Advanced analytics, AI and ML use cases for a leading Indian producer of pig iron and ductile iron pipes

Achieved significant EBITDA improvement through digital initiatives and established a pipeline of additional measures to drive a total improvement of approximately 15 per cent
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Highlights

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EBITDA improvement of approximately 15 per cent through implemented digital initiatives and a robust pipeline of additional measures.

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Client organisation is now digitally enabled and, on the pathway, to being recognised as a 'Lighthouse Factory' by the World Economic Forum (WEF).

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Recognised within the larger company group as a successful EBITDA improvement programme.

Client challenge

The client sought assistance in implementing advanced analytics, AI, and ML use cases across their value chain, both in discrete as well as continuous process setups, thereby improving overall EBITDA.

Front-office challenge

The client sought assistance regarding:

  1. Opportunities to improve net realisation predictions for more informed pricing strategies and greater profitability
  2. Potential to optimise customer and geographical sales mix to maximise market reach and penetration
  3. Enhance order analytics to unlock greater value from customer interactions
  4. Refine the make-to-stock strategy and campaign plan to better align sales efforts with production forecasts and improve efficiency.

      

Middle-office challenge

The client sought project management assistance to identify, design, develop and implement EBITDA/value-linked digital projects and optimise the total cost of operations across different business functions.

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The client sought assistance regarding:

  1. Use of advanced analytics as key a differentiator to improve process efficiency and drive business outcomes
  2. Recognition by the World Economic Forum (WEF) as a ‘Lighthouse Factory’.

KPMG in India’s approach

KPMG in India deployed a cross-functional team to address the client’s challenge, bringing together data scientists, functional experts, and industry specialists.

KPMG in India addressed the challenge in four phases.

Phase 1: Value unearthing

  1. Identified all value drivers and associated key performance indices
  2. Conducted baselining of key performance indices and identified improvement potential
  3. Conducted workshops for the finalisation of opportunities
  4. Converted opportunities into analytics use cases
Value unearthing

Phase 2: Prioritisation of initiatives

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  1. Executed data readiness assessment
  2. Prioritised initiatives based on benefits and ease of implementation (from a data readiness standpoint)
  3. Signed off the business case and prepared project charters
  4. Classified opportunities in wave one and wave two

Phase 3: Implementation of analytics, AI, ML use cases

  1. Squad created for each project having a project manager and digital champions
  2. Data extracted for training and testing of models
  3. Conducted model building and trials (cold and hot)
  4. Configured data pipeline
  5. Model and user interface deployed
Implementation of AI and ML

Phase 4: Capability building and sustenance

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  1. Strong buy-in from stakeholders (operations/maintenance)
  2. Shop floor level sensitisation for advantages of data analytics in addressing critical problems
  3. Trained senior leadership, digital champions and line managers on data analytics and AI/ML to enhance sustenance

Result

  1. Client organisation is now digitally enabled and, on the pathway, to being recognised as a 'Lighthouse Factory' by the World Economic Forum (WEF)
  2. EBITDA improvement of approximately 15 per cent through implemented digital initiatives and a robust pipeline of additional measures
  3. Developed sustainable advanced analytics and AI-ML models across business functions
  4. Recognised within the larger company group as a successful EBITDA improvement programme

Why KPMG Connected Enterprise?

The project entailed the use of the value stream analysis framework, a KPMG Connected Enterprise asset. The value stream analysis framework helped identify areas where digital initiatives could be implemented to increase operational efficiency and improve EBITDA.

Overview of the case

Client

A leading producer of high-quality pig iron and ductile iron pipes in India.

Client

Challenge

Implementation of advanced analytics, AI, and ML use cases across the value chain.

Challenge

Outcome

KPMG in India achieved an EBITDA improvement of approximately 15 per cent through implemented digital initiatives and a robust pipeline of additional measures.

Outcome

Key Contact

Amit Bhargava

National Leader, Metals and Mining

KPMG in India

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