About the Company |
A major Manufacturer of Crankshafts and other automobile parts. The manufacturer supplies products to more than 20 automakers in India and abroad. It has more 7 manufacturing plants and a turnover of USD 100 million. |
Business Situation |
The manufacturer had implemented SAP ERP system. The ERP system was unconstrained.The manufacturer supplied crankshafts to OEM customers, OEM spares customers, Domestic open market. The OEM customers generated fixed monthly demands. Demands for OEM spares, Domestic open market and Export market was based on forecast. The manufacturer followed Vendor Managed Inventory for distribution, resulting in high inventory levels. There was poor order fulfillment due to highly skewed demands and inadequate resource loading. |
Business Solution |
Lighthouse Solution was integrated with SAP to pull relevant data like BOM diagram, inventory and demand. Data unavailable in SAP (Machine capacity, Batching rules) was stored in Lighthouse solution. Lighthouse generated detailed work orders after considering the various demand fulfillment dates, grouping similar work orders to minimize the set-up times and changeover time.The work orders generated were balanced across all the resources. Some of the sales and forecast orders were prioritized per the customer requirement. |
Business Benefits |
Increased resource utilization Lower Inventory levels Higher throughput rateAvailable to Promise for Export markets |
Key Performance Indicators |
Improved Customer service level Higher Resource utilization Reduced waiting times Inventory levels |
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