Customer Solution Case Study
/ / Manufacturing Industry Enjoys Enhanced Productivity and Security with ERP Solution
Overview
Country or Region:India
Industry:Manufacturing
Customer Profile
Founded in 1997, Nipman Fastener Industries Pvt. Ltd. is the manufacturer of standard and special high tensile fasteners primarily for the automotive industry.With more than 100 skilled personnel, the company uses world class technologies and practices in its manufacturing plants at all levels of operations and management.
Business Situation
Nipman FastenerIndustries Pvt. Ltd. was using an Oracle based ERP system to cater to its daily operational, production, planning and administrative requirements. Tally 9.0was being used for its accounting and financial needs. However, these disintegrated applications were unable to fulfill all the requirements of the company.
Solution
With the help of Microsoft® Certified Partner, All e Technologies, Nipman Fastners Pvt. Ltd. implemented Microsoft® Dynamics™ NAV 4.0 with SP3 HF6 to automate its production practices and grow with the growth of the market.
Benefits
Enables efficient monitoring
Reduces cost and Increases Productivity
Provides better security
Improves inventory management
Facilitates financial consolidation / “Microsoft® Dynamics™ NAV 4.0 SP3 allows businesses to take action based on the up to date insight of the business- enabling organization to face the changing business environment, helps to take efficient and timely decisions and reduces cost.”
Mr. Pravin Malhotra, Managing Director , Nipman Fastener Industries Pvt. Ltd.
Nipman FastenerIndustries Pvt. Ltd. manufactures fasteners for industrial and automotive uses from its plants in Ghaziabad, Uttar Pradesh and Manesar, Haryana in India. It supplies to leadings original equipment manufacturers (OEMs). The new plant of the company is being setup in Uttaranchal. The company is growing at an average of 20 percent per annum with a workforce comprising of more than 100 skilled personnel. However, the company’s legacy system failed to deliver on expectations. It was not scalable to meet the growing size of the organization. To overcome the challenges, Nipman deployed Microsoft® Dynamics™ NAV 4.0 with SP3 HF6 with the assistance of Microsoft®Certified Partner,All e Technologies. The solution has improved the productivity and efficiency of the company and automated all production operations and administrative tasks.
Situation
Established in 1997, Nipman Fastener Industries Pvt. Ltd. is the manufacturer ofhigh tensile fasteners for the automotive industry. It has manufacturing plants inGhaziabad, Uttar Pradesh and in Manesar, Haryana. Itsthird plant is being built in Haridwar, Uttarakhand. The companymanufacturessome key products likeengine cylinder studs, studs flange screws and bolts, hex screws and bolts, round head bolts etc. and supplies to the top original equipment manufacturers and Tier Iand Tier IIsuppliersall over India. It is as an ancillary to Hero Honda Motors Limited and is a "Direct on Line Supplier". Its products are approved by Maruti Udyog Limited.
Nipman uses world class technology and management techniqueson the shop floor for the management of the plant on day to day basis.It aims to build world class capabilities and practices and provide the best quality products.The company practices dynamics window manager (DWM) and plan-do-check-act(PDCA)at all levels in the organization to plan the work, execute and measure the results in a systematic approachand improve the efficiency of work.It employs more than 100 skilled personnel and the annual turnover of the company is INR 50 Crore.
Nipman Fastenersrelied upon an Oracle based ERP system to manage all its production, administrative and planning requirements likepurchase, inventory management, manufacturing and sales departments. Additionally, Tally 9.0was used for all accounting work. However, the existing disparate system of applications required certain degree of manual work as the accounts, administrative and productivedata could not be linked. It had to be fed manually and matched against each other. This lack of coordinationrendered certain amount of inefficiency to the system as manual efforts involve the probability of errors, not to mention the time and extra manpower required to do so. The multiple platforms in which the legacy system worked could not fulfill all the requirements of the company. Furthermore, the existing system couldn’t track and monitor the stock of raw material, work in progress and most importantlythe inventory of finished products.
Since the company lacked streamlined processes to monitor data, accurate information anddistinctive picture of the work in progress was not available which affected the decision making capabilities of the management.
In due course, managers at Nipman realized the need to have a scalable, integrated and robust solution to meet its crucial business needs.
Solution
After the scrupulous research in market on the available ERP solutions, Nipman carefully studied the pros and cons of solutions from Oracle and Microsoft and after the final analysis, decide on Microsoft® Dynamics™NAV 4.0 with Service Pack 3 HF6to meet its business objectives.
To implement the same, it approached Microsoft® certified partner, All e Technologies (Alletec). “We approved Microsoft® Dynamics™ NAV4.0 with SP3 since we were looking for a single common platform and standardization. Moreover, NAV provides integration with various other systems and processes in use. It is easy to set up, configure and use,” explains Mr. S. Rameshan, Manager I.T., Nipman Fastener Industries Pvt. Ltd.
The implementationstarted in April, 2008and within a short timeframe of sixmonths the deployment was completed by October, 2008. The solutionwasimplementedatthe manufacturing plant inGhaziabad, Uttar Pradesh.Themodules implemented were Purchase, Inventory, Sales, Accounts, and Manufacturing.
Nipman Fasteners uses Microsoft® Dynamics™ NAV 4.0 to gain access to current information about stock levels for all of the raw materials in its inventory. In addition, employees can compare data to historical trends to make better-informed business decisions.
“While evaluating different ERP packages, we were impressed by the end-to-end functionality provided by Microsoft Dynamics NAV,” saysRamesan, EDP Manager,Nipman Fastener Industries Pvt. Ltd. “It helped us to meet our specialized needs and we knew it was the right move for our business.”
