Optimizing Production Planning with SAP in Steel Industry

Background

Our client, a leading steel industry company operating across Central Asia, aimed to improve production planning by addressing raw material management and reducing surplus supplies. The project also sought to strengthen decision-making through accurate, real-time data and greater transparency, as well as reduce manual input in resource consumption tracking.

Challenges

• Implementing material requirements planning (MRP) to account for stock needs, batch limitations, and safety reserves
• Using Smart Business tools to analyze performance metrics and resource consumption (KPI, plan vs. actual analysis) to provide accurate day-to-day reflection of production order data
• Automating repetitive tasks and boosting process efficiency through integration with advanced process control systems (e.g., scales, laboratory, and lab equipment).

Solution Highlights

• Applied MRP to manage existing stocks, supply chains, and emergency reserves effectively
• Provided accurate, real-time production order data supported by Smart Business tools for detailed analysis of plans and resource consumption
• Automated repetitive tasks by integrating with advanced process control systems, including scales, ovens, and laboratory equipment.

Key Results

• Increased production output by 5.38% through a real-time plan and actual comparisons
• Reduced report preparation time from one full day to one second
• Freed up 23% of working capital by optimizing inventory planning
• Cut raw material delivery times to five days, providing timely updates on material consumption.