What do the production of cosmetic products and that of large transformers have in common? We have gathered the history of Unifarco, a leader in the cosmetics sector that has governed an important growth in turnover and product mix, and that of Ansaldo Energia, a leader in the production of large electrical generators, which has increased the service level by 26%.
From warehouse production to contract production
Unifarco’s production is a typical Make To Stock with high quantities and a wide mix of products. The bill of materials of the product is very simple, the production lead times are very fast and the scheduling is based on forecasted demand plans. The company, which has been growing strongly for years, closed 2017 with a 23% increase in consolidated turnover compared to the previous year. The rapid and important growth in terms of products manufactured and the breadth of the product portfolio has led to frequent stock outbreaks with consequent losses and costs.
Ansaldo Energia’s production strategy is on order with engineering or product configuration phases typical of Make To Order or Engineer To Order. The number of products is small, production lead times are long, and the product bill of materials is extremely complex.
Same goals and same difficulties.
The main objective of both these companies is to produce with minimum cost, maximum efficiency and guaranteeing a high level of service to their customers. One in the form of on-time delivery, the other in the form of available stock.
Both companies planned production through the company’s ERP, to which they added a considerable and difficult-to-manage amount of Excel spreadsheets over time. These systems made the entire production planning process slow, unreactive, undetailed and above all unreliable. In a short time both companies found themselves working in a climate of “continuous emergency” which caused high costs, inefficiencies and reduced service level.
Different productions, one solution.
Both companies understood that to increase their competitiveness they needed to improve their production planning capabilities. For this reason, they looked for a system that would integrate with their management system and allow them to increase the level of service. An aspect considered fundamental by both companies was the ability to simulate scenarios in real time to have full control of the entire production and identify critical issues in advance, to solve them in time. Both companies, after careful analysis and software selection, have identified the best solution for their needs in the CyberPlan APS.
Important results from the first months
Both companies benefited from concrete and substantial results in a short time: Ansaldo Energia improved the quality of production by 60% and increased the service level by 26%, in less than a year; Unifarco consistently reduced stock outbreaks by measuring an incredible increase in the service level. In addition, the workload has been reduced and the analyses are impartial and objective.
Find out more about the potential of your production process
If supported by the right tools, the production process can be a driver for the improvement of the entire manufacturing company. Request a CyberPlan demo and find out how you can quickly improve your competitiveness. Request a demo >
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