization1

What is optimization

  • Optimization assigns “costs” to compute the best plan.

    • The costs of running trucks and opening plants are known.

    • The costs of mixes are known

    • The costs of driver labor are known.

Optimization for Dummies


What is optimization2

What is optimization

  • Optimization uses “pseudo costs” to factor in service.

    • Cost of being late by increasing increments

    • Cost of gaps in service by increments

    • Costs by customer priority

    • Costs by job priority

    • A customer’s priority increases service “costs”.

    • Certain jobs have higher priority and thus higher “costs”.

    • The “costs” increase as lateness increases.

Optimization for Dummies


How does optimization work

How does optimization work?

  • Concrete factors can be tweaked

    • Balance service with costs

    • Priority customers, projects, jobs

    • Loading time for individual mixes.

    • On-time versus waiting for the best truck size (two loads on time or one load a little late)

    • Waiting a few more minutes for a better truck.

Optimization for Dummies


How does optimization work1

How does optimization work?

Optimization has two facets

  • Resource or capacity planning

    • Future orders, trucks, drivers and plant schedules

  • Real time optimization

    • Today’s ever changing business

Optimization for Dummies


Resource or capacity planning

Resource or Capacity Planning

  • Used for future work.

  • Plans the best schedule with the orders, trucks, drivers and plants available.

  • An order’s loads are scheduled for the best plant based upon material, delivery and customer service costs.

Optimization for Dummies


How does capacity planning work

“Penalty” ($)

75

50

25

20

30

10

Lateness (min.)

How does capacity planning work?

  • The cost escalates the later the delivery.

  • A customer’s priority increases the cost of lateness by multiples.

Service focus

Efficiency

focus

Optimization for Dummies


How does capacity planning work1

How does capacity planning work?

  • The contractor may want only certain trucks or attributes, not care about them or not want them on this order.

Rear discharge

Front discharge

  • Semi trailer mixer

X

  • Conveyor truck

  • Site admix dispenser

  • Slump control

Optimization for Dummies


Real time optimization

Real-time Optimization

  • Used for today’s work.

  • Reacts to the constantly changing situations facing dispatchers.

  • Must be fast and produce new plans immediately.

  • Replanning initiated by truck statusing or order changes.

Optimization for Dummies


How does dispatch optimization affect my daily activities as a dispatcher

How does Dispatch Optimization affect my daily activities as a dispatcher?


Dispatch optimization for dummies cc 001

Order Entry looks similar to COMMANDconcrete

Optimization for Dummies


Order entry

Order Entry

Optimization requires 100% Mapped Orders

Optimization for Dummies


Order entry1

Order Entry

You can increase the suggested Travel Time with an Offset

Optimization for Dummies


Order entry2

Order Entry

Item Codes are only available at specified plants.

Optimization for Dummies


Item availability

Item Availability

  • Automatically will exclude plants where Item is not active

  • The key is to maintain the Item Master locations.

  • Can now be altered in Projects


Dispatch optimization for dummies cc 001

Order Entry

These fields pertain to the placing of multiple products on one order, which follows which and what is the spacing between?

Optimization for Dummies


Integra order entry screen

Integra order entry screen

Optimization for Dummies


Order entry3

Order Entry

Plant code is only used to determine under which plant the order is displayed in tracking screen.

Optimize will select the best plant fit for each load.

Optimization for Dummies

54


Order entry4

Order Entry

Start time is a range. If the “Thru” time is blank, the Start time is considered absolute.

If there is a range, COMMANDoptimize will try to start the order within this time period.

Optimization for Dummies


Order entry5

Order Entry

Since Map Pages are required, these fields should be filled in automatically. These are for information only and will change as CS learns.

Optimization will use Map Page times for each load

Optimization for Dummies


Order entry6

Order Entry

The Second is Fixed Qty/Hour Unload. This tells the Optimizer to ship the concrete at the rate per hour no matter what.

