cs asian paints 7134

8/8/2019 Cs Asian Paints 7134

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S U C C E S S S T O R Y

Informatica is playing a vital role in enabling Asian Paints analytical

decisions, based on a consolidated and trusted view of product costing data. Aashish Kshetry, General Manager Systems, Asian Paints

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Every quarter, an ominous date would appear on the Asian Paints calendar. It was the time when

supply chain management and accounts sta at Indias largest paint company would perorm

the product costing process. This task involved determining the SKU level costs o the companys

paint products, which would include the raw material and packing material prices based on their

estimated or actual consumption averages. The resultant inormation was the determining actor in

uture pricing decisions, cost savings measurements, inventory valuations, demand orecasts and

income projections or the company. However, despite being critical to Asian Paints success, it was

not a popular system. Data in the standalone system required substantial manual intervention

and the innate inexibility meant that i a mistake was made and the cost output was wrong, the

team had to start all over again.

A long-standing, satisfed Inormatica customer, Asian Paints again turned to Inormatica to

quickly and accurately access, integrate and trust the raw material, bill o materials (BOM) and

other data used in the product costing system. The solution accesses all the data regardless o

its source or structureincluding the deployed SAP, Inor Optiva, and i2 (now JDA) environments.

By standardizing on Inormatica technology or this product costing system, Asian Paints is

equipped to respond more quickly to market price changes o raw materials, thereby increasing

competitiveness. The company has reduced costs by integrating and delivering data at the right

time, in the right ormat. And the consolidated, trusted view o costing data has resulted in more

accurate and timely supply chain and marketing decisions. Moreover, Asian Paints has reducedthe time required to run the quarterly product costing model rom 24 hours to 20 minutes, and

or the frst time, product costs can be calculated simultaneously across all manuacturing plants,

thereby boosting productivity and efciency.

FAst FACts

Business initiAtives

Respond more quickly to market change

Analyze cost data and increase efciency

teChnology strAtegy

Implemented the Inormatica Platorm;

in this instance consisting o Inormatica

PowerCenter and Inormatica

PowerConnect. Included a custom user

interace to create a shared product costing

system or the companys portolio o

paint products. Inormatica integrates raw

material, BOM and other dataregardless

o its source or structure, including the

deployed SAP, Inor Optiva, and i2 (now JDA)

environments.

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Asian Paints is Indias largest paint company and ranked among the top ten Decorativecoatings companies in the world with a turnover o over USD 1 billion. Asian Paints along with

its subsidiaries has operations in 17 countries across the world with 22 paint manuacturing

acilities, servicing consumers in 65 countries

Each o Asian Paints three business unitsDecorative, Industrial, and Internationalhas registered

strong growth in the past ew years, partly because o the companys competitive cost structure.

By accurately measuring and analyzing all the costs associated with paint manuacturing and

adding a suitable operating margin, the company is able to sustain its growing income. The data

associated with product cost can be used in other ways as well: to improve inventory management

and optimize plant level product mix.

But measuring the exact cost o paint production is complicated. For example, Asian Paints needs

to examine the actual cost o each o the raw materials that goes into the manuacturing process.

This cost analysis demands an accurate knowledge o Asian Paints raw materials supplier level

prices and the alternate raw materials available or use. And it requires rich insight into multi

level bill o materials (BOM) and multiple ormulation versions. Armed with this holistic view,

Asian Paints is able to make strategic and tactical business decisions, including pricing, income

orecasts, and operating margins.

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Previously, Asian Paints was relying on a 10-year-old legacy product costing system. Based on

a legacy RDBMS platorm, the stand alone system contained the bill o material inormationand all other data had to be manually massaged and validated beore loading into the system

describes Maulik Desai, Senior Manager Systems Development, Asian Paints on the inexibility o

the legacy product costing system. There was a large degree o manual intervention required to

determine the product cost, he says. For example, we had to manually identiy which alternative

paint ingredients were being used in the manuacturing process, load the expected consumption

rates o the raw materials into the legacy system, analyze and urther massage the outputs using

spreadsheets.

The costing system is run on a quarterly basis, and the team began to ear the date as it loomed

on the calendar. Because the landed raw material prices diered rom plant to plant, this data

had to be uploaded site by site, and that meant the product cost model or each o the companys

fve paint manuacturing plants in India had to run sequentially, adding to the run time and

preventing side-by-side plant comparisons. There was no means o fltering dierent costing

models or an individual business unit, such as Decorative or Industrial. And although Asian Paints

has a strong ethos or getting it right the frst time, i a mistake was made and the cost output was

wrong, the users had to start all over again. It reached the stage where it took one day or each

manuacturing plant to complete the costing run, says Desai. This not only wasted our resources,

it undermined our ability to respond quickly to price changes o raw materials in the market.

