Efficient and Integrated Product Development Aligned with the Supply Chain

The Customer

The client is a leading company in Italy specializing in the design and manufacturing of machinery for labeling, packaging, and filling of food raw materials.

The Challenge

The client was facing several critical challenges within its operational processes, which were undermining both efficiency and competitiveness. Specifically, the inefficiencies identified included:

1. Lack of integration between the engineering and production departments: communication flows between the engineering team—responsible for designing the machinery—and the production unit were fragmented and ineffective. Technical changes introduced during the design phase were not properly conveyed to the production team, resulting in machines being built inaccurately and deviating from customer specifications. Communication between the two departments relied mainly on email exchanges and uncontrolled information sharing.

    

2. Inadequate management of design change history: the absence of a structured, digital system for archiving and retrieving information made it difficult to trace previously sold configurations. This led to inefficiencies, reduced productivity, and prolonged lead times when customizing new orders.

3. Lack of component standardization: the high variability in designs, combined with the absence of a consolidated catalog of standard components, introduced operational complexity and inefficiencies in production processes.

The solution & the benefits

To address these challenges, an integrated product development process was implemented, significantly improving communication between the engineering and production departments, streamlining change management, and enabling greater product customization. At the core of the initiative was an effective change management strategy that guided the client through the adoption of new methodologies, driving the optimization of operational workflows.

Through the implementation of SAP Engineering Control Center, information between design and production is now fully traceable and shared in real time. Leveraging SAP’s standard workflows, a change management system was developed to track every modification made to existing projects. This solution enables quick access to the history of sold machines and their respective changes, supporting efficient customization of new orders. Additionally, the introduction of the SAP Product Lifecycle Management (SAP PLM) module allowed for the creation of an engineering bill of materials (eBOM), clearly separating the design and production phases. This has facilitated component standardization and the development of a streamlined component catalog.

The solution delivered tangible results, transforming the client’s processes and enhancing their competitive edge through:

1. Enhanced internal communication and reduced production errors: The integration of engineering and production significantly reduced errors caused by uncommunicated design changes, decreasing the error rate from 18% to negligible levels. Production now operates in full alignment with design specifications.

2. Optimized historical data management: The ability to track and retrieve information on sold machines reduced both time and cost in customization. The client shifted from a fragmented model to a structured system that allows for new installations to be designed based on existing configurations. Previously, approximately one in every 6–7 machines was designed from scratch; following implementation, this ratio improved to roughly one in 25.

3. Progress toward component standardization: The introduction of the engineering bill of materials simplified variant management, reducing the number of BOMs required to handle product configurations from nine to one. This accelerated production timelines, improved efficiency, and initiated the development of a standardized component catalog.

In summary, prior to the intervention, the client handled approximately 1,400 orders per year, with 40% related to new machines and 60% to maintenance. Following the implementation of the SAP-based system, annual orders rose to 1,800, with 30% attributed to new machinery and 70% to maintenance services—now the company’s core business. While acquiring new clients remains important, the company’s specialization in tailor-made solutions—and its exclusive ability to provide spare part kits—makes after-sales service a significant source of revenue. This shift reflects growing customer trust, driven by improved error resolution and enhanced service quality.