The first stage on-live of ERP system has been launched in SHINI’s Dongguan, Taiwan, Pinghu and Ningbo Factories.
The Internal Invested Management was implemented by SHINI during the hardest time of financial crisis, with the SAP system being activated on March 30th, 2009 when the Corporate President Kenny Wu declared that: no depressing but struggle in SHINI! The SAP ERP system of Dongguan SHINI Plastics Technologies, Inc. (Abbreviated as “Dongguan Company”) was initialized in March, 2009 and its first stage was completed after nine months’ constructions. Dongguan Company then held the grand ceremony and conference of experiences sharing. Both of them marked the milestone for SHINI’s efforts towards the modern management.
Before selecting the type of ERP system, the leading team of SHINI has established a comprehensive management including production, supply, marketing and finance to boost business of corporation. Leaders commonly believed it was through employing ERP system that could improve the whole competitiveness of SHINI and meet the trend of information industry. After several prudent selections and comparisons, SHINI finally chose to adopt the SAP ECC system, which was currently used by most of international renowned plastics companies. In order to strengthen internal regulations, the information team, led by Assistant General Manager Chris Chang, has made such achievements as ISO redesign, introduction to internal control, e-commerce, on-line learning system and knowledge management, all of them provided strong bases for ERP successful lead-in. A series of formal revolutions were successfully carried out towards teamwork, theories and trainings, standards of document as well as working progresses and modes under guideline of Chris Chang throughout the whole process.
According to ERP system planning and targeting on covering the whole SHINI business, SHINI group started to carry out six modules of pattern. They are: Sales & Distribution, Material Management, Production Planning, Quality Management, Financial and Controlling.
SD (Sales & Distribution):
This pattern is designed to standardize the marketing organization, sales channels, products group, sales office and sales team and provide the particular analysis for sales management. It will enforce management of orders and track situations of orders to centralize multi-corporation transactions and other forms of trade for analysis. Finally it will draft the information management based on Corporation, especially about price and its fluctuations to achieve a safer and stricter management. This part virtually realizes the immediate integration of Production, Purchasing, Store, Quality and Finance, which backup the sales and after-service with intact data.
Material Management (Material Management):
This pattern is designed to standardize the purchasing organization, purchasing group, type of material, uniform code of material data and uniform code of supplier. It also provides the particular analysis for material management. This pattern realizes the automatic monitoring of qualified suppliers for different items such as delivery ratio, price and quality. The planning of price comparison and secure monitoring could be carried out by means of the management of quotation and purchasing price. In addition, both of the management of approval for purchasing and management of orders and stocks are available so that staff of stocks can update and inquiry data transparently to standardize and systematize stock check and serial number (code of devices).
PP (Production Planning):
The sales and purchasing of trans-regional corporations require immediate transfer while purchasing of Corporation needs prepared stocks to motivate production. Effective control for multi-versions is carried out by the BOM management, which brings back flush and scrap into management as by-products to monitor the whole process of modifying projects’ records. Besides, this pattern localizes the production cores of factory and conducts productive evaluation and management centered on such cores. As such, planning order and application of purchasing of MRP could be come out automatically and could be dealt with by referring to MRP results. Eventually, Corporation staff could get immediate data of production cost and check if there is lack of material during ordering and adding other orders, as well as synchronize both report and conclusion in accordance with orders.
QM (Quality Management):
This pattern provides codes in advance for test results and defective goods. And it also formulates items and standards of tests’ specialty in order to set corresponding test projects based on different goods. According to the quality level of goods, QM will fix the test quantity to realize dynamic correction of system and record the points of quality with lot number. In this way, the process of quality test is integrated with purchasing, production, storage, and test for finished goods. The management of production and after-service is also combined with the general system of whole group.
FI (Finance):
Employment of systematic bills realizes the integration of Taiwan invoice, which is helpful for managing payable and receivable accounts and lowering cases of overdue payment. Through systematic cash flow statement designed by the management committee, we transform the monthly management as yearly management, which is automatically generated by system. Fixed assets is fully under management in the whole circle of application, purchasing, transfer, scrapped so as to realize the automatically system depreciation and reduce the workload of the financial officers. Also, the integration of Yongyou, Butterfly and Golden across the system reduces the work of financial officers and avoids duplication of input and man-made error. With the credit management, we launch the monitoring from receiving orders to avoid risks of producing with undelivered goods and realize the immediate control of reducing uncollectible accounts. Eventually, responsibility of the staff for collection can be boosted. With the support of Logistics business, the aim of reducing the workload of financial officers can be achieved and the immediate reflection of logistics business is also come into force. A Unified account is convenient for the summary, analysis, uniform comparison and the control of cost. It also lays the foundation for the combination of group reports.
