Success Story Neuson Kramer - DSC Software AG

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Success Story
Neuson Kramer Baumaschinen AG
Neuson Kramer Group banks on SAP PLM and NX
Modern Design, innovation, quality, and fast processes
Standardization of systems and processes
Dr. Arne Gaiser, DSC Software AG
The international operating company group Neuson Kramer Baumaschinen AG is a
leading European full range supplier of compact construction machinery. The leading
market position in Europe bases on technological innovative products enabling the
company to react to customer request and market changes - fast and "compact". For
this, the company focuses on a SAP-based infrastructure, and company-wide consistent
processes.
Fig. 1: The product range of Neuson Kramer Baumaschinen AG
Neuson Kramer Baumaschinen AG
In 2001, Neuson Kramer Baumaschinen AG emerged from Neuson Hydraulik GmbH, founded
1981 in Linz, Austria. Today, shareholdings and acquisitions enables the group to offer a
comprehensive range of compact construction machinery including customized financing:
Mini and compact excavators (Neuson Baumaschinen GmbH)
Wheel loaders and telescopic loaders (Kramer Werke GmbH)
Dumpers (Lifton Dumpers Ltd.)
Forestry machines "Harvester" (MHT - MechHydTronic GmbH)
Trading & rental of construction machinery (Stambach Baumaschinen GmbH)
Financing and leasing (NK Finance Immorent GmbH)

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Success Story
Neuson Kramer Baumaschinen AG
Heterogeneous systems and processes
In 2000, the Neuson group was strategically re-oriented. At this time, about 10 companies
belonged to the holding with separate systems for CAD, drawing management, and ERP.
Moreover, the company portfolio comprised not only make-to-order construction but also serial
production. Thus, one of the main tasks was to standardize systems and processes to realize
synergies, and simultaneous engineering.
Synergies by standardization of software, hardware,
and processes
In order to realize synergies for the subsidiaries and within the overall new company strategy,
systems had to be standardized and harmonized. In 2000, the top management decided to
subsidiary-wide introduces NX as the strategic CAD system, and SAP as commercial and
logistic system. To fully benefit from the system standardization, processes were also to be
standardized. This easily integrates new locations and companies into the overall strategy.
Fig. 2: SAP and NX represent strategic systems at Neuson Kramer Baumaschinen AG
Objectives of PLM
The selection of a company-wide PLM system was also subject to the strategic target of system
standardizing and process harmonization. After intensive work benching of several PLM
systems, at the end of 2003, Neuson Kramer decided for SAP PLM for managing and filing all
technical documents. With SAP PLM a common platform for simultaneous engineering was to
be created. For that, the SAP system with its infrastructural design for distributed locations
offered ideal prerequisites. For the company-wide use, a standard number assignment system
and a location-spanning classification were to be introduced. Even more attention, the top
management turned to standardization and compatibility of processes.

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Success Story
Neuson Kramer Baumaschinen AG
And here, especially to the introduction of a standardized authorization concept, defined
release and revision processes. In order to increase the standardization of products, the
reduction of the part range, and achieving a higher re-use rate were additional requirements.
Process harmonization was expected to have the biggest effects. With PLM a company-wide
standardized and integrated product development was to be introduced: from the prototyping
sample to the serial production part. The engineering process was to be successively
integrated into other processes, such as purchase, sales and CRM (suppliers and partner).
Fig. 3: The PLM project went productive within 9 months
Milestones of the PLM project
At the end of 2003, the executive board of Neuson Kramer AG approved the PLM project. For
the realization a project team was established consisting of members from the consultant
company Matrics, plant construction company FMW, construction machinery manufacturer
Kramer and Neuson, and PLM consultant company DSC Software AG. In the beginning of
2004, the hardware for the SAP Content Server was purchased and set up. Mid-February of
2004, test installations were set up at three locations. They served to build up know-how in the
project team, and to check several process options. At the same time, a basic concept was
prepared which formed the basis for the implementation of standard functions and processes.
Beginning June of 2004, the detailed specification was approved, and realized until July of
2004. At the end of July 2004, Neuson Kramer approved the integration solution, and the user
were trained. In August of 2004, the solution went productive at Neuson, FMW and Kramer.
Since January of 2005, also legacy data of the previous management system IMAN is available
in SAP PLM.

Fig. 4a: Example of a 2D drawing of an arm for an excavator
Fig. 4b: Excavator arm (welding assembly)
Standardized processes and
company-wide cooperation
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Success Story
Neuson Kramer Baumaschinen AG
"The most important objective of our PLM project - analogous processes both, at serial
manufacturer Neuson-Kramer and make-to-order manufacturer FMW - we have achieved,"
stresses Anton Müchler, Head of Group IT. Basic premises here were, among other things, a
standardized filing of all documents in the SAP filing system, and a company-wide access. For
the management of technical documents four document types were introduced: NXM for NX
models, NXD for NX drawings, NXF for part family templates, and TED for the rest of technical
documents, such as, check reports, data sheets, diagrams and assembly instructions. With the
exception of part families, the number assignment was set to internal. The meta data is
centrally managed, and the originals managed in a SAP Content Server at the using location.

