Plex Systems > Case Studies > American Axle & Manufacturing Enhances Operational Efficiency with Plex ERP Integration

American Axle & Manufacturing Enhances Operational Efficiency with Plex ERP Integration

Customer Company Size

Large Corporate

Region

America

Country

United States

Product

Plex
Oracle ERP
Hyperion

Tech Stack

ERP Systems
Cloud Computing

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Productivity Improvements
Cost Savings
Customer Satisfaction

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)
Analytics & Modeling - Real Time Analytics

Applicable Industries

Automotive

Applicable Functions

Business Operation
Quality Assurance

Use Cases

Inventory Management
Predictive Maintenance
Process Control & Optimization

Services

System Integration
Training

About The Customer

American Axle & Manufacturing (AAM) is a prominent global tier 1 automotive supplier headquartered in Detroit, Michigan. The company is renowned for designing, engineering, and manufacturing systems and technologies that contribute to making the next generation of vehicles smarter, lighter, safer, and more efficient. With a workforce of over 25,000 associates, AAM operates nearly 90 facilities across 17 countries, supporting customers on both global and regional platforms. The company is committed to quality, operational excellence, and technology leadership, which are core brand values that drive its business operations. AAM's extensive global presence and focus on innovation make it a key player in the automotive industry.

The Challenge

American Axle & Manufacturing (AAM) faced significant challenges in gaining real-time visibility into its manufacturing operations across its two main divisions: driveline and metal forming products business unit (MFPBU). Each division operated with separate ERP systems, leading to difficulties in consolidating data for a comprehensive view of performance. The lack of a unified system hindered the management team from effectively planning capacity, driving quality, and understanding the financial status of the business. The need for a single, integrated ERP system was critical to achieving operational excellence, quality, and technology leadership.

The Solution

To address the challenges, AAM collaborated with Baker Tilly and the Plex product team to implement a comprehensive ERP solution. The plan involved deploying Plex in parallel with AAM's corporate Oracle ERP system to ensure enterprise-wide financial consolidation and performance management. The deployment was extensive, incorporating all core Plex capabilities such as inventory control, quality management, and manufacturing performance. Baker Tilly developed a unique deployment model for AAM, allowing for a standardized roll-out across the seven metal forming locations. The implementation focused on integrating Plex's plant floor modules, including engineering, quality, inventory, and production, followed by top floor modules like accounting and supply chain. The goal was to create a single version of the truth using real-time data, consolidating operational data back into AAM's financial reporting system, Hyperion.

Operational Impact

AAM achieved a 5% increase in manufacturing output, allowing for better measurement of equipment efficiency and end product delivery.
The company experienced a 5-10% improvement in inventory turns, positively impacting cash flow and enabling better material planning and forecasting.
Plex's integration allowed for enhanced quality control, with quality checks embedded at every production stage, improving overall plant efficiency.
The implementation of Plex facilitated compliance with Sarbanes-Oxley regulations, automating security and role assignment processes.
AAM's workforce became more efficient, spending more time on analysis rather than data collection, leading to faster problem-solving and reduced waste.

Quantitative Benefit