Sapa Heat Transfer (Shanghai) Goes Live with Planning Solution from Quintiq

June 12, 2008 | 's-Hertogenbosch, Netherlands
Specialty aluminum manufacturer has cut inventory, reduced lead time and raised productivity as a result of Quintiq's solution

Quintiq, a leading provider of Advanced Planning and Scheduling (APS) solutions, today announced that several benefits were achieved over the last year since the implementation of the Quintiq Company Planner solution at Sapa Heat Transfer (Shanghai) Ltd. The Quintiq Company Planner solution has been live for almost one year, and has already resulted in significant improvements in many aspects of Sapa Heat Transfer (Shanghai)'s operations.

The Shanghai plant of Sapa Heat Transfer produces aluminum strips for heat exchangers in automotive applications. A wholly owned subsidiary of the Sapa Group headquartered in Sweden, Sapa Heat Transfer (Shanghai) is (together with their sister company in Sweden) the only rolling mill in the world that works exclusively with rolled aluminum for brazed heat exchangers. Serving this niche market, Sapa Heat Transfer (Shanghai) works with a rather comprehensive operation covering all processes from casting, hot rolling and cold rolling, to finishing.

Flexibility to cope with rapid growth
Like many Chinese companies, Sapa Heat Transfer (Shanghai) has grown quickly and it expects to continue growing at its current annual rate of 20-40 percent for the next few years. In 2007, investment plans were made to expand in space and machinery to almost double the plant's production capacity, within a few years, to 80,000 tons per year. The flexible Quintiq solution enables Sapa Heat Transfer (Shanghai) to easily integrate additional machines, staff, customers and new products into its planning processes for an optimized company-wide operation. "We are very pleased with the real, bottom line benefits we have seen so far with the Quintiq Company Planner," said Zhou Xiqiao, Planning Manager, at Sapa Heat Transfer (Shanghai).

Quintiq leveraged the strengths of its standard software core. They drew on their unmatched experience in providing APS solutions for aluminum companies around the world, to develop a highly effective, customized solution for Sapa Heat Transfer (Shanghai). The implementation project for the Quintiq Company Planner, handled directly by Quintiq, was completed on time and on budget. "As our first customer in China, Sapa Heat Transfer (Shanghai) is an especially important customer for Quintiq," said Enno Peters, Managing Director at Quintiq China and North Asia. "What's more, the success of this project is very significant, not just for Quintiq, but for the entire APS industry because it is one of the first, if not the very first, successful APS implementation in this very complex and highly dynamic market in China."

Higher productivity, lower costs
Since installing the Quintiq Company Planner, Sapa Heat Transfer (Shanghai) has recorded considerable, quantifiable improvements across multiple aspects of its operations, including:
• Higher productivity with lower inventory - The Quintiq Company Planner solution increased inventory turns by almost 25 percent.
• Shorter lead time - With the ability to employ Just-in-time (JIT) concepts in planning, Sapa Heat Transfer (Shanghai) has reduced the production cycle time with several days. This takes into account setup, cooling and material transportation times, and the dynamically adjusted parameters to the real production situation.
• Improved planning visibility - Planners can now optimize planning and understand the consequences of decisions by viewing the improvement of KPIs in real time. Additionally, instead of relying on spreadsheets and personal experience for planning rough capacity, the Quintiq solution enables planners with an accurate view into resource capacity such as material demand and supply with the ability to making adjustments on the fly.
• Easy bottleneck identification -Bottlenecks can be predicated based on customer and internal resource capacity demand, and are automatically optimized, improving productivity and delivery performance.
• Improved planner efficiency - Although sales volume has increased by 40%, and planning complexity increased due to the installation of new machines, there has not yet been any need to expand the planning department.

About SAPA Heat Transfer (Shanghai)
Sapa Heat Transfer (Shanghai) Ltd., is a wholly foreign-owned enterprise (WFOE), based in the automotive centre of Jiading, north of Shanghai. We are the only rolling mill in the world that has chosen to work exclusively with aluminum strips for heat exchangers in automotive applications. Our Swedish parent company, Sapa AB, develops, manufactures and market value-added aluminum profiles, profile-based components and systems, and heat exchanger strips in aluminum. In 2005, the Sapa Group's turnover was 14 billion SEK dollars and the company employed 8000 people worldwide. http://www.sapagroup.com

About Quintiq
Quintiq provides advanced planning, scheduling and supply chain management solutions. The fast-growing Dutch company, established in 1997, offers software for planning and optimizing complex business processes throughout the enterprise. The company's headquarters is located in the Netherlands and it has subsidiaries in Germany, UK, Finland, Malaysia, China, Australia, and the USA. For more information: www.quintiq.com