Enterprise resource planning (ERP)
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Friday, 4/15/2011

Efficient information and data management in the company Monter

Kopa ERP significantly contributes to the successful business of the company Monter

Sometimes fairly simple practice measures pay off with a high added value. The company Monter, one of the leading producers of tough welded constructions, succeeded in accomplishing something similar to this by introducing the production terminus and thus improving operation monitoring and optimizing their overall business. The company Monter has been concerned with the proper information support for business during the two last decades. They rely on domestic knowledge, for they have been using various solutions of Kopa producer since 1991. They first started with radical introduction of Kopa ERP business system, establishing the finance-accounting system and connected it with support for commercial department and material business. Afterwards, the informatization »happened« in the areas such as production and human resources management. Naturally, the work of the IT workers has not been finished yet, since they constantly monitor the efficiency of their solutions and upgrade them. This year, they have upgraded the production system with the working hours in production monitoring system, which immediately produced obvious results.

Inspection establishes order

Prior to introducing the working hours monitoring system, i.e. working place attendance monitoring, there was no control over workers coming to their working places and the real effected working hours. Handymen entered manually their effected working hours and working tasks, so errors occurred and precise inspection over the work of particular employees did not exist. Complete documentation and data on effected work was kept manually on paper documents; consequentially, commercial service and top management neither had recent data for monitoring orders nor data on supervision of production plan implementation. In Monter, they established together with Kopa the production working hours monitoring system, which is connected to the working tasks. A production worker registers himself when he comes to work using the identification card and by reading the bar code of the corresponding work instruction he confirms the work commencement. Assigning of workers is based on data from the human resource department and the production plan system, where a new work instruction is issued for a particular task. In this manner, for every production worker it is prescribed what he must do and how he shall do it. A worker again performs the registering in the terminal after the work has been finalized or at the expiry of working day. Hence, the company may in details monitor what and how much this worker really did. Such work monitoring guarantees also a direct inspection of activities condition on certain working instructions and it enables the supervision of operative plans implementation and work management efficiency. There are no unnecessary delays.»Kopa information system in production certainly forms an important part of successful business of the Monter company.  Since we started employing it, we observe our timelines. Now, we execute deliveries on the agreed date. However, in earlier years we were late with deliveries even up to one month. Due to more precise data and constant flow of information, now we always know in which stage of production a bottleneck appears and thus we may react in due time, irrespective of the fact to whom we assigned the task: to our cooperation partners or more employees. Exact deliveries guarantee great satisfaction and loyal customers, which is vastly significant in times of crises« said Bogdan Kadiš, General Manager of the company Željezara Ravne Monter Dravograd, talking about the Kopa ERP system efficiency.

Results with direct financial effects
Application of Kopa system has direct financial effect and by having precise deliveries, the company no longer pays for contractual fines. There are even more indirect financial effects – the production increases, since manufacture and consumption per production stages are monitored on daily basis and better monitoring of overall business activities of the company greatly assist in discovering responsibility for possible errors in the manufacture itself. Automatic keeping of work instructions and finished tasks has immensely reduced the inconvenience that handymen felt in relation to the administrative jobs. At the end of the month, they just need to review data and add the missing ones, e.g. sick leave notes, instead of copying and calculating them.
Implementation of production calculation system to follow
The company Monter has already started planning the establishment of production calculation system, with which they would wrap up the information support for the complete business process. By applying this system, they wish to monitor usage of working time and materials in particular work instructions, from the work preparation until the final execution, i.e. delivery to the customer. The calculation shall be upgraded with electronic bills.
»Kopa information system in production certainly contributes significantly to successful business activities of the company Monter. Since we started applying it, we do not have delays. Now, we perform deliveries on the agreed date, whereas in previous years we were late with deliveries even up to one month« says Bogdan Kadiš, General Manager of the company Željezara Ravne Monter Dravograd.
Production backed up with computer system presents one of the most efficient solutions, which enables dynamic work allocation, direct feedback information and reaction in case of deviation.
Advanced technologies employed in production information systems
Production companies cannot imagine their business activities without information system. Advantages that technology provides are more that obvious: work is faster, there are fewer errors, machines and equipment are used better and consequentially more efficient. Production information system is to be properly introduced and connected with the rest of information sub-systems in the company.
Two main tasks of the production operation system are data collection and information transfer. Collected data are used for various purposes, first of all for inspections, analyses and reports, monitoring, assessment and quality testing and electronic documentation monitoring. Informatics in production is closely connected with the automatization, because in production information system appropriate stock is automatically being reduced and materials, raw materials and half-products are being precisely monitored. Information system user is at all times informed when a certain product should be made, who participated in its manufacturing, which manufacturing procedures the worker implemented, which materials were used in the process of this product production. Production information system monitors thoroughly the employees` work itself, not only the registration on the work place and cancellation. It is possible to monitor particular operation using appropriate solutions, by which the work efficiency is more precisely measured, leading to the unbiased rewarding. Using link with the central information system, a manager may monitor not only who did the most, but also whose products have the least complaints, as well as other data.

