Production optimisation following introduction of SAP: Efficiency in Motion

Introducing SAP in our Production Division at the beginning of 2022 marked a turning point. Amid the challenges of the COVID-19 pandemic we created a state-of-the-art IT landscape aiming to digitalise processes, improve transparency and increase efficiency. But SAP was only the beginning – it was just one of a number of measures which helped us to stabilize our production processes on a sustainable basis.  By Alexander Hanning

One central optimisation element was the scheduling of regular meetings between our Sales, Purchasing and Production Divisions. Regular communication helps us to identify emerging challenges like missing parts or capacity bottlenecks in good time, and to find team solutions.

A further milestone was the set-up of a “Frozen Zone“, a planning zone in which orders are fixed and no longer changed. This has enabled us to settle production processes and ensure stable workflows.

New structures for critical parts

Material availability was one of our biggest challenges. A purpose-formed work group for critical parts brings experts from our Purchasing and Production Divisions together to specifically prioritize problematic materials and develop alternatives. This was supplemented by advanced prognostic models which help us better anticipate requirements and avoid bottlenecks.

Data as success factor

Optimised master data plays a key role in production. We can only efficiently control workflows and increase planning quality when our data is correct and complete. SAP has created the necessary foundation, and we continue to build on it.

We also devised new key performance indicators (KPIs) which enable more precise operational control. Indicators like adherence to deadlines, material availability and processing times provide valuable insight and a sound basis for decisions.

Closer co-operation with our customers

Better co-ordination with our customers was another key factor. Pre-planning requirements are now stored in the system and facilitate long-term planning. Close dialogue with customers enables us to react faster to changing circumstances and meet delivery deadlines.

Successes and looking ahead

Within one year we have almost eliminated the order backlog and improved parts availability. The combination of technological advances and organizational measures are taking effect: our production capacity is more stable and better prepared for the challenges the future will bring.

Nevertheless, our focus remains on continuing to optimise. We are well aware that standstill is not an option – neither for our Production Division nor for our customers.