Thursday, September 23, 2010

Bitter start, the result of joy


(A). Farsighted business leaders

Founded in 1984, Guangdong Hing Fat Aluminum Factory Co., Ltd., formerly known as "Guangdong Hing Fat aluminum group" is a famous professional manufacturer of architectural aluminum profile, Industrial aluminum profile of the large-scale enterprises, is designated the Ministry of Construction production base. An area of 380,000 square meters company, over 600 million yuan in fixed assets, intangible assets 576 million yuan, annual production capacity of nearly 10 million tons, exports accounted for annual production of 1 / 3. Annual yield of 13% annually. The company's leading products are anodized, electrophoretic coating, powder coating, fluorocarbon coating, industrial profiles "five trump card." Existing products more than 200 series, with more than 13,000 specifications.

However, with the size of the company continues to expand, product specifications, increasing variety, as well as customer needs change, so in 92 years asked people to develop the establishment of the MIS system can no longer meet the production needs of individual customers; the same time in the enterprise rapid growth and development process, due to various reasons, Hing Fat companies suffering from a number of large enterprises susceptible to the "affliction," became more and more orders for long lead time, a large number of orders mantissa appears. As the customer said, "Hing Fat aluminum, the product really is the best, but the delivery is also the longest."

To reverse this situation, the company chairman and senior leadership Rosu Chen Hong, general manager and then to pull strings in the relevant departments under the leadership, in August 2000 and a particular implementation of the company (hereinafter referred to as: A consultancy company) signed the implementation of Baan IV system. The aim is to achieve through the integrated management package information flow, logistics, capital flow of unity, and promote organizational change and business innovation, improving customer satisfaction. Meanwhile, A consultancy firm commitments are made to "guarantee its success."

(B). Bitter beginning

However, despite the A consultancy firm to make sufficient commitment and dispatch lineup early in the project implementation team, based in Hing Development Corporation to prepare the initial project work, however, due to aluminum products industry structure is the V-type structure, raw material is simple , but the product mix are tens of thousands, resulting in A consultant coding aspects of the delay in making the right set of programs, although the contents of several start the ERP implementation, but in the end because there is no perfect coding solution not the end, forced again and again throughout the implementation of the suspension. Little by little over time in the past, the project has passed a blink of an eye and a half years, has not been any progress, what is worse, Hing Fat operations department for the implementation of all ERP, has lost its enthusiasm for the ERP implementation, has been completely lost patience and confidence.

At this point, as the company's senior leadership, once again to make wise decisions, since A consultant can not afford to help us to implement, why they can not hire professionals from outside of the Ordinance? Thus, the end of 2001 the company began large-scale search / recruitment Baan implementation of the professionals.

(C). ERP implementation of the real beginning

April, Baan implementation of the personnel in place, but for the aluminum industry, as domestic enterprises still do not really implemented any ERP, so for our implementation of the staff even though many enterprises have been held in the ERP project manager, and has successfully implemented a number of between enterprises, but implementation remains the aluminum industry the first time, in this case, the company's vice president and the IT department staff resolutely decided to go to Shanghai to Baan offices and another consultancy company, verify their own internal system proposed by Baan IV implementation of the program really solve business problems and ultimately verified that the existing Baan IV system, the proposed solution is to solve our problems. Meanwhile, on the other hand, it demonstrates our internal staff is fully capable of for ERP system implementation. Therefore, after returning from Shanghai, we have been preparing for ERP implementation, mainly include:

1). To launch a comprehensive, thorough project research, organization prior to each department manager concluded A firm of consultants for failure, as well as a blueprint for redefining business needs.

2). To re-initialize the Baan IV system configuration, excluding A consultant will be coding the length of default by the system to grow to 22 16-bit systems can cause "hidden."

3). Re-planning system to implement the functional blocks of the system configuration parameters for re-configuration.