As per the critical manufacturing processes involved at Nipman Fasteners, the solution was customized to facilitate the working at all the levels and automate the processes. Various modules were tailored to automate the key processes of the company.
Some of the major customizations done were:
Lot wise production and work in progress(WIP) movement in Manufacturing Module.
Process inspection (line quality control)
PDCA reports: These reports show customer wise item wise requirements, in process (WIP) stock of items in various processes, current stock.
Process report based on WIP movement in process
Customization done to do In process Quality (LineQC)
Customization done to do PDI (Pre Dispatch Inspection)
Customization done to capture/track different type of manufacturing scraps (i.e. setting scrap, process scrap, end scrap)
Alletec customized the manufacturing module to meet the process requirements at Nipman Fastener.
NAV is a comprehensive solution that cost effectively assists the company to grow the business, improve productivity andstandardize all processes. It has created a platform for business growth.“Deployment of Microsoft® Dynamics™ NAV 4.0 SP3 HF6 has enabled Nipman Fasteners to develop a clear view of reliable and consistent information and manage all the complex operations effectively,” statesMr. K.S. Chaudhary, A.G.M Operation,Nipman Fastener Industries Pvt. Ltd.
Benefits
Microsoft® Dynamics™ NAV 4.0 SP3offers best practices in the market to deliver better, faster and accurate results to support company’s growth.
Enables Efficient Monitoring
With the deployment of Microsoft® Dynamics™ NAV 4.0 SP3, the management can track and record all the functions, operations and working of the staff. Efficient recording of all the transactions gives decision makers clear insight into the various processes and thus enhances their decision making capabilities.
Reduces Cost And Increases Productivity
Microsoft® Dynamics™ NAV 4.0 SP3 is a cost effective solution that takes care of the cash reserves, cash flow and all the other financial matters of the company, thus reduces running and administrative costs. The solution provides visibility into the time frame, costs, risks, and scope of the project and thus profit margin can be estimated. In addition, the company benefits from improved employee productivity and looks forward to further decrease in costs.
Provides Better Security
Microsoft® Dynamics™ NAV 4.0 SP3 provides with excellent securities and thus keeps away the unauthorized personnel from accessing the confidential data. The various password facilities at various levels enhance the security system. Moreover, the hierarchy wise accessibility has further improved the safety of important and confidential information.
Improves Inventory Management
One of the finest contributions of Microsoft® Dynamics™ NAV 4.0 SP3 is efficient inventory management. It controls the stock of raw materials as per the work in progress, manages limited inventory of finished products thereby reducing inventory cost and thus improving the cash flow. “Whenever we verify and record our purchases and sales, Microsoft® Dynamics™ NAV 4.0 with SP3 automatically prompts us with an update on inventory. It allows us to easily review our outstanding and due payables and receivables,” comments Mr. K.S. Chaudhary, DGM Operation,Nipman Fastener Industries Pvt. Ltd. Thus, along with inventory management, payables and receivables management is also taken care off.
Facilitates Financial Consolidation
Microsoft® Dynamics™ NAV 4.0 SP3 assists in financial management that goes beyond the basics of planning, budgeting, bookkeeping, andmanaging cash flow. It better guides the business by providing with the ability to explore data to extract insights forstrategic planning and to provide reliable financial forecasts. It automatically calculatesvalue added tax (VAT), salestax, excise tax, or other taxes for customers and vendors. It also specifies whether the unit prices on salesand purchase lines should include or exclude the tax. “The solution provides management with more holistic and far-reaching insight into daily company statistics. Service quotations, sales figures, estimated profit, available cash and sales forecasts, among other critical data sets, are now available in a few clicks,” explains S.Ramesan, EDP Manager, Nipman Fastener Industries Pvt. Ltd.
Endows a Single Ease to Use Platform
Microsoft® Dynamics™ NAV 4.0 SP3 presents with a single and common platform for the enterprise for all is functionalities, procedures and calculations. The company gains from a fully integrated solution platform to take advantage of its existing IT investment while pursuing growth. There is a centralized data repository from where all the data is accessed and where all the information is saved. Thus, handling of database is easy and requires minimum maintenance.
As a result of the new ERP solution deployment, Nipman Fastners hasoptimized efficiency, increased visibility of taxation requirements, streamlined production processes, improved monitoring of exports, automated accounting processes, and ensured compliance with relevant industry standards. “Microsoft® Dynamics™ NAV 4.0 SP3 allows businesses to take action based on the up to date insight of the business- enabling organization to face the changing business environment and helps to take efficient, timely decisions and reduces caost,” says Mr. Arun Vaste , Nipman Fastener Industries Pvt. Ltd.
About All e Technologies
All e Technologies is a leading provider of software solutions and services that help build systems for extended enterprises. From streamlining, automating and web enabling core business processes to strategizing and implementing a customer centric approach to business, we provide solutions and services that help our customers mature as extended enterprises. These enterprises require ERP, Supply Chain Management and CRM systems to manage their day to day operations, business intelligence systems for decision support and internet and mobile solutions to provide 'anytime - anywhere' access to customers, employees, suppliers and stake holders.
Microsoft Dynamics
Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what’s most important. And because it is from Microsoft, it easily works with the systemsthat your company already has implemented. By automating and streamlining financial, customer relationship, and supply chain processes, Microsoft Dynamics brings together people, processes, and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success.
For more information about Microsoft Dynamics, go to: