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Peugeot-Citroen Standardizes on ILOG Optimization Components

3 August 1999

Peugeot-Citroen Standardizes on ILOG Optimization Components; Components to be Embedded within Key Manufacturing Applications

    MOUNTAIN VIEW, Calif.--Aug. 3, 1999--ILOG , the world's leading supplier of software components, announced today that Europe's second-largest vehicle producer, Peugeot-Citroen, has extended its relationship with ILOG with a $1 million, 3-year agreement under which it will license key ILOG optimization components.
    The powerful ILOG software will be embedded within a number of custom-made applications Peugeot will use to enhance the efficiency and quality of its manufacturing operations and products. These "powered by ILOG" applications will become the solution for optimization within the company.
    Peugeot has been an ILOG customer for nearly a decade, and has repeatedly demonstrated its confidence in ILOG through purchasing organization-wide licensing agreements. The company has broadly deployed ILOG Rules and the ILOG Visualization Suite within internally developed applications. Peugeot builds and maintains its workflow applications with the rule-based components, and has based the graphical user interfaces of many of its critical production applications on the ILOG visualization products.
    In the new agreement, Peugeot will license ILOG Server and the ILOG Optimization Suite for internal use within supervision, configuration, car sequencing, and production planning and scheduling applications. For example, the sequencing application will enable Peugeot to plan the optimal sequence of vehicle on its assembly lines in order to be as efficient and cost effective as possible. Variables such as car color, engine type, chassis and many other factors have huge impact on the efficiency of the assembly process. Using ILOG-powered applications is a way to improve optimization of the process beyond what current in-house applications can offer, and can also reduce waste, improve throughput and as a result, increase competitive advantage.
    The applications being built using ILOG components will help extend Peugeot's SAP enterprise resource planning system, since these applications will use the corporate data that exists within the ERP system to plan the most efficient manufacturing operations. ILOG products are fully compatible with SAP R/3 and SAP APO.
    According to the Peugeot IT staff, software components contribute to their software development strategy, with ILOG components enabling the development of advanced applications that specifically complement the company's packaged software, improving both production and product quality. These capabilities are particularly valuable as output grows. Peugeot boosted production by 8.7 percent last year, making nearly 2.3 million vehicles and earning revenues of $33.7 billion.
    Using ILOG components to develop these key enterprise applications demonstrates Peugeot's commitment to deploying the latest leading edge IT solutions. "Manufacturing operations that have used this technology have derived substantial benefits," explained William Scull, vice president of worldwide marketing at ILOG. "We have seen companies reduce bottlenecks, balance workloads and maximize throughput as well as realize major gains in product quality. When applied to a complex environment like vehicle production, such technology can also achieve substantial cost savings; we've seen customers whose ILOG-powered applications have paid for themselves many times over within an extremely short period."
    ILOG is the only vendor of optimization components offering an extensive line of proven algorithms in both constraint and linear technologies, according to industry analysts Benchmarking Partners, Inc. ILOG's broad palette of optimization components enables the rapid solution of large problems that were once considered impossible to solve, or that have been unsolvable using other technologies.

    About ILOG

    ILOG (NASDAQ and Euro.NM: ILOG) is the world's leading provider of advanced C, C++ and Java(R) software components for graphics and resource optimization. ILOG products deliver high-performance data visualization for user interfaces; integer, linear and constraint solvers for resource optimization, scheduling, logistics and planning applications; dynamic rule systems for intelligent agents and real-time data flow control, and components for integrating modules with real-time and relational data sources. ILOG was founded in 1987 and now employs more than 470 people in seven countries. Visit www.ilog.com for additional information.

    ILOG is a registered trademark of ILOG. ILOG Server, ILOG Rules and ILOG JRules are trademarks of ILOG. All other company and product names are trademarks or registered trademarks of their respective owners.