DynaEnergetics
Overview
Alfred Nobel invented dynamite in 1867 and, as part of his industrial conglomerate, started Dynamit Nobel. More recently, a management buyout of its oilfield products division resulted in DynaEnergetics, a new entity that has since made several acquisitions in North America and expanded its production capacity with new manufacturing facilities. The company manufactures and distributes perforating and well completion systems to oilfield customers worldwide.
DynaEnergetics’ SAP ERP system was running on an instance hosted by their former parent company, Dynamit Nobel. This had become a limiting factor for the company’s ability to change and implement new business processes as well as being able to fully integrate the acquired businesses. This resulted in business processes that were disconnected, product data quality issues, and partially implemented system functionality.
In the explosives industry, there are advanced needs to automate compliance-driven processes such as shipping and logistics. Country-level regulations dictate particular traceability, reporting and product data requirements. With an expanding supply chain, critical new needs included the ability to effectively plan and replenish both gun systems and parts through a multi-tier distribution network and integrated multi-plant MRP planning capabilities.
To help the organization uncover and articulate the critical gaps, Teccelerators was contracted to identify and analyze the ERP requirements, data gaps and the go-forward approach.
Solution
The ERP assessment focused on identifying, articulating and quantifying the impact of business process, data, and systems gaps across the organization as well as the specific issues related to product data. The detailed perspective gathered provided the baseline for determining the approach for a successful ERP deployment and the approach for cleansing and enhancing product data.
In addition, an initiative to implement supply planning (MRP) was initiated.
“Teccelerators takes a unique business-focused, solution-agnostic approach to provide a top-down strategic look at our problems while digging deep into specific pressure points and critical requirements. They only recommend solutions and initiatives that clearly move us forward as a business.”
– Jeff Fithian, VP Strategic Initiatives and CIO, DynaEnergetics
Results
The assessment pointed at several specific gaps allowing the organization to zero-in and execute on some quick win improvements and mobilize for a well-balanced ERP deployment with scope, cost, and risk measures under control. This included attention to several critical dependencies between business process, data, and system constraints. At the same time, foundational efforts were initiated to reduce the active product portfolio by 75% and specify needs for business analytics as a precursor to additional SKU rationalization efforts.
Implementation projects are currently underway.