After the above preparatory work, finally the official June 1 start full implementation of ERP systems and ERP implementation of the mobilization meeting held in the mobilization meeting, our general manager Mr. Chen Hongzai excited and said, "This is our fifth mobilization meeting held in ERP systems, hope that this ERP implementation process, by actively cooperate with, support, lack of manpower, then, the application to join, no computer, then the computer and dancing, short Yiqie to give the green light for the ERP. "From that point , Hing Fat people began to start the implementation of the ERP system sounded the clarion call.

a). using Baan IV system provides a "product configuration", to solve the needs of diverse customer order problem, the length of the aluminum production industry, the spray color, profile type, thickness, production materials, tolerances and other product attributes All options as customer orders, allowing customers to choose when the next one in different colors, models, film thickness, material, tolerance and other options, and then the system when the customer orders the selected product-related attributes, automatically generate the appropriate material structure (coding, product inventory, process data).

b). As the Hing Fat products are basically manufactured by way of orders, so we enabled the Baan IV system provides a "manufacturing project control system" to achieve customer orders, production tracking, project inventory clear.

c). Baan batch management features enabled, to achieve a number of products for each class of each record, track, and thus can easily discover a problem in the production process, while the production in time of the review the issue, identify the causes of Fa Sheng's truth.

d). using Baan IV to provide library-bit management module that finished, semi-banked spaces orderly pile, finished warehousing automatically assigned when the library spaces. Thus, the warehouse management to achieve uniform.

e). Baan process through the use of the system to realize the furnace formula management, and production management of each Batch, solution casting rod casting plant production.

(D) the result of joy

After six months of hard work, Hing Fat is going for a successful ERP system, aluminum industry as the first implementation of the ERP information technology companies, completed the product configuration system, manufacturing project control systems, sales order management system, purchase order management system, warehouse management systems, storage areas of management systems, shop management system, batch job management, batch control, project requirements planning, material requirements planning the implementation of such systems, and the results are obvious. Main features:

a. inventory (finished goods, semi-finished products, shop backlog) was significantly lower

Finished goods inventory as an example to the implementation of ERP has never been dropped in front of 2,800 tons to 1,600 tons now, but the stock still further decline.

b. delayed delivery situation of greatly reduced

In view of the customer order delivery Hing Fat are short, generally are about 15 days to 30 days, however, before the introduction of ERP before, often failed to deliver on schedule the situation, some orders extension of 3 months or even none of to deliver the goods, but through the ERP implementation, the status of orders on time delivery greatly improved, the general order can be in the 10-15 days range, greatly reducing the production cycle, and reduce operating costs.

c. greatly increased the number of orders supporting the completion of

As we have a "to-order manufacturing" to organize production, thus greatly facilitating the production of the progress of orders tracking, issue of recourse, after this period, ERP implementation, we obviously feel we are supporting the completion of the order situation has greatly improved, there mantissa orders The situation greatly reduced. before that failure to complete production, delivery and customer do not want to create inventory backlog has been greatly reduced.

d. the phenomenon of downtime should be significantly reduced

Through the implementation of ERP, strengthen channels of communication between departments to increase the fineness of management, so the problem becomes very much easier to track, which can significantly reduce the downtime should be a phenomenon.

e. clear mandate to strengthen the sector, reducing the phenomenon of inter-buck-passing.

As the ERP system implementation of the system to automatically button up to punish function, which not only strengthened the oversight functions within the department, but also strengthened the oversight functions between departments, a large decrease departments to try to shift phenomenon.

f. management strength and depth increase, compression of the "management level", to achieve a "flat" management.

For management purposes, "management of data lag" will inevitably lead to problems which can not ultimately determine the final cause and no way to conduct the appropriate decisions, while the ERP implementation is truly a "to data words, according to the facts speak", thus facilitating the management staff time to find the problem, tracking problem, promptly make the appropriate measures.

g. procurement lead time was nearly 50%

Previously, the chemical powder, fluorocarbon oil purchasing time usually takes approximately 20 days to 30 days, and now through the material requirements planning systems, automated powder, oil inventories and order demand directly to make a reasonable request, thereby significantly reducing the procurement of intermediate link.

h. lower manufacturing costs, estimated nearly 12% reduction, increased production capacity, estimated by 10%

As the ERP system significantly improved the retention in-transit goods, strengthening the smooth flow of goods, thus greatly reducing manufacturing costs and improve productivity.






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