To combat these factors, WIKA realized it would need to improve the cost and responsiveness of its manufacturing operations, and concluded these changes could not be made through incremental improvements to its operations. Instead, the company decided to embark on a long-term program to enhance its effectiveness by re-engineering its value streams, changing business systems to move towards Lean Manufacturing and away from forecast driven batch operations.

WIKA will deploy a Demand Driven Supply Network (DDSN) strategy, employ Six Sigma tools to improve quality, and make focused investments in new IT infrastructure to support a long-term change program. The overall objective of the project is to transform WIKA into a Lean Enterprise, capable of competing effectively in its dynamic markets. While these changes are critical to the company, achieving them within a reasonable timeframe and rigid budget are equally important goals.

Solution
WIKA selected Microsoft Axapta for its new infrastructure, then chose Avanade to implement the software. Avanade was selected because of its expertise implementing Axapta at scale and its experience supporting lean transformation projects involving manufacturing, distribution, wholesaling and supply chain issues. Avanade will use that expertise and experience to implement and customize Axapta to help WIKA reach its goal of becoming a Lean Enterprise.

Results
After working with Avanade to scope the project, WIKA expects benefits will include a revenue increase in excess of 30%, significant lead time reductions, productivity and quality improvements, impressive inventory reductions, and better space utilization. The overall benefit of Avanade’s work with WIKA will be a more effective and profitable company better able to compete in a complex global marketplace.