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Effective use of a high-value tool under the control of IT-Enterprise in JSC "FED"

Aerospace industry
Effective use of a high-value tool under the control of IT-Enterprise in JSC "FED"
scale500+ employeeskpiReduce the cost of a valuable tools
ProductRepairs and maintenanceProject time1 year
year of briefcase2017geographyUkraine
IndustryAerospace industrycustomer"FED"

Project Goals

"FED" plant is a modern mechanical processing enterprise that produces complex modules for the aerospace enterprises. Customers of the company are specialized industrial production companies of the world. Despite the competition in the niche, Ukrainian enterprise has the advantage — high quality of products.

After all, modern customers want to receive high-quality products, in the agreed terms and volumes, produced according to the technological process and at the lowest possible price. In order to retain leadership in such difficult circumstances, the company undergoes continuous improvement of manufacturing processes, investing in the acquisition of new equipment, training plant personnel, and the development of an enterprise management system.

To increase the efficiency of production and to save enterprise resources at the “FED” plant was implemented ERP-system IT-Enterprise. With IT-Enterprise FED optimized cost of expensive production tools.

Production enterprises gradually renounce universal production machines and move on to the use of modern machining centers. This equipment is capable of handling high-quality products with high precision in optimized production cycle times. This equipment runs under control of software programs and does not require human involvement. This equipment is programmed by maintenance engineer, and often the program is generated entirely on the base of 3D-model of the product.

When using such equipment the top priority is to provide a production tool for this equipment. The tool is purchased, enterprises do not manufacture it in tool shops, because of the large nomenclature, cost, and the duration of the supply cycles.

Project Description

On the basis of these factors, the enterprises are in need of a new methodology for planning supply of production tools. For planning, requirement for a tool for production operations is needed. It is the basis for the creation of purchase orders for the tools. Additionally, the usage norms for the tools are needed  as well as their expanded accounting.

IT-Enterprise has detailed planning tools. For this purpose, the tools and the auxiliary equipment are put into special registry. In order to implement the methods of norming and planning of tools requirements, it is necessary to classify the entire cutting tool and equipment according to the categories of significance for the production, i.e. perform ABC analysis. Group A includes the most important and significant tool; group C — the most common and easily replenished. The accounting of the tools of group A is done in units, according to the instrument numbers.

Group A includes tools that correspond to the following characteristics (about 5% of the total nomenclature):

  • an expensive tool;
  • a tool with a long supply cycle;
  • a tool with unstable offer on the market;
  • a tool, the absence of which involves the cost of production in the form of failures of time, fines, etc.

To get rid of transportation lead time dependency and the possibility of breaking schedules and changes of the production schedule, the safety stocks are taken into account while the demand norms for the tools calculated. To reduce the cost in the purchase of expensive equipment, available tools located in the shop and in the warehouses are taken into account.

In the use of the tool norming, IT-Enterprise experts recommend to calculate resource consumption — the fraction of resource usage of the tool to execute one operation.

There is a business process for calculating the forecast deficit for wear-resistant tools and for tools of Group C. This business process is the base for purchase the tools of this group.

The peculiarity of the IT-Enterprise solution is the business process of accounting for operating time of the Group A tools. This group includes expensive tools and tools critical for executing production orders. Tool storage cabinets are the storage location of the tools and an interactive system, which is the source of information on the tools usage. Each tool storage cabinet at "FED" is equipped with specialized software, which accounts the tools movements.

Tool movement leads to the automatic generation of documents with the detailed information on tools movement. With the ERP system it is known which tool is currently in the workshop, at what specific workstation, which workers are responsive for it, which technological operation it is issued for and what is the current resource of the tool.

The issuance of the tool is controlled by an engineer who examine the tool at each issue/receipt. In spite of the statistics, the tool may break or fail to meet the requirements of the technical process, so the tool examination is an engineering task that is mandatory for a class A tools.

Key project factors

By 15% reduced funds frozen in stored expensive tool.


With the implemented ERP system IT-Enterprise, the FED plant developed a unique system of planning  and control of the tools need, which reflects the physical availability of the tool in online mode.

The plant's specialists receive operational data about the movement of the tool online. Data inputted into the system immediately after issuing or returning the tool.

The implemented solution led to a reduction of costs due to optimization of expensive tool purchase, to the efficient usage of available equipment, and, ultimately, to the increasing the number of orders executed in time and according to the technical conditions.

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