Client is leading vessels manufacturer. It has corporate office and manufacturing unit at same location. Client started using Ekatm ERP when the company was in nascent stage and its business has grown in different segments. Client turnover has increased multifold over the last 2 years.
Key Challenges Managed
Raw Material Inventory Level Control
In this industry there is very high level redundancy of the inventory due to client gave the open order for the year and give the schedule on monthly basis, every month schedule which is not predicated or not possible to do for casting for every month. Client follow the company standard policies and required finished good on times so they want to make a stock for raw materials.
Ekatm ERP provides:
- MRP for material resource planning as per schedule order stock.
- Material leading and reorder level time also covered
- Record raw material movement from one location to another
- Non-moving material report
- Good control over quantity and location. 99% inventory accuracy achieved
- Helped in deciding product design and production plan to consume available raw material.
- Significant Inventory level reduction
- Correct raw material inventory valuation
- Traceability to vendor receipt in case of line rejection
Delay at production stage due to raw material not issue on time in manufacturing
On an average the delay of production to 5% from commitment of delivery. Also, there was material not received on time from vendors. In case of large size production batch, production batch was required run by breaking running setups due to shortages. This was causing higher delivery lead times or delay in deliveries.
Ekatm ERP provides:
- MRP run in a weekly basis
- MRP generated requirement of material based on sales forecast.
- MRP generates requirement of material planned based on reorder level.
- MRP calculates quantities and due dates
- Can be converted in ident or purchase order or manufacturing order.
Material Consumption Variance
Before the system they manually prepared a job card and raw material issue against the job card for finished goods and it is very difficult to measure the material consumption variance.
- In PDM module we design Item process which is the combination of Bill of material and routing sequences.
- Which help for during manufacturing order against item process right quantity of raw material issue to shop floor
- Ekatm ERP generates material consumption variance report.
- Variance is reduced by 10%
- Scrap during process reduced due to awareness of measurement.