In order to raise the formation of a mid-term financial and economic model of a production holding “top-down” to a new level a large machine-building holding contacted us. We were faced with the following tasks:
- remove the restriction on the amount of processed information, open the opportunity to collect more detailed data on each of the products and enterprises of the holding;
- speed up the modeling process;
- to increase the number of possible design scenarios, taking into account both internal modeling parameters and external macroeconomic factors that affect the company's financial result;
- to introduce predictive algorithms and prescriptive optimization algorithms for calculating overhead costs and costs.
Factory5 specialists proposed an innovative solution in the field of predictive maintenance — F5 4C. It is designed to help solve top management problems.
The solution is useful in business modeling and verifies that the results change depending on changes made to the business model. It has a methodology for rapid hypothesis testing and risk assessment, long-term and short-term planning and an understanding of business models in order to influence them.
At the customer's company, the solution allowed collecting data directly from the points of their origin: for example, from EPR and MES systems. A new "engine" of financial and economic modeling was introduced and basic modeling scenarios were developed. I managed to answer the questions:
- What will happen if you include/exclude individual investment programs/restructuring measures in the company's medium-term plans?
- What happens if the final prices of a product are changed by +/- X%?
- What will happen if the exchange rate of the dollar, ruble, euro changes?
accelerated data acquisition,
improved manageability and transparency of financial modeling,
reducing the influence of the human factor in making important economic decisions,
reduction of investment programs (CAPEX) by 5% due to optimization of the production plan,
cost reduction by 6% due to optimization of outsourcing strategy and "make or buy" solutions,
reduction of overhead costs by 5% due to optimal solutions in terms of supply chain, labor and production structure.