Improvement of planning processes and KPIs in TVD
The company TVD is one of the largest manufacturers of sheet metal cabinets in Czech Republic and also the key supplier of these products in energetics, telco and electrical engineering industries throughout Europe. The company benefits from increased competitiveness since the first half of 2015 thanks to a successfully implemented advanced production planning project (APS).
Slavicin, Czech Republic, August 14, 2015
TVD manufactures the most of its production as MTO, usually in small production lots. The increasing pressure of the market on shortening delivery times leads to the fact that approx. 80% of all orders must be fulfilled within two weeks. So far, the company was able to fulfill customer orders thanks to an increased volume of operational management and urgencies at the cost of increasing volume of material on stock, especially metal sheets.
The management of TVD spent several years trying to find a way to solve the difficult coordination of the flow of material and the stressful effort dedicated to maintaining the standard of customer service, knowing that the way to achieve this goal is improving the processes of planning sales, purchasing and production. The initial activities in this matter were aimed at cooperation with a supplier of the enterprise information system, but even several years of effort and custom development did not lead to achieving the set goals. That is why TVD decided to address experts in the field of advanced production planning (APS), the LOGIS company, with which it implemented a project focused at a development of the planning process.
Comparing the cooperation on the different projects solving planning issues is Mr. Miroslav Strnad, Vice-Chairman of the Board and Production Director of the TVD company: “I see the most apparent difference in the approach of both partners: while custom development was carried out in the first case, when we elaborated the assignment specification ourselves, LOGIS was able to define the scope already before the project started, issue problem-solving assignments and control their fulfillment in the interest of achieving the goal of the project. I also value the experience of the experts of LOGIS very much, since they helped us to discover entirely new horizons – a number of issues wouldn’t be solved without their assistance at all.”
“It is already now, less than a year after the project was finished, that we are able to identify a number of significant benefits. Besides the overall improvement of quality of the planning process and gaining the ability to quickly respond to market changes, specific improvements of KPIs already appeared. For example, the successful application of the tools and methods implemented during the project had a significant effect on lowering the volume of material on stock, which was decreased by 39 % during the first six months since starting routine operation.”
“I am pleased that after such a long time we’ve been able to find a solution we’re happy with and which has a long-term perspective in our case. However, even more important is that we have found a partner with which we can further develop the solution and which has the expertise in the field of planning we can rely on,” concludes Mr. Miroslav Strnad.
About TVD – Technicka vyroba
The TVD Company – Technical Production, has many years of tradition, not just as the producer of its own products, but also as both verified and reliable supplier of customer products based on requirements of both home and foreign partners. It has its own premises of over 15,000 m2. It employs more than 420 qualified workers. It participates in the development of regional employment stability. Its tradition, brand, and stability make it one of the crucial companies in the region. The TVD Company – Technical Production a.s. consists of two divisions, containing several independent centres; these centres specialise in individual fields, providing highly professional services and products.
LOGIS is a supplier of expert services and information technologies focused on improving the quality of management and competitive strengths of the customer enterprises. The supplies are realized in the form of projects with the aim of increasing management efficiency and developing business successes of the customers’ enterprises. Within its solutions, LOGIS applies advanced management and planning methods and procedures (best practices), including highly efficient information technologies from the field of supply chain management (SCM) and advanced planning and scheduling (APS).