Project Overview – Novelis

About Novelis:

Leading Global Aluminum Producer and Recycler
Annual Revenue: $9.5 Billion
Year Founded: 2005
Headquarters: Atlanta, GA
ERP: SAP
ImpactECS customer since 2017

Before ImpactECS:

Shifting corporate strategies and limited visibility from disparate systems

• Change from viewing profits by region to viewing by value stream and sub-segment
• 20+ manufacturing facilities on 4 continents with ERP tools including SAP, Oracle, JDEdwards, AS/400
• MES systems not available at all locations to capture detailed production data

Spreadsheet models used as primary tool to calculate product costs for managerial reporting

• Unable to calculate unique product costs by SKU across different locations and cost structures
• Monthly and daily ad hoc production and process reports attempted in spreadsheets
• Profitability and cost performance only available at the regional level with a high degree of inconsistency

 

How Novelis uses ImpactECS:

Actual Costs

• Calculation of overhead rates from direct and indirect spending stored in General Ledger accounts
• Allocates General Ledger spending to products by cost or work center at the specific routing step
• Generate actual cost per unit for all WIP and finished goods SKUs at the plant and line level

Profitability

• Contribution margin and net profit analysis for forecasts and actuals at customer and product level
• Profit & Loss statement by customer/product that provides drilldown functionalities and variance analysis capabilities at the corporate and local plant level

Simulations

• Runs simulations to compare budget versions, actual performance,
budget to actual, or other scenarios
• Maintain unlimited scenario versions for planning and comparison

Budgeting

• Calculate budgeted spending, allocations and work center rates based on historical trends and future assumptions in General Ledger and Cost Centers
• Generate standard cost per unit for all WIP and finished goods SKUs at the plant and line level

Simulations

• Runs simulations to compare budget versions, actual performance, budget to actual, or other scenarios
• Maintain unlimited scenario versions for planning and comparison

 

Data Integration and Reporting

• Automated processes to extract, transform, and load (ETL) data between systems
• Daily production and process costing reporting (including scrap, inventory and machine hours ) for every region at the segment and subsegment level for deep analysis of profits, loss, and trends
• KPI reporting at the plant level for insights into labor costs by location and subsegment

 

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