PTT Chemicals implements i2 supply chain planning solutions

i2 Technologies says PTT Chemicals, one of the largest producers of petrochemicals in Asia, used i2 software to reduce inventory 30% and improved visibility, in a 15 month effort involving multiple PTT entities (including logistics, manufacturing, marketing) and spanned demand planning, master planning, production scheduling and order promising.


i2 Technologies Inc. says PTT Chemicals, one of the largest producers of petrochemicals in Asia, and the largest in Thailand, has completed the implementation of i2 supply chain planning solutions, reducing inventory 30% and improving visibility. i2 made the announcement Nov. 2.

PTT Chemicals sought software to maximize the efficiency of demand-supply planning and inventory deployment across the PTT Polymer Group supply chain. The company said it chose i2 for expertise in the supply chain management space, as well as its ability to understand and address PTT Chemical's business challenges.

The project with i2 was the first supply chain project involving multiple PTT entities, including: PTT Chemicals, PTT PM (Marketing), PTT PL (Logistics), BPE (Manufacturing) and PTT ICT (IT). PTT set aggressive timelines to complete the project and realize benefits. In less than 15 months i2 helped PTT Chemicals overcome the challenges and achieve the project goals identified.

"We are impressed with i2's commitment to making the solution go-live as well as its extended support until the solution stabilized," said Narong Mongkolpoonsuk, vice president, PTT ICT. "The i2 solution has been able to address our business needs and we are happy with the optimization results and reports feature. We are confident that through our partnership with i2 we will continue to track software usability beyond the go-live and extend the solution scope to manage upcoming capacity and meet our business requirements."

As a result of the i2 implementation, PTT Chemicals :

- Created a well-defined end-to-end process workflow spanning demand planning, master planning, production scheduling and order promising;

- Reduced inventory 30 percent, making the right stock available, and improving the quality of production schedules;

- Improved transparency and visibility with a company-wide KPI tracking system; and

- Gained ability to evaluate multiple alternate scenarios before selecting the appropriate operational strategy.

"We are very impressed with PTT Chemicals' commitment to supply chain management and look forward to working with them on future engagements" said Prabhu Natarajan, vice president, i2. "PTT Chemicals is a very important customer for us and we expect that very soon they will be among the supply chain leaders in the petrochemical industry."

PTT Chemical Public Co. Ltd (PTTCH) was founded upon a strong foundation of two of the major players in Thailand's petrochemical and chemical industry sectors - the National Petrochemical Public Company Ltd (NPC) and Thai Olefins Public Company Ltd (TOC). In line with the policy of the major shareholder, PTT, the merger puts PTT Chemical as the leader of PTT's olefins business to take full advantage of opportunities for future growth with competitiveness enhancement, leading to an improvement of Thai petrochemical industry to reach international standard. See partial capabilities diagram below.

i2: In more than 20 years, i2 says it has dedicated itself to building successful customer partnerships. As a full-service supply chain company, i2 says it is uniquely positioned to help its clients achieve world-class business results through a combination of consulting, technology, and managed services. i2 solutions serve a wide cross-section of industries.

Also read from MBT: i2 Factory Planner improves user experience, increases planner productivity .

PTT Chemical Olefins and Downstream Production Units

PTT Chemical Olefins and Downstream Production Units

PTT Chemical ) and subsidiary and polymer producer for High Density Polyethylene (HDPE), Bangkok Polyethylene Public Company Ltd (BPE), offer integrated solutions and efficient business processes under the new brand InnoPlus, a high quality Asia polyethylene, the company says.

- Edited by Mark T. Hoske, electronic products editor, Manufacturing Business Technology , MBT

No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
A cool solution: Collaboration, chemistry leads to foundry coat product development; See the 2015 Product of the Year Finalists
Raising the standard: What's new with NFPA 70E; A global view of manufacturing; Maintenance data; Fit bearings properly
Sister act: Building on their father's legacy, a new generation moves Bales Metal Surface Solutions forward; Meet the 2015 Engineering Leaders Under 40
Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again
Pipeline vulnerabilities? Securing hydrocarbon transit; Predictive analytics hit the mainstream; Dirty pipelines decrease flow, production—pig your line; Ensuring pipeline physical and cyber security
Upgrading secondary control systems; Keeping enclosures conditioned; Diagnostics increase equipment uptime; Mechatronics simplifies machine design
Designing positive-energy buildings; Ensuring power quality; Complying with NFPA 110; Minimizing arc flash hazards
Building high availability into industrial computers; Of key metrics and myth busting; The truth about five common VFD myths

Annual Salary Survey

After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.

The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.

Read more: 2014 Salary Survey: Confidence rises amid the challenges

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.