Climb­ing the Growth Curve

MI­CRO SUPREME AUTO IN­DUS­TRIES needed to re­place the out­dated sys­tem that ran its auto com­po­nents busi­ness. The ven­dor im­ple­mented SAP so­lu­tion to boost pro­duc­tiv­ity, cut costs, and continue its ag­gres­sive growth

DQ Channels - - Best Deployment - PRAS­ANTH MENON (pras­an­thm@cy­ber­me­

Es­tab­lished in 1984, Mi­cro Supreme to­day has emerged as an am­bi­tious en­ter­prise which has wit­nessed a pos­i­tive growth trend in the last cou­ple of years. Mi­cro Supreme is en­gaged in de­sign, de­vel­op­ment and pro­duc­tion with 3 di­vi­sions, which in­cludes au­to­mo­tive and pre­ci­sion engi­neer­ing division (Pre­ci­sion me­chan­i­cal com­po­nents & as­sem­blies be­ing used in au­to­mo­tive engine, gear­box, power steer­ing sys­tems as well as power gen­er­a­tion, ship­ping & pre­ci­sion engi­neer­ing in­dus­tries), test­ing sys­tems division (en­vi­ron­men­tal test­ing sys­tems, lab­o­ra­tory test­ing sys­tems, cus­tom­ized test­ing sys­tems be­ing used in au­to­mo­tive, chem­i­cal, elec­tri­cal & elec­tron­ics in­dus­try, etc.) and mea­sur­ing in­stru­ments division (man­u­fac­ture mea­sur­ing in­stru­ments, re­la­tion gauges, jigs and fix­tures). The com­pany pri­mar­ily deals and sup­plies com­po­nents to tier 1 com­pa­nies like Tata mo­tors, Mahin­dra and Mahin­dra and many more.

Need of the hour

Mi­cro Supreme out­grew its legacy busi­ness soft­ware dis­jointed ap­pli­ca­tions that re­quired repet­i­tive, la­bor-in­ten­sive, er­ror-prone data en­try. Gen­er­at­ing re­ports was slow and cum­ber­some, mak­ing it dif­fi­cult for man­age­ment to keep Mi­cro Supreme on its growth curve. Hence, there was a need to have an ef­fi­cient ERP sys­tem to in­duce ef­fi­ciency into the ex­ist­ing eco sys­tem.

There were cer­tain crit­i­cal ar­eas which def­i­nitely needed an up­grade. Like for in­stance, the com­pany faced the chal­lenges pre­vail­ing due to Sin­gle data en­try. Vinayak Kulka­rni, Chief Fi­nan­cial Of­fi­cer, Mi­cro Supreme Auto In­dia said, “Be­fore SAP we are do­ing data en­try in var­i­ous ex­cel sheets. E.g. we are print­ing our in­voices in Tally but not able to get the division wise sales re­port from it. So to get that re­port we need to main­tain the ex­cel sheet and re-en­ter the in­voice fig­ures like net value, taxes and gross value in ex­cel.”

He fur­ther added, “Sim­i­larly at re­ceiv­ing end, we need to main­tain the reg­is­ter book for goods re­ceipt and re-en­ter the data in ex­cel file, so that we can search the var­i­ous goods re­ceipt data ef­fi­ciently. In case of pur­chase or­ders, we are us­ing ex­cel file to save all Pur­chase or­ders. In case of pur­chase req­ui­si­tions, we are main­tain­ing pre-printed books, and all sanc­tion­ing ac­tiv­i­ties were done on them, with phys­i­cal move­ment of the req­ui­si­tion book.”

Other ar­eas in­clude In­ven­tory con­trol wherein the com­pany used to take the phys­i­cal stock count of ma­te­rial as and when re­quired to de­cide about the sched­ules to be given to the ven­dors. Fur­ther­more, cost con­trol is an­other area which was man­aged man­u­ally. Kulka­rni said, “Be­fore we never used to have the real time cost of the ma­te­rial. Now we can get the plan vs. ac­tual cost of pro­duc­tion or­der and up-to-date prices of raw ma­te­rial, bought ma­te­rial and semi-fin­ished ma­te­ri­als.”

De­ci­sion Taken

Mi­cro Supreme af­ter strin­gent eval­u­a­tion of so­lu­tions avail­able in the mar­ket fi­nally de­cided to go with SAP. Com­ment­ing on this, Kulka­rni said, “Post anal­y­sis of avail­able so­lu­tions, we de­cided that MySAP ERP/ Busi­ness All in One is the most ideal so­lu­tion for us. SAP R/3 All In One is one of the best ERP in the world for au­to­mo­tive in­dus­try and most of the au­to­mo­tive in­dus­tries are us­ing SAP suc­cess­fully.” He fur­ther added, “Our ex­ist­ing cus­tomers as well as prospec­tive cus­tomers are us­ing SAP. Above all, SAP of­fers us highly in­te­grated mod­ules and scal­able as per busi­ness needs, which is pri­mar­ily the key fac­tor im­pact­ing our de­ci­sion.”

