What are the difficulties in managing complex manufacturing and supply chain operations?

 

The automotive industry produces vehicles that require many spare parts; this means that producing vehicles is considered as complex manufacturing. So what is complex manufacturing? Complex manufacturing is when a product is produced for long cycle times and has a limited stock, produced with a deep Bill of Material, and requires high skill labor.

 

Because the production of the items is complex, the stocks available are limited. This means that the company has to execute supply chain operations properly to avoid loss of profit. What does supply chain operation mean? Supply chain operation is the systems, structures, and processes to plan and execute the flow of goods and services from supplier to customer. Not just finished product-related, it also covers managing the vast amount of spare parts.

 

Since the product requires so many spare parts, there are bound to be difficulties and pains regarding manufacturing. One of them is inconsistent part labeling, similar to what PT. Sanoh Indonesia experienced before implementing ERP to their company. PT. Sanoh works in the field of manufacturing automotive spare parts. Because the parts are labeled inconsistently, it is difficult to determine which is the part name that they use for production differs from each department. This is a major problem for a large scale enterprise, with the inconsistent labeling, when a spare part is allegedly changed by the engineering team the rest of the departments need to be informed. However, the rest of the departments label the part as different names. This will cause confusion throughout the whole company. To retrace it back takes more time and effort, in the end, it may delay the production and delay the report making.

 

Dealing with many spare parts means that there are challenges regarding managing stocks. The flow of stock items must be consistent each time in order for optimum production. If the stocks are is shortage or overstock the production process and company’s cash flow will not be smooth. If in shortage the production will be delayed due to waiting for the specific part to arrive. When overstock, if not optimized properly, could cause the loss of money.

 

To avoid the pains and challenges in complex manufacturing and supply chain operation a system that could manage them is needed. The system is called ERP. ERP from Infor LN is capable of preparing what parts are needed for production and labeling the spare parts correctly. Infor LN is able to monitor and capture data from all processes of production and rely on a single accurate data. Therefore, in each step of the production process the spare parts used are traceable and uniformly labeled, every department understands the spare part under a single name. Infor LN has the capability of pre-ordering the spare parts needed to the exact quantity because it has the ability to plan the quantity from the vehicles that are going to be produced thus determine the number of spare parts to be ordered.

 

PT. Bisnis Sistem Indonesia (PT BSI) as Infor’s Gold Channel Partner in Indonesia has always successfully implemented Infor LN since 1998. One of our customers, PT. Sanoh, has been able to experience the benefits of using Infor LN, as mentioned above, now they have uniform item labeling so if any department refers to a spare part, then every department has the same understanding. Overall, Infor LN has successfully made the supply chain operations in PT. Sanoh Indonesia smooth.

 

For more information about the solution please contact our phone at +6221 304 90008 or WhatsApp +628111221789 (Chat Only) or our email at This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

 

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