news
Optimizing Systems: A Strategy for Georgia Power’s Material Management
Primary tabs
From managing vast quantities of materials to ensuring timely deliverables, the logistics behind each transmission project is a complex puzzle.
But what if the pieces could fit together more seamlessly?
That’s the driving vision behind this latest project, Wired for Efficiency: Supercharging Material Management – a comprehensive overhaul of Georgia Power’s material ordering and inventory management.
Known as “The Power Hive”, this senior design team assessed and developed an overall approach for transforming the utility giant’s material process.
At the root of the transformation lies Georgia Power’s unique estimating application, Teams, which creates detailed cost estimates and bill materials for transmission projects.
Historically, the application supports two types of units to break down complex transmission designs, but with an ever-expanding library, the need for a consolidated process became critical.
Innovative Systems for Seamless Integration
That’s where the Approved Material List (AML) comes in: a carefully curated selection of materials designed to reduce complexity, lower costs, and improve the efficiency of the entire supply chain.
While the AML offers a bridge to simplify the material selection process, integrating it into the systems posed as an exciting challenge for these industrial engineering seniors.
One of the most exciting aspects of the project is their approach to the inventory management and substitution standardization process.
By using data analytics – including models – the team conducted thorough cost-benefit analyses to forecast the financial impact for changes.
“We used four different types of stochastic and simulation models to develop a strategy that mitigates the potential risks while maximizing the full benefits.” said Omar Nabulsi.
Their methodology focused on phasing out existing inventory, ramping down new procurement, and alleviating waste – all while resolving discrepancies through acceptable substitutions.
Through this multi-faceted approach, the substitution standardization only drives productivity further. With machine learning, the team built a tool to help facilitate substitution mapping which allows users to search the material needed in the system.
By identifying which materials are essential to construction projects designed prior to the AML’s implementation, the team can pave the way for a smooth transition to the new system.
Once Georgia Power fully implements and manages this strategy, it has the potential to increase the company’s value by the following:
- Reducing $22.5 million dead stock, and $45.6 million non-AML
- Minimize the cost of non-AML materials by $21 million annually
- Decrease 1,000 hours of labor or $65,000 of adoption costs
In doing so, Georgia Power would not only be able to streamline its material operations, but they’d be setting a new standard for utilities and large-scale infrastructure projects across the state.
Creating a smarter, more agile supply chain that anticipates needs rather than reacting to them is the key to driving long-term efficiency and cost-savings.
Groups
Status
- Workflow Status:Published
- Created By:chenriquez8
- Created:02/06/2025
- Modified By:chenriquez8
- Modified:02/06/2025
Categories
Keywords