Using ERP to meet the challenges of running an organisation

Jun 17 2006, 00:00 IST
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Alpha Pneumatics is a manufacturing company that is based in Mumbai. This is a company that is engaged in the manufacture of pneumatic tools for pumps and the marine industry, operating on tight margins and a turnover of less than Rs 10 crore.

Before going in for Ebizframe, manual data entry in each department caused major worries for the management as no data, either in sales, purchase or inventory tallied with the actuals at hand. This made decision-making for the management of the company impossible or a huge risk.It got out of hand when technical specifications followed by the production team, suppliers, sub-contractors and customers were not coordinated and went a little haywire. This in turn caused complications what with the supplies and materials taken from sub-contractors. The same lead to rejections from the customers side therefore causing cost inputs to increase again.

Challenges of understanding the concepts and quick adaptability by staff during implementation of Ebizframe were tackled well by the team from both sides. All specifications for raw material, semi-finished and finished goods are now incorporated into the system. The turn-around time of delivery against order is reduced by 12 to 15 days. Also, the company has now got the required controls over suppliers and sub-contractors. The company has got clear MIS reports of receivables and payables. As of now, sales (including exports), purchase, inventory, production and finance are live.

Correct, uniform and smoother flow of information across suppliers, sub-contractors and customers caused delight in each due to timely receipts and payments against deliveries with precision. Even dead stock has come down by 18% to 20% of the whole. Stock tracking at inventory and sub-contractors site was accurate due to live inventory-related reports. Production processes are streamlined, based on the production advice from sales as per order-bookings made.

Improving communication of an organisation by IT
V venkata rao, professor, IIM AHMEDABAD
ALPHA Pneumatics, the Rs 10-crore-engineering company specialising in manufacture of pneumatic tools has been plagued with the problem of inadequate, inaccurate computer applications.

Several of these applications were perhaps developed using old technologies, which did not permit the software to share the same data. Hence, when two or more tasks required the same data, the information had to be entered over and over again leading to several mistakes and inconsistencies in the output of different computer applications. For example, the raw materials and components procured or manufactured

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