Scope Management Plan (SMP)

Industry: Industrial Machinery for the Oil & Gas and Power Generation Markets

Services Provided: Project Management, Project Scheduling, Vendor Management

Company: A provider of highly efficient turbine-driven gas compression, oil pumping and power generation packages for onshore and offshore applications worldwide

Challenge: With increasing logistics and labor costs threatening to seriously impact profit margins, the company’s supply chain sectors in North America saw a need for

improved material management to meet rising demands for order accuracy while increasing

productivity and reducing costs. The major challenges they faced were overhead control

issues such as inaccurate inventory counts, shipping errors, receiving errors, and a need to

improve delivery speeds.

Analysis concluded that improvements would best be achieved by substituting technology

for potentially error-prone human activities such as receiving, putaway, picking, shipping and

inventory counting. Providing an automated means for data to be conveyed directly from the

warehouse floor into SAP’s Supply Chain Management (SCM) software rather than via a manual counting and recording process

would improve accuracy, reduce overhead costs, and provide real-time supply chain visibility.

Solution: The organization decided to take advantage of radio frequency (RF) automation and SAP integration within the warehouse to achieve optimum supply chain efficiency and productivity. Midway through the project, it became apparent to the

company that they did not have the appropriate level of project management capacity available in-house. They called upon PM

Solutions to provide a senior-level project manager to lead the “North America Program Team” in the implementation of a warehouse

RF solution for the final third of the project duration. PM Solutions’ project manager immediately assumed responsibility for

developing and managing the overall project plan, which consisted of three distinct components:

:: Install shop floor wireless network

:: Build, configure, and connect Radio Frequency devices

:: Incorporate RF-associated SAP changes

PM Solutions’ project manager performed the roles of project manager and system integrator, being responsible for overseeing

requirements gathering, systems design, procurement and installation of the necessary hardware and software, and coordinating

user acceptance testing.

VA L U E D E L I V E R E D

Thanks to a retooling of the

materials management system

incorporating radio frequency

(RF) automation, the company’s

warehouse accelerated delivery

speed of parts by 66%,

creating a significant reduction

in overall time-to-market. This

complex automation project

came in on time and more than

18% under budget.

$

The new RF solution was delivered on schedule and more

than 18% under budget. The biggest gains from this

implementation were improved inventory accuracy and

increased productivity. The expected delivery speed of

parts from the warehouse was reduced by 66% (from

24 hours to 8 hours), producing a significant improvement

in overall time-to-market. This successful project laid the

groundwork for subsequent operational improvement

initiatives now underway at the client’s locations in the US

and Europe.

pmsolutions.com :: 800.983.0388 :: PMO Services :: Program & Project Managers :: PM Training & Development

client successes

results

Wireless Warehouse Initiative Transforms Materials Management Operations and Improves Delivery Speed by 66%

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