MTS Systems Corporation

MTS Systems Corporation provides industry-leading testing and sensing solutions to researchers, product developers and manufacturers worldwide. Their products, services and unrivaled expertise allow customers to develop higher-quality products faster and more efficiently, optimizing the performance and reliability of everything from automobiles and aircraft to bridges and buildings to construction equipment and more.

CHALLENGES

• Long lead times to market
• Rising raw material and finished good inventory
• Inventory strategies and master data not aligned
• Frustrated users and excessive manual processes and workarounds (Excel spreadsheets)
• Master data settings not aligned with business processes
• MRP and its support of purchasing automation not understood
• Lack of trust in the system leading to ineffective use of MRP generated requirements for manufacturing and procurement
• SAP reporting functionality not being utilized to support business and process performance KPI’s
  

SOLUTIONS

• Supply chain transformation utilizing Reveal’s oVo® methodology across 5 value streams (MM, SD, PP, PS, WM)
• Focused on optimizing inventory, capacity and production planning to support improving service levels and reduce lead time to market
• Education for demand planners, buyers, production planners, schedulers, shop floor, and management on existing SAP tools, including Available to Promise functionality and managing master data to align with business rules
• Deployed production capacity, scheduling, planning and dispatching strategies using SAP as the system of record
• Improved communication and process alignment across the supply chain to support strategic initiatives
• Established Process Aligned Teams (PATs) to address daily supply chain challenges identified through the oVo® process

BENEFITS

• Reduced average inventory value by 6%
• Reduced Overdue Demand Elements by 77%
• Reduced Overdue Supply Elements by  24%
• Reduced Red Lights (potential service  level disruption) by 40%
• Reduced Exception Messages by 18%
• Optimized 23% of average value of targeted component and sub-assembly  Inventory, including known supply risk materials
• Deployed Lighthouse® to enable quick  and easy tracking of supply chain health  measures, inventory optimization, schedule attainment and on-time, in full  KPI’s
• Deployed Action Tracker, a continuous improvement tool, to track and give visibility of required interventions to  improve supply chain performance
• Production Planning and scheduling for  2 production lines in an ETO environment, eliminating complex spreadsheet planning
• Implemented ATP (Available to Promise)
• Educated and empowered users and  management team• Simplification and standardization of procurement processes
• Supported design of new DC warehouse
• Aligned platform for transition to S/4HANA