SYS-APPS ERP was implemented at KBP Ltd, Hyderabad, in 2007. The integrated implementation takes care or Purchase, Sales, Production, Stores, Accounts, Quality, HRD functionalities.

The Electrical Industry is extremely price sensitive. Margins are thin and competition is breathing down your neck, all the while. Though the company had put in place ISO 9001:2000 procedures, lack of control on input costs and inventory level, were identified by KBPL as major road block to competitive pricing of its products.

With raw material supplies being handled by the procurement managers with possible collusion with vendors, cutting costs down was found to be a very difficult task. Transparency was missing and it was impossible to go through piles of files, to determine the root of the problem.

After review of various ERP Products, KBPL settled for SYS-APPS due to much lower costs and its obvious ease of use. It was agreed that the product can be easily deployed at the factory though workers had very limited computer skills.

After a thorough analyses of the process, the implementation team completed ERP deployment within 2 weeks of the order.

SYS-APPS is populated with Customer Master, Supplier Master, Material Master, BOM, etc. The ERP Cycle at KBPL starts with Sales enquiries which are entered in the System by Sales Team. All further documentation is done in SYS-APPS including submitting Sale Quotations. Status of Sale Quotations are Monitored. Once Sale Order is received its entered against the Sale Quotation. Data entry is very limited in each form since data related to customer, product etc gets populated from respective Masters.

Based on Sale Orders received, system generates Work Order for Production. Material Requirement Plan is run combining several work orders and expected sale orders, to get a list of materials to be ordered by exploding BOM. This takes care of available inventory and KBPL has the flexibility to decide the inventory level to be held. Based on comfort levels, the Purchase Department is able to reduce stock holding time, for various materials.

The Purchase orders are generated automatically on lowest priced supplier. To change the suppliers chosen by system purchase officer would require approval from higher level officer. This eliminates all foul play. The system also logs all changes approved by Manager. (The system also looks at production capacity of supplier and lead time, before distributing the order, among suppliers)

The Work orders are assigned to different work groups with auto generated job cards. Production efficiency gets closely monitored ensuring high degree of employee performance.

All material receipts are subjected to Goods Inspection. Storage locations (bins) are assigned. With material issued to production, waste, scrap etc entered in the system, KBPL management is able to exercise tight control using the reporting features available in SYS-APPS.

With inventory and raw material price in tight leash and daily production increasing, KBPL has successfully moved a step ahead of competition. The KBPL Management is flush with live information on all matters including orders, production, shortages, deliveries, receivables and cash flow with the integrated Accounts and Reporting System.