ERP for manufacturing industry helps manufacturing industry improve productivity and efficiency in work

Industry: Manufacturing of Sheet Metal Parts, Lighting, Fitting & Switchgear Assembly.

The Client: Leading Manufacturing of Sheet Metal Parts, Lighting, Fitting & Switchgear Assembly.

Solution: ERP for manufacturing industry , an integrated Enterprise Resource Planning solution. 

The Client 

The client's ' ongoing mission is to continually advance with technology. The Client provides a complete line of standard Lighting, Fitting & Switchgear Assembly for Godrej and M&M. The company is committed to product innovation, engineering excellence, precision manufacturing, 100% quality testing and hands-on technical assistance.

The Challenge for manufacturing industry

When the client decided to replace their accounting and manufacturing systems, they wanted an integrated enterprise resource planning (ERP) solution that would support their growth and address a number of operational problems. After 10 years in business, inventory was growing faster than revenue, on-time delivery was slipping and a general lack of information was negatively impacting financial and operational performance.

A successful ERP implementation, and for that matter a successful business, not only requires a vision, but also a plan, according to Mr. Sandeep, Managing Director of PM Electro Auto - India “a vision without a plan is only an illusion.” Any solution would ultimately have to support three important corporate objectives: the ability to rapidly respond to customer needs, deliver high quality products and empower employees. Adding more challenges to the project, the client operates in a heavily regulated industry and has to comply with ISO 9001: 2000 requirements. 

The Solution for manufacturing industry

Client looked at several ERP systems targeted at small and mid-sized manufacturers and systems from industry giants SAP, Baan and J.D. Edwards. The systems were judged based on overall functionality, ease of use, scalability and underlying technology. 

“Cost plus utility equals value and  ERP from Manufacturing Systems provided the best value by offering the right features at a very affordable price,” said Mr. Sandeep. “We are looking at a ROI (return on investment) of over 200 percent and we are very happy with the choice.”  

Another area experiencing improvement has been supplier performance. With in-house and external operations, integrating sales forecasts and managing inventory in multiple locations became critical. 

“ERP for manufacturing industry has given us much better visibility and allowed our suppliers to improve their own scheduling. On-time supplier delivery performance has improved from 30 percent to more than 80 percent in less than a year,” according to Mr. Sandeep. Implementation was dominated by two main factors. First, the company had a very aggressive timeline. They were moving to a new facility and everything needed to come together at the right time without impacting revenue. Second, implementation and maintenance of the system had to fit an environment with very little IT resources available. 

ERP implementation actually took only 4 months and required only one day of consulting services. “One of our subcontractors was implementing a different system at the same time we started our implementation. All employees were asked to keep track of procedures and reports from their old system in case the new system did not meet all their needs. In the end, literally no modifications were required. 

Knowledge acquisition: Using our methodology and framework, our team captured data on the existing infrastructure across 4 Locations