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Automotive Parts
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ERP for Automotive Parts
Manufacturer. OEM Supplier. Success story.
Case study for ERP in an Industrial Spring manufacturing company.
Made to order.
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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. |
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Supply chain management
Spring items
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Assy Oil
Dipstick |
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Bearing |
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Brass Sheet |
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Extension Cam |
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Extension Cam HY
605 |
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Galvanized Wire |
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HSS Bit 17 X 17 |
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OHNS Dia 20x500 |
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Spring Steel
Wire Gr-2 |
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Stainless Steel
Wire |
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Straighten Wire |
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ISSUES & CHALLENGES:
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Smoother and faster
process flow
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Efficient distribution
of information
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Decentralization of task
& decision
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Increased transparency
and better control
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Protection/ Security of
data
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Wastage, scrap,
rejection
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Integration of all
departments
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Cost control
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productivity through
elimination of duplication
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Inventory of raw
materials
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Delivery performance
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Automatic integration of
key business processes, such as sales, purchase, production, QC,
accounts, excise, etc.
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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
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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)
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KEY BENEFITS:
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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.
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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.
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Select the work order
number for which the planning is to be done.
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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.
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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.
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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
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