Case Study Driving greater growth

Intel® Itanium® 2 Processor

ASMO drives breakthrough company performance
Manufacturing
Collaborative Product
by deploying Itanium® 2-based servers
Development Astra Motor III (ASMO) needed to increase its production capacity by 2.5 times to meet strong
market demand, but upgrading its existing server infrastructure to manage the additional
requirements would prove costly. ASMO needed a cost-effective solution to handle the added
data processing needs the higher production capacity demanded. The company decided to
move their server infrastructure to run on Intel® Itanium® 2 processors after calculating that
the migration would give them the performance they needed within their budget.

Challenge • Upgrade the backend servers to achieve greater data processing

capabilities quickly without disrupting daily operations.
• Select a stable, reliable and cost-effective platform that can
handle the higher data processing requirements brought on by
the increased production capacity.

”We are very Solution • Deploy HP Integrity* servers powered by Intel Itanium 2
pleased to see processors running HP-UX* 11i.
• Migrate Enterprise Resource Planning (ERP) system based
ASMO grow.
on SAP R/3* version 4.6C with modules covering production
The strategic planning, material management, finance and human resources,
decisions we including underlying Oracle* database and data warehouses.
made resulted
in the company’s Assessing the Situation
excellent In September 2004, ASMO began riding on a wave of surging demand in the automotive industry.
performance.“ In order to meet the increasing demand, ASMO felt it was essential to increase its production

Budi Setiadharma
President Director
PT Astra International Tbk
capacity. The challenge ASMO management faced was how to increase output capacity without
disrupting current production or incurring major capital investment.
ASMO is a subsidiary of PT Astra International Tbk, the biggest conglomerate in Indonesia, and
manufactures motor vehicles in partnership with world leading brands. ASMO’s backend servers
were already running at an average of 70 percent processor usage. With the planned capacity
increase, the output of the Daihatsu* production lines alone would increase five-fold, from a
monthly output of 2,000 cars to 10,000 cars per month. This meant that the associated data to
be processed by their backend servers would also experience a corresponding increase.
ASMO chose an Intel® architecture-based
solution to improve production performance
and output to meet market demands.
Meanwhile, production lines at other locations
servicing other brands were being re-designed for
higher production capacity. This meant either
building new facilities or increasing factory space.
ASMO calculated that the increased production
capacity would result in 160 GB per month of
additional data processing for its servers. An upgrade
of the hardware infrastructure was imminent.
ASMO adapted its production lines to accommodate
the increased output capacity without building new
facilities or increasing factory space. With the help of
consultants from Daihatsu Japan, they utilized plant
management software to analyze the layout of the
production floor and work processes. The results of
the analysis helped them adapt the factory floor
layout and implement new work processes to
support the increase in production using the same
amount of factory space.
Spotlight: Astra Motor III
• Astra Motor III (ASMO) is a subsidiary of the
largest conglomerate company in Indonesia, PT
Astra International Tbk, with the largest market
share in automotive products in the country.
• ASMO has partnerships with the world’s leading
car manufacturers like Isuzu, Daihatsu, Nissan,
Peugeot and BMW to manufacture vehicles and
automotive parts. Ten to fifteen percent of the
products ASMO produces are exported to other
Asian countries.
• In July 2005, ASMO produced its one-millionth
vehicle under the Daihatsu brand.
This success buoyed their expectation that their IT
infrastructure could also achieve similar increase in
data processing capabilities without a major
investment or disruption in the regular operations
of the plant.
The first phase of the production increase began in
September 2004. When evaluating the possible
solutions for the hardware upgrade and backend
migration, Rudy Taurany, ASMO’s chief information
officer (CIO), considered several alternatives.
Although the existing backend infrastructure ran
predominantly on the DEC Alpha* platform, ASMO
was no stranger to Intel® technology, as the
company’s desktop and notebook computers were
already running on Intel processors, and ASMO ”It is very
already trusted the Intel brand. important that
ASMO began with the migration of one of their SAP the hardware be
application servers to run on Intel architecture. This well matched to
was part of their strategy to evaluate the platform the software.
while evaluating alternatives to their existing DEC
We found that
Alpha backend systems.
Intel® architecture-
The performance of the application server and its based servers
stability in the heterogeneous system landscape work very well
quickly put to rest any reservations that the team
with SAP*.“
had about the migration. The smooth transition from
Rudy Taurany
DEC Alpha platform to an Itanium 2-based server
CIO, Astra Motor III
running HP-UX also boosted their confidence and
assured them that they were making the right
decision in moving their SAP system and the
underlying Oracle database to the new platform.
The migration meant that mission-critical applications
that integrate all aspects of the production process
from materials management to production planning,
finance to human resources would be running on
Intel technology-based architecture.
 Delivering the Solution
One of the key concerns that Taurany had for
the hardware infrastructure upgrade was that
the platform they choose had to work well with
SAP for maximum performance. Taurany was
interested in the HP and Intel solution as the
company viewed them as key technology leaders.
”Our users Taurany visited HP’s SAP competency center in
are already Walldorf Germany to assess the performance of
familiar with the the ERP system running on Intel Itanium
reliability of Intel® processors. The performance evaluation at
Walldorf, and ASMO’s own success with the
technology-based
Itanium 2-based servers implemented in
desktops and
September 2004 made the decision to migrate
notebook PCs.
the entire ERP system to Intel technology
Now they
architecture an easy one.
appreciate the
ASMO calculated that the cost of the new
servers as well.“
hardware, the migration, technical support and
Rudy Taurany
maintenance of the new system for the next
CIO, Astra Motor III
three years would be equivalent to the cost of
maintaining their legacy systems over the same
period. In effect, ASMO would be able to
achieve an increase in performance without
having to increase its IT budget. To Taurany,
this was a low business risk decision—
Key Technologies
• ASMO chose servers running on Intel®
Itanium® 2 processors for their superior
RAS (reliability, accessibility and
serviceability) capabilities.
• Multi-processor servers based on the Intel
Itanium processor 1.6 GHz handle the
increased data processing load efficiently,
reducing previous CPU load from 70 percent
1
to 25 percent.
• SAP R/3* version 4.6C software running on
HP-UX* operating system and Intel®-based
hardware has strong eco-system support.
considering the price and performance of the
Itanium 2-based servers—both for ASMO’s
current and long term plans.
The decision to migrate was made in January
2005. Intel then collaborated with HP and SAP
for joint funding and support. With their
support, detailed migration plans were finalized
within a month. This included valuable technical
knowledge. For example, using HP’s smooth
transition migration method, ASMO was able to
transfer their 2.5 TB database to the new
platform in just 30 hours.
This migration of the development, test and
production environments was originally
scheduled for four days. By reducing it to
30 hours, the entire process was completed
within a weekend when there was no production.
This enabled the new hardware systems to be
implemented without resulting in any loss
in production.
By June 2005, the migration of ASMO’s
database servers and a number of application
servers to HP rx4640* servers with 16-way
Intel Itanium 2 processors with 9MB L3 cache
was completed without any hitches.
Integral Answers
• ASMO reduced online backup time from
1
18 hours to 6 hours for both full back up
weekly and incremental backup daily, by
using IXOS* backup software optimized for
the new platform and switching from DLT4
to LTO3 tape backup systems.
• The Itanium 2-based servers provide ASMO
with a low business risk platform with cost-
effective performance for their current and
future needs.
• Since the successful implementation, SAP
Indonesia awarded ASMO the distinction of
being its best reference site for the
manufacturing industry in Indonesia.
Housed in ASMO’s head office in Jakarta, the servers support all the production
facilities spread around the city. Connected via a 2 Mb network link, ASMO is Return on Investment
able to provide each facility with the information infrastructure required using
• ASMO calculated that the Itanium® 2-based
the shared hardware. The solution has proven itself with stable performance systems reduced the company’s total cost of
while being able to balance localized needs with centralized control. This 1
ownership (TCO) by up to 65 percent over its
makes the overall solution cost effective as only one set of hardware is shared previous system.
between the different requirements.
• The cost of leasing the new equipment for
Central management of the backend infrastructure minimizes the cost of the next three years equals the cost of
ongoing maintenance. The company to which the management of IT services maintaining the legacy systems for the same
is outsourced does not require dedicated resources at each plant and is still period, which means ASMO is reaping the
able to provide a satisfactory level of support for mission critical servers benefits of the new system without any
and applications. increase in their IT budget.

• Since implementing the Itanium 2-based

For ASMO, the decision it made has proven fruitful. Taurany says, “This cost-
systems, ASMO has increased production
effective solution has exceeded our performance expectations.” Migrating to
capacity from 2,000 to 10,000 assembled
the Itanium 2-based servers have increased ASMO’s data processing capability
cars per month.
to meet its needs cost-effectively—definitely a low business risk decision.
• The higher production capacity allowed
ASMO to capitalize on the increase in market
1
Figures provided by Astra Motors III. demand and in July 2005, ASMO reported its
business profit rose by 27 percent to 1.8
trillion Indonesian Rupiah (IDR).

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