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How to define right business drivers in digital transformation

FED is the young machine-building enterprise, based on the east of Ukraine in Kharkiv, with 800 workers and about $ 75 million of turnover (2017). FED produces the complex and high precision mechanical components for avionic industry.

Manufacturing assets include about 90 modern machine-tools that FED bought during last decade. The market strategy has been focused on the combination of best quality, innovation and time2market factors but with affordable price. To implement such a strategy, since 2011 FED heavily invested into Industrial Automation & IT systems. Since 2016, the enterprise launched a MES and APS systems based on Smart.Factory product from local IT-Enterprise company. APS (advanced Planning & Scheduling system) is able to plan 2 thousands operations per day that would not possible in manual mode. Due to this feature the throughput of FED has been increased at 18% that makes an equivalent of $ 18 million yearly. FED also implemented several sub-systems based on new technologies as AR/VR, machine learning, IIoT and so on. 

Case-study FED is the first, detailed case of implementation of Industry4.0 in Ukrainian history of local Industry 4.0 movement. Most of elements of this case match to best worldwide best practices. The enterprise reaches its best business KPI due to well defined value drivers such as effective production scheduling and assets management which in their turn are fully automated. It would mentioned that in this story FED has been followed many stages on automation journey, from automation of office business-processes, PLM/PDM applications and to data analysis in real-time applications.

More information about this project see in full case-study on Ukrainian.

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