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L&T–CASE engineers faster production

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Learn how L&T–CASE engineers faster production with SAP and IBM, improving both business efficiency and the availability of its business-critical IT platform and offering better than 99.9 percent …

Learn how L&T–CASE engineers faster production with SAP and IBM, improving both business efficiency and the availability of its business-critical IT platform and offering better than 99.9 percent uptime. For more information on System x, visit http://ibm.co/Q7m3iQ.

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  • 1. IBM Systems and Technology Group Industrial ProductsCase Study L&T–CASE engineers faster production With SAP and IBM A joint venture of Larsen & Toubro Ltd and CNH Global NV, L&T–CASE manufactures and sells construction and road-building Overview equipment. Based in Pithampur, India, the company operates multiple The need production sites as well as working with subcontractor locations across Indian engineering giant L&T–CASE the country. operated separate production planning, materials management and financial solutions to run its large and L&T-CASE is expanding fast as the Indian economy continues to grow, geographically diverse operations resulting in positive national investment in transport infrastructure. Monitoring and reconciling finances The company used separate software systems to manage its production, against work was a constant challenge. inventory and financial solutions, resulting in a complex web of The solution interlinked systems and a large measure of manual, paper-based L&T-CASE chose to implement integrated record-keeping. SAP ERP software to manage the complete production and financial administration process, based on Mr S K Sethia, DGM-IT, explains the difficulties caused: “In many IBM System x® 3650 class servers. cases we send materials to specialist subcontractors. The vendors The benefit pay 50 percent of the materials value to L&T-CASE, to ensure that By implementing the new SAP ERP we are protected against loss, and to avoid the potential drain on production planning and materials cash flow. When the finished goods are received at L&T-CASE, the management software on the IBM System subcontractor charges the full amount for their service. x3650 class servers, L&T-CASE has improved both business efficiency and the availability of its business-critical IT “The materials and finished goods are in constant flow between the platform, offering better than 99.9 percent subcontractors and L&T-CASE. Production planning and materials uptime. management processes were controlled by specialist software solutions. At any moment we have approximately 50 projects in progress each worth some INR8 million (about $150,000), totaling INR400 million ($7.5 million). The financial solution, though, was separate, and all the goods movement data had to be checked and agreed manually using complex, linked spreadsheets, and it was very difficult to reconcile figures.”
  • 2. IBM Systems and Technology Group Industrial ProductsCase Study Lack of integration hinders growth As the company grew, the manual reconciliation procedure was a “The capacity and barrier to progress. Figures were slow to arrive, were a source of scalability of the x3650 dispute and revision, and were perceived as unreliable. It was important enable L&T-CASE to accelerate the information flow and provide validated data, so that subcontractors and L&T-CASE understood the true financial position. to plan for additional throughput and, if With timely, accurate data, L&T-CASE would be able to identify and necessary, further eliminate costs, and ensure work was placed with the most cost-efficient subcontractors. Additionally, by integrating production planning extension of its SAP with the core business applications, L&T-CASE would be able to use applications. L&T-CASE the subcontractors’ materials requests and delivery data to drive its is very satisfied with the manufacturing operations to ensure that the company – even with an extensive network of external vendors – would respond as a single unit SAP applications and to customer demand. IBM System x3650 infrastructure powered Building a business case by Intel Xeon processors, L&T-CASE was running SAP financial, controlling, quality management, and SAP Extended Warehouse Management and we are well placed to (SAP EWM) applications, and the executive team understood the handle the workload.” benefits of integrated software. Working with IBM, the L&T-CASE team considered integrating its existing solutions or implementing SAP — Mr S K Sethia, DGM-IT, L&T-Case applications and tailoring them to its specific needs. “The IBM team was very capable,” says Mr Sethia. “IBM completed a study that clearly identified the gaps between the operational and financial processes, and how these could be bridged. The result was a full business case, describing the possible software options, the impact on L&T-CASE, and the potential solutions.” At the time, L&T-CASE supported some 200 users of its SAP applications, with an Oracle production database of around 300 GB. The company provided a portal for its subcontractors and other partners, and both the portal and occasionally the core SAP instances suffered from poor response times. It was clear that the existing IT HP server infrastructure would not be capable of supporting the additional workload reliably or with acceptable performance. The IBM team recommended that L&T-CASE review its IT infrastructure, with business growth in mind and the potential for adding business warehousing and analytics features in future.
