Challenges faced by Customer (Prior to implementing eyeTprofit)
The customer is a manufacturing company engaged in the production of textile materials for overseas market.
The company found that there was lot of scope for cost control and cost reduction. But, in the absence of an unified system, they were not able to consistently monitor performance and identify variances. They desperately required costing and variance reports on the utilization of materials, labour and overheads. Although, they had a bill of material and cost sheet for every customer order, they were unable to monitor the actual performance for want of a proper recording system.
They tried evaluating many ERP applications, and found that, lot of customization was required to make it fit, for their company. The ERP vendors also required them to list out all of their reporting requirements in advance, for them to customize the application, as subsequent amendments could be technically difficult and costly. Because of the above constraints, they were unable to take a firm decision to switch over to a different system.
Accounting and Inventory transactions were maintained in a Financial Accounting system. For capture of movement of goods between stores and shop floor and also capture of production data, they were maintaining data in Excel Sheets.
We provided the solution in the following manner.
1. Design of standard templates in Excel for Bill of Materials
2. Design of a simple template in Ms-Access for monitoring the movement of goods within Factory in the following flow :
Goods Receipt -> Batch Creation -> Stores Issue -> Goods Return -> Stores Return
3. Design of a simple template in Ms-Access for capture of Hour wise, Order wise, Machine Wise, Process Wise production information.
4. Defining rules for Cost Allocation and Apportionment
5. Import of Data from transaction system
6. Definition of Expenditure Budgets and monitoring Variances.
eyeTprofit integrated Data from transaction system, Excel and Access into a single database from which extensive analysis was enabled.
The whole implementation process took about couple of months and it enabled the customer to design a system which was very flexible as well as powerful enough to enable analysis of their performance.
"With couple of days training, our people have been able to create new reports on their own. Now, we are able to generate any report instantaneously, which has enabled us to be more efficient in our operations. With well-defined, access rights, users get to see only reports relevant to them", explains the CFO today.
Some of the key reports generated through eyeTprofit include:
Customer Order Wise Resource Utilisation Report
Costing Reports- Cost Centre Wise
Cost Apportionment and Cost Allocation.
Productivity Reports on Labour and Machines
The features of building Adhoc Queries, Drill down from Macro level to micro level, 360Degree view of any key data, analysis through Pivots etc., now enable the customer, to take informed decisions with validated data. Especially, Scheduled Email reminders and rule based exception reports, has made the top management less reliant on the operational staff for reports.
"We can say that with the implementation of eyeTprofit, we are able to get the benefits of an integrated ERP system. The advantage is all the more pronounced, as the same has happened with little or no change to our existing transaction capture processes", the CEO of the company says proudly.