24 Sep 2015

CASE STUDY: AkzoNobel: Multiple sites operating in unison

Lorenzo Corea

AkzoNobel Case Study

“Full transparency has been achieved through the combination of centralized planning and de-centralized scheduling in seven plants. We have seen results in capacity balancing as well as improvements in scheduling. This has further resulted in improved customer service and optimized productivity.”
– Pierre Versailles, Operations Excellence Manager, AkzoNobel Powder Coatings

The customer
AkzoNobel Powder Coatings is a division of AkzoNobel, the world’s largest paints and coatings company and a major producer of specialty chemicals. With a history that spans nearly 400 years of technical and product innovation, today AkzoNobel is a Global Fortune 500 company consistently ranked as one of the leaders on the Dow Jones Sustainability Indexes. It has operations in more than 80 countries and a portfolio that includes well-known brands such as Dulux, Sikkens, Interpon, International and Eka. AkzoNobel Powder Coatings is the largest global manufacturer of powder coatings, manufacturing at over 32 factories around the world. Inherently sustainable and used on everything from metal furniture and window frames, to radiators, pipes and cars and even wood and plastic.

The challenge
Historically organized by country, AkzoNobel Powder Coatings Europe West’s planning strategy was de-centralized and using different SAP systems.

Consequently, the Europe West business unit was facing the problem of very high inventory levels, sub-optimal utilization of plants, inconsistent service levels, a lack of supply chain visibility, and a duplication of planning tasks across the various plants.

The implementation of the Quintiq solution took place at seven factories of the Europe West unit. Initially, these factories had different scheduling systems in use and no integration with its SAP systems. Data for the seven plants was split into seven Excel files with no easy way to access information or create synergy between the sites. Consequently, it was difficult to handle all supply chain and production complexity, even at a local level. Centrally, it was impossible to get efficient cross-plant visibility or optimize plant capacities.

The challenge AkzoNobel Powder Coatings faced was matching the demand with the production capacity of the different factories. The company didn’t want one plant operating for too many hours if another had available capacity. At the same time, the business needed to link the SAP MRP output to detailed line schedules in order to improve customer service levels and maximize productivity.

To read the entire Case Study and benefits AkzoNobel got from Quintiq solutions, please click on the following button

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Lorenzo Corea





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