CO (Controlling):
This pattern, combining with other patterns, is designed to reduce the workload of financial officers and reflect production cost and stock value. The automatically fare distribution will lessen financial staff, authentically reflecting performance with less man-made errors. Cost centre management employs the plan of cost center to compare and control the cost, reflecting immediately of cost situation of the cost center. The project of standard cost timely reflects the planned cost of orders, comparison between actual and planned situations, as well as analysis for cost variances to find out spaces of reducing costs. Concerning internal order management, we pursue the transparency for costs of research and development and detailed condition for cost management (depends on different departments, series and projects). Both of plans above may be applied to other project management, such as ERP system and Plant Building. We calculate product costing with orders to provide basis of payment by the piece in accordance with the practical output, which indicates exception list of input, output and work-hours confirmation. Profitability analysis in many dimensions can be conducted according to products, product groups, clients, distribution channels, sales organizations, the salesmen and date. The Donation of gross profits in facilities and product lines could be analyzed while profitability analysis is under analysis in comparison of selling price, standard costs, and sales amount, both of them provided basis of policy-making for company management of marketing and product development. Finally, based on project analysis, statistics and accounts of Systems engineering are employed to calculate the cost and profit. Invoice drawing and collection can also be completed with arranged time of payment and process of projects of special cases. Cost of marketing is calculated according to statistics of special cases.
Thanks to the supports from leaders and cooperation of team workers, the system of Special Cases was successfully introduced into Dongguan Company within one and half year since SHINI centered on Dongguan Company. Besides, the OBU system was also introduced into Taiwan, Pinghu and Ningbo Incorporations respectively in view of experiences of successful introduction into Dongguan Company. We still have similar tasks in India Company and after-improvements before us, although SHINI makes its great strides for information construction. Meanwhile, we realize that we cannot be contented with initial achievements but keep devoting more efforts to continuous improvements in future with the help of teamwork and solution.
The Internal Invested Management was implemented by SHINI during the hardest time of financial crisis, with the SAP system being activated on March 30th, 2009 when the Corporate President Kenny Wu declared that: no depressing but struggle in SHINI! The SAP ERP system of Dongguan SHINI Plastics Technologies, Inc. (Abbreviated as “Dongguan Company”) was initialized in March, 2009 and its first stage was completed after nine months’ constructions. Dongguan Company then held the grand ceremony and conference of experiences sharing. Both of them marked the milestone for SHINI’s efforts towards the modern management.
Before selecting the type of ERP system, the leading team of SHINI has established a comprehensive management including production, supply, marketing and finance to boost business of corporation. Leaders commonly believed it was through employing ERP system that could improve the whole competitiveness of SHINI and meet the trend of information industry. After several prudent selections and comparisons, SHINI finally chose to adopt the SAP ECC system, which was currently used by most of international renowned plastics companies. In order to strengthen internal regulations, the information team, led by Assistant General Manager Chris Chang, has made such achievements as ISO redesign, introduction to internal control, e-commerce, on-line learning system and knowledge management, all of them provided strong bases for ERP successful lead-in. A series of formal revolutions were successfully carried out towards teamwork, theories and trainings, standards of document as well as working progresses and modes under guideline of Chris Chang throughout the whole process.
According to ERP system planning and targeting on covering the whole SHINI business, SHINI group started to carry out six modules of pattern. They are: Sales & Distribution, Material Management, Production Planning, Quality Management, Financial and Controlling.
SD (Sales & Distribution):
This pattern is designed to standardize the marketing organization, sales channels, products group, sales office and sales team and provide the particular analysis for sales management. It will enforce management of orders and track situations of orders to centralize multi-corporation transactions and other forms of trade for analysis. Finally it will draft the information management based on Corporation, especially about price and its fluctuations to achieve a safer and stricter management. This part virtually realizes the immediate integration of Production, Purchasing, Store, Quality and Finance, which backup the sales and after-service with intact data.
