HMS Group Improves Supply Chain and Production Management Based on Infor LN
HMS Group is a leading manufacturer of pumps, compressors and skid-mounted equipment for oil and gas, power generation, water supply & sewage disposal facilities in Russia and CIS. HMS Group is a dynamically developing, multi-industry holding with strong research and manufacturing capabilities for engineering and production of sophisticated equipment. It has 17 subsidiaries divided in 3 business units. The biggest business unit is INDUSTRIAL PUMPS DIVISION with the subsidiary HYDROMASHSERVICE.
To date, using Infor LN, HMS Group has optimized business processes and automated management operations at the HYDROMASHSERVICE – integrated trading company and at the largest manufacturing enterprise of the INDUSTRIAL PUMPS DIVISION.
Infor LN helped optimize supply chain management and production, as well as planning and project activity. The solution is expected to be rolled out at other HMS Group manufacturing sites in the nearest future.
The implementation project kicked off with a comprehensive audit of all existing IT systems across the HMS Group, followed by the shaping of the new IT strategy. ERP implementation emerged as one of the key points of this strategy.
The initial pilot project was launched at both the manufacturing enterprise of the INDUSTRIAL PUMPS DIVISION, and the integrated trading company of the HMS Group.
At the stage of vendor selection, it was a strong reason for us that Infor LN is a solution used by the world’s leading engineering companies, including pump and compressor manufacturers.
The manufacturing enterprise produces around a thousand items of different products per year. A considerable share of contracts includes the equipment design and development according to the unique customer requirements. With the given variety and complexity of the product portfolio, it is impossible to facilitate manufacturing, deliver production and procurement planning, provide an accurate estimation of materials and components delivery dates, and ensure proper coordination of the engineering and manufacturing divisions using manual procedures.
Prior to the deployment of ERP and PDM (Product Data Management) systems, the automation of processes relied on isolated tools, applications, and extensive spreadsheets. Lacking unified master data, and streamlined workflows the efficiency of the work remained at a relatively low level. Inevitable human-generated mistakes affected production lead time and production costs.
The main objective of the Infor LN implementation was to address these challenges, create the unified control loop and improve operational efficiency.
In HYDROMASHSERVICE trading company it was required to automate processes related to order placement and supply management for own production equipment. The company also needed to automate delivery of replacement parts for service equipment repair and maintenance on the customer’s premises.
Infor LN enabled the trading company to automate its core operations, ranging from order placement to product shipment. Following the ERP implementation, the trading company started using a unified product reference source for master data. As of today, Infor LN automated the entire end-to-end process related to product specifications reviewing, beginning with initial consideration with the customer and ending with the final design and Bill of Materials approval. The ERP environment incorporate both supply chain management and product design pre-order evaluation processes. The only feature left outside the project’s scope was the CRM system.
As a result of the project, has increased the business process efficiency and improved order due-delivery accuracy, while the employees appreciated the usability and simplicity of the new system.
The automation project at the manufacturing facility comprised two phases, the PDM implementation, and the ERP deployment.
As a result, digital versions of design and engineering documentation are considered the originals, as opposed to paper versions. All design and technical preparation are carried out within the PDM system.
Documentation is stored in the PDM system with the level of detail required for production and according to customer requirements. The ERP implementation project played a crucial role in setting the optimal pattern for the data entry process into the PDM system. In addition, to simplify the process of managing engineering data, all standard technological operations were documented, and many procedures were streamlined. The beneficial impact of the PDM implementation became visible as soon as PDM was integrated with the manufacturing system and became available for all departments. With integration in place, existing workflows became easier, faster, and more efficient.
The company also built a unified centralized system to ensure efficient master data management. The entire product line of the company was listed in a new unified classifier, including both ready-to-use products and components. Now, the whole enterprise relies on this unified classifier. The master data management system and all its elements were implemented within the Infor LN solution.
The solution helped streamline the collaboration of engineering and production departments. As of today, Infor LN provides comprehensive production planning and monitoring across the enterprise.
The ERP system enables a comprehensive production order planning in terms of half year horizon, allowing to configure different planning rules for both parts and assembly units.
Using Infor LN data and their expertise on production cycle durations and actual utilization rates of production-critical equipment, the plant planning department forms a manufacturing plan.
On the next stage of the automatization initiative the company will automate the planning processes for active production orders based on the actual status of production orders execution and current production capacity utilization levels.
HMS Group plans to further develop the system and implement it across all production sites of the HMS Group divisions.
Current market trends set a tough challenge for any business in Russia, making it necessary to reduce costs and improve product quality all at the same time. Infor solutions, which have been used for many years in manufacturing industries, help our clients succeed by meeting emerging challenges. Infor products enable our clients to adapt rapidly, ensure unparalleled operational visibility, and enhance their control, planning, and supply chain management capabilities.