Optimization for Dummies

57


Order entry7

Order Entry

Use this rate for orders that want a specific rate per hour with time to finish concrete between loads or to keep trucks lined up to overtruck an order.

Optimization for Dummies

58


Order entry8

Order Entry

An order priority is used to resolve conflicts.

A single digit from 1 (low) to 9 (highest) is used.

A default of 3 is suggested. Blank = 0

Optimization for Dummies


Order entry9

Order Entry

A high priority does not guarantee that the order will get perfect service. i.e., Trucks must be available

Optimization for Dummies


Order entry10

Order Entry

Amount Of Time the Load is ticketed early. This is really “In the Yard Wait Time”. Good for Inspectors and Mix Testing at the Plant.

Optimization for Dummies


Order entry11

Order Entry

If this order is to follow another order by the same customer, a specified gap between the orders can be specified here.

Optimization for Dummies


Order entry12

Order Entry

  • The Gap is figured from the customer’s viewpoint!

  • It is from

  • the unload time of the previous order’s last truck

  • until the arrival of this order’s first truck.

  • This also means the Start Time of the second order is ignored. That’s now just a dispatch visual.

Optimization for Dummies


Order entry13

Order Entry

Optimization for Dummies


Order entry14

Order Entry

Sometimes the customers need trucks with several attributes. Forbidden can be multiple.

Maybe the customer wants a Composite Drum with a All Wheel Drive

Optimization for Dummies


Integra scheduling delivery attributes

Integra scheduling – Delivery attributes

Integra’s attribute button

Optimization for Dummies


Integra employee attributes

Integra employee attributes

Optimization for Dummies


Integra plant attributes screen

Integra plant attributes screen

Optimization for Dummies


Integra truck attribubes

Integra Truck Attribubes

Optimization for Dummies


Order entry15

Order Entry

Optimization for Dummies


Order entry16

Order Entry

Order load schedule

Optimized load schedule

Optimization for Dummies


Integra scheduling non optimized

Integra scheduling – non-optimized

Order load schedule

Optimization for Dummes


Integra scheduling optimized

Integra scheduling - optimized

Optimized load schedule

Optimization for Dummies


Driver call in

Driver Call In

When the last first round order has been taken for the day it is time to run the Driver Call-In report.

Optimization for Dummies


Commandconcrete used a printed driver call in report

COMMANDconcrete used a printed Driver Call In report

Optimization for Dummies


Drci driver call in

DRCI Driver Call In

COMMANDoptimize uses a Window called the DRCI (DRiverCall-In)

Optimization for Dummies


Drci driver call in1

DRCI Driver Call In

The DRCI can be accessed through the COMMANDconcrete Reports menu

Optimization for Dummies


Drci driver call in2

DRCI Driver Call In

Or by right clicking on the plant at the day desired, usually tomorrow.

Optimization for Dummies


Drci driver call in3

DRCI Driver Call In

Select the plant desired or “A” “for” all plants.

Optimization for Dummies


Drci driver call in4

DRCI Driver Call In

The DRCI will display for the day and plant selected.

Optimization for Dummies


Drci driver call in5

DRCI Driver Call In

The report shows all drivers & Suggested Call-In times.

Optimization for Dummies


Drci driver call in6

DRCI Driver Call In

A tick in the “Available” column opens the Call-In field for a time and truck.

Optimization for Dummies


Dispatch optimization for dummies cc 001

DRCI

Unassigned trucks are shown in red under “Trucks Not Used” at the bottom of the screen.

Optimization for Dummies


Integra resource manager drci

Integra Resource Manager - DRCI

Optimization for Dummies


Dispatch optimization for dummies cc 001

DRCI

The DRCI can be used to ensure that drivers clock in on time and in the correct truck.

Optimization for Dummies


Tracking in commandoptimize

Tracking in COMMANDoptimize

The Truck Tracking appears quite similar.

Optimization for Dummies


Tracking in commandoptimize1

Tracking in COMMANDoptimize

A counter shows minutes & seconds since the last optimized update, in this case 00:41 seconds.

