"Rivne High-Voltage Equipment Plant" reduced the TVC by 40-60% for all types of products thanks to IT-Enterprise

In response to rapid business growth within the High-Voltage Union industrial group, the company’s owners initiated a transformation aimed at improving production management, cost transparency, and scalability across manufacturing plants.

The initial phase focused on the Rivne High-Voltage Equipment Plant and High-Voltage Union Ukraine, which served as pilot sites for developing a standardized digital production management approach applicable to other plants within the group.

The key objectives of the project were to replace fragmented planning tools with an integrated production planning environment, establish end-to-end order management across the full production cycle, provide fast and accurate calculation of production costs at all stages, and implement lifecycle control from market demand through production and warranty service.

Project description

A sharp increase in production volumes combined with strict delivery schedules made it essential to introduce structured production planning and operational control.
At the same time, individual plants were already using disconnected automation tools, which limited visibility and coordination at group level.

Following consolidation into the High-Voltage Union group, management required a single operational view of production progress, resource utilization, and order execution across all plants.
This included real-time insight into production status, costs, and financial performance to support centralized decision-making.

To achieve this, a unified SmartFactory-based production management model was introduced, supported by pre-project analysis and the design of target (“to-be”) business processes.

Scope of transformation

The implementation focused on building a coherent production and operations management framework covering:

• pre-production planning and process engineering
• production scheduling and execution control
• logistics and inventory management
• cost calculation and budget control
• workforce planning and repair management
• quality assurance and lifecycle control

The Rivne plant acted as a reference site while the solution was validated and prepared for rollout across other manufacturing units within the group.
A key requirement was standardization of processes and data models to enable consolidated operational and financial reporting at holding level.

Production planning and real-time control

A core milestone of the project was the launch of advanced production planning and execution workflows, enabling:

• capacity-based production program evaluation
• sales and release planning with lead-time estimation
• daily production replanning based on actual conditions
• real-time accounting of materials, components, and finished products

Operational data on work-in-progress, inventory levels, order status, and capacity utilization became available in real time, enabling fast corrective actions and accurate cost estimation throughout the production cycle.

Key project factors

The solution now supports over 600 users across the corporate production environment.
Daily operations involve millions of detailed production transactions, with continuous replanning to reflect changing demand and capacity conditions.

As a result, production lead time was reduced by 40–60% across all product categories.

Results

The implementation delivered the project’s primary target: a 40–60% reduction in production lead time, directly impacting total variable cost (TVC) across all product lines.

Management gained real-time visibility into production costs, work-in-progress, raw material balances, capacity utilization, and order execution status.
Aggregate production planning enabled realistic evaluation of production programs against available capacity, while execution-level control improved throughput and schedule reliability.

Financial and operational processes were aligned, enabling centralized planning, approval, and control of material and financial flows.
This supported accurate plan–fact analysis, improved budget discipline, and more predictable production economics.

By establishing a transparent, order-driven operating model and synchronizing internal and external supply chains, the company optimized inventories, stabilized production schedules, and significantly reduced production costs.

The project demonstrates how SmartFactory-driven production management, implemented at an energy equipment manufacturer in Ukraine, is fully transferable to European industrial groups seeking scalability, cost efficiency, and real-time operational control.