- In Customer Stories
- Posted 31/03/2016
Hayward Tyler, one of the world’s leading suppliers of mission-critical electric motors and pumps for the oil, gas, nuclear, industrial and chemical markets, relied upon predictive simulation to plan an ambitious business growth strategy and communicate their vision to employees, customers and investors.
Ambitious growth plans
In order to capitalise on opportunities across a number of its growing markets, Hayward Tyler recognised that it needed to undertake a business transformation project that was focused on;
- Maximising Efficiency
- Aligning Capacity to Demand
- Boosting Profitability
Having already achieved a substantial growth in the turnover of its Luton operations – from £18 million in 2011 to £26 million in 2014 – the next stage was the development of a plan that would see its Luton facility doubling in size in order to greatly increasing the number of units it was capable of producing.
The limitations of Microsoft Excel for business planning
Hayward Tyler had previously used Excel as its primary modelling tool for planning. However given the extent of change required to meet accelerating demand, the management team felt that Excel could not help them deliver and communicate an accurate, trusted growth plan.
The organisation needed the foresight to understand how the business would look in 5-10 years, what future opportunities there might be, and how their operations would evolve over that period. Most importantly they needed to understand the timing of key asset investments.
Complex resource and process variables all needed to be factored in, including new equipment, people, sub-assembly processes, cranes, forklifts and back office policies and workflows.
A move to predictive simulation
Having concluded that Excel would not be a suitable tool, Hayward Tyler looked at how predictive simulation could be used to create a virtual, dynamic factory. After evaluating a number of solutions, the management team selected Lanner WITNESS. It was chosen for its ability to execute detailed schedule-based planning in a rapidly deployable and user-friendly environment, completely ‘out of the box’.
“We are an extremely dynamic company and needed a solution which we could adopt quickly and hit the ground running,” says Martin Clocherty, Manufacturing Systems Director at Hayward Tyler. “When we saw the level of insight predictive simulation could provide, we immediately bought Lanner's WITNESS, installed it and had developed a meaningful model from which to create our Master Plan within just a few months.”
“Lanner WITNESS is hugely powerful in that it can run a year’s simulation in seconds, facilitating a detailed picture of exactly what business processes and resources we need to deliver against future demand.”
The Virtual Factory
Using Lanner WITNESS, Hayward Tyler created a ‘virtual factory’ which presented a highly visible picture of its manufacturing operations as they evolve over the next 5-10 years.
The model highlighted exactly what would be required to meet demand and maximise profitability. Multiple influencers of plant capacity and performance were factored in, including factory layout, equipment requirements, shift patterns, and peaks and troughs in demand. The model also encompassed key milestones and product mixes, and identified exactly what processes and resources would be needed at each milestone to keep pace with predicted demand.
Thanks to Lanner WITNESS, Hayward Tyler developed a 2022 Model which signposts the activity required to achieve their plans in the most efficient way possible. The virtual factory model demonstrates visually how the business will look in 2022 – and at any point between now and then.
“It’s exciting to see clearly where the ongoing investment in our facilities will take us,” says Martin Clocherty. “The model tells us when spare capacity will run out, when we need to upgrade machines, or when a shift pattern change is needed.”
Stakeholder Acceptance and Support
This deep insight means that Hayward Tyler has a robust, accurate plan which allows it to pre-empt forecast changes in the business, ensuring productivity remains high and costs are minimised. It also means that it has a highly credible plan to present to stakeholders - both internally and externally.
Lanner WITNESS has quickly become an invaluable tool in communication with Hayward Tyler's stakeholders. It demonstrates the robustness of the Master Plan to its key banking partner, providing transparency, demonstrating the competency of the team and instilling confidence.
In parallel, it has been presented to the in-house manufacturing workforce and sub-contractors, and has significantly helped Hayward Tyler to engage, motivate and secure buy-in from these internal stakeholders. This will contribute to ensuring a successful transition to its new methods of operation.
Further Insight and Integrity
As Hayward Tyler continues to implement its growth strategy, it will use Lanner WITNESS to underpin its planning, updating the virtual factory with changes as they occur.
“The model is dynamic, so we will continue to update and populate the model with more detail and market changes as we become aware of them,” Martin says.
“Testament to its success is that our CEO has mandated that simulation must be used as the foundation for planning across our other facilities, so we are looking to extend the reach of predictive simulation across the organisation - starting with our US based operation.”
“In 20 years of using software across a number of different roles, nothing has impressed me as much. To gain the level of insight provided by Lanner WITNESS, and the productivity improvements which we will derive as a result, is testament to the integrity of the software and commitment and professionalism of the Lanner team. That we were able to achieve this within just a few months of engagement is hugely impressive.”
“Lanner and WITNESS have genuinely delivered on their promises and equipped us with the insight to transform our business and boost profitability exponentially.”