ERP Case study: Engineering Manufacturing Industry  

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Bill of Materials (BOM) is made for large

system having hundreds of

mechanical, electrical items.

Project based engineering Manufacturing Company

Background:

Engineering: India has progressed very well in the engineering sector.

Exports also have progressed significantly. To manage the growth one

needs ERP solution.

This company manufacturers industrial heating systems. OEM plus

Stock and sale of standard industrial Infra Red (IR) lamps and modules

with complex electronic controls panels. Domestic as well as Export

sale. They have implemented the ISO 9001:2000 (QAS, Australia) to all

company activities ranging from enquiry processing to product validation

with the aim of exceeding customer expectations at every stage.

ISSUES & CHALLENGES:

This manufactures industrial heating systems and its components. The

ERP Software team is associated with users for over four years. They

have designed and implemented an ERP package for efficient resource

development, timely delivery and improved quality. This has resulted

into enhanced quality and service for our customers, job satisfaction for

employees and cost savings for the company.

Many of the heating systems manufactured by this company are

customized designs meant to achieve one or more specific goals.

Coordination of design and an error free manufacturing process to

exceed customer satisfaction is only possible through a meaningful and

user friendly inter-connected database.

Creating a 12 digit item code by the drawing department is a serious

bottleneck in the functioning of many companies. ERP has given an ‘an

auto-codification’ ERP module that has speeded up the process to great

extent.

 

ERP Case study: Engineering Manufacturing Industry  

www.dnserp.com                                                  J. Zaveri  Page 2  

Supply china management of items

give Just-in-time (JIT) inventory management

Electrical items

Fuse

Fan

Cables & switches

Electronic items

PCB

Mechanical items

SS Plate

Nuts

Bolts

HOW ERP CAN ADDRESS THESE ISSUES:

Well-versed with excise procedures with reports like RG1, RG23, PLA as

per Indian laws. 'Project workbench' report gives project wise (sales

order wise) details of each project. ERP software allows sharing of

information among most departments in a company, for a user who is

having the necessary log-in and password.

The issues are addressed by deploying following modules:

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. Cost sheet module – preparing estimate

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

14. Auto-codification of item code

15. Resource matrix module.

Standard products

KEY BENEFITS:

ERP focuses on the following for the engineering industry: Knowledge of

'Best Practices' in the Engineering Industry. Solutions for discrete and

repetitive manufacturing. Engineering change management. Ability to

handle export document like the ARE-1, ARE-3, etc.

For an SME company, this ERP package is a welcome transformation. It

has provided online operations through computers, in all aspects of

business and is expected to contribute to increased profitability and a

better reputation in the ever changing global market.

Users believe all SMEs can position their organizations to benefit from

ERP system, which is designed to meet the unique requirements, in

order to achieve both top line and bottom line growth.