Optimization usually occurs within 1 minute

Optimization for Dummies


Dispatch optimization for dummies cc 001

  • Tracking in COMMANDoptimize

Symbols in front of orders indicate status or problems


Dispatch optimization for dummies cc 001

  • Tracking in COMMANDoptimize

  • The order is preceded with a letter.

    • = order is awaiting optimization because it is new or there are changes.

    • = order is properly optimized; today’s orders only


Order status in tracking

Order Status in Tracking

  • Problems will be backlit in Red

    • – Order requires GPS coordinates

    • – Order requires a Map Page

    • – Order requires a Maximum Truck Size setting

    • – Order Loads cannot be fully scheduled

    • – Ordered Qty reached but Scheduled Qty remains

G

M

T

L

>

Optimization for Dummies


Tracking in commandoptimize2

Tracking in COMMANDoptimize

Orders to Load shows suggested truck assignments

Optimization for Dummies


What if i do not accept the suggestion

What if I do not accept the suggestion?

Like GPS it simply “recalculates”

Optimization for Dummies


Tracking in commandoptimize3

Tracking in COMMANDoptimize

Trucks at Orders to Load have trailing letters

X – Not In ServiceO – On Job

Y – Printed P – Pouring

L – LoadingR – Returning

T – To JobW – Washing

Optimization for Dummies


Integra truck tracking

Integra Truck Tracking

Optimization for Dummies


Integra truck tracking1

Integra Truck Tracking

Truck Suggestions; Return plant, Lunch and no more work.

Optimization for Dummies


Integra truck tracking2

Integra Truck Tracking

Suggested truck numbers for each load.

Optimization for Dummies


Integra truck tracking3

Integra Truck Tracking

Scheduled lateness

Optimization for Dummies


Integra truck tracking4

Integra Truck Tracking

Sometimes an Plant’s (locations) suggestions seem strange.

To troubleshoot, right click on the Plant in Integra and select “Show Loads”.

Optimization for Dummies


Integra truck tracking5

Integra Truck Tracking

Loads for today and future days can be displayed

Optimization for Dummies


Order entry and show loads

Order Entry and Show Loads

Sometimes an order’s suggestions seem strange.

To troubleshoot, right click on the order and select “Show Loads”.

Optimization for Dummies


Show loads

Show Loads

From here, you can see the plan for this order and its history with ticket numbers and times.

Optimization for Dummies


Show loads1

Show Loads

Note: The times for ticketed loads are actual times up to the current time of day.

Future times are still estimates

Optimization for Dummies


Show plan

Show Plan

Sometimes a truck suggestion seem strange.

Right click on the truck and select “Show Plan”.

Optimization for Dummies


Show plan1

Show Plan

From here, you can see the plan for this truck.

Also shown is the truck’s history with ticket and times.

Optimization for Dummies


Integra truck tracking6

Integra Truck Tracking

Loads for today and future days can be displayed by right clicking on the truck

Optimization for Dummies


Tracking in commandoptimize4

Tracking in COMMANDoptimize

The Spacing and Travel areas can be toggled to show other data relating to the delivery of this order.

Optimization for Dummies


Tracking in commandoptimize5

Tracking in COMMANDoptimize

Ord – Ordered rate in quantity/hr

Esr – Effective Service Rate – rate of loaded trucks

Unl – Actual unload rate in quantity/hr

Opt – Optimized rate for remaining loads

Optimization for Dummies


Tracking in commandoptimize6

Tracking in COMMANDoptimize

Order to Load in minutes.

Should load approx 1 minute ago but there are circumstances that will delay this arrival, i.e. no trucks back in time.

Optimization for Dummies


Tracking in commandoptimize7

Tracking in COMMANDoptimize

The time for “Orders to Load” cannot be negative or negative for very long as optimization continuously pushes loads ahead.

Load time in red will show briefly until optimization updates.

