IBM > Case Studies > Agriauto Stamping Company's IoT Transformation: Boosting Customer Satisfaction by 90%

Agriauto Stamping Company's IoT Transformation: Boosting Customer Satisfaction by 90%

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)
Functional Applications - Manufacturing Execution Systems (MES)

Applicable Industries

Automotive
Finance & Insurance

Applicable Functions

Maintenance
Procurement

Use Cases

Additive Manufacturing
Manufacturing Process Simulation

About The Customer

Agriauto Stamping Company, founded in 2012, is a specialist in producing die and sheet metal components for its customer Indus Motor Company (IMC). The company is based in Pakistan and employs 120 people. Agriauto Stamping Company is a subsidiary of Agriauto Industries, set up to tap into the skyrocketing demand for sheet metal parts used in manufacturing automotive components. The company's goal is to become the leading automotive supplier in South Asia. To achieve this, they recognized the need to adapt their production processes to meet rapidly changing customer orders and offer speedy delivery options.

The Challenge

Agriauto Stamping Company, a Pakistan-based manufacturer of die and sheet metal components, was facing a significant challenge. The company wanted to capitalize on a surge in demand for sheet metal parts and seize a larger market share. To do this, they aimed to offer speedy delivery options to their customers. However, their existing manual systems and processes were not adaptable enough to accommodate rapid changes in production to meet new orders. The company's reliance on manual calculations and spreadsheets for production planning was causing delays, bottlenecks in obtaining raw materials, and wastage of spare capacity. The manual processes also increased the risk of human error, leading to mistakes in data and potentially incorrect parts being manufactured and sent to customers.

The Solution

To overcome these challenges, Agriauto Stamping Company partnered with IBM® Global Business Services® to implement SAP® ERP applications and streamline their business processes. The new suite of SAP ERP applications replaced the manual processes and spreadsheets, significantly reducing the time and effort involved in key business processes such as production planning and financial reporting. The automation of many processes also reduced the risk of human error, improving data accuracy. With the new SAP applications, Agriauto Stamping Company gained access to accurate real-time data concerning variables such as material consumption, inventory, and the availability of equipment and skills required to produce each part. This enabled the company to switch to just-in-time manufacturing, reducing raw material waste and improving delivery times.

Operational Impact

The implementation of SAP ERP applications brought about significant improvements in Agriauto Stamping Company’s operations. The company was able to switch to just-in-time manufacturing, which not only improved delivery times but also reduced raw material waste. The automation of many processes reduced the risk of human error, improving data accuracy and enabling the company to make more informed decisions. The company now has accurate real-time data concerning variables such as material consumption, inventory, and the availability of equipment and skills required to produce each part. This has enabled better planning and utilization of resources, reducing spare capacity wastage. The company is now better positioned to meet its goal of becoming the leading automotive supplier in South Asia.

Quantitative Benefit