Automotive parts OEM - Case study for ERP

Case study for ERP in an Industrial Spring manufacturing company. Made to order.

BACKGROUND:

Original Equipment Manufacturer (OEM) supply or Making as per the customer order.

Unlike FMCG products, here all activities such as production, purchase, sales is linked to the customer's purchase order (sales order). ERP is deployed successfully in many such electro-mechanical engineering companies. Here is a success story of a company that is a leader in manufacturing high quality springs for 'automobile' sector.

At the same time ERP can take both kinds of automation – standard products as well as customized products manufacturing company.

Supply chain management

Spring items

Assy Oil Dipstick

Bearing

Brass Sheet

Extension Cam

Extension Cam HY 605

Galvanized Wire

HSS Bit 17 X 17

OHNS Dia 20x500

Spring Steel Wire Gr-2

Stainless Steel Wire

Straighten Wire

ISSUES & CHALLENGES:

Smoother and faster process flow
Efficient distribution of information
Decentralization of task & decision
Increased transparency and better control
Protection/ Security of data
Wastage, scrap, rejection
Integration of all departments
Cost control
productivity through elimination of duplication
Inventory of raw materials
Delivery performance
Automatic integration of key business processes, such as sales, purchase, production, QC, accounts, excise, etc.

ERP Case study automotive parts

HOW ERP CAN ADDRESS THESE ISSUES:

ERP pre-sales and sales module helps managing marketing activities by capturing sales enquiry, preparing quotation, sales order, sales schedule, sales invoice, etc.

By using the following ERP modules above challenges are met:

1.    Security module

2.    Accounts module – General Ledger Accounts

3.    VAT / Sales Tax module

4.    Excise module

5.    Inventory Management module

6.    Purchase & Pre-purchase module

7.    MRP - Material Requirement Planning module / Supply Chain Management (SCM)

8.    ISO 9000 – Quality check module

9.    BOM – Bill of Materials module

10. Production module (Assembly Production and Process Production) CRM module (Customer relationship management) and pre-sales module.

11. Automatic email alerts module

12. Payroll and HR module

13. Cost sheet module – preparing estimate

14. Order Fulfillment module – Sales Accounting - (Shipping)

KEY BENEFITS:

Machine Master and Process Master (tempering, cutting, hooking, etc.) are linked to Work order. The Production Planning module is linked to sales order and Bill of Material master. User is able to track stage-wise production.
When the work order will be prepared then the user (from production section) will do the daily planning according to machines that are available to him and according to work order quantity and the process that has to be done.
Select the work order number for which the planning is to be done.
When you select the work order number, item code and work order quantity gets defaulted automatically. Then select machine name for the respective process that has to be done.
In the process drop down the process defined in the work order which are required will get defaulted. The user has to select process one by one and then define its plan quantity and shift and click on add button.
In Production entry, user can enter the time required for manufacturing a given item i.e. start time & end time.

Also see this illustrative case study of the Volkswagen, Germany