Optimizing Logistics Processes in Gas Turbine Manufacture
Capgemini helps Siemens Power Generation to develop faster supply chains at lower cost.
- Industry
- Manufacturing
- Country
- Germany
- Solution
- Supply Chain
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2006-09-27 06:53 PM
The Situation
To make the logistics processes in gas turbine construction more efficient, Siemens Power Generation implemented a large international project to optimize its supply chain. Capgemini’s task was to support Siemens Power Generation’s gas turbine construction process in all three phases of the project.
The Solution
Capgemini analyzed the logistics chains and processes and advised Siemens Power Generation in the strategy design. The consultants also established weekly, solution-focused reporting forums for the decision-makers and implemented three supply chain management sub-projects in Germany and the US.
The Results
Thanks to Capgemini’s support, Siemens Power Generation now has precise targets and a detailed plan of action to optimize the logistics processes in gas turbine construction. The throughput times for pilot components were reduced by up to 66% and stocks of high-quality components decreased by up to 40%.
How Siemens Power Generation and Capgemini Worked Together
Siemens Power Generation focuses on the development and production of components and services for the entire life cycle of a power plant – which makes planning, construction and operation of plants much more profitable and efficient. The Group, based in Germany and with 23 research and production facilities in Europe, North America and Asia, is the world’s second biggest manufacturer of gas turbines.
In the first two phases of the logistics project, the company, in collaboration with Capgemini, developed a strategy to realign the logistics chains to take account of regional aspects. In the third phase of the project the challenge was to implement the new strategy in a selected supply chain and develop the competencies of the employees accordingly - for example within the scope of special training sessions.
Capgemini implemented the new supply chain concept at two production facilities in Berlin (cross-company planning and cycle time production) and in the US (concept for logistics processes between components suppliers). Staff were also trained in capacity planning and the consultants developed a role model for important planning and procurement functions in the purchasing departments. The weekly reporting forums improved transparency and led to decisions being made more swiftly.
The new processes for capacity planning and provision will, in future, guarantee much more precise and reliable support for supplier chains and capacities required in procurement. The weekly reporting forum makes business-critical logistics processes much more transparent and allows timely action to be taken.
