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How did the cylinder manufacturer BHC achieve 35% higher efficiency in many production stages?

Baltic Hydraulic Cylinders (BHC), Estonia’s most experienced hydraulic cylinder manufacturer, is an industrial company based in Viljandi that began operations in 1961. Today, more than 60 years later, the company’s main challenges include very high-quality standards and the daily monitoring and monitoring of production processes.

According to Kait Lukka, the CEO of BHC, the company has significantly increased production efficiency in many work stages over the past four years. How did the hydraulic cylinder manufacturer improve production efficiency by 30-35%, and which processes were optimised?

Replacing the manufacturing software in 2020

BHC’s decision in 2020 to replace its manufacturing software was not taken lightly. After thoroughly examining various solutions, they decided to implement a new manufacturing software. This decision was based not only on the deficiencies of their previous system but primarily on the logical features of the new system that appealed to them and suited their production needs.

The NOOM software allows the company to intervene in processes quickly and effectively, helping to achieve significant results. Kait Lukka, BHC’s CEO, said: “At the end of each work operation, I get a complete overview of how efficiently the entire production process and its various stages have gone in producing the final product. This, in turn, allows me to intervene very effectively in daily production.” Therefore, the software has not only improved BHC’s productivity but also reduced the time and resource expenditure previously associated with manual process monitoring.

The smooth implementation was the result of good preparation

The first phase, the implementation at BHC, was a smooth process that primarily took place during a New Year’s transition period. During this time, they could summarise the previous year, transfer data, and fully adopt NOOM within almost two months.

Lukka said the transition to NOOM was painless thanks to a specially created task force that addressed emerging issues daily. The biggest challenge was explaining the new system’s logic to the employees on the production line. Still, even this phase only took a few weeks before all data were successfully registered and the system started operating.

The final implementation timeframe was confirmed after the first six-month inventory when the stock data matched the records in NOOM.

The reporting takes place directly from the production level.

Operational reporting from the production level

The broader aim of mobile reporting is to convert data processing from paper to digital.

Reporting work directly from the production level allows employees to conveniently start and finish tasks, record the quantities of finished products and defects, and add comments. Changes are reflected in the software, providing other departments with a real-time overview of the status of orders.

This function not only brings managers closer to the actual work processes but also creates an environment where every employee’s contribution is visible and considered.

BHC’s CEO, Kait Lukka, confirms: “Practically every day, I find out how profitable production is at a certain stage and can intervene very quickly to make it more efficient or maximally efficient. This depends on cost, working hours, work methods, and methodologies.”

The executive dashboard is a tool for monitoring production processes with employee comments. The company’s manager can generate additional reports based on the metrics they wish to track, and visualized data based on predefined parameters is just a click away at any time and from anywhere.

K. Lukka also explains the accessibility from any corner of the world, citing his experience abroad. “Warehouse, finance, and in-house work time monitoring – these are very easily accessible snippets of information from NOOM that allow me to have an excellent overview, no matter where I am in Estonia or the world.”

Web-based executive dashboard views.

Today, every detail and resource in the factory is monitored very precisely

As the name suggests, manufacturing resource planning involves detailed and systematic materials, equipment, and labour planning.

Compared to four years ago, BHC can now precisely track the movement of every detail, significantly reducing time and resource expenditures. Additionally, the issue of lost details, which previously caused delays and extra costs, has been practically eliminated in production.

“The NOOM manufacturing software has made my workflow simpler and clearer in terms of which details we have in stock and which ones we use the most,” explains Margus, a constructor at BHC.

Accurate accounting of every detail and component is critical for efficient production.

  • Materials – Availability of materials, purchase recommendations, and estimated fulfilment time for orders.
  • Equipment – Time-based scheduling of orders for production equipment.
  • Labour – Assigning workers to production equipment based on need.

Ressursside planeerimine
Resource planning view.

Monitoring resource occupancy

In addition to planning, another crucial aspect is monitoring resource occupancy. This provides a real-time overview of resource usage, allowing the tracking and analysing every step in production daily, weekly, or monthly.

Resources can be grouped for a simpler view, for example, by lines, machines, or processes.

Additionally, the work time occupancy calendar considers planned maintenance and downtime.

“NOOM has changed production planning,” says Kalle Käsper, BHC’s production manager. “It has made monitoring work processes more comprehensive. I can track stages in real-time, and warehouse management has become significantly more convenient.”

Ressursside hõivatus
Resource occupancy view.

Several steps beyond Excel – accurate cost price calculation

The NOOM production software can calculate estimated cost prices and cost prices based on project, client, product, warehouse, and batch.

Madis, the factory manager of BHC, confirms that NOOM has significantly improved their process of calculating product cost prices.

“When calculating the cost price of products, we have received reliable data from NOOM. It has been verified, and it works.”

Additionally, the production software allows the cost price to be influenced by the costs of resources added later, and after it is possible to analyse the differences between the calculated recipe cost price and the production cost price.

NOOM software suits all manufacturing companies, especially those with recipe variations

According to BHC’s CEO, Kait Lukka, NOOM software stands out for its flexibility. It accommodates the specifics of recipes in a way that many other software systems do not.

“NOOM considers the possible specifics of every detail in recipe formulation. It understands what an in-house product, a product from outside, and a recyclable product from outside are. This is a crucial distinction, and NOOM reads this information well.”

Kait highlights the production manager’s perspective used in the software’s development, demonstrating a deep understanding of production processes and logic: “NOOM is extremely precise and made from a production viewpoint and logic.”

Factory manager Madis, in turn, emphasises the compactness and all-in-one approach of NOOM software, which covers everything from customer inquiries to issuing the final invoice. However, he notes that NOOM’s visual aspect could use modernisation, as the current screen view is somewhat outdated.

The aforementioned NOOM manufacturing software solutions are suitable for most sectors.

Manufacturing sectors

What recommendations would you give to companies planning to upgrade their software?

BHC CEO Kait emphasises that NOOM software suits all manufacturing companies, especially those with specific needs in their recipes. He emphasises that the choice of software should not be random but a well-considered decision based on the company’s long-term goals.

Factory manager Madis highlights the importance of involving the team: “If your team doesn’t come along, it can be very challenging. Fortunately, our team and the Astro Baltics team were in step, and we were able to implement the plan in a relatively short time.”

Finally, production manager Kalle points out the need for a clear vision: “Since we were quite aware of what we wanted and had a vision of what a production software should be like, the process was, in hindsight, straightforward.”

What does the future hold?

Based on the company’s history, BHC CEO Kait Lukka looks to the future with optimism, which includes being mentioned four times in Äripäev’s Gaselli TOP list. “We are indeed growing rapidly, and that means we need a production software that grows and evolves just as quickly with us,” Lukka says, emphasising the importance of continual development in the company’s further expansion.

One of BHC’s next steps is to develop the quality monitoring system further. Lukka is optimistic: “We have already taken the first steps in this direction, and I believe this enhancement will take us very far and make our work even more convenient.”

In addition, he values the development of a quickly and easily adaptable executive dashboard, which will help further streamline BHC processes.

Astro Baltics, a domestic IT company that develops NOOM software

Since 1998, Astro Baltics, located in Tartu, has been offering flexible software and hardware solutions. Their portfolio includes smart and unique payment and economic software solutions used by hundreds of companies and thousands of end-users around the world.

Specifically developed for manufacturing companies, NOOM production software successfully manages company production processes. Everything is integrated into one comprehensive software system: creating sales proposals, sourcing materials, production processes, production planning, warehouse management, cost price forecasting and analysis, work time accounting, financial accounting, and more.

Thanks to its modular structure, NOOM economic software boasts a wide range of standard functionalities and a high capacity for customised solutions.

Learn more about Astro Baltics here.

Check out the video to see how NOOM MRP software has enhanced the work efficiency of cylinder manufacturer BHC.

(PS! The video is in Estonian)

BHC

“Since we started monitoring production efficiency, I can roughly say that we have increased efficiency by 30-35% across most stages of work.”
Kait Lukka, CEO of BHC


Contact us:

Diimar Tarajev

Diimar Tarajev
Head of MRP Solutions Sales
Tel: +372 507 0458
diimar@noom.ee

General contact

+372 628 0000
info@astrobaltics.eu

Astro Baltics
Guide to the Future
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