10% Reduction in Inventory with Paperless Production and Inventory Management Solution

Client

The clients are the chemical and lubricant manufacturing divisions of a US-based O&G major, with chemical and lube plants across continents

Challenges

• Inadequate and time-consuming physical warehouse inventory process, leading to poor inventory visibility
• No real-time visibility into production processes due to lack of synchronization between executing manufacturing orders, recording consumption and production, and updating inventory
• Lack of integration between warehouse and production including QM
• Need for synchronization between release orders in SAP, actual deliveries, and inventory changes

LTM Solution

1. Completely integrated near real-time manufacturing solution by bringing together SAP MII, SAP PM, SAP EWM, SAP QM, shop floor DCS (Yokogawa and Rockwell), PCN, real-time equipment monitoring, OEE, sales planning, mobility, analytics, and KPI dashboards 
2. SAP MII used as a data hub to collect data from DCS and integrate it with ERP for delivering real-time insights into day-to-day operational performance and efficiency 
3. Mobile solution with enhanced user experience and Fiori-based, device-agnostic UI enhancement for all applications

Outcomes Delivered

• Completely integrated near real-time manufacturing solution with real-time, role-based dashboards with data visualization and clearly defined metrics and KPIs.
• Seamless and paperless production, inventory management, and distribution for lubricants and chemicals.
• Scalable architecture to accommodate future digital initiatives for plants across regions.

Business Benefits

• 10% reduction in inventory with zero production shortages.
• 15% improvement in warehouse operations efficiency due to automated and efficient real-time counting, and batch and material tracking. 
• 20% reduction in delays and demurrages.