Optimization for Dummies


Fast changing situations

Fast changing situations

Concrete delivery is fast paced.

  • Orders added, cancelled, moved, changed

  • Trucks coming into and out of service

  • Trucks changing statuses

  • Plant problems

Optimizationis fast changing.

  • Don’t get too concerned about load suggestions more than 20 minutes in advance.

Optimization for Dummies


Fast changing situations1

Fast changing situations

Optimization changes rapidly because it is based upon:

  • FactsTravel times, start time, load size, mix

  • Estimates Quantity, order backs, inspections

  • Guesses Unloading time, rate

  • Wild Guesses

Optimization for Dummies


Tracking in commandoptimize8

Tracking in COMMANDoptimize

Red time beside the load time shows how many minutes late it will be.

Many loads with red indicates overbooking & running late.

Optimization for Dummies


Tracking in commandoptimize9

Tracking in COMMANDoptimize

Sometimes many loads with red lateness will be seen approaching when the “Orders to Load” section is expanded. This indicates overbooking & running late coming up.

Optimization for Dummies


Tracking in commandoptimize10

Tracking in COMMANDoptimize

A trucks “Not Ready” column has been added so show trucks not yet in service but coming available for loading and those on tasks.

Optimization for Dummies


Integra truck tracking7

Integra Truck Tracking

Trucks are placed on tasks by right clicking or accepting suggestion

Optimization for Dummies


Tracking in commandoptimize11

Tracking in COMMANDoptimize

A truck unloading is already being planned for its next load.

A truck’s suggested load assignment is displayed when the truck is in the wash status, before it departs the jobsite.

Optimization for Dummies


Dispatch optimization for dummies cc 001

Optimization suggestions

An “O” in front of a truck + a color change in wash status indicate that optimization has a suggested return plant.


Dispatch optimization for dummies cc 001

Optimization suggestions

Right click on truck & select “Accept/Reject Plant Change”.


Dispatch optimization for dummies cc 001

Optimization suggestions

If the suggestion has not been accepted/rejected by the time the truck goes into the “To Plant” status, optimization assumes the dispatcher has rejected the suggestion.


Tracking in commandoptimize12

Tracking in COMMANDoptimize

Double clicking on the “Not Ready” column will show all trucks whose return plant is suggested to be changed.

Optimization for Dummies


How does optimization change your dispatch organization

How does optimization change your dispatch organization?

The importance of CSRs is increased.

  • Better, more accurate orders

  • Optimization can only schedule what it knows.

  • It knows only what the CSR has told it

  • Optimization occurs BEFORE shipping

  • It’s too late for the shipper to fix mistakes

Optimization for Dummies


Paradigm shifts

Paradigm Shifts

Without good Customer Service Representatives (CSRs) many orders are taken without negotiation.

Assets are overbooked and underutilized.

Optimization for Dummies


Paradigm shifts1

Paradigm Shifts

  • A good CSR will negotiate to try to get the best fit while providing good service.

  • Priority customers are taken when they want it.

  • Good customers are asked if another time would work.

  • Poor customers are told when they will get it.

Many Orders, dispatcher optimizes

Optimization for Dummies


Paradigm shifts2

Paradigm Shifts

With Optimization

  • Overbooking is not prevented

  • Optimization makes the best of the situation developed by the Customer Service Reps (CSRs) or order takers.

  • Optimization displays the degree of overbooking and corresponding “lateness”.

  • The dispatcher staff is still in charge.

Optimization for Dummies


Paradigm shifts3

Paradigm Shifts

Optimization takes the best Dispatcher’s effort and refines it to achieve the best balance of service and utilization.

Dispatcher attention to the schedule results in fewer trucks used.

Optimization for Dummies


Paradigm shifts4

Paradigm Shifts

Doesn’t optimization eliminate the need for a dispatcher?

Optimization eliminates dispatchers like autopilots eliminate pilots.

Dispatchers are needed for the exceptions.

