Client Overview – Sundaram
Fasteners Ltd (SFL)
Sundaram Fasteners Limited has grown into a global leader, manufacturing critical, high
precision components for the automotive, infrastructure, windmill and aviation sectors. Their
varied range of products encompasses fasteners, powertrain components, sintered metal parts, iron powder, cold extruded parts, radiator caps and wind energy components. They have won the trust of both OEM and aftermarket customers in highly competitive markets like India, China, Germany, USA, UK, Italy, France and Brazil.
SCM Issues
SFL implemented SAP ERP system to handle all their transaction. But it was not able to handle constraint based production planning and scheduling. This lead to problems as below:
Each plant had their own excel file to do planning. S&OP had to manually consolidate to get the expected dispatches.
Plan prepared on day 1 of the month becomes redundant on day 5 because of changes in customer schedules
Material requirement was checked manually before releasing the order to shop floor
Not able to get expected material shortage so that corrective action can be taken before shortage happens
No visibility to orders and hence dynamic batch creation for heat treatment was a nightmare
Unable to get the expected load on each of the resource based on pending orders
Unable to utilize the idle capacity of resources effectively
No visibility to schedule the subcontractors
Planvisage Solution
Sundaram Fasteners selected Planvisage SCM solution to improve on order acceptance and adherence. The main objective was to prioritize orders, dynamic MOQ, improve resource utilization, reduce stock-out and delivery of SKU’s to depots based on the safety levels
Benefits
Sales Department got the following benefits
Quicker S&OP planning and re-planning from 2 days to minutes
Quick re-synchronizing to market and supplier dynamics
Demand netting based on forecast, stock and orders in SKU and group level
Provide visibility if order is getting delayed in advance
Sales orders accepted by production got executed
Realistic commitments were given to customers based on the capacity calculations
Delivery adherence rate improved substantially
Purchase department got the following benefits
Know production plan in advance for proper planning of raw material requirement
Consolidated Coil requirement for the next 3 months
Production department got the following benefits
Simultaneously consider Primary/alternate material and capacity constraints
Production plan made flexible to alter based on customer requirement changes
Forging plan is sequenced based on the dimension from higher to lower or lower to higher to optimize the setup time.
Arriving at economical lot sizes for production to optimize stock
Ability to re-plan in Weekly and Daily horizon for all the orders
Shift-wise sub-contracting plan for the entire time horizon
Proper batching and sequencing based on material property has reduced the no of setups at Heat treatment.
Heat treatment loading sequence is based on upstream constraints.
Graphical view of schedules in a Gantt chart
Graphical display of load on each resource
Reduced number of stock outs as the visibility is established
Better visibility to S&OP team on what is being produced and dispatched at the factory as all the plants are in common planning solution
Resources waiting for material came down drastically as a result of proper planning
Proper utilization of resources and sequencing resulted in better OEE
Number of setups were reduced as a result of better sequencing
FG Inventory came down as a result of better economical lot sizing
WIP value came down as a result of better sequencing
Assigning priority for the items which is available in the subcontractor