About the Company |
A leading manufacturer of 2 and 3-wheeler tyre in India. It has manufacturing units in Madurai and Rudrapur. It has significant exports to USA, Europe, South America, Africa and Australia., creating a global presence. |
Business Situation |
The manufacturer had implemented SAP ERP system. The ERP system was unconstrained.The manufacturer supplied tyres to OEM customers, OEM spares customers, Domestic open market and Exports 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. Due to unconstrained capacity planning, resource utilization was low. |
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 sales and forecast orders.The work orders generated adequately utilized the available resource capacity.The sales and forecast orders were prioritized according to the customer order fulfillment priority. |
Business Benefits |
Increased resource utilizationLower Inventory levelsHigher throughput rateAvailable to Promise for Export markets |
Key Performance Indicators |
Customer service level Throughput rate Resource Utilization Inventory levels |
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