»Advantages provided for with this work method are reflected predominantly in better inspection during the production process, significantly shortened reactions to disturbances and slowdown in production, and consequentially increased productivity of the company« explained Tomislav Ogorevc, ERP System Sales Manager in Kopa company, computer engineering company from Slovenj Gradec.


Bar code for automatization of production and products monitoring
Companies have started introducing the bar code technology increasingly into their production processes, since it enables monitored and automated data collection in bar codes, resulting in production, products and half-products monitoring automatization on particular production points and even the suppliers alone. Solution with production bar codes in relation to the production information system facilitates control of production orders (from the aspect of materials as well as the employees) and enables goods and capacities monitoring (raw materials, half-products, workers, machines). The production efficiency is increased, because some processes are precisely determined and bar code does not transfer human errors.
Bar code is not exclusively used in production, but also in storage activities and in procurement chain. In that case, information system is concerned with acquiring and forwarding exact information, which secures appropriate continuation of the half-product route through the production process.
»Pull« model, the most favourite model
In the last year, informatization of temporary stock regulation along with direction of materials` flow through production according to the pull manner has firstly gained relevance in item production.
Experts call such approach the electronic kanban, i.e. e-kanban. In technologically most advanced productions, origins of the next step appear, named dynamic, i.e. flexible kanban. Its advantage lies in the fact that on the basis of current data about order and production condition, it can regulate, i.e. optimize temporary stock and materials` flow. Naturally, such production must be equipped with proper technological solutions (sensors, readers, etc.) and connected to the information system. In that case, program tools closely cooperate with the systems for automatic data collection, as well as material and production monitoring in production. Bar code prevails in the latter, although the radio-frequency identification RFID becomes a stronger competition more and more. When the RFID solution price becomes similar to the bar code price, there is no doubt which solution shall win.
»We introduced efficient information solutions in various production environments by means of bar code. RFID technology with its advantages promises a great deal and Kopa has already commenced testing several interesting projects in cooperation with their partners and ordering party« Ogorevc confided to us.
Benefits of production process informatization
»Production bears the whole series of burdens« Ogorevc explains. »Among other things, it is covered with paper documentation, there is too much administration, and feedback is defective and not updated. Employees cope with this in the best way they can and keep local records and improvise processes, which makes work supervision and production management impossible«.
One of the most efficient solutions is certainly introduction of computer supported production, which enables dynamic work allocation, immediate feedback and reacting in case of work deviation.
 »»We introduced efficient information solutions in various production environments by means of bar code. RFID technology with its advantages promises a great deal and Kopa has already commenced testing several interesting projects in cooperation with their partners and ordering party« says Tomislav Ogorevc, the ERP System Sales Manager in the company Kopa.

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