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Complex physical networks can be easily disrupted by events occurring at any node or over any link. In many organizations, the management of these physical
networks has often been left to the wisdom of long-time employees.
discretionary decision making
These employees are familiar with the physical characteristics of the network and its assets, and familiar with the informal decision networks that often governs these complex
organizations. The decisions made in these operations or dispatch centers are, for the most part, left to the discretion of the operators, who receives little training and seldom uses an established problem
management methodology.
supply chain market context
Continually-increasing competition keeps lowering the bar. What used to be value-added is now
standard service
- Time-definite Services
- Stronger Competition means quality and service-tracking is required at every step
- Increasing productivity and lowering cost is key to survival.
impact on operations
- Pressure on operations keeps building.
- Real-time decision-making is more important every day
- Customers want the ability to re-direct, change plans
- Impact of equipment, people and weather problems, emergencies is amplified
- Pairing down of network/assets leaves less room for error
- Lack of spare equipment increases pressure on maintenance
- Operations has fewer redundant paths
- Increased use of partners/third party
- Dealing with partner/third-party requires increased accountability
- Reacting to new situations in real-time with partners/third-party is usually more difficult
approach
RNOM (Realtime Network Operations Management) is a methodology designed to optimize real-time management of transportation and logistics operations. Using a
step-by-step approach to operations management
- To assess current capabilities
- To help design remedial courses of actions using assets the company already owns
- To help implement these remedial actions
- Drawing on team experience as well as leading-edge technology and research
- Ensuring that operations management is aligned with the objectives of the company as a whole
networks
The foundation of our methodology is the recognition of the crucial role of information and decision-making in network management, and the intrinsic properties of networks:
- Actions that benefit one end of the network may be detrimental to the other end. Knowing the effect of decisions on all parts of the network is therefore
required before decisions can be taken
- Today, the organization depends on information generated inside as well as
outside of the organization. Therefore, the "effective network" extends well beyond organizational bounds.
- Decisions must always be consistent with the organization's goals and objectives
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