Optimization for Dummies


Dispatchers are needed for

Dispatchers are needed for

Exceptions

  • Weather

  • Traffic jams

  • Shortages

  • Breakdowns

  • Driver problems

  • Overbooking

  • Probing for correct information

  • Calling customers if going to be late.

  • Judgment calls

Optimization for Dummies


Can i reduce my dispatch staff

“Can I reduce my dispatch staff?”

Probably not.

Dispatchers salaries cost est. $ 0.81 / yd3

Trucks and drivers cost $ 24.50 / yd3

Dispatch salaries of $ 0.81 represent only

48 seconds of truck time at $ 65.00/hr.

Optimization will

  • reduce delivery cost

  • Improve service

Optimization for Dummies


Dispatcher about to switch to optimization

Dispatcher about to switch to Optimization

“Concrete is a fast paced, constantly changing business. How can COMMANDoptimize keep up?”

Optimization for Dummies


Dispatcher using optimization

Dispatcher using Optimization

“Optimization keeps changing it’s mind. Why are it’s suggestions in flux?”

Optimization for Dummies


Answer

Answer

Because concrete is a fast paced, constantly changing business.

It needs to in order to keep up.

Optimization for Dummies


Sometimes optimization suggests very odd results

Sometimes Optimization suggests very odd results

  • That’s how you know it is working.

  • If it always suggested what you would do then it would be unnecessary.

  • Examples of “odd” suggestions

Optimization for Dummies


A load is scheduled from a plant quite far away why not take it from closer plant

A load is scheduled from a plant quite far away.Why not take it from closer plant?

Plant A

Job #3

Plant B

Optimization for Dummies

The Future of Concrete Dispatching


Dispatch optimization for dummies cc 001

Answer, plant A material cost is $7.00 lower.$7.00 x 9 cy = $63.00, < 1 hour of truck time.Can drive 30 minutes further each way.

Plant A

Job #3

Plant B

Optimization for Dummies

The Future of Concrete Dispatching


Other reasons for odd suggestions

Other reasons for “odd” suggestions

  • Material cost is lower at another plant.

  • 1st choice plant has no more loading slots.

  • Truck or driver attributes needed.

  • Plant is required or forbidden.

  • Customer has a higher service priority.

  • Drivers at the other plant are going on overtime.

  • Union restrictions.

  • Travel times at this time of day are more favorable.

  • Direction of travel is more favorable.

  • Deadhead cost is too high/low.

  • Drivers have upcoming “tasks”.

  • Driver requested early off.

Optimization for Dummies


Dispatch optimization for dummies cc 001

Optimization suggested loading truck at plant A and delivering across town to Job 1 then go to Plant B

Plant A

Job #1

Plant B

Job #2

Optimization for Dummies

The Future of Concrete Dispatching


There are 2 trucks at plant b it is closer to the jobsite why

There are 2 trucks at Plant B & it is closer to the jobsite. WHY??

Plant A

Job #1

Plant B

Job #2

Optimization for Dummies

The Future of Concrete Dispatching


Answer company wanted to eliminate deadheading so put a high pseudo cost on it

Answer. Company wanted to eliminate deadheading so put a high “pseudo cost” on it.

$

Plant A

Job #1

$

Plant B

Job #2

Optimization for Dummies

The Future of Concrete Dispatching


Dispatch optimization for dummies cc 001

Job 2 will need 3 trucks in 2 hours. Optimization was avoiding deadheading and getting the third truck for job #2.

Plant A

Job #1

Plant B

Job #2

Optimization for Dummies

The Future of Concrete Dispatching


Solution in some instances deadheading is best choice set reasonable cost of deadheading

Solution: In some instances, deadheading is best choice. Set reasonable cost of deadheading.

Plant A

Job #1

Plant B

Job #2

Optimization for Dummies

The Future of Concrete Dispatching


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    • Concrete Track

    • CC-001

    • Dispatch Optimization for Dummies

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Optimization for Dummies


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