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ERP Case study - Industrial Valves Manufacturing.

Automation helps managing inventory in a growing enterprise.

Integrated business management software for the manufacturing operations at Fainger Leser, India. 

 

 

Fainger Leser (FL) manufactures spring-loaded ‘Safety Valves’. These valves are produced in India since 1990 in Joint Venture with a German company.

 

Challenge: It was challenging (in 2007) because the plant is situated in a place called Paithan, near Aurangabad, where until now broadband internet was not available. The head office is in Mumbai. FL was looking for an ERP solution, which can automatically synchronize data on ERP Server computers at both locations. DNS provided the cost-effective and practical solution. Broadband internet was NOT possible when ERP was decided in early 2007.

 

Background: Legacy method as usual was rudimentary account-centric software, being used by accounts office in Mumbai, with NO link to inventory transactions or ‘Bill of Materials’ in the plant, at Paithan. Quotations were prepared in Word, and were obviously not structured. But management noticed that several critical processes like purchase, inventory, and management of subcontract work, were yet to be linked. There were also several problems, such as data redundancy, duplication of work, and unnecessary delays arising from lack of integration of computer systems. Customer demands were also increasing in terms of JIT delivery requirements, immediate responses to queries and the need to maintain an integrated end-to-end supply chain.

 

Beginning of ERP journey: The Managing Director himself spent (invested) one full day, in one of the ERP training seminars conducted jointly by Bombay Industries Association and DNS ERP Pvt. Ltd. The MD understood need of ERP in his growing company. He decided to embark on ERP journey. FL made initial investments in ERP software, LAN connection, server computers, and a dial-up internet connection. To upgrade its management operations, FL turned to Digital Nervous System (DNS). This is a Pune (India) based, enterprise software provider for growing companies. DNS offered several seamlessly integrated ERP modules to computerize FL operations, with enhanced work efficiency. DNS offered cost effective send / receive module to exchange data between plant and office, using dialup modem, and simple email, to overcome the problem of connectivity.

 

Digital advantage: After deploying the DNS ERP software, Fainger Leser not only achieves the desired JIT delivery requirements, but is also able to manage its business activities more efficiently.

 

Some other benefits are listed below:

  • It is easier to respond to customer and supplier queries on time. Quotations (proposals) are prepared in ERP pre-sales module. OA or Order Acceptance (also refereed as order receipt information) is the key document that triggers the other business process such as production, invoicing, and so on. The OA captures the important information such as flow diameter, valve type (e.g. conventional), body and nozzle specifications. 

  • Ensuring data integrity by maintaining a secure data transmission across all departments. 

  • It is easier to avoid duplication of work and operational delays. Especially the PO or Purchase Orders are prepared in DNS ERP to ensure accurate communication to suppliers. The electronic copy of the PO is then received in stores and the goods receipt is linked to the PO.

  • Easy monitoring of inventory, production flow, quality, and accounts.

  • Enhanced customer satisfaction.

  • The success of ERP in FL is largely based the top management commitment, sincere ERP coordinator, and users involvement. It is said that “ERP implementation is a journey, and not a destination”. The speed of this journey depends on the management ability to change to new way of working.

ERP modules are deployed:

 

1.    Security module

2.    Accounts module –

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.    BOM – Bill of Materials module

9.    Production module (Assembly Production and Process Production)

10.  Automatic email alerts module

11.  Order Fulfillment module – Sales Accounting.

12.  Send/ Receive data

13.  Pre-sales and sales module.

 


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