The Customer: TCS’ client is a major manufacturer of diesel fuel injection equipment for automobiles. The organization is a joint venture between two leading companies with a strong focus on manufacturing excellence. The enterprise serves global customers through its state-of-the-art facilities which include engine test cells, emissions test equipment, pump calibrating rigs and Computer-aided Design (CAD) systems.
The client was using disparate information systems with multiple databases across three manufacturing plants. The process of finalizing annual financial statements, management accounting and profitability analysis was time-consuming and cumbersome.
Other challenges included inefficient management of master data, which affected planning and inventory management. Additionally, the legacy system had no provision to account for stock-in-transit, floor stock, open purchase orders, and purchase requests and this frequently led to stock-outs or over-stock situations.
As a strategic partner and advisor to the client, we conducted a comprehensive assessment to understand the current business architecture and process dynamics. The assessment helped design a target operating model for each individual business value stream. It also focused on business process improvement for smart manufacturing, a long term IT roadmap, and provided guidance on successfully implementing SAP Enterprise Resource Planning (ERP) Software.
We suggested a future state of business process based on global best practices and process Key Performance Indicators (KPIs) framework used in the industry. We also advised on the creation of separate physical and logical warehouses for the stock from OEMs and the aftermarket stock to eliminate inventory mix-ups and improve the response to demand in different categories.
Other recommendations included uniform policy for master data governance across plants, centralization of sourcing and purchasing functions. The sanctions and budget control at the purchase requisition stage and inclusion of subcontracted material into the collective MRP run provide real-time visibility into inventory flow.
Our guidance helped the client improve and standardize business processes, thereby better aligning IT with business strategy as a preparatory step toward the SAP implementation. The organization has also successfully eliminated all non-value-added activities across its manufacturing units. Business processes, people and technology are all aligned with business direction and goals.