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BI Implementation for Enterprise-Level Multi-Site Manufacturing Organization

Business Intelligence dashboard

Making the right decisions requires access to appropriate and timely information. This challenge is particularly pronounced for multi-site organizations that span several states, where both corporate and plant-level information must be synchronized and accessible. One of our clients, a multi-site manufacturing organization, engaged us to assist with a corporate-level challenge: addressing the unfavorable performance of the business.


Problem

The client faced significant issues due to the lack of access to the right information at the right time. Although this client uses SAP, one of the most effective ERP systems on the market, the cumbersome process of accessing properly analyzed data in the right format led to many unnecessary tasks, operational interruptions, and excessive communications. The inability to effectively consolidate and analyze data from multiple sites hampered the company's ability to make informed decisions and implement strategic improvements.


Solution

After a careful assessment of the client's business processes and operational systems, we identified the critical need for a unified business and operations intelligence solution as well as a way to coach and train the users to handle data like a valuable asset. The objective was to provide real-time, accurate, and accessible information to both plant and corporate management teams.

We developed and implemented a holistic business and operations intelligence solution using Microsoft Power BI. This system was designed to automatically connect to the client’s existing platforms, including their ERP system. It streamlined the creation and communication of necessary reports and KPIs, covering all aspects of the business.

Key components of the solution included:

  • Data Cleanup: Evaluated data integrity and cleaned bad data in different aspects of the business such as work centers, sales orders, purchase orders, work orders and standard times, production orders, accounts receivable, accounts payable, material transactions, etc.

  • Data Integration: Seamlessly integrated data from various sources into a centralized Microsoft BI platform.

  • Strategic and Tactical KPIs Selection: Worked with decision-makers and users to gain alignment on what matters the most to measure. This resulted in a series of KPIs such as GPM, contribution margin, AR aging, inventory accuracy, scheduling compliance, open PO status, defect rate and first pass yield, shortage status, etc.

  • Automated Reporting: Implemented automated report generation, reducing the manual effort required for data consolidation.

  • Real-Time Dashboards: Developed real-time dashboards including reports that provided insights into key performance indicators (KPIs) and operational metrics.

  • Custom Analytics: Created custom analytics tools to identify root causes of issues and support data-driven decision-making.

  • Team Members Training: Worked with the users and trained them on the value of data, the importance of data accuracy, and ways to extract insights.


Delivered Results

The implementation of this comprehensive BI solution yielded significant benefits for the client. The business uncovered many root causes of inefficiencies and empowered managers at both the plant and corporate levels with real-time, effortless access to critical information. These results were achieved through a strategic plan, developing a data-driven culture, and executing the plan over 1.5 years.

Some of the key outcomes included:

  • Leadership Time Savings: The leadership team saved approximately 8 hours per week on reporting tasks, freeing up valuable time for strategic initiatives.

  • Improved Contribution Margin through Accurate Pricing and Cost Control: Improved pricing accuracy by 25% through better data visibility and analysis as well as real-time analysis of COGS at the customer and SKU level.

  • Scheduling Compliance: Increased scheduling compliance by 30%, enhancing operational efficiency resulting in 93% on-time delivery, up from 78%.

  • Lead Time Reduction: Reduced lead time by 2 weeks, improving customer satisfaction and competitive positioning.


Conclusion

By implementing a holistic BI solution using Microsoft Power BI, Techam Solutions transformed the client's approach to data management and decision-making. The integration of real-time data access, automated reporting, and advanced analytics enabled the organization to address performance issues effectively and achieve significant operational improvements. This case study highlights the critical role of business intelligence in enhancing the performance of multi-site manufacturing organizations and underscores the value of timely and accurate information in driving business success.

 

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