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Audi Hungaria Motor overtakes supply chain complexity through standardization and integration

Audi Hungaria Motor (AHM) improved materials visibility and increased plant production efficiency by integrating and streamlining supply chain management processes with the help of expertise from IBM Business Consulting Services.
Case study
Company name: Audi Hungaria Motor
Last updated: 19 Nov 2004

Audi Hungaria Motor (AHM), a major Hungarian engine manufacturer, improved materials visibility and increased plant production efficiency by integrating and streamlining supply chain management processes with the help of expertise from IBM Business Consulting Services and a foundation of IBM technology, including eServer pSeries servers and Tivoli and Rational software.
Business need
Key challenges
Solution
Results
Customer information
Related reports & papers
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Business need

With its role as a supplier of engines to the VW Group growing, the company needed to ensure that it could respond rapidly to changes in the supply chain.

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Key challenges

This requirement meant simplifying its processes and better integrating them with those of other business units in the VW group.

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Solution
IBM On Demand Business and IBM Business Consulting Services

Audi Hungaria worked with IBM Business Consulting Services to redesign and integrate its supply chain processes, all of it implemented under the umbrella of a new SAP solution. An automated systems management platform was deployed to make the system more flexible, robust and manageable.

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Results

AHM's production parts planning cycle is 10 times faster than under the previous solution. The flexibility of the new systems management framework facilitates AHM's growing role in the VW supply chain by enabling rapid process integration and automation. The framework's single point of control simplifies systems management, reducing integration costs and improving IT productivity. Integrating supply chain processes end-to-end provides more visibility into key information flows -- supporting decision-making.

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Customer information
Audi Hungaria Motor
Audi AG, a member of the VW Group, founded Audi Hungaria Motor Kft. -- a full subsidiary that manufactures the company’s engines -- in 1993 after evaluating 180 potential sites for a new engine plant. More than 6,500 engines are produced by the Audi Hungaria plant per day. Audi Hungaria also provides various mechanical parts, such as the cylinder heads for the Lamborghini Gallardo V10 engine, to other companies in the VW Group.
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