Customer Solution Case Study
/ / Increased efficiency with lower costs at engineering firm
Overview
Country or Region:Czech Republic
Industry:Engineering
Customer Profile
AB Komponenty manufactures components for engineering production in the electrical industry including heavy-current circuits, switchboards and electromotor parts.
Business Situation
AB Komponenty needed to replace its information system, used by around 90 employees, with a modern alternative that could be quickly implemented.
Solution
By deploying Microsoft Dynamics AX, the company has gained an information system with low running costs that can be used for various types of production.
Benefits
Increased efficiency
Cost control
Reduced TCO
Flexible
Reduced training needs / “Thanks to its high level of flexibility and low operating costs, Microsoft Dynamics AX continues to convince us about the suitability of our choice of this company system.”
Ing. Milan Šobr, Director of technical division and IS, AB Komponenty
Czech Republic based serial production company and a subsidiary of Brass s.r.o., AB Komponenty manufactures components for engineering production in the electrical industry including heavy-current circuits, switchboards and electromotor parts. With 220 employees, the company provides a complete service to customers in CNC metal tooling and the machining of metal sheets including surface finishing. By deploying Microsoft Dynamics AX, the company has gained an information system with low running costs that can be used for various types of production. AB Komponenty has also benefited from minimal training costs, as employees have quickly got to grip with the new Microsoft Dynamics AX system.
Situation
Engineering production and the electrical industry are the main focus of AB Komponenty, the serial production company and a subsidiary of Brass s.r.o. With 220 employees, the company provides a complete service to customers in CNC metal tooling and the machining of metal sheets including surface finishing.
AB Komponenty was established via the acquisition of a basic industry division of ABB, which uses an SAP information system and MacPac system, although the MacPac system was no longer used in this particular ABB division at the time of sale. As a result, AB Komponenty’s full production data existed in the SAP and MacPac systems.
Recently ABB has demanded greater flexibility of its suppliers, including AB Komponenty, in the field of data communication and the compatibility of code lists and data structures, B2B etc.
In order to meet ABB’s requirements AB Komponenty needed to replace its information system, used by around 90 employees, with a modern alternative that could be quickly implemented. The aim was to have a selected system installed within three months, with subsequent fine-tuning taking place within a similar timeframe.
AB Komponenty was looking for a functional solution to meet its needs, of which a vital aspect was to meet delivery deadlines. Management also required an option to make future amendments to the solution as the company develops, which may involve the addition of other groups or companies with differing requirements and specialisations.
The basic aims of the Microsoft Dynamics AX implementation were to:
- Replace the MacPac and SAP legacy systems
- Acquire an effective method to control bespoke and serial production with continuity in other company matters
- Adapt to the AB Komponenty processes
- Adhere to the proposed budget for the acquisition of a new information system.
Solution
A number of internationally renowned systems were considered in the selection process for a new information system, but many were unsuitable largely because the suppliers were unable to meet the required relationship between price and performance as well as offer high levels of adaptability.
Thanks to AB Komponenty’s vision for further development, Microsoft came out as top choice with its Microsoft Dynamics AX system.
The newly implemented solution can deal with matters involving finance, purchase and sale, production and TPV, and logistics. Together with these basic system elements, AB Komponenty has also been able to develop its own solutions in the fields of quality and data collection, from production through to bar codes.
Preparation of forms in structures of key company clients is, for example, among the more unusual solutions.
The new information system was launched on 1 October 2002, and has since been optimised for solution development in accordance with holding processes. In 2005 it was also adopted for use throughout Brass s.r.o.
Benefits
Being able to meet deadlines and keep to set budgets is considered by AB Komponenty to be a major benefit gained from the implementation of the solution. Another advantage is the company’s ability to make adjustments to logistics and business in production while adhering to financial administration rules, as it works closely with other companies under the same ownership.
Overall the new information system has resulted in a reduction in the total cost of ownership (TCO), a reduction in the training required for new employees to use the system, and the potential for development into other production lines.
•Increased efficiency
•Cost control
•Reduced TCO
•Flexible
•Reduced training needs
•Potential for future development.
Microsoft Dynamics
Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what’s most important. And because it is from Microsoft, it easily works with the systemsthat your company already has implemented. By automating and streamlining financial, customer relationship, and supply chain processes, Microsoft Dynamics brings together people, processes, and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success.
For more information about Microsoft Dynamics, go to: