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Modine tops best practice in KPI SCAN® performance evaluation

Modine Europe GmbH, an automotive supplier, has confirmed that their SAP system is a top performer . In a KPI SCAN® analysis conducted by West Trax, Modine’s Key Performance Indicators far exceeded the average industry values in almost all measured areas.

• Modine Europe’s SAP system put to the test
• Record-breaking results: Modine beats more than 500 system evaluations

Modine Europe GmbH, an automotive supplier, has confirmed that their SAP system is a top performer . In a KPI SCAN® analysis conducted by West Trax, Modine’s Key Performance Indicators far exceeded the average industry values in almost all measured areas. The Custom Developments Performance KPI for Modine exceeded the best-practice value established from more than 500 system analyses in Germany. The results demonstrate the potential to run SAP systems at optimum performance and efficiency.

For 90 years, the Modine Manufacturing Company has developed and manufactured heat transfer equipment and heat storage technologies. Today, the company is a leading global supplier for the automotive industry. Since 1999, the German headquarters Modine Europe GmbH in Filderstadt have supported their business processes with an SAP landscape. “While we have always been confident that our system is run efficiently, the KPI SCAN® methodology offered by West Trax has now provided evidence to prove this", says Kurt Trillsam, the company’s IT Director.

The performance indicators, analyzed with the KPI SCAN® methodology rapidly provide a basis for strategic and operational decision-making, enabling management to ensure the long-term economic efficiency of the SAP software in support of business goals. A minimum of corporate resources is required. According to Trillsam, "Modine’s investment to provide the necessary information was less than 30 minutes"?. Key Performance Indicators for the following areas were measured:

• Costs
• Productivity
• Performance
• Quality

"The metrics analyzed in Modine’s system were the very best we have seen in a long time", Diana Bohr, CTO of West Trax, confirms. "In most areas, they clearly exceeded the industry average." For instance, the 56 percent standardization of the Modine system was 8 percentage points above the average within the automotive industry:

Figure 1: Average degree of standardization
Source: West Trax

The Degree of Standardization KPI defines the percentage of standard transactions used within a SAP system. Many comparable systems within the benchmark show an alarmingly low degree of standardization. This is due to the fact that many companies do not fully leverage the benefits of standard software but modify the standard as much as possible to address their individual requirements.

 

Figure 2: Unused Standard Potential KPI
Source: West Trax

The Unused Standard Potential KPI represents the average percentage of unused, but relevant standard transactions in the analyzed. Comparisons are provided with industry best-practice and worst-case. Unused, but relevant transactions are defined as standard SAP transactions, whose functionality within the enterprise:

• Is performed by custom developments that offer no significant added value, compared to the standard transaction.
• Would increase the productivity of supported business
• processes.
• Would avoid media breaches.

As indicated in Fig. 2 Modine's result for the Unused Standard Potential was again far better than the average for all industries except chemical.

Regarding the performance values, Modine’s metrics achieved the absolute top result. "Based on our metrics database, we are continuously determining the respective best-practice value", explains Diana Bohr. "Modine has managed to exceed a best-practice value that has not been topped for nearly five years!

Figure 3 illustrates the Custom Developments Performance KPI. This measures the percentage of used custom developments within an analyzed system with average response times of more then 1 minute.

Modine exceeded the current best-practice value by nearly 3% with just 2.7% of custom developments having response times over 1 minute. The company performs far better than the average benchmark value, which is currently at 20.1 percent.

Modine also leads in the cross industry comparison and far outperforms their own industry average of 25.3%.

 

Figure 3: Performance of custom developments
Source: West Trax

Even in a SAP system as well optimized as Modine’s a KPI Scan analysis shows where there is potential for further improvement. For instance, the level of unused custom developments in the production system indicates a need for action.

Kurt Trillsam explains, "The company is aware of the ballast we still carry around. With KPI SCAN we want to improve this area as soon as possible to leverage the system to the fullest extent and optimize its value."

Modine Europe GmbH’s SAP system sets an example of how a well optimized ERP system can add significant business value.

 

Biographies: The biographies of Diana Bohr and Kurt Trillsam can be found under the following links:

http://www.westtrax.de/Bios/bio_dbohr.zip
http://www.westtrax.de/Bios/bio_ktrillsam.zip

 

About West Trax

West Trax Deutschland Ltd is a service provider delivering management consulting and IT consulting services. Founded in 1999 as Bohr Consulting, the company combines many years of international experiences in the professional services business with state-of-the-art technology. With KPI SCAN^®, Benchmark Express^® and KPI SCAN^® QA West Trax Deutschland offers solutions that help to increase the efficiency of corporate processes and the performance of IT infrastructures. West Trax Deutschland has a focus on global SAP system optimization. More detailled information can be found under www.westtrax.de

About Modine:

Founded in 1916, with fiscal 2006 revenues from continuing operations of $1.6 billion, Modine specializes in thermal management systems and components, bringing highly engineered heating and cooling technology and solutions to diversified global markets. Modine products are used in light, medium and heavy-duty vehicles, HVAC (heating, ventilating, and air conditioning) equipment, industrial equipment, refrigeration systems, fuel cells, and electronics. Based in Racine, Wisconsin, the company has approximately 8,000 employees at 34 facilities in 15 countries worldwide. For information about Modine, visit www.modine.com.