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ERP – THE FOUNDATION OF OPERATIONAL EXCELLENCE

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Page 1: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

ERP – THE FOUNDATION OF OPERATIONAL EXCELLENCE

Page 2: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

Daniel HäggmarkManaging Director

• Joined Monitor 2006• In Asia since 2009• Malaysia since 2013

ERP – THE FOUNDATION OF OPERATIONAL EXCELLENCE

Page 3: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

How many of you have heard or seen MONITOR ERP before?

Page 4: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

721,974 MYR

Marketing activities 2019 in Malaysia

Page 5: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

What is the purpose of your business?

Page 6: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

What is the purpose of manufacturing?

Page 7: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

What is the purpose of manufacturing?

“The process of converting raw materials, components, or parts into finished goods that meet a customer's expectations or

specifications”

Source: Businessdictonary.com

Page 8: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

What is the purpose of your business?

“To convert raw materials, components, or parts into finished goods that meet your

customer's expectations and specifications in terms of quality, service and price with

as high profit margins as possible”

Source: myself

Page 9: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

So - What is the purpose of Monitor ERP’s Business?

“To offer a Tool so our customers can convert raw materials, components, or parts into finished goods that meet your customer's expectations and specifications in terms of quality, service and price with as high profit

margins as possible”

Page 10: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

So - What is the purpose of Monitor ERP’s Business?

• Everything that we invest in is to help our customers to be more profitable.

• All we decide to develop in the software is to help our customers to be more competitive.

Page 11: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

ERP System (Enterprise Resource Planning)

“ERP” is not a brand!

In Sweden alone you have over 40 active ERP system providers

In Malaysia around 10-20

Page 12: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

MONITOR ERP System

Page 13: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

MONITOR ERP System

Page 14: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

ERP System (Enterprise Resource Planning)

IMPORTANT!

Different ERP fits and focuses on different industries.

Page 15: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

ERP System (Enterprise Resource Planning)

Choose a system that fully focus on your type of business

Page 16: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

ERP System (Enterprise Resource Planning)

Why is it needed?

ERP systems increase productivity and efficiency. Because an ERP system integrates data and processes across multiple departments and locations, it allows a company to move products faster, process orders quicker, full control of costs, total visibility.

Page 17: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

ERP System (Enterprise Resource Planning)

Daily issue examples that your ERP MUST be able to answer

• Will I be able to deliver my customer orders on-time?

• How will late Purchase orders affect my production and sales orders?

• Can i slot in one more Sales order without affecting existing orders?

• Do I have enough capacity in my production?

• Do I need to invest in more machines?

Page 18: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

ERP System (Enterprise Resource Planning)

Daily issue examples that your ERP MUST be able to answer• What rejects is most costly for us and which product or machine cause

most rejects?

• IF the price of my raw material goes up with 20%. How will that affect my margins?

• IF the Ringgit weakens 10% against EUR or USD, how will that affect my margins?

• What margins do I have on my top 10 selling products?

• What is my actual production cost vs my planned cost?

Page 19: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

Scheduling without an ERP System

Page 20: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

Efficiency

Achieving maximum productivity with minimum wasted effort or expense

Page 21: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

Founded 1974 in Sweden as a manufacturing consultancy firm

Page 22: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

35%market share in Sweden

Hudiksvall, SEheadquarter

Offices in Sweden, Finland, Poland, China & Malaysia

1974founded

Penang, MYAsia Head Quarter

38 employees

Customer Support

Sweden & Malaysia

100%manufacturing companies

Penang, MYAsia Headquarter

40 employees

4,000customers

100% Manufacturing

Page 23: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

Key strategic standpoints

•100% Manufacturing

• Standard System

•No customization

• Easy to implement

• Easy to use

•Cost effective in all areas

•Direct market approach

Page 24: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

Monitor ERP Malaysia

• Established 2013 (First customer 2003)• 65 customers in SE Asia

(Malaysia, Singapore, Thailand, Vietnam, Indonesia)

• 40 Employees- Support

- Consultants- Development- Sales/Marketing- HR/Admin

Page 25: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

BOM & RoutingPre-calculationsManufacturing ordersProduction SchedulingSubcontractingPickingReportingStatistics

Suppliers & SRMInquiriesPurchase ordersArrival reportingRecieving inspectionSupplier invoicesAccounts payablesStatistics

CRMCustomersQuotesSales ordersDeliveriesInvoicingAccounts receivableStatistics

Parts master dataMaterial requirement planning (MRP)

ForecastingStock counting

Stock location systemWIP/inventory value

TracebilitySerial numbersCase handling

Attendance recordingWork recording

EmployeesWork schedules

Time banksAbsenceApproval

Salary basis

Chart of AccountsAutomatic postingsAccrual accounting

Voucher entryP&L, Balance sheet

Report generatorVAT reports

EC salesProject management

Budget

EDIElectronic Invoice mgmt

Product ConfiguratorMachine Integration

Web shopTools Management

Service ManagementFile Viewer

Management AccountingFixed AssetsCO Transfer

Page 26: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

MACHINE INTEGRATION

Page 27: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

EDIElectronic Invoice mgmt

Product ConfiguratorMachine Integration

Web shopTools Management

Service ManagementFile Viewer

Management AccountingFixed AssetsCO Transfer

MACHINE INTEGRATION- USE OLD MACHINES OR MANUAL STATIONS

Page 28: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

References IndustriesMETAL

PLASTICS

MACHINERY

FURNITURE

ELECTRONICS

Page 29: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

AUTOMOTIVE

MECHANICAL

WIRE & HARNESSES

References Industries

Page 30: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

• Producer of the fastest car in the world

• MONITOR ERP since 2002

• High Mix Low Volume to the edge!

Page 31: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

• Implementation in 5 months with zero customization

• 80 injection molding machines

• 300 employees in Shah Alam

• Owner/CEO Mr Callum Chen, Honored president Malaysian Plastics Manufacturers Association.

Page 32: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

• Customer since 2012

• 80 injection molding machines

• 300 employees in Prai, Penang

• Tool fabrication, injection molding, secondary processes.

• Owner Mr Willy Tan, Former president Malaysian Plastics Manufacturers Association Northern Branch.

Page 33: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

Case study

• Manufacturer of electronic locks

• Implementation in 5 months with zero customization

• Big range of processes such as cutting, metal stamping, CNC, Powder coating, Assembly and more

• 250 employees in Bukit Minyak, Penang

• Reduced inventory value by 60% since implementing MONITOR

• 99% Stock accuracy

• Reduced stock take time from 4 days to half day.

Page 34: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

Case study

• Design, Manufacture and market Semiconductor testers

• Bayan Lepas Penang

• Listed since 2015

• High mix low volume

• Achieved over 95% delivery reliability

• Used to have 20 overlooked, delayed or non-updated order per day. After implement MONITOR - 1 per two weeks

Page 35: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

Monitor Team Malaysia ready to serve you!

Page 36: ERP THE FOUNDATION OF OPERATIONAL EXCELLENCE€¦ · ERP System (Enterprise Resource Planning) Why is it needed? ERP systems increase productivity and efficiency. Because an ERP system

Thank you for listening!

More info visit www.monitorerp.com/asia