AboutABUmega

AB Umega is the largest metalprocessing company in the BalticStatesowningthreefactories.TwoofthefactoriesareinUtena,whereoneofthemproducesagriculturaltrailersandbiofuelboilers,andtheotherone- laboratory ovens. The largestfactory, the so-called “Vienybė”(English: Unity) division, is inUkmergė. Here domestic soli fuelboilers, fireplaces, sauna stoves, alsovalves and blowers are produced.Custom manufacturing is bestdeveloped in Ukmergė: here variousparts of furniture and cars, elevatorcomponents and many other metalitems ordered by Western European

Qlik|Successstory|Umega,AB

WithQlikABUmegamanagedtofreeupmorethanEUR100.000inworkingcapital

analysis penetration in AB Umedawas very limited: consumers usedto receive information from textreports compiled by Oracle BMS,having converted them to Exceldocuments. Reports were pre-formulated and pre-defined: thepresentation of data to consumersin the necessary sections, requiredlonghoursofmanualwork. Suchaprocedure could not have lasted,thus in2014asearchforasystem,which could present dataaccumulated in Oracle MBS toconsumers automatically, whenthey are needed, at differentsections, in a mannerunderstandable and clear to all,was started. This is how UmegadiscoveredQlikView.

“One of strategic goals wasfreeing up the time of salesmanagers for thesearchofnewcustomers, development andnegotiations, and leavingmanual work for automatedsolutionswithQlikView.Ibelievewewereverysuccessful indoingso!” Aurimas Kiela, PurchasingManager at“Vienybė”division.

AB Umega has installed sales,procurement, quality control andfinancial analysis applications. Theinstallation was not easy and tookabout two years: the main reason

companiesaremade.

Determination to analyse business

processes modernly has

overpowered

AB Umega uses Oracle E-BusinessSuite business management system,the development of which requiredgreat budgets, thus a decision wasmade to completely terminate thedevelopment works during the crisisof 2008. At that time, business

ABUmegaMetalprocessingandproducecompany

SectorManufacturing

AreasofanalysisSales,purchasing,quality,financialanalysis.

Geographyofoperations23%ofproduceremainsinLithuania,whiletheotherpartisexportedto50countries,withGermany,SwedenandDenmarkbeingTOP3

Challenges•Toreducestocksofrawmaterials,freeupworkingcapital.•Tospeedupdecision-making,improvetheirquality.•Toimprovecommunicationinsideandoutsidethecompany.•Tominimizemanualwork,eliminatethelikelihoodoferrors.•Toexpandtheuseandpossibilitiesofanalysis.

SolutionSales,purchase,inventory,qualitycontrolandfinancialanalysisapplicationswithQlik.20employeesusethesolution.

Benefits•Fast,flexible,convenientanduser-friendlybusinessdataanalysissystem.•Userscananalysedataindependently.•Creatingmanualreportsisnolongernecessary-theyarereplacedbyanalyticalQlikapplications.Theneedfortechnicalworkforcompilationofreportsdecreased.•Reductionofstocksofrawmaterialsby23%andmorethanEUR100.000inworkingcapitalfreedup.•Apossibilitytolearnfromactualdataandimprovethequalityofforecastofoperations.Datasources

DW/BI:OracleDatabases:Oracle,Excel,SkaitaSizeofdata:23GBProjectExecutor

UABDayQ,info@dayq.ltQlikTechrepresentativeinLithuania:UABDayQ,www.dayq.ltMasterresellerpartnerinLithuania

Reviewofthesolution

for such duration of the project wascomplexandcomplicatedOracleMBSDB structure. The installation ofQlikView procurement and inventorymanagement application was mostcomplex in “Vienybė” division. Itscomplexity according to QlikView“Governance Performance” was ashighas27.4.

“Saved”timefortheimprovement

of business processes of the

company

Oracle BMS functionality allowedforecastingdemandforacertainrawmaterial for the upcoming 45 days,however, eventually itwasup to thePurchasingManagerhimselfwhetheror not this really was the requiredquantity, therefore manual worktook up a large part of time of thePurchasing Manager whendetermining possible demand, whichinevitably led to human errors. Butsuch problems no longer exist: withQlikView data are analysed frommany different sources and coversuch information as productionneeds, goods on the way to thefactory, delivery terms of produce,etc.Atthesametimehavingappliedunique calculation algorithms, everymorning the Inventory Managermonitors relevant information, suchaswhichrawmaterialshemustordertoday to not run out of them in the

Qlik|Successstory|Umega,AB

“AdecisiontoinstallQlikViewhasbroughtsuccesstothecompany.Thestart,whenenjoyingfruitsofthelabourisnotyetpossible,isthehardest.Buthavingreducedthelevelofrawmaterialsby23percent,therewerenomorequestionsastoreturnoninvestmentinQlikView.Therealsoaresomeimmeasurablethings,

suchasincreaseddecision-makingspeedandquality,decreasednumberofhumanerrorsinreports,improvedcommunicationinsideandoutsidethecompany,reducedstressoverinappropriatedatasections,

improvedteamworkandothers.”

GiedriusRumšys,FinancialAnalystresponsiblefortheQlikinstallationproject,ABUmega

future.Nomanualwork,nomistakes!

“Previously, we purchased rawmaterialswithout seeingwhen oneor another raw material will beneeded in production and lingeredexamining each positionindividually.Accuratedeterminationofdemandtookasmanyas2hours.With QlikView we are able to seethe demand immediately, by asingle click of the button. And,what’s most important, we haveeliminated the likelihood of humanerror.”Ingrida Neniuvienė, StrategicPurchasingManageratABUmega.With QlikView it is no longernecessary todevote time formanualcompilation of recurring reports,while the “saved” timemay be usedfor the optimization of businessprocesses of the company, meetingswithsuppliers,pricenegotiationsandsimilaractivities.

Implementedsolution:

23% lower inventories of raw

materials,EUR100.000infreedup

workingcapital

Inthedevelopmentofthepurchasingapplication,thebiggestchallengewasdeterminingaccuratedemandforrawmaterials. Every professionalInventory Manager understands the

importance of assessment of demandfor raw materials in light of terms ofsupply: some raw materials aredelivered in a few days, others - in afew months, thus if all raw materialsweresubjecttoapplicationofthesametime interval, some raw materialswould be received in excessivequantities and there would be ashortage of others. In order tomaximize the accuracy in planningdemand for raw materials, purchasingstaff from “Vienybė” departmentdecided to calculate demand for eachrawmaterialindividually,dependingonits supply term. For example, demandfor raw materials, the supply term ofwhich was one week, was forecastedfor two weeks, while demand for rawmaterials, which were supplied in twodays,was4days,etc.Thiscomplextaskwas resolved by creating a separatecalendar for each raw material, whichallowsforecastingdemandforeachrawmaterial. Thus, instead of monitoringdemand for upcoming 45 days, nowUmega managers are able to see thedemand for each raw material for 2delivery periods ahead. Even thoughthese changes resulted in addition ofseveral million entries in the report, itwas worth doing so. Now “Vienybė”division can rejoice over 23 percentlower inventories of raw materials, ormore than EUR 100.000 in freed upworkingcapital!In addition, algorithm for automatic