Material Management (Material Management):
This pattern is designed to standardize the purchasing organization, purchasing group, type of material, uniform code of material data and uniform code of supplier. It also provides the particular analysis for material management. This pattern realizes the automatic monitoring of qualified suppliers for different items such as delivery ratio, price and quality. The planning of price comparison and secure monitoring could be carried out by means of the management of quotation and purchasing price. In addition, both of the management of approval for purchasing and management of orders and stocks are available so that staff of stocks can update and inquiry data transparently to standardize and systematize stock check and serial number (code of devices).
PP (Production Planning):
The sales and purchasing of trans-regional corporations require immediate transfer while purchasing of Corporation needs prepared stocks to motivate production. Effective control for multi-versions is carried out by the BOM management, which brings back flush and scrap into management as by-products to monitor the whole process of modifying projects’ records. Besides, this pattern localizes the production cores of factory and conducts productive evaluation and management centered on such cores. As such, planning order and application of purchasing of MRP could be come out automatically and could be dealt with by referring to MRP results. Eventually, Corporation staff could get immediate data of production cost and check if there is lack of material during ordering and adding other orders, as well as synchronize both report and conclusion in accordance with orders.
QM (Quality Management):
This pattern provides codes in advance for test results and defective goods. And it also formulates items and standards of tests’ specialty in order to set corresponding test projects based on different goods. According to the quality level of goods, QM will fix the test quantity to realize dynamic correction of system and record the points of quality with lot number. In this way, the process of quality test is integrated with purchasing, production, storage, and test for finished goods. The management of production and after-service is also combined with the general system of whole group.
FI (Finance):
Employment of systematic bills realizes the integration of Taiwan invoice, which is helpful for managing payable and receivable accounts and lowering cases of overdue payment. Through systematic cash flow statement designed by the management committee, we transform the monthly management as yearly management, which is automatically generated by system. Fixed assets is fully under management in the whole circle of application, purchasing, transfer, scrapped so as to realize the automatically system depreciation and reduce the workload of the financial officers. Also, the integration of Yongyou, Butterfly and Golden across the system reduces the work of financial officers and avoids duplication of input and man-made error. With the credit management, we launch the monitoring from receiving orders to avoid risks of producing with undelivered goods and realize the immediate control of reducing uncollectible accounts. Eventually, responsibility of the staff for collection can be boosted. With the support of Logistics business, the aim of reducing the workload of financial officers can be achieved and the immediate reflection of logistics business is also come into force. A Unified account is convenient for the summary, analysis, uniform comparison and the control of cost. It also lays the foundation for the combination of group reports.
CO (Controlling):
This pattern, combining with other patterns, is designed to reduce the workload of financial officers and reflect production cost and stock value. The automatically fare distribution will lessen financial staff, authentically reflecting performance with less man-made errors. Cost centre management employs the plan of cost center to compare and control the cost, reflecting immediately of cost situation of the cost center. The project of standard cost timely reflects the planned cost of orders, comparison between actual and planned situations, as well as analysis for cost variances to find out spaces of reducing costs. Concerning internal order management, we pursue the transparency for costs of research and development and detailed condition for cost management (depends on different departments, series and projects). Both of plans above may be applied to other project management, such as ERP system and Plant Building. We calculate product costing with orders to provide basis of payment by the piece in accordance with the practical output, which indicates exception list of input, output and work-hours confirmation. Profitability analysis in many dimensions can be conducted according to products, product groups, clients, distribution channels, sales organizations, the salesmen and date. The Donation of gross profits in facilities and product lines could be analyzed while profitability analysis is under analysis in comparison of selling price, standard costs, and sales amount, both of them provided basis of policy-making for company management of marketing and product development. Finally, based on project analysis, statistics and accounts of Systems engineering are employed to calculate the cost and profit. Invoice drawing and collection can also be completed with arranged time of payment and process of projects of special cases. Cost of marketing is calculated according to statistics of special cases.
Thanks to the supports from leaders and cooperation of team workers, the system of Special Cases was successfully introduced into Dongguan Company within one and half year since SHINI centered on Dongguan Company. Besides, the OBU system was also introduced into Taiwan, Pinghu and Ningbo Incorporations respectively in view of experiences of successful introduction into Dongguan Company. We still have similar tasks in India Company and after-improvements before us, although SHINI makes its great strides for information construction. Meanwhile, we realize that we cannot be contented with initial achievements but keep devoting more efforts to continuous improvements in future with the help of teamwork and solution.