Hitachi Construction Truck Manufacturing Ltd. (HTM) is a wholly owned subsidiary of Hitachi Construction Machinery (HCM), specializing in the production and remanufacturing of dump truck maintenance and service parts. With full-scale production of dump trucks set to begin in the future, HTM aims to build a robust and strong local production and service infrastructure for the Americas market.
CHALLENGES OF IMPLEMENTATION
HTM recognized the need for a comprehensive overhaul of its existing infrastructure to meet evolving business requirements.
Furthermore, the current system did not meet their business model and required a flexible, scalable solution to support growth and adapt to emerging challenges. Without modernization, the organization could face challenges adapting to changes in the market, so implementing technology that aligns with strategic goals was considered necessary.
SOLUTION AND BENEFITS
To address its operational challenges HTM is experiencing and drive a transformation initiative, HTM partnered with Hitachi Solutions to implement Microsoft Dynamics 365 Finance and Dynamics 365 Supply Chain Management (Dynamics 365 FO). This strategic collaboration was guided by several key objectives:
- Streamline Operations: HTM sought to optimize sales, purchasing, inventory, warehousing, and production processes. Automation of key workflows and the use of Dynamics 365 workspaces improved efficiency and enhanced the user experience.
- Enhance Visibility: The new system enables real-time accounting reconciliation and reporting, providing instant transparency for HST/GST transactions. Management Reporter (MR) also delivers detailed financial insights, including trial balance, balance sheet, and income statement.
- Improve Material Requirements Planning (MRP): With master planning capabilities, HTM can efficiently manage and schedule material production to meet demand, boost productivity, and reduce costs.
- Support Remanufacturing: HTM’s Reman business aligns with Hitachi Construction Machinery’s global remanufacturing strategy. This reduces lead times for part replacement, minimizes machine downtime, and promotes cost-effective, sustainable solutions.
- Drive Digital Transformation: The adoption of Advanced Warehouse Management System (AWMS) replaced manual processes with digital workflows using Zebra mobile devices and label printers. The system now supports 25 warehouses and 3 production units—Truck, Reman, and Parts.
- Enable Seamless Integrations: Hitachi Solutions provided HTM with a scalable ERP platform. Dynamics 365 FO was integrated with third-party logistics (3PL) systems in the US and Canada. Team center integration with the Importer Dealer Management System (IDMS) allowed for the release of new parts and bills of materials. Additionally, integrations with HCM’s global HQ in Japan ensure real-time updates for manufacturer items, supersessions, and pricing.
To deliver on these objectives, Hitachi Solutions conducted an extensive assessment of HTM’s business requirements through multiple Conference Room Pilot (CRP) sessions. Collaboration was managed via Azure DevOps and Microsoft Teams, with a tailored DevOps template, which aligned with the project methodology, facilitated project management, and decreased reliance on traditional tools.
Approximately, 110 business processes were set up and presented during CRPs, SIT, KUT, and UAT phases. HTM aimed to follow the global template while meeting essential local requirements Through iterative testing.
Despite challenges in extracting data from legacy systems, several migration rounds ensured readiness. Subject matter experts also played a key role in UAT and took responsibility for the system. As a result, HTM launched Dynamics 365 in just ten months, overcoming legacy limitations through rigorous testing, repeated data migrations, and detailed preparation.
Padiyath, RK, advisor and former COO in Hitachi Construction Truck Manufacturing, stated: “Our collaboration with Hitachi Solutions resulted in a constructive working relationship. They provided support to our team when required, responded to our inquiries, and assisted with development and implementation as issues arose.”
OUTCOME
Through meticulous planning and efficient execution, HTM successfully implemented Dynamics 365 FO. This critical milestone laid the groundwork for the organization’s future growth and development.
This accomplishment empowers HTM to pursue transformative initiatives, drive positive change, and deliver outstanding results for both the company and the broader community.
“Teamwork was instrumental to the success of this project”, said Mark Clarkson, IT Manager of Hitachi Construction Truck Manufacturing. “Each team member contributed significantly, working diligently to meet the expectations set by business stakeholders. Through effective collaboration, the team delivered the project within a compressed timeline, successfully launching on schedule and within budget—outcomes that one point of time, appeared challenging to achieve.”