Standardized processes
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Success Story
Neuson Kramer Baumaschinen AG
Models and drawings in the group today are product-independent subject to a standardized
release strategy, both in serial production and single machines. "A completed drawing - status
AO - is forwarded to checkup by the engineer," explains Anton Müchler, and continues, "on
change to status 'F1', the head of engineering is informed, and has to decide over engineering
release. On release by the head of engineering - that is the change to status 'F2' - , the
technical department has to decide over release of the prototype. After release of the prototype,
technical management decides over serial release - status 'F3'. Now orders, disposition and bin
location are created. Serial release does not apply at make-to-order manufacturer FMW. This
branch of the status network is not cycled. From each status F1, F2 or F3 it is possible to
create a new version of the document. Changes are made in a new version. On release of the
new version, the predecessor version automatically receives 'locked' status."
Process automation
Increased security and quality was achieved by check functions and process automatism. For
example, the standardization department is able to link a material master with the NX model
only in existing status AO. In addition, a check function ensures that a drawing is released only
when the related model has been released. Another process element provides that on creation
of a new version of a model the related drawings are also versioned, and on release of the new
version, the predecessor version is automatically set to status 'locked'. "Such check and
process automatism unburden the engineer, and improve process quality," stresses Anton
Müchler.
SAP authorization concept manages responsibilities
The SAP authorization concept manages responsibilities in the process. On engineering or
production release, documents are forwarded to the head of engineering. Only s/he is able to
release or reject the document, whereas serial release exclusively is authorized by technical
management.

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Success Story
Neuson Kramer Baumaschinen AG
Fig. 5a: Display of an engine mounting (welding assembly) in NX
(Source: Neuson Kramer Baumaschinen AG)
Fig. 5b: Display of an engine mounting in management desktop PLM++Gate
(Source: Neuson Kramer Baumaschinen AG)

Automatic conversion of neutral formats
on release of drawings
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Success Story
Neuson Kramer Baumaschinen AG
On status change to F1, F2, F3, automatically a conversion process is triggered which transfers
the CAD originals in additional neutral formats, and files them to SAP. For models the neutral
formats generated are JT, for drawings formats generated comprise CGM, DXF, and PDF. All
authorized user in the group have access this data. In addition, neutral formats are optional
made available to partner, i.e. trader and service partner.
Fig. 5c: Display of the corresponding drawing in a neutral format
in the viewer integrated in the SAP-GUI
(Source: Neuson Kramer Baumaschinen AG)
Reduction of standard parts
Standard parts were realized in form of part families. Currently, 100 part families exist at
Neuson Kramer. In order to increase standardization, in future the technical management will
define in advance which standard parts are to be used for new product developments. Then
only these parts are available to the engineer in a respective system folder of the SAP system.
Automated material BOM creation
Neuson Kramer uses the automatic creation of material BOMs based on document BOMs. This
requires that a clear correlation between material and document exists, and all components are
placed on the model. At Neuson Kramer the material BOM largely consists of purchased parts.
Purchased assemblies, such as, engines or vehicle cabins, have a material master record at
the assembly level only. In order to purchase the complete assembly from the supplier, Neuson
Kramer provides its suppliers with the document BOM as an Excel sheet holding all relevant
positions.

Standardization by company-wide
consistent engineering methods
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Success Story
Neuson Kramer Baumaschinen AG
Company-wide binding engineering guidelines improved standardization and re-use. Special
attention was turned to the feature that NX structures are mapped in SAP logistic structures.
For example, it was defined that a NX model at maximum is allowed to be linked to one
material. This automatically creates material BOMs in SAP on saving NX assembly structures.
In addition, changes in the structure of a model directly transfer to the material BOM. Further
examples relates to the handling of reversible parts, unfinished / finished part relations, or
welding assemblies. Welding parts consist of several single parts where each single part is
managed as a document. The single parts are linked as "linked body" to the assembly. Only for
the assembly as a whole a material master is maintained. Moreover, in part standardization the
part families were created for standard and purchased parts. In case of purchased parts,
documents and document BOMs are created for the components, while a material master exist
at the assembly level only.
Fig. 6: The IT infrastructure at the Neuson Kramer group as realized
(Source: Neuson Kramer Baumaschinen AG

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Success Story
Neuson Kramer Baumaschinen AG
Project processes meet time and budget deadlines
The introduction project was realized just less than 9 months. "The functionality we required
was faced by adequate introduction costs," comments Anton Müchler.
The action model contributed to a fast introduction. On the basis of a standardized installation
several process options were evaluated, and the basic installation was successively
customized to requirement of Neuson Kramer. "The evolutionary prototype model and the
permanent transfer of know-how from DSC to Neuson Kramer considerable added to the good
acceptance, and fast introduction of the solution. Even changed requirements were realized at
short notice. Due to comparable low hardware and software costs, and low invests for the
globalization of the solution additional locations are easy to integrate," stresses Anton Müchler.
Fig. 7: The planned strategic and operative extension of the SAP PLM solution
(Source: Neuson Kramer Baumaschinen AG)

Outlook
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Success Story
Neuson Kramer Baumaschinen AG
"Altogether, we were successful to integrate business and technical processes, and related
mindsets, and to establish them in the different companies of the group," emphasizes Anton
Müchler. Next on the agenda is the introduction of change management. The relevant
customizing already took place. Additional improvements to be realized concern the complete
integration into the supply chain. "We like to provide our traders and service partner with
drawings in the extranet, and also increasingly persuade our supplier of a closer cooperation in
the area of simultaneous engineering. For this the basis has been realized," sums up Anton
Müchler.
User Contact
Neuson Kramer Baumaschinen AG
Anton Müchler
Head Group IT
Anton.Muechler@Neuson.com
www.neuson.com