Dynamics AX will reduce production time by 10%
VM Tarm, the leading manufacturer of tankers used for the transportation milk, beer, feed and liquid manure in the Nordic regions, estimate they will be able to reduce their production time by 10% using Dynamics AX.
An upgrade that can be felt on the bottom line
The transition from an older XAL and several subsystems to Dynamics AX with Bredana's project production module has had a far greater impact on the company, VM Tarm, than they expected in the beginning.
Overall, it has given this tanker manufacturer in West Jutland in Denmark a strong hand to play in a competitive market as the system has not only streamlined the manufacturing process, it has also supplied them with significant input for strategic optimization. In the end, the results are reflected in the bottom line.
When VM Tarm custom-build advanced tankers for clients such as Arla Foods, Carlsberg and Danish Agro, it often involves thousands of components. During the manufacturing process, the BOM's often change because the client wishes to change or add things.
This area in particular was a real Achille's heel for the company earlier on, and had an impact on both production time and revenues.
”The parts were not always in stock when they were needed. What's more, we did not really have total control over the financial impact these changes had,” says Project Manager Brian M. Andersen, VM Tarm.
”With Dynamics AX, we now have a system that provides us with dynamic BOM´s. We can modulate the project when the client wishes to do something else or needs to insert a new part, and can still produce or order them in time.”
The dynamic project production platform, which is set up for each individual tanker, has replaced a number of manual workflows and made a whole string of subsystems redundant. Dynamics AX ties up all the loose threads and manages them. The results are significant:
”We estimate that we can cut 10 percent off the production time when we do not have to wait for parts,” says Brian M. Andersen.
VM Tarm is a market leader in its field in the Nordic region and also exports to England. The tankers with stainless steel or aluminium are developed and constructed for each individual client, working in close cooperation with them. The company is owned by Knus Lauritsen, whose father, Bernard, started production in1978.
Dynamics AX as a strategic tool
Equally important, however, is the transparency Dynamics AX has created.
”Earlier on everything that took place between the offer and completed project was a grey zone. We did not know exactly what consequences changes made during the process would have on the project's finances,” says Brian M. Andersen.
So in this area alone, the situation is like night and day when compared to earlier on.
”We have a much better overview of when and where parts are to be used in the project. We can also see in greater detail what the hours are being used on,” says Brian M. Andersen. This also means that VM Tarm has, so to speak, been given access to a whole new world of knowledge about its own business, which can be used to adjust its strategy where necessary:
”We can see where we earn the most and where we might be losing money. So now we have a qualified basis we can use when decisions need to be made about strategic changes,” says Brian M. Andersen.
The project-production platform remains open throughout the entire lifetime of the tanker, and all repairs and everything else are registered there. So, even in the long-term, it will now be possible to recalculate and obtain a full picture of how much each individual vehicle, type and client has contributed in revenue.
Collating all the information in one place also makes it easier to meet the authorities' increasing demands for documentation – including, not least of all, traceability of raw materials and semi-finished products used for tankers that transport foodstuffs and dangerous goods.
This also makes it easier for the employee who repairs the vehicle, as the whole history of the vehicle is stored in the system.
On collaborating with Bredana Axcite
"The transition to the new system went much better than we had expected. The project was completed on time and within the agreed budget."
Brian M. Andersen Project Manager, VM Tarm
On our collaboration with Bredana Axcite
Brian M. Andersen on their collaboration with Bredana Axcite:
”In close collaboration with us, Bredana Axcite carried out a thorough “detail-analysis”, in which they really got to know how we work. They understood all the ins and outs of our business and the solution is 100% spot-on. The transition to the new system went much better than we had expected. The project was completed on time and within the agreed budget – including carrying out employee training which we chose to do at Bredana's modern conference facilities in Kolding."
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