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Essem Tips Private Limited (ETPL)

Essem Tips Private Limited (ETPL)

Asia's Number one manufacturer of Ball Point Tips needed to scale up its operational efficiency to support its growth targets. The goal was as ambitious as it was daunting. The company had to manage seven operational manufacturing units across Asia and was heavily dependent on seasonal demand cycles; ETPL chose to implement ERP solution.

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At the company

ETPL is Ball Point Tips and Refills supplier to all most all Ball Pen manufacturers across the globe. The company operates in a highly competitive business environment, which is typified by seasonal demand patterns and high requirements during certain months of the year. The onslaught of competition from low-priced Chinese products had further increased the pressure to perform.

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Issues with Existing Systems

Prior to implementing an ERP, the company used customized packages for financial accounting along with stand-alone software for automating the HR function. However, according to Mr. Amit Tibrewal, Director, ETPL, the level of automation was not robust enough to take care of the highly dynamic and competitive environment as well as the future growth requirements.

Further, maintaining data security as well as the accuracy of facts, accounts, and inventory management was just not possible with that package alone. Apart from these issues, the solution resulted in pile-ups of surplus inventory.

Without an effective enterprise-wide system the company was inclined to keep higher levels of goods in inventory, which were often not required, leaving too much scope for revenue loss to the company. On the other hand, maintaining excess inventory levels could be an expensive proposition considering the costs involved in holding the inventory.

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Key requirements

What ETPL required was a solution that would help the company improves operations while remaining competitive by performing the following functions:

  1. Effective allocation, planning and control of crucial resources of men, machines and materials.
  2. Well-tuned production environment with good synchronization among the various units to enable adaptation to the fluctuations in demand.
  3. Effective cost control to be able to deliver better value to its customers.
  4. Inventory visibility among the various units and inventory reduction across the supply chain.
  5. Availability of up-to-date and concise information to the top management to allow better decision-making.

These requirements, the company understood, warranted an enterprise-wide automation solution.

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Why Vishleshan ERP (Seamless Enterprise) TM

According to Mr. Tibarewal, while the need for an ERP was imperative, one of the key concerns was the time taken to adopt new information architecture and the disruptions that could arise in the organization's operations. The fact that ERP has been notorious for time and cost overruns was bound to create apprehensions and influence the final decision.

Yet, one of the company's biggest compulsions was to plan production for the coming season. It needed a solution that would allow smooth and quick adoption of a new system without any compromise in its functionality.

After considering several ERP solutions, the decision was taken in favor of Vishleshan's Seamless Enterprise. According to Mr. Tibarewal, the solution provided everything ETPL was looking for: robustness, close fit with the business requirements, and cost-effectiveness.

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Implementation Process

ETPL's comprehensive background work in terms of requirement assessment, outlining the needs and objectives, and the kind of solution required further helped speed up the process. With Mr. Tibarewal directly involved in day-to-day activities of the implementation, the decision-taking cycle was considerably shortened, as there was no time wasted in accessing the different hierarchies for the decision to be taken.

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A successful implementation

Besides 'Speed' some of the other reasons for successful implementation were:

  1. Short turn-around time for resolving issues as regular meetings involving top management of ETPL were held to sort out contentious issues.
  2. Effective project management and coordination ensured completion of mapping and master data for remote sites like Bangkok.
  3. Some of the activities were done in parallel like data collection, which began at the initial phase with the involvement of second line users.
  4. Proper documentation of processes was done for effective knowledge transfer.
  5. Very effective and logical system-testing gave sufficient confidence to the company to completely switch over to ERP rather than following the normal practice of using the legacy system simultaneously. This helped prevent duplication of data entries.
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Modules of solutions

The company implemented Production, Purchase, Marketing, Stores, Import, Export, Sales modules. The Production module provides functionalities like Master Production Scheduler (MPS), Material Requirement Planning (MRP), Shop Floor Control (SFC), Production Planning (PP) and Control, and Capacity Requirements (CCR).

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How ERP helped

The ERP implementation eliminated the information islands that were scattered across ETPL's business units and replaced disparate systems with a single one. Few of the most prominent benefits of deploying ERP at ETPL have been effective inventory control, standardize and effective manufacturing processes, integrated financial and customer order information.

"Another key realization with ERP has been the inculcation of a disciplined approach leading to more effective and efficient way of working. The company is now able to meet its delivery deadlines well on time in order to be able to take the lead over its competitors," said Mr. Tibarewal.

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What lies ahead

As the system stabilizes and once the required data is generated, the company hopes to start utilizing the system for generating intelligent analysis reports like understanding demand patterns in the market, and specific patterns of demands from its Vendors.

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Key benefits realized through ERP

  1. Data security
  2. Effective handling of demand fluctuations
  3. Clear and concise definition of Bill of Materials and Routing
  4. Accurate production planning and material requirement planning
  5. Computerization of excise and taxation records
  6. Better capturing of various costs and periodic reports on line of business wise and product wise costs and revenues
  7. Accurate costing of each order and indication of having made profit or loss
  8. Inventory based invoicing which was not possible in legacy systems
  9. Automatic posting of logistic information to finance, which was totally manual earlier
  10. Streamlining of the payment and receipts procedures
  11. Online availability of customer and supplier aging analysis
  12. Online availability of trial balance of various units.