BeneFits

Enabled the company to respond more

quickly to market price changes, thereby

increasing competitiveness

Reduced time required to run quarterly

product costing model rom 24 hours to

20 minutes, which is a raction o time

required previously

Decreased costs by integrating and

delivering data at the right time, in the

right ormat

Drove better research, development

and marketing decisions based onconsolidated, trusted view o pricing data

Enabled product costs to be calculated

simultaneously across all manuacturing

plants, thereby boosting productivity and

efciency

Allowed Asian Paints to run product

costing simultaneously and preserve/

archive multiple scenarios across

Business Units: Decorative, Industrial and

Automotive

nuts AnD BoltsSolution: Data integration

Product: Inormatica PowerCenter with a

custom user interace

Sources: SAP, Inor Optiva PLM system,

and i2 supply chain management

solution

Target: Unifed product costing system


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Asian Paints didnt have to look ar or a solution. The company has been an Inormatica customer

or several years, using the enterprise data integration platorm to reconcile and deliver large

amounts o supply chain planning data across various sourcesa daunting and complex task

that was previously time consuming and riddled with validation errors. Specifcally, Inormatica

technology is part o the companys supply chain planning suite rom i2 (now JDA) acting as

the integration hub between the source systems and planning engines. By standardizing on the

Inormatica Platorm or operational system integration, Asian Paints is empowered to better

understand trends in the paint market, gain enterprise-wide visibility into operations, and obtain a

single version o the truth.

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According to Harish Lade, Chie Manager, Systems, Inormatica was the frst and only choice orall o the companys data integration needs. Over the years, Inormatica has provided Asian Paints

with a scalable and exible oundation or data integration to sustain best-o-breed IT landscape.

Inormatica has helped reduce data integration times in a variety o IT projects, ensuring that

integration projects remain on time and within budget.

Inormatica provides the Indian manuacturer with all the capability it needs to access, integrate

and trust the raw material, BOM and other data used in the product costing system. The solution

accesses all the data regardless o its source or structure, including the deployed SAP enterprise

resource planning, Inor Optiva, and i2 environments. Inormatica then reconciles discrepancies in

the way Asian Paints dierent systems structure data, thereby maintaining a consistent view o the

product costing data across all systems. All o these steps allow Asian Paints to rely on a unifed,

available and secure product costing systemshared throughout the business.

Figure 1: Inormatica technology integrates data rom multiple dierent sources to provide a unifed, real-timeproduct costing system

Optiva

Costing

APLMDM

i2

(JDA)

Data: BOMFreq: Run Time

Data: RMCFreq: 3 months

Data: RMC, Vol, SetupFreq: Run Time

Data: Base RM/IntFreq: Run Time

Data: BOM relatedFreq: Run Time

Data: BOM relatedFreq: 1 hr


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The new system delivers the exibility, agility, and data standardization that Asian Paints business

users have been wanting or. Product costs can now be calculated simultaneously, not sequentially,across all fve paint manuacturing plants, thereby boosting productivity and efciency. The time

required to run the quarterly costing model has been reduced rom 24 hours to 20 minutes,

which is a raction o the time required previously. And by introducing a separate cost model

setup and run or each business unit (Decorative, Industrial and International), Asian Paints can

now run product costing simultaneously and archive multiple scenarios. The earlier problem o

choosing dierent ingredients and ormulation versions or dierent Plants and Products has also

been simplifed with the new option o setting varied alternates across manuacturing plants or

products.

Amit Kumar Baveja, Chie Manager, Asian Paints Supply Chain, comments, The new costing

system based on Inormatica provides Asian Paints with a highly robust decision support system.

This has happened by presence o eatures like plant level costing which in turn can be aggregated

to company level, ease in fnding causals or product cost changes and reduction in end to end

cycle time o doing the costing. In turn, it has helped in enhancing the process capability w.r.t to

both timeliness and accuracy. Seamless integration o costing with our MRP system is an added

beneft.

The new product costing system, based on Inormatica, has transormed our operational

efciency, says Desai. The new system oers Asian Paints a degree o exibility we used to dream

o, greatly increasingly our pricing accuracy. For example, i there is a change in the price o one o

the raw materials, we can immediately see the impact on the selling price o the paint. And we can

play around with an infnite number o what i? scenarios. Inormatica is playing a vital role in our

analytical decision making, driving better research, development and marketing decisions based

on a consolidated, trusted view o pricing data.

Worldwide Headquarters, 100 Cardinal Way, Redwood City, CA 94063, USAphone: 650.385.5000 ax: 650.385.5500 toll-ree in the US: 1.800.653.3871 www.inormatica.com

Inormatica Business Solutions PVT LTD, Diamond Street, Tower B, 3rd Floor #150 Airport Road, Bangalore 560008, Indiaphone: +91 80 402 03000 ax: +91 80 411 25483

2010 Inormatica Corporation. All rights reserved. Printed in the U.S.A. Inormatica, the Inormatica logo, and The Data Integration Company are trademarks or registered trademarks o Inormatica Corporation in the United States and in

jurisdictions throughout the world. All other company and product names may be trade names or trademarks o their respective owners. First Published: May 2010

leArn More

Learn more about the Inormatica Platorm.

Visit us at www.inormatica.com or

call +1 650-385-5000 (1-800-653-3871

in the U.S.).

ABout inForMAtiCA

Inormatica Corporation (NASDAQ: INFA) is

the worlds number one independent provider

o data integration sotware. Organizations

around the world gain a competitive advantage

in todays global inormation economy with

timely, relevant and trustworthy data or their

top business imperatives. More than 3,900

enterprises worldwide rely on Inormatica to

access, integrate and trust their inormation

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premise and in the Cloud.

7134 (05/17/2010)

cs asian paints 7134

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