ERP(Manufacturing) Case

Introduction of Client

After more than 20 years of development, Donghua Machinery, founded in 1982, has set up mechanical equipment production bases in South China and East China as well as a marketing network that covers the whole China and the world. In addition to research, development, production, selling and technical service of plastic injection moulding machines, the company has extended its product range to rubber-plastic processing machines and sheet metal working machines like blow moulding machine, extrusion line, rubber injection moulding machine, hydraulic press and NC turret punch press, etc.

Background of Project Demands

With its rapid development, Donghua Machinery wants to establish a unified and integrated information management platform so as to realize data sharing for different work processes like supply, manufacture, finance, product distribution and after sale service etc. It also wants to re-standardize its internal work processes so that the data sources are clear, data processing processes are standardized, thus to provide a modern technical means for the headoffice of the Group to administer and monitor the braches and for the administration organizations at different levels to know and dispatch all resources in real time through the information management system. Moreover, the company also wants to have an overall analyzing system and commercial intelligence for macroscopic forecast, and trend analysis etc. and for high-speed circulation and high integration of data information in and between the Group’s headoffice and the branches, thus the data can be effectively analyzed and monitored at any time and finally quick service can be provided to the Group and the branches for administration and decision making. The main factors are as follows:

  • Quality, cost, delivery time and new product development speed determine an enterprise’s advantages in competition
  • The clients’ requirements change time and again. They place higher and higher requirements on customized products.
  • The orders with short delivery time greatly increase and the production period has become shorter and shorter.
  • The mode of delivery changes from large batch volume and standardized operation to multi-variety, small batch volume and non-standardized operation so it is difficult for the enterprises to accommodate themselves to the market development demands.
  • Technical innovation and new product development are conducted too fast so the production process can hardly be stable.
  • The economy and market become internationalized; the competition among transnational enterprises is more and more fiercer.

Solution

On the basis of reorganization and optimization of work processes and production operations, the computer technology, network technology and database technology are used for integrated enterprise management so as to realize sharing and effective utilization of the enterprise’s internal and external information and thus to raise the enterprise’s economic results and market competition power. The overall solution is as follows:

  • Meet the strategic demands for management, monitoring and diversification development.
  • A comprehensive solution incorporating supply chain, ERP, marketing system, PDM system, etc.
  • Unified organization structure planning and unified structure of first-level accounting items
  • Unified financial analyzing system
  • The same solution is used for the different companies with the same requirements
  • High integration and flexible external interfaces
  • Embody the spirit of lean management at every aspect and share information and cooperate with the suppliers and dealers
  • Realize analysis, data enquiry and report system in multiple levels and multiple techniques

The Results Accomplished from ERP System Implementation

  • Mode of management: The work processes of the Group and the branches are unified and standardized to facilitate the standardization and routinization of information processing. Core work processes are wholly systemized through the implementation of information management system So as to lower cost, to raise efficiency and further to achieve effective management of the Group and the branches.
  • Data integration: By use of the management technology for large-scale database, the data storage capacity, and running speed required by the business development of the Group are guaranteed. The isolated-island phenomenon in multiple database informatization is avoided and the full integration of information from the clients, suppliers and makers is finally realized.
  • Organization structure: Through implementation of information management system, normalize the management standards, technical standards and information standards. Assist the Group in setting up an effective organization structure for informatization, which enables the ERP system to maintain highly consistent with managing work and provides powerful support for organization dividing and merging.
  • Financial administration: Establish a centralized administration and control mode, which takes the finance as the core; introduce the concept of and the measures for financial work process control; strengthen the ability of the Group to monitor the financial work process; and serve and promote the overall business development.
  • Budget control: A comprehensive budget administration system that is flexible and target profit oriented is set up, which enables the management to effectively plan, examine, approve and monitor the financial budgets and their execution, to monitor and evaluate the fix assets and the projects under construction, and changes the financial function from ex post calculation to ex ante forecast, in-process control and ex post analysis.
  • Cost control: Realize comprehensive control of procurement cost, manufacturing cost and selling cost; use actual procurement cost, standard cost, and budge cost etc. to provide the functions of real-time cost update and zero cost early-warning so as to wholly realize supervising and control of inventory value.
  • Support for decision making: Establish Group-functional departments-branches multi-level supporting system so as to provide comprehensive information in time for the leaders at different levels to make decisions.