To im­ple­ment the re­quired so­lu­tion, the ven­dor roped in KPIT Cummins to un­der­stand and de­ploy the re­quired SAP based so­lu­tion at the com­pany. Adding to this, Kulka­rni said, “We had re­quire­ment that the de­ploy­ment part­ner should be eas­ily ac­ces­si­ble i.e. should have sup­port cen­ter in Pune. KPITCum­mins was eas­ily ac­ces­si­ble within Pune. Al­most all the con-

sul­tants work­ing on project had good com­mu­ni­ca­tion skills in lo­cal lan­guage.”

Im­ple­men­ta­tion Chal­lenges

KPIT Cummins was given two ma­jor tasks wherein the first one was to de­ploy an in­te­grated sys­tem to avoid du­pli­ca­tion of data en­try work at var­i­ous points. Se­condly, it was to pro­vide so­lu­tion through which the com­pany could ful­fill its need to mon­i­tor the prof­itabil­ity of its three in­di­vid­ual profit seg­ments that in­cludes engi­neer­ing, tool room and in­stru­men­ta­tion within Mi­cro Supreme. Fur­ther­more, so­lu­tion was re­quired for prod­uct cost­ing for quot­ing the fin­ished goods sell­ing prices to its clients.

Mi­cro Supreme was also look­ing to gear up the or­ga­ni­za­tion for busi­ness ex­pan­sions and lay down stan­dard pro­ce­dures for the same and make its sys­tems ready for au­dits such as TS16949 cer­ti­fi­ca­tion au­dit and fi­nan­cial au­dit.

KPIT Cummins de­vel­oped and de­ployed Au­to­dash for Mi­cro Supreme. How­ever, these tasks came with its set of chal­lenges. The fore­most chal­lenge was meet cus­tomer ex­pec­ta­tion to get each and ev­ery process (cur­rent) in SAP in­clud­ing MSA, APQP, Doc­u­ment Con­trol and more. KPIT Cummins spokesper­son said, “User and core team mem­bers’ ERP readi­ness was not upto the mark. Hence, we were pre­par­ing for ex­ten­sive train­ing for these teams.”

In to­tal, the com­pa­nies had de­cided to de­ploy 120 stan­dard Au­to­dash sce­nar­ios and 4 Delta pro­cesses. Lot of de­tail­ing was re­quired in terms of prod­uct cost­ing meth­ods with dif­fer­ent ar­ray of over­head rates used in it. For the first time, Mi­cro Supreme was en­abling process re-engi­neer­ing in lo­gis­tics as ma­te­rial move­ments pro­ce­dures did not ex­ist be­fore SAP was de­ployed.

At op­er­a­tional level, dif­fer­ent mod­ules were de­vel­oped for dif­fer­ent di­vi­sions as dif­fer­ent plan­ning pro­ce­dures were in­volved like make-to-stock and maketo-or­der. An­other chal­leng­ing as­pect was to de­velop mod­ule for TS16949 as huge re­port­ing re­quire­ments were to be ful­filled.

“Fi­nally, the time pe­riod was very lim­ited time­line of 75 Days for im­ple­men­ta­tion keep­ing view of project cost,” states KPIT Cummins spokesper­son.

Post De­ploy­ment take-aways

KPIT Cummins ex­e­cuted the project within the given time­frame and went live within 70 days. Post that, they con­ducted train­ing at Mi­cro Supreme which also in­cluded pre de­ploy­ment mas­ter data train­ing.

With its busi­ness run­ning with SAP soft­ware, Mi­cro Supreme has im­proved op­er­a­tions in many re­spects. Since all busi­ness in­for­ma­tion is in one place and re­port­ing tools are ro­bust, gen­er­at­ing re­ports for ex­ec­u­tives is much faster and eas­ier, en­abling them to make timely de­ci­sions that keep the com­pany on its growth tra­jec­tory.

Post de­ploy­ment, Mi­cro Supreme has a fully in­te­grated sys­tem across en­tire or­ga­ni­za­tion for all pro­cesses. Kulka­rni said, “With new sys­tem in place, there are no du­pli­ca­tion of work. Now, we have real time trans­ac­tion re­port­ing re­sult­ing in in­crease in man­power ef­fi­ciency and real time in­ven­tory re­port­ing. This has def­i­nitely pro­vided us with the right am­mu­ni­tion to take the right de­ci­sion at the right time.”

Now, the sys­tem can be eas­ily ac­ces­si­ble from any­where. Also, uUser can go up to the root level by click­ing the trans­ac­tion. Adding to this, Kulka­rni said, “If we are check­ing ex­penses ledger by click­ing the transactions we can go up to the P O and G R level. Above all, one of the best ad­van­tage of SAP for FI is Open Item Man­age­ment sys­tem in AP / AR / GL.” He fur­ther added, “In case of AR, we can eas­ily get re­ceiv­able amount from cus­tomers at any par­tic­u­lar date. While, in case of AP, we can eas­ily get payable amount to ven­dors at any par­tic­u­lar date.”

Fi­nan­cial ben­e­fits in­clude that the com­pany of­fi­cials can now en­ter dif­fer­ent type of cur­rency for dif­fer­ent transactions. This will pro­vide the user with easy in­for­ma­tion on ex­port sale in for­eign cur­rency. In ad­di­tion, man­ual cheque prepa­ra­tion is avoided through Lot Run F110. Thru F110, one can take out mul­ti­ple ven­dor pay­ment cheques. Above all, twi­ice bill book­ing is avoided in SAP.

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