SAP S/4HANA project for an automotive company

Challenge

Managing the implementation of an SAP S/4HANA project on the customer’s parent company spread over three production plants, ensuring business continuity in an industry where adherence to delivery times is the basis of business. The presence of different production models (discrete and repetitive production) and a very customised and automated process management, hitherto computerised with a tailor-made but now obsolete ERP, made the task even more complex. This was the challenge Qintesi faced for a globally leading customer in the production of automotive components.

The key aspect of the project was the pushed integration between the company’s processes with a specific focus on the production departments. In particular, an increase in efficiency was sought through the reduction of low-value-added activities, the use of innovative SAP functionalities and the introduction of homogeneous operating procedures while safeguarding the peculiarities of the business. The project required a change of mindset of the internal key users to support the new operational processes

Solution

To manage such a challenging project, Qintesi deployed some twenty consultants with SAP expertise related to the world of Logistics and Manufacturing with specific skills on the PP, MM, QM ,SD, WM , CO modules and the SAP MII solution for managing production departments. Skills were also needed on EDI processes, with specificities of the Automotive world, and on FIORI applications for the development of functionalities dedicated to warehouse logistics.

The project was carried out in two phases; the first phase led to the definition of a prototype in order for the customer to understand the different production models envisaged, highlighting the impact on the organisation. In the second phase, all processes were analysed in detail in order to understand the client’s specific needs and find solutions capable of maintaining the many automatisms present while improving inefficiencies due to the consolidation of operational practices.

The implementation covers the processes of receiving sales orders via EDI, the planning, control and progress phases of production with data collection from the plants, equipment management, inbound and outbound logistics, invoicing and cost control.

Particular emphasis was placed on quality control at the input, during the production process and material traceability to reduce waste and rework, ensuring the delivery of a compliant product to the customer.

In order to reduce delivery times, the planning activities of suppliers and subcontractors were also optimised, providing adequate tools for logistics.

The introduction of a WM (warehouse management) model and the adoption of radio frequency handhelds with SAP FIORI technology made it possible to optimise the storage of raw materials and semi-finished production products, making the entire process more efficient.

Thanks to SAP S/4HANA, the customer was able to improve all phases of management control by having accurate, reliable and real time data with which to calculate production costs.

The use of a single application and infrastructure platform that is solid, flexible and open will allow rollout to the group’s other Italian and foreign plants quickly and efficiently.