Success Stories

Company: LTV –Copperweld - U.S. Structural Group

Market: Manufacturer of Structural Steel Tubing

Annual Revenues: $200 million

Problem:

LTV-Copperweld was constantly forced into a position of borrowing convertible raw materials from various production runs to meet spikes in demand in another production line. Copperweld’s Materials Resource Planning (MRP) system did not support visualization of the stock outs or inventory fluctuations that resulted from these practices. Consequently, Copperweld suffered from inaccurate raw material inventory levels and periodic shortages of vital materials in several production runs.

Ultra Solution:

Working directly with Copperweld IT executives and Production staff, Ultra consultants designed a Raw Materials Pipeline Model. Utilizing a custom application and Microsoft SQL Server, this model extracted raw materials inventory data, pipeline data, and finished goods orders and forecasts from the operational systems. Detailed conversion/precedence rules, and exceptions to rules, were acquired from the operational system and interviews with the master scheduler. These rules allowed the Raw Materials Pipeline Model to simulate raw-material consumption into the future.

Furthermore, Ultra Corporation technicians designed a Decision Support System (DSS) and reporting writer, using Cognos, to allow fast, graphical use of the information generated from the Raw Materials Pipeline Model.

Benefits to Customer:

· Stock-out reduced significantly by giving suppliers longer lead times.

· Scrap was reduced by nearly 2%.

· Raw materials inventory reduced by 40%.