Business & Policy Solutions with Mathematical Models

Restriction on Disclosure and Use of Data

The data in this document contains trade secrets and confidential or proprietary information of IGSA, the disclosure of which would provide a competitive advantage to others.
As a result, this document shall not be disclosed, used or duplicated, in whole or in part, for any purpose other than to evaluate IGSA. The data subject to this restriction are
contained in the entire document.
Copyright © 2008 IGSA. All rights reserved.
 Outline

 About us

 IGSA Products/Services

 What we can do for Oil & Gas industry

 IGSA Experience & Clients

Agenda

Copyright © 2008 IGSA. All rights reserved. 2

 Introduction
IGSA offers services/products for complex business decisions based on mathematical models and
user-friendly decision support systems

IGSA Strengths
Creates and/or Implements
 Products  Quick conversion of business problem into
– DSS tools based on optimization (OR), mathematical model
simulation & statistical models;
interfaced with IT & GIS  Flexible integration of models with database,
UI, GIS
through,
 Consulting  High degree of customization to suit client
– Modeling based on client situation requirement
analysis
 Simple software that
supported by,
 is easy to customize, implement & use
 Services  is easy to learn & train
– Model customization & analysis
 allows easy output view & interpretation
– Software customization & implementation
About Us

 allows quick scenario analysis

– Training
 allows spatial map based analysis with GIS (if
– Customer Service Management
required)

Copyright © 2008 IGSA. All rights reserved. 3

 Core Competence
IGSA’s core competence is to model decision problems with advanced techniques but make the
analysis easy with high performance solvers and user-friendly interfaces

Normative Modeling
(Optimization / OR)
Advanced Predictive
Value Modeling (Simulation)
Addition
Predictive Modeling
(Statistics)
Descriptive Modeling
(Simple Statistics)
OLAP
Standard
Reports
About Us

Data Information Foresight Intelligence

(Storage & Reporting) (Processing & Reporting) (Forecasting) (Decision Making)

Copyright © 2008 IGSA. All rights reserved. 4

 Industry, Functional & Analytical Scope
IGSA offers modeling solutions for a gamut of decision problems across industries and functions

GIS based tools

Statistical Anal.
Simulation &
Optimization

Heuristics
Analytical

Rules/
(OR)
Technique
Application

Supply Chain Network Design  

Logistics Allocation Planning
Inventory Stocking & Ordering
Scheduling (production & transport)
Transport Planning/ Policy
Energy-Environment-GHG Planning/ Policy
Infrastructure & Spatial Planning/ Policy
About Us
 
  
 
 
  
  

Finance/Portfolio/Brokerage Analysis   
Consumer Behavior/ Marketing Analysis   

 Feasible application IGSA is experienced IGSA is a new entrant

Copyright © 2008 IGSA. All rights reserved. 5
 Product Offering
IGSA has developed three key products to address distinct planning needs using analytical modeling

FIP MLP SOP

Facilities Installation Planner Manufacturing & Logistics Planner Stocking & Ordering Planner
Optimal supply chain network design Optimal supply chain allocation & Optimal inventory stocking & ordering
or re-design (Strategic) operations planning (Tactical) of SKUs (Operational)

 Scenario:  Scenario  Scenario

– Long term planning – Short-Medium term planning – Short term planning

 Key Decisions:  Key Decisions:  Key Decisions:

– Location and sizing of network – Production & purchase plan – Safety stocks
of plants, warehouses, depots – Transport route-mode mix – Re-order points
and retail outlets
IGSA Products/Services

– End-of-period inventory – Order quantities

– Time phasing of investments –
– Prioritization of bottlenecks Dynamic adjustment of norms
– Alternative options
 Key Objectives:  Key Objectives:
– Maximize contribution margin
 Key Objectives: – Maximize service levels
– Minimize system cost – Minimize inventory costs
– Maximize contribution margin
– Minimize system cost
 Modeling Technique:  Modeling Techniques:
– Large scale mixed integer linear
 Modeling Techniques: – Statistical analysis &
programming optimization
– Large scale linear programming
& mixed integer programming

Copyright © 2008 IGSA. All rights reserved. 6

 Service Offering
IGSA offers value added services to clients by customizing existing products, developing new
products, and/or performing analysis & consulting using these products

Implementation or
Formulate/ modify mathematical
Analysis with
MODEL structure to model specific
Existing Products
CUSTOMIZATION business and operational
requirements of client
(F I P, M L P, SOP)

Use technologies and customize

SOFTWARE interface for input and reports to
CUSTOMIZATION fit with client requirements;
IGSA Products/Services

Implement DSS tool at client site

Perform analysis with client New Products for

ANALYSIS & data, develop scenarios, and new client
CONSULTING provide recommendations; requirements
Guide data estimation process
(e.g. GAMCO, FPM)

Copyright © 2008 IGSA. All rights reserved. 7

 What we can do for Oil & Gas industry
IGSA can leverage its skills in optimization modeling, GIS and IT to develop DSS tools for both
strategic and operational planning for Oil & Gas business, and reduce costs & maximize returns

• Facilities network design & allocation plan

(Wells – Pipelines – Refineries – Markets) to
minimize cost and maximize profit margin
Strategic Decisions
• Forward trading strategy, given uncertainty
of long term prices, to minimize risk and
maximize return
IGSA Products/Services

• Transportation plan to minimize cost

• Short term allocation plan, given uncertainty
Operational Decisions of spot prices, to minimize risk and
maximize return
• Forecasting short term spot prices

Copyright © 2008 IGSA. All rights reserved. 8

 Prominent Clients: Industrial
IGSA has, within three years of commencing operations, been able to do business with an
impressive list of clients

