The ClientThe Client is a global leader in manufacturing and supplying innovative sealing solutions, with a rich history dating back to the invention of the spiral wound gasket in 1912. With a wide range of product offerings, including Thermiculite® and Sigma®, the Client has a global customer service network and manufacturing facilities in multiple countries and is dedicated to providing high-quality products and services to customers worldwide. Their values of leadership, quality, service, and technology have helped them maintain their position as a top industry player.
The ChallengesAs part of their overall strategic plan to expand their business, the Client set a goal to increase revenue significantly in the coming year. In order to take control of the growth and increasing complexity, the Client wanted to take on a substantial overhaul of its ERP system, standardizing the ERP version globally and introducing Industry 4.0 processes.
Some of the challenges the Client experienced included:
Excess inventory costs & order processing time.
Manual processes increased the possibility of errors in the data which was needed to make crucial business decisions.
Non-availability of Manufacturing module in current SAGE ERP led to non-availability of Bill of Materials and hence no provision to calculate the cost of manufactured items. It also led to manual adjustment of inventory.
No provision of tracing lot/serial and the original supplier.
Lack of automatically processing intercompany orders functionality in existing ERP, leading to delays in customer delivery.
Audit issues due to non-availability of Generating Material Certificate in SAGE ERP.
The ObjectiveThere was a need of having an ERP system that can help the business to streamline & optimize business processes, improve operational efficiency, and increase productivity, and a system that can help to improve decision-making and provide better visibility into key business metrics.
The SolutionTo determine how the Implementation of QAD Enterprise Edition (EE) could be done and to identify ways to maximize the expanded plant’s effectiveness, JK Tech QAD consultants identified the plant’s strengths and weaknesses by performing a business process discovery exercise.
With this, the JK Tech QAD Team identified that the existing ERP system did not have the required functionality adequately to support the site business and production manufacturing process capabilities. Also, there were process executions that were done manually causing silos and slow communication.
They also determined that the Manufacturing Module limitation of the current ERP caused the non-availability of Bills of Material leading to time-consuming manual business processes, inventory adjustments, and no provision to calculate the cost of manufactured items and low production line utilization.
Another challenge was the fact that management had no simple reports for making decisions in a timely manner. Armed with the results of the process discovery, the Client decided to move forward with QAD EE Implementation thus migrating Finance and Operations module from the current ERP(SAGE).
Implementation of QXtend Integration with QAD ERP helped businesses to integrate Document Manager with QAD and enabled real-time automatic data flows such as Sales Order Acknowledgement, Invoices, Purchase orders, etc using QXTEND & rest API’s.
Our solution helped in tracking different types of costing variances generated and accurately take decisions such as when to revise the purchase cost etc.
The BenefitsWith QAD ERP implementations, Business was able to
Improve inventory accuracy and get better control over material movement across various sites and entities.
Improved variances reporting enabled management to take informed decisions, thus saving time and cost.
Process back-to-back orders to their suppliers thus reducing the order processing time by 80 % by Implementing EMT Module.
Evaluating the cost of the manufactured products automatically and segregating the material, labor & burden costs based on the BOM Data, Run time & Setup Time of machines in the work center.
Our solution helped in tracking different types of costing variances generated and accurately take decisions such as when to revise the purchase cost etc.
Have different reporting for Local authorities and Global reporting with improved concepts of Local Currency, Transaction Currency & Statutory currency.
Enhanced reporting capabilities to generate Material Certificates based on the consumption of Raw Material eliminating audit compliance issues.
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