Embraco – Master Data Governance Toward Simplification
Embraco has the mission to be simpler and agile in the processes and this project met those needs. Outstanding work toward simplification
Marcos Casado Castano – Corporate IT Director – CIO
Congratulations to delivery successfully this project that will simplify a lot our process. This is a dream from a long time, that is coming true.
Luciano Borges Lopes – Corporate IT Senior Manager – Applications
Embraco is a multinational focused on innovative solutions for refrigeration that are differentiated by efficiency and low energy consumption. Founded in 1971 in the city of Joinville (SC), it has been marketing products in more than 80 countries for 46 years, employing about 11,000 people in seven countries (Brazil, China, Italy, Slovakia, United States, Russia and Mexico). Embraco has capacity to produce 40 million hermetic compressors per year and is among the private companies with the highest number of patents deposited in Brazil and in United States, reaching the 1,700 mark globally.
Reference in the refrigeration market, Embraco is always dictating trends and innovating its products to bring more life quality to people through the preservation of food. Due to this innovative DNA there is a need for agility to create and release products for the market. Embraco understood that the governance of its materials and products master data was essential to simplify internal processes and reduce the lead time between the moment which customers order a product until the product arrival.
Defining the Goals
In order to better attend the customer, Embraco has been looking for processes and technologies to support the product and material master data management, establishing clear objectives to be achieved:
– To attend needs related to the material and product processes governance.
– Standardize processes and define those responsible.
– Find gains for Product Development, Procurement and Logistics processes.
– Increase the information quality for decision making.
– Ensure fiscal and tax governance.
– Transfer informal (tacit) knowledge to the company domain.
– Simplify and automate processes toward operational excellence.
– And, finally, to support the new processes, implement a technological solution connected directly into SAP ERP avoiding integrations.
Specialized knowledge in master data processes and SAP technologies, in addition offering a solution fully integrated to SAP ERP, has led Embraco to choose akquinet HKS Brasil consulting to support this important global project.
The work began with the process mapping of material, product and other related master data (technical list, rounting, purchase info record and source list). Based on the AS-IS, combining the potential that the MDM+ BRO tool could deliver to Embraco, in addition to the consultant’s know-how and the best practices, standard processes were defined for Embraco worldwide units (11 in total).
In addition to the master data processes, a governance process was defined – a very important item for the sustainability and that would be implemented during the project.
The project was divided in two phases:
1ª – Creating the culture of Master Data Management
New standardized and orchestrated processes were implemented through the BRO workflow, bringing visibility and controling to the master data processes. At this stage the culture of master data management in the company was inserted, involving and training the employees.
2nd – Simplification and Automation
With the lessons learned in the previous phase and applying the potential of the MDM+ BRO solution, the second phase allowed the process improvement of the master data implemented. Applying the BRO forms functionality (screen definition), processes were simplified with fields and information available in an organized, streamlined and simple way. Implementing the mapped business rules, a huge part of the master data was automated, reducing effort and time spent by users in the process.
Numbers and Facts
8 plants: Brazil (3); Italy; China (2); Slovakia and Mexico. And 3 offices: United States, Russia and Slovakia.
139 processes implemented.
330 key-users involved and trained.
19 business areas involved.
More than 1,000 new master data per month.
1st phase implemented in 3 months.
The improvements with the Material Data Management (BRO) implementation were numerous, as shown in the list below, the highlight was the agility to create a quality master data. For this, process steps were eliminated with automation reducing the inventory of a valve from 56 to 18 days, for example.
Quality information in the master data.
Standardized and documented processes.
Provide information centrally to all employees.
Increase from 31% to 88% in SLA service.
Reduction of logistics and inventory costs.
Domain of master data business rules which before were tacit and now became structured and systematized.