Reliance ACC Cement Britannia Tata Tea RITES

Biodiesel inbound Cement production and Supply chain network Raw material sourcing All India Transport
supply chain design outbound logistics re-design (FIP); and outbound logistics Network Optimization
(FIP); Supply chain planning (MLP) Logistics allocation allocation planning model for policy analysis
operations planning planning (MLP) (MLP) for Planning
(MLP) [with A T Kearny) Commission
IGSA Experience

Ambuja Cements Ecologix CavinKare Frito Lay Pidilite

Cement production and Energy & GHG Supply chain network Continuous Supply chain network
outbound logistics Accounting & Mitigation re-design (FIP) Replenishment System re-design (FIP)
planning (MLP) Cost Optimization model [with Aqua MCG] (CRS) tool for inventory
for large businesses stocking & ordering
(GAMCO) [with Marketelligent]

Copyright © 2008 IGSA. All rights reserved. 9

 Prominent Clients: Policy and Academic
In addition to businesses, IGSA also offers services/products to policy makers/governments and
academic institutions/schools

Chattisgarh/ IIT-K Greater NOIDA/ IIT-K ASCI / A.P. Govt. NIES Japan AIT Bangkok

Prototype technology GIS based land records Rationalizing drugs Energy-Emissions Training on MARKAL –
development for GIS & acquisition mgmt supply and inventory Analysis for a well known energy
based land records system practices Greenhouse Gas sector optimization
mgmt system [with IIT Kanpur] Mitigation for India model for policy analysis
[with IIT Kanpur]
IGSA Experience

IIT Bombay IIT Delhi IIM Kozhikode SPJIMR Mumbai

Prototype optimization Installation and Training Installation and Training Training with MLP –
model and DSS for least of FIP & MLP – of MLP – Academic Academic Version
cost facilities installation Academic Versions Version
planning (FIP)

Copyright © 2008 IGSA. All rights reserved. 10

 Case Situation 1
Optimal Facilities Expansion Planning for Cost Minimization
A client in its Start Up phase, required us to decide on the optimal set up for location and size of facilities such as
warehouses and processing units; following were the key input parameters that were optimized to achieve the
objective function of minimizing cost

Input Data from Input Data from Output in the Key Benefits
Existing System Existing System desired form

• Candidate • About 20%

locations, sizes at reduction in total
each tier of supply cost
chain
• Sensitivity
• Capital costs, analysis to
Processing costs, analyze future
Transport costs, investment plan
Inventory costs options
• Capacities of
suppliers, plants,
warehouses
• Demand forecasts
IGSA Experience

Optimization
Engine

Copyright © 2008 IGSA. All rights reserved. 11

 Case Situation 2
Optimal Transport Network Planning for Cost Minimization
A client situation required us to decide optimal route-mode options for transport of major commodities within India,
given forecasts of traffic demands, and identify bottleneck sections on highways and railways

Input Data from Input Data from Output in the Key Benefits
Existing System desired form
Existing System
• Nodes, links, • About 20%
routes for reduction in total
roadways, cost
railways, airways
• Sensitivity ‘what-
networks
if’ analysis with
• Transport costs, respect to
inventory costs, demands and
infrastructure capacities
maintenance
• Prioritization of
costs, congestion
bottleneck
(delay) costs
sections
• Capacities of links
IGSA Experience

• Freight flow
demand forecasts
for major
commodities

Optimization
Engine

Copyright © 2008 IGSA. All rights reserved. 12

 Case Situation 3
Optimal Logistics Planning for Contribution Maximization
A client situation required us to decide optimal plan for procurement, plant dispatch, primary freight transport,
inventory at warehouses, and secondary freight transport (up to markets), and identify bottlenecks
Input Data from Key Benefits
Existing System
• Existing Input Data from Output in the • 10-15% increase
suppliers, Existing System desired form in contribution
processing units, margin
warehouses,
• Sensitivity
markets
analysis with
• Products and raw respect to sales
materials prices, demands
• Route-mode • Variance reports
options (comparison of
optimal vs. actual
• Procurement
plan)
costs,
processing/packa
ging costs,
transport costs,
IGSA Experience

handling costs,
inventory costs
• Capacities of
suppliers, plants,
warehouses,
transport modes Optimization
• Demand and sale Engine
prices forecasts

Copyright © 2008 IGSA. All rights reserved. 13

 Case Situation 4
Land Acquisition System
A government client required is to develop a GIS based DSS for automated management of land records, land
acquisition and development processes

Master plan data Reports

Input Data Key Benefits

• Land-use plan • Track all land

acquisition
• Cadastral Maps
proposals quickly
• ROR data and accurately
• Work flow for land • Improved
acquisition Coordination
IGSA Experience

ROR data

Copyright © 2008 IGSA. All rights reserved. 14

 Head Office / Development Centre
IGSA Labs Pvt. Ltd.
Plot No. 69, Beside Rajagiri Veeraiah
Hospital,
Sneha Nagar Colony, Street No. 8,
Hubsiguda, Hyderabad - 500 007
India.
Mail:inquiry@igsalabs.com
Phone: +91 40 27151571
Sridhar Vallala
sridhar.vallala@igsalabs.com
+91-98669 96079

Research / Marketing Office

IGSA Labs Pvt. Ltd.
Flat G-1, Ground Floor, at No. 42,
G.J.Nest 3, L.G.Halli,
RMV II Stage, MLA Layout,
Near New BEL Road
Bangalore – 560 094, India
Rahul Pandey
Thank You
rahul.pandey@igsalabs.com
+91 97317 38131

Copyright © 2008 IGSA. All rights reserved.