A German Engineering Conglomerate Improves Return on Asset by 85% | A Quantzig Success Story
Engagement Summary Assets can be both tangible and intangible. An organization’s return on asset indicates the profit percentage and success rate by comparing the net profit with the total assets. Return on asset can give an overall idea of how a company manages its assets. This manufacturing industry client wanted to enhance their return on […]
Assets can be both tangible and intangible. An organization’s return on asset indicates the profit percentage and success rate by comparing the net profit with the total assets. Return on asset can give an overall idea of how a company manages its assets. This manufacturing industry client wanted to enhance their return on asset while devising an asset management plan.
The client is German engineering, construction, and manufacturing conglomerate with global operations, headquartered in Berlin. It was founded by two German engineers back in the 1930s. This manufacturing industry giant has a business interest in heavy engineering, construction, and realty.
The client was facing predicaments with implementing an asset management plan to control their operations efficiently. An asset optimization plan includes identifying data trends and analyzing huge datasets to draw comprehensive insights. This manufacturing industry player approached Quantzig to leverage its expertise in asset management and asset optimization to improve the efficiency of their business operations while gaining actionable insights from data gathered from various sources of their business. The key challenges of the client included –
Problem statement 1
Asset tracking – The client has a huge set of assets that are the lifeline of their business. The client was not able to track the status of their assets accurately which in turn was hindering them from realizing optimum value from their assets. They, thus, wanted to deploy an asset management plan that would provide them with real-time asset tracking capability.
Problem statement 2
Identify ghost assets – The client was frequently losing track of misplaced and stolen assets. With an effective feature like real-time asset tracking, a personalized asset management model could solve this problem of identifying ghost assets.
Problem statement 3
Forecast expenditure – This manufacturing industry giant was missing out on having a complete history of their assets, starting from acquisition to decay. Thus, they wanted to have an asset management system to forecast the expenditure of assets, realize their optimum value, and improve the return on asset to enhance profit margins.
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On collaborating with this manufacturing industry client, Quantzig’s experts identified a major factor that was the main reason for ghost assets. Our experts harnessed data from every sensor available and created a time series modeling using predictive maintenance and identified the assets that were at the maximum risk to break down/malfunction. By deploying predictive maintenance, this manufacturing industry player was able to improve the longevity of their assets while deriving the maximum value possible from them.
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This advanced analytics-driven collaboration helped the client to identify factors that were leading to a decreased return on asset and was also responsible for the decay of certain assets.
The key business outcomes during FY 2019-20 were –
- Enhanced return on asset by 85%
- Devised an asset tracking plan
- Improved accuracy of expenditure forecast
- Optimized asset usage
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