Borgwarner Turbos

Utilizing SAP to Improve and Scale Production Capabilities

BorgWarner Turbos is an American worldwide automotive industry component and parts supplier with locations globally. It is primarily known for its powertrain products, which include manual and automatic transmissions and components, such as electro-hydraulic, transmission control units, friction materials, and one-way clutches, turbocharges, engine valve timing system components, along with four-wheel drive system components.

One of the organization’s objectives is to improve and scale production capabilities to address a more complex business environment including:

  • Commercial and Passenger Vehicle Market
  • MES/shop floor automation
  • Batch Management to support traceability
  • Sales and Operations Planning

CHALLENGES

To support the BorgWarner Strategic Vision and Growth Plan the following objectives were formulated:

  • Improve alignment between organization and performance targets
  • Better information to make production decisions
  • Improve product availability
  • Increase data accuracy, standardize the business process and develop user confidence in SAP

SOLUTIONS

  • Executed Reveal’s ongoing Value optimization® program to optimize Materials Planning, Procurement and Inventory Management practices
  • Deployed Production Capacity, Scheduling, Planning and Dispatching strategies using SAP as the system of record
  • Developed a Business Process Framework enabled by Business Process and Supporting documents
  • Implemented production planning business process to support the strategic plan for the production complexities and growth

AWARDS ACHIEVED

  • In 2018, Borgwarner accepted the SAP Automotive excellence in operational performance award
  • In 2017, Borgwarner received the Presidential award for the turbo project

BENEFITS ACROSS PLANTS

Financial Measures

  • Inventory reductions of 24%
  • Dead Stock reductions of 28%
  • Stock Turns increases of 16%

Process & Service Measures
Production planning in SAP resulting in:

  • Increased schedule attainment and production efficiency
  • Negative Days of Supply reductions of 84%
  • Exception messages reductions of 81%
  • Overdue Demand and Supply Elements reductions of 92%

Organization and People

  • Education of Material and Production Planners on SAP functionality
  • Increased Data accuracy, process efficiencies and user confidence leading to better decision making
  • Increased analytics capability and visibility across the Supply Chain

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