Machinery and Equipment Manufacturers

Machinery and equipment manufacturing is a sector that requires long production cycles, complex bills of materials, and project-based cost tracking. The lack of digital infrastructure at every stage, from production planning to after-sales support, puts companies at a competitive disadvantage. This case study details the digitalization process of a mid-sized machinery manufacturer.

Client Profile

A company manufacturing industrial machinery and equipment. They operate on an order-based production model, have 50 employees, and project durations ranging from 2 to 6 months.

Challenges Faced

• Complex Bills of Materials: Each machine consists of hundreds of parts. Tracking which part needed to be procured and when was done manually.
• Cost Overruns: Significant discrepancies arose between the initial quote cost and the actual project cost, which were only identified after project completion.
• After-Sales Support: Warranty and maintenance tracking on a per-machine serial number basis was not possible, leading to an increase in customer complaints.

Solution Approach: Project-Based Production Management

• Bill of Materials Management: Digital bills of materials for each machine model, integrated with part lists, procurement lead times, and cost information.
• Project-Based Cost Tracking: Real-time tracking of labor, material, and overhead costs for each project, with alerts triggered upon deviation.
• Serial Number-Based Service Tracking: Digital management of warranty, maintenance history, and spare parts records for each machine.

Achieved Results

• Cost deviations reduced by 60%
• Production stoppages due to procurement delays decreased by 45%
• After-sales customer complaints fell by 50%
• Quotation preparation time was halved