Oerlikon Metco

Improvements in Sales Forecast, S&OP, Rough Cut Capacity Planning & Sales Execution

Sulzer Metco, the leading company worldwide for technical coating solutions based on thermal spraying and other coating technologies, operating in markets in the field of materials and surface technologies. Acquired by the Oerlikon Group in 2014 it is now Oerlikon Metco a leading surface solutions provider with a global presence providing surface solutions for thermal spray, laser cladding, PTA and weld hard facing that improve the performance and efficiency of components and systems.

CHALLENGES

  • SAP was not leveraged in the way that it should be
  • The focus was needed in specific areas including:
  • Alignment of Purchasing, Suppliers and Production
  • Use of Production Strategies, Scheduling and Capacity Planning
  • Improvements in Sales Forecast, SOP, Rough Cut Capacity Planning and Sales Execution.

SOLUTIONS

  • The oVo® methodology, which introduced the effective use of MRP and standard tools and practices was deployed into 5 regions across the globe (USA; Japan; Singapore; Canada; Germany).
  • Communication between teams, locally and globally, increased as cross-functional teams learned to function collaboratively in managing data inside SAP
  • Customer orders were processed in a more effective timely manner.
  • Daily exception monitoring was used as a supply chain balancing tool instead of time-consuming firefighting.
  • A global view using the tools found in the existing system is now in place.

BENEFITS

  • 24% reduction of Negative days of supply at the service level.
  • 8% reduction of Current Stock
  • 8% reduction in Average Inventory
  • 27% Increase in Inventory Turns (14-11)
  • 41% reduction of Overdue Elements
  • 6% reduction of Dead Stock- excluded systems stock
  • 58% reduction of Exception Messages
  • 86% completion of Troy Materials (93 of 108)
  • 86% completion of Troy Recipes (186 of 216)
  • Successful completion of oVo® Certification at all three levels:
  • Levels 1 (Essentials)
  • Level 2 (Specialist)
  • Level 3 (Masters)

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