UltraTech Cement Ltd.

Performance-management system driven by robust analytics used to promote cost-effective production

Published on 11-Nov-2013

"The fluctuating cost of raw materials and power sources has always made cost-effective cement production a challenge. By combining near-real-time data visibility and analytics, it’s possible for managers to routinely procure the optimal materials for quality, cost-effective production." - UltraTech Cement Ltd.

Customer:
UltraTech Cement Ltd.

Industry:
Construction / Architecture / Engineering

Deployment country:
India

Solution:
BA - Business Analytics, BA - Business Intelligence, BA - Performance Management, Big Data & Analytics, Big Data & Analytics: Transform processes, Big Data & Analytics: Operations/Fraud/Threats, Smarter Planet

IBM Business Partner:
SAP AG

Overview

Headquartered in Mumbai, UltraTech Cement Ltd. is one of the largest cement manufacturers in India.

Business need:
The company needed to streamline its production planning process and improve the efficiency of decision making.

Solution:
After implementing a corporate performance-management system, managers at UltraTech Cement gained the ability to accurately pinpoint the most cost-effective mix of raw materials and power sources needed for cement production.

Benefits:
Accelerates the production planning process by 50 percent

Case Study

Headquartered in Mumbai, UltraTech Cement Ltd. is one of the largest cement manufacturers in India. A subsidiary of the Aditya Birla Group, it produces and distributes a wide array of cement products, including ordinary Portland, Portland slag, Portland pozzalana and white cement, as well as ready-mix concrete and a range of other building products and solutions. The company operates 11 integrated manufacturing plants, 15 grinding units, five bulk terminals and 92 ready-mix concrete plants across India, the United Arab Emirates, Bahrain, Bangladesh and Sri Lanka. UltraTech Cement employs approximately 133,000 people.

The Opportunity
To maintain profitability, it is imperative for cement companies to choose the most cost-effective mix of raw materials and power sources for their manufacturing plants. However, the cost of these variables is prone to rapid fluctuation, which makes controlling production costs a challenge. Previously, managers at UltraTech Cement in India were forced to plan for production based on pure instinct. The plants ran in isolation, which made data collection a mammoth, error-prone task that left little time for analysis. Thus, the company needed to streamline its production planning process and improve the efficiency of decision making.

What Makes It Smarter
When the variables that influence the cost of cement production fluctuate rapidly, managers need more than sound business sense to control costs each month. After implementing a corporate performance-management system, managers at UltraTech Cement gained the ability to accurately pinpoint the most cost-effective mix of raw materials and power sources needed for cement production. Pulling data from previously isolated ERP and procurement systems, the new solution provides managers with near-real-time visibility of their production targets as well as the cost of raw materials and power sources. By running what-if scenarios that take into account variables such as material and power costs as well as inflation and taxation rates, managers can make procurement decisions that help minimize the cost of production. Further, the solution continuously monitors and automatically alerts managers about price variances in raw materials and power, which helps them choose more cost-effective options without sacrificing quality.

Real Business Results
· Accelerates the production planning process by 50 percent
· Integrates data across all manufacturing plants, which helps improve the efficiency of decision making across the entire enterprise
· Delivers analysis and alerts that help managers determine the precise blend of materials and power sources needed to optimize production costs


For More Information
Please contact your IBM representative or IBM Business Partner. Visit us at ibm.com/cognos.

To learn more about UltraTech Cement Ltd., visit http://www.ultratechcement.com.

Products and services used

IBM products and services that were used in this case study.

Software:
DB2 for Linux, Cognos TM1, Cognos Business Intelligence

Service:
Software Services for Information Management

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America November 2013 IBM, the IBM logo, ibm.com, Cognos, TM1 and DB2 are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data discussed herein is presented as derived under specific operating conditions. Actual results may vary. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.