Aerospace & Defense – Manufacturing
Levels implemented :
L2 – Tactical | L3 – Operational
Services used :
Process Consultancy | Technical Consultancy | Strategic Consultancy | Custom Development | Training and Support
They lead in
New Lachaussée has been innovating in the field of fine mechanics since 1830. It is a world leader in the design and construction of production equipment for the defense sector, with recognized expertise in the field of ammunition. New Lachaussée also designs turnkey plants with and for its customers. 99% of their production and know-how is exported worldwide.
World leader in its field of activity, New Lachaussée is constantly innovating. This drives them to find new ways to design and produce the equipment they sell and install around the world.
For New Lachaussée, innovation is reflected in several aspects: innovation in the design phases, innovation in the production phase, but also innovation in the way they manage the entire business process, from the detection of a customer need to installation and even after-sales service. The objective is to be in total control of the cost and quality of the delivered equipment throughout the value chain.
To achieve this, they asked for a system capable of calculating, at any point in the life cycle of a new order, the financial impact of the order on cash flow and overall profitability.
When Patrick Lejeune, Supply Chain Manager, contacted us, the planning was done in New Lachaussée using MS project and Excel, without any dynamic connection to their ERP system.
This made the production of a global vision of projects, milestones and associated financial data a complex process to say the least. It was difficult for senior management to know the exact contribution of a potential new order to the company’s cash flow and results. As a result, decisions were made without the visibility and predictability required for such a complex and potentially risky business.
This situation did not sit well with the new CEO, who insisted on having faster and more accurate information to make sound decisions, whether they related to S&OP processes, resources, or corporate finances.
To meet these demands, we designed the solution around PlanningForce’s financial simulation capabilities. Project models were created, as well as a resource model.
An integration was made with the ERP system and specific financial rules were designed to reflect the particularities of New Lachaussée’s field of activity. When a potential new project arises, it is quickly entered a simulation mode, based on an existing model. A financial plan is associated with it.
The simulation tool then enables the expected impact of this new project on both cash flow and the company’s results to be quickly calculated, while taking into account the rest of the current and future projects as well as the use of critical resources. If it is accepted, the new project is managed in PlanningForce, which sends back to the ERP system information on the milestones and dates for placing orders for raw materials and intermediate components in a timely manner.
The progress status of all ongoing projects is entered weekly, allowing the cash flow curves to be updated and a decision to reprioritize activities or change the composition of the resource portfolio according to the strategy followed, if necessary.
As a result, the entire S&OP process has been significantly improved, not only because decisions are now made on the basis of more accurate information, but also because procurement is improved.
The planning work of the planner and the supply chain manager is also considerably simplified. The time they previously spent manually calculating cash flows is now spent designing different scenarios and coordinating activities between different departments.
Senior management has regained firm control of the various processes, giving them the ability to run the business with confidence and peace of mind, both in the short and long term, regardless of the economic and structural conditions in which the company must operate.
Adoption of a new methodology
Shift in mentality
Modern work environment
Exemplary company within its Group