Case analysis of Lima ERP implemented by Zhongding

Case study on the implementation of Lima ERP by Zhongding group

I. enterprise profile

the predecessor of Anhui Zhongding (stock) group company is Ningguo seal factory (hereinafter referred to as "Zhongding company"). After 20 years of development and expansion, Zhongding company has set the top five in the domestic rubber seal industry: "the most advanced equipment", "the most comprehensive technology", "the most advanced management", "the largest production capacity" and "the best economic benefits". Its products are mainly to provide supporting seals for some famous automobile manufacturing enterprises at home and abroad. In 2000, the sales revenue was 139 million yuan and the profit and tax was 32 million yuan; In 2001, the sales revenue reached 243 million yuan, an increase of about 75% over last year, and the profit and tax will reach 51 million yuan, an increase of about 59% over last year

II. Business model

the production type of Zhongding company is a mixed manufacturing mode, and the early formula and rubber refining are the characteristics of the process industry; Post processing and assembly are the characteristics of discrete industries

the leading product of Zhongding company is automotive seals. Its products have a wide variety and complex specifications, which are typical types of multi variety and small batch production. Products are mainly made to order, that is, driven by customers' orders, and production is determined by sales. Due to the above characteristics, the production and operation management of Zhongding company: on the one hand, the market demand fluctuates greatly, and the operation has obvious randomness; On the other hand, the diversity and timeliness of OEM orders cause great difficulties and pressure for production planning and inventory arrangement

the production capacity of Zhongding company is restricted not only by the equipment capacity, but also by the self-made mold capacity, which makes it very difficult to audit the order capacity and becomes the key bottleneck of order execution

the organizational structure of Zhongding company is the management mode of the business division, under which there are 8 product business divisions and 4 workshops (hardware, rubber refining, preform, mold). The workshop provides support for the product business department to first check the power supply voltage or configure the switching regulator to improve the safety and environmental protection performance of plastic packaging, such as providing: rubber, preformed rubber products, framework and tooling. Internal accounting shall be carried out for the supply/picking between each business division and the workshop

each business division takes profit as the center, carries out the production, procurement, inventory and other management of related products, and is responsible for profits and company investment; The company only carries out unified operation on investment decision-making, strategic planning, product sales, fund monitoring and other aspects. This form of organization has played a positive role in strengthening the internal economic accounting of the company and adapting to the market demand. However, the product sales are in the charge of the company, while the production plan and capacity balance, procurement plan and inventory management are in the charge of each business department. This situation can not guarantee the consistency and coordination of the plan, often resulting in the local resource efficiency of each business department and workshop, but it is difficult to achieve the overall optimization of enterprise resources, At the same time, it is not conducive to the integrated management of enterprises

III. market background

due to the fierce competition of the main engine factory, Zhongding company, as an accessory factory, is facing a more severe competition test:

the diversified and personalized characteristics of the main engine market demand are more obvious, forcing the accessory factory to constantly update products, shorten the production cycle, and improve the rapid response ability to the market

in order to occupy the market, the main engine factory continues to set off a price war, which is bound to lower the price of the parts factory, forcing the parts factory to further reduce the product cost in order to meet the needs of the price competition of the main engine factory

in order to achieve the goal of zero inventory, the main engine factory transfers the inventory to the parts factory. Therefore, on the one hand, how to have a certain inventory reserve to quickly respond to customer demand; On the other hand, we can't occupy too much inventory funds, and carrying too much burden is a big problem for the parts factory at present (at present, the enterprise adopts the way of setting up "in transit warehouses" in the main engine factory for management. Last year, 170 "in transit warehouses" lost 1.5 million RMB due to information lag and other reasons)

for the accessory factory, the stability and improvement of quality is very important, especially for the relatively fixed large customers. If the quality is not up to standard, it will not only affect the supply and demand relationship of the enterprise, but also bring huge market losses to the enterprise

according to the above situation, the leaders of the company believe that the existing self-developed management application system of the enterprise can not realize the integration and sharing of information and can not meet the competitive needs of diversified markets. Therefore, they decided to introduce ERP -- enterprise resource planning management system to establish a rapid information acquisition mechanism, such as the impact experiment, processing and response mechanism of materials with toughness sensitive to temperature changes, Reform the traditional production organization mode and management mode of the enterprise, optimize the business process and resource allocation of the enterprise, strive to reduce the product cost, constantly develop new products close to the market demand, and provide the host plant with the best products and services to meet the competitive needs of the supporting market

IV. implementation plan

according to the principle of "overall planning, step-by-step implementation, benefit driven and overall promotion", the implementation of Zhongding company's ERP system is mainly divided into the following three stages:

stage 1: implementation content: logistics management system; Production management system; Financial management system; Other resource management systems

implementation goal: realize the effective integration of internal logistics, capital flow and information flow. If the decomposition temperature is too high than the polymer

phase II: implementation content: Distribution Management (DRP) system; Customer Relationship Management (CRM)

implementation goal: realize the comprehensive integration of enterprise resources according to the management idea of supply chain

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