TECHNOLOGIES FOR
OPERATIONAL EXCELLENCE
TECHNOLOGIES FOR
OPERATIONAL EXCELLENCE
Real Growth is: Operational Excellence = Increase in Profit.
Your business must grow to survive. But to grow and compete effectively in today’s rapidly changing marketplace you must have a strong foundation that allows for quick, insightful decisions. ERP provides access to the data needed to gain that insight. A fully integrated ERP platform designed to grow with your business can increase efficiency, reduce costs and provide better information for quicker reaction to changing market conditions. It’s the solid base on which to build an agile organization.
Let me give you a case study of a leading Manufacturing company who wanted eresource to perform OPERATIONAL audit, they wanted eresource to know, what was going wrong when everything had the appearance of being right !. The audit was performed by the consultancy division of eresource Infotech.
Here is an example of a company which suffered heavily due to an outdated legacy system. Some time back the management of one of the Manufacturing Company in India has assigned eresource to perform an operation audit. Though everything seems to be working for the company the management knew it wasn’t fine with everything inside the company. But they couldn’t figure out where the problem was and who could be blamed. The company’s technology operations were running on a legacy system. The company had 5 branches in different places across the country, out of which 3 where manufacturing units. The company manufacturing 800 products and each product carrying close to 30 Bill of Materials (BOM).
Like I said earlier, though work moved smoothly they were faced with lot of service difficulties. Despite of high business potential deliverables were always late, which resulted in payment of huge penalties. High Level of inventory made a further hole in the pocket of the company. Too much inventory not only eats up the working capital of a company and creates cash flow problems but it also needs additional space and people to manage it. Poor and inefficient production planning added further financial woes. Dispatches were not happening on time, Supply chain where always delayed, managing resources were difficult, but were managed. Despite of high demands, the supply was low.
First what we did was a detailed assessment of how they have worked. We spoke to everyone right from the Vice President to production operators. They were all carrying out their work satisfactorily and within the acceptable tolerance. After going through a thorough study of their legacy system it was found that it the legacy system lacked in providing transparent strategic information.
Every department worked in isolation and has its own systems of data collection and analysis. So the information that is created or generated by the various departments, in most cases is available only to the top management (that too summary reports) and not to the other departments. So the end result was that instead of taking the organization towards the common goal the various departments end up pulling it in different direction. This is because one department does not know what the other does. So unless and until all the departments know what the others are doing and for what purpose, these kinds of conflicts are bound to arise which ultimately will affect the normal functioning of the organization.
Our presentation of enterprise way of functioning enabled them to understand how an ERP solution will be useful for an organization and how the enterprise solution considers the entire organization as a single system and all the departments as its sub-systems. They have also been fully convinced of how information about all the aspects of the organization is stored centrally and is available to all departments.
Since the implementation of eresource ERP the organization has started working successfully in co-ordination with all departments and sections, which produces a good end result. eresource helped company gain operational excellence.
My question to you is, is your business achieving Operational Excellence?
Best Wishes
Sudheer Nair.