September 1997, Volume 3, No. 9 Case Study: Acme Metals Forges Ahead with Information Technology

Acme Metals Inc. (Riverdale, Ill.), a steel maker and fabricator, has expanded and modernized its information system, along with its production facilities, using intelligent supply chain management software. Acme produces custom orders in small lots that are engineered to exacting requirements and product standards. As a fabricator, Acme operates several modern facilities throughout the U.S., manufacturing a broad product line that includes steel strapping and packaging products, welded steel tubes, and auto/ light truck jacks. Acme's implementation of supply chain management software is based on R/3 ERP software from SAP (Wayne, Pa.; http://www.sap.com) and Rhythm, an intelligent supply chain management software product from i2 Technologies Inc. (Irving, Tex.; http://www.i2.com). Together, the two products provide Acme with new capabilities to meet its goals not only on the plant floor, but in the steel marketplace. Rhythm provides Acme with visibility into the total supply chain and intelligent, concurrent planning capabilities, based on identifying both material and capacity constraints. It will also add decision-support tools to deal with resource balancing, machine time allocations, and other critical issues. R/3 modules at work at Acme include Financial/Cost, Product Planning and Material Management, Sales and Distribution, Quality Management, and Human Resources. As a result of the installation of Rhythm and R/3 at the Riverdale facility, Acme is now able to synchronize manufacturing and to provide a finite schedule for the shop floor. Capacity planning has also been implemented on schedule. According to Acme, the new IT solution provides an integrated set of capabilities for the company as a whole, based on visibility into the supply chain and the intelligent planning that it makes possible. This enables Acme not only to keep up with, but to stay ahead of, the changes that can and do occur throughout the planning, scheduling and production cycle. Plans are under way for the next Rhythm-R/3 installation at Acme's tool and packaging products plant. The installation will further the company's overall goal to integrate the steel-making and steel-fabricating segments of the business, in order to expand niche markets for custom steels and to derive additional benefits downstream.

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