  • 3. IBM Systems and Technology Group Industrial ProductsCase Study Supporting SAP applications with IBM System x L&T-CASE chose to implement new SAP production, test and portal Solution Components servers on three IBM System x® 3650 M3 servers, duplicated to a Software further three identical x3650 servers at a second data center for failover • SAP ERP software including financials, and disaster recovery purposes. controlling, quality management, materials management and SAP Extended Warehouse Management IBM System x3650 M3 servers are designed to deliver higher • Microsoft Windows Server 2003, performance per watt, offer simplified management and serviceability, Oracle Hardware and provide reduced business risk. The energy-efficient design supports • IBM System x® 3650 class servers, Intel multiple processor cores and up to 288 GB of memory in a scalable 2U Xeon 5600 processor package, with a simple upgrade path to 16 hard disk drives or solid state drives. The x3650 M3 is powered by up to two 3.46 GHz six-core or 3.60 GHz four-core Intel Xeon 5600 series processors with QuickPath Interconnect technology. The Intel Xeon processor 5600 series automatically regulates power consumption and intelligently adjusts server performance according to application needs. The 5600 series processors deliver up to 15 times the performance per server when compared with typical two-socket single- core servers, enabling significant server consolidation, up to 95 percent lower energy costs, and an estimated return on investment in as little as five months. L&T-CASE is able to rely on these enormously powerful and reliable servers to provide the capacity to run the expanded SAP application landscape, including production planning and materials management, with sufficient performance headroom to provide fast portal response, too. Better business efficiency By implementing the new SAP ERP production planning and materials management on the IBM System x3650 M3 servers, L&T-CASE has improved both business efficiency and the availability of its business- critical IT platform, offering better than 99.9 percent uptime. The company has eliminated manual, spreadsheet-based reconciliations of its work-in-progress with its finances, and now uses the integrated SAP applications. The x3650 is able to complete the process within a matter of hours, and L&T-CASE can provide data to dealers, subcontractors and the management team, always certain that the figures are correct. Mr Sethia concludes, “The capacity and scalability of the x3650 enable L&T-CASE to plan for additional throughput and, if necessary, further extension of its SAP applications. L&T-CASE is very satisfied with the SAP applications and IBM System x3650 infrastructure powered by Intel Xeon processors, and we are well placed to handle the workload.”
  • 4. For more informationContact your IBM marketing representative or IBM Business Partner,or visit: ibm.com/systems/x© Copyright IBM Corporation 2012IBM Deutschland GmbHD-71137 Ehningenibm.com/solutions/sapProduced in GermanyApril 2012IBM, the IBM logo, ibm.com and System x are trademarks of International BusinessMachines Corporation, registered in many jurisdictions worldwide. A current listof other IBM trademarks is available on the Web at “Copyright and trademarkinformation” at: ibm.com/legal/copytrade.shtml.Intel, Intel logo, Intel Inside, Intel Inside logo, Intel Centrino, Intel Centrino logo,Celeron, Intel Xeon, Intel SpeedStep, Itanium, and Pentium are trademarks orregistered trademarks of Intel Corporation or its subsidiaries in the United States andother countries.References in this publication to IBM products, programs or services do not implythat IBM intends to make these available in all countries in which IBM operates. Anyreference to an IBM product, program or service is not intended to imply that onlyIBM’s product, program or service may be used. Any functionally equivalent product,program or service may be used instead.All customer examples cited represent how some customers have used IBM productsand the results they may have achieved. Actual environmental costs and performancecharacteristics will vary depending on individual customer configurations andconditions.IBM hardware products are manufactured from new parts, or new and used parts.In some cases, the hardware product may not be new and may have been previouslyinstalled. Regardless, IBM warranty terms apply.This publication is for general guidance only.Photographs may show design models. Please Recycle SPC03394-INEN-00