Case Study
Optimizing operations with real-time data
THE CASE
Leveraging technology to enhance operational performance
A semiconductor company was struggling with low forecast accuracy and significant batch rework when they attempted to match products with customer orders at the time of delivery. We leveraged SAP HANA to mine real-time data for each operations request, optimizing their processes and increasing the number of on-time deliveries.
CHALLENGE
Overcoming low forecast accuracy and significant batch rework
Our client was struggling with the number of late-stage differentiation options that customers could request on a product when the true form-fit-function of the product was not actually changing. The number of finishing options on an individual SKU caused low forecast accuracy and significant batch rework when trying to match with customer orders at the time of delivery. Product pushed into the warehouse often had to be pulled off the shelf for low-tech rework in order to meet specific customer finishing needs. This was all detected at the very last minute when the delivery was not able to be created due to the requirements mismatch.
SOLUTION
Leveraging real-time data intelligence
Our client had recently migrated to the SAP HANA database system for their ERP Central Component. This enabled our team to mine new data sources in real-time to provide the right signals to the MFG floor. Instead of executing to weekly goals, the system performed real-time assessments of the stock on hand and their finishing attributes compared to the sales orders in the next week. Every time the execution system asked for a new finishing instruction, the system leveraged the speed of the HANA platform to run the analysis again. Reading thousands of order line items and tens of thousands of batches took only seconds and ensured the instructions for any batch met the orders due that week.
IMPACT
Dramatic reduction in rework and improved delivery timeliness
The new finish-to-order processes and supporting HANA-based technology paid for itself quickly after going live. The percentage of batches requiring rework decreased, and our improved processes resulted in fewer on-time delivery misses.
- Rework cut by 5x
- Enhanced delivery creation processes
- Dramatic improvement in delivery timeliness
EXPERTISE & RESOURCES
A peek into our toolbox
With the right team having access to the right tools and industry knowledge it is possible to achieve great things. Learn more about the expertise and resources that helped us achieve success on this project.