Manufacturing Framework

MCI has developed a Manufacturing Framework utilising the IBM Cognos TM1 platform and has a successful track record of implementing it for a number manufacturing organisations in South Africa and Saudi Arabia.

The Manufacturing Framework is a best practice framework for key performance management in manufacturing and is configurable to meet changing requirements. Our solution is implemented by experienced specialist consultants.

The framework provides demand driven planning that determines quantity/cost of materials to be supplied resulting in better planning and analytics with sandboxing (modelling) capabilities.

Scenario modelling (sandboxing) enables:

  • Supply Chain to vary Raw Material prices to see effect on profitability;
  • Sales to vary pricing to see changes on contribution margin and P&L;
  • Finance to change exchange rate assumptions to see impact on foreign sales and raw material purchases.

Modules include:

  • Sales Planning;
  • Raw Materials Planning;
  • Production Demand Planning;
  • Inventory Planning;
  • Product/Customer Profitability;
  • Manpower/Staff Costs;
  • Expenses;
  • CAPEX;
  • Transfer Pricing/Allocations/Shared Services;
  • KPI dashboard;
  • Inter-company sales.

The framework addresses:

  • Input of sales quantities and price per customer and product;
  • Sales quantities pushed through product based bill of materials;
  • Price lookup against raw material price catalogue to determine costs;
  • Contribution margin available in real-time;
  • Further ability to allocate overheads to derive product/customer profitability;
  • Allocation model to recover shared services by charging internal departments and group companies.

Benefits of implementing the model include:

  • Poorly performing customers/products can be eliminated or repriced;
  • Better servicing of clients and lead time management;
  • Planning of sales ahead of commitments allows planning around seasonality, potential stock-piling and capacity restrictions;
  • Lead times reduced where requirements for special raw materials, artwork etc. are required.