Supply Chain Digitalization

Siemens Industrial Turbomachinery AB in Finspång, Sweden, benefits from new Advanced Planning & Scheduling solution

Situation

Siemens Industrial Turbomachinery’s supply chain for Hot Gas Parts incorporates both internal production and external sub-contractor capacity demand.

To try and improve on-time delivery (OTD) Siemens in Finspång has, over time, added a number of isolated processes and Excel spreadsheets to the existing SAP installation. This has resulted in sub-optimal working processes not synced with internal production and actual demand.

Overall demand processes have not been responsive enough and there has been a lack of synchronization between internal and external production (sub-contracting).

Challenge

Siemens in Finspång needed to improve visibility of supply & demand across its complex supply chain. Existing SAP ERP was not able to relate internal and external capacity demand, nor carry out ‘what if’ scenario planning.

The new solution needed to take into consideration capacity needs and support the overall demand process, as well as strategic and operational procurement, in order to improve OTD and lower inventory and work in progress.

Solution

To achieve greater visibility across the complete supply chain, Siemens in Finspång decided not only to report on demand and capacity but also to include a process for visualizing the effects of ‘what if’ scenarios. The solution was an add-on to SAP, Simatic IT Preactor APS, an Advanced Planning and Scheduling software.

The project started with an internal workshop investigating the use cases for procurement, production and management. Requirements identified included:

  • To visualize total material and capacity needs within the supply chain, including new demand and service demand;
  • The ability to drive load leveling for internal and external resources;
  • Being able to set capacity limits on sub-contractors (per material and material groups);
  • The ability to simulate ‘what if’ scenarios;
  • To visualize material shortages, delays and disruptions.

Alignment to best practice and continuous work has been carried out in project form, including both purchasing and production departments. End users have also been involved throughout the entire project.

Results

  • Ability to visualize where and when capacity is needed – For internal as well as external resources.
  • Support for ‘what if’ scenario planning for new demand – New demand and order enquiries are run in a matter of minutes instead of days.
  • Synchronization of actual material and resource usage – Any change in demand is immediately reflected in the plan regarding capacity needs and on-time delivery performance.
  • Material movements – Ability to compare and report material movements and changes over time.

Supply chain visibility with Preactor: Load Levels enable planners to optimize flow according to capacity & demand.

Morgan Bodin
Morgan BodinBusiness Area Manager, Supply Chain Management, PlantVision AB
Tel: +46 (0)70 209 21 16

“With Preactor we now have the ability to see any changes in demand on all materials across the supply chain. This was not possible in SAP alone.”

Anders Jerenius, Siemens

“We can now be more pro-active in communications with our sub-contractors regarding actual demand, resulting in better delivery performance and a more synchronized supply chain.”

Project member, Siemens

“Preactor provides us with the opportunity to co-plan production and purchasing and create a common and transparent picture of the situation.”

Henrik Johansson, Siemens

“For ‘in-house’ production, Preactor will be a good simulation tool. I imagine we will gain a good overview of how deliveries will be affected by capacity changes in a production group. We can then see what changes we need to make in production, in order to respond to the plan in SAP.”

Lotta Gustafsson, Siemens