Implementation of ERP Solution QASoft Saif Electronics Ltd., Gujarat

About Saif Manufacturing ISO 9001:2000 certified by DNV Power Saving Devices Switch Gear Power Capacitors Electrolytic Capacitors ISO 9001:2000 certified by DNV Leading Brands like “Samrat”, “SamCap” Collaboration with “ElectroFlow” USA

Infrastructure Manufacturing Facility in Valsad District, Gujarat, India Marketing Sales Office in Mumbai, Maharastra, India 200+ employees in Manufacturing Facility Total 10 Computers, 3 connected with Novel Netware, 3 with remote boot system (without hard disc) and 3 as windows network with NT Server.

Current Software Setup Tally for Account Excel sheets for Inventory In-house developed Access applications for order monitoring and despatch.

Present Limitations MIS reports not available in time as data was scattered in three different applications Accounting of dispatches and inwards were delayed as GRN as to be sent to accounts for re-entry in tally

Present Limitations Delays in accounting inwards were also due to want of feedback from quality assurance department. Duplication of data entry in different systems such as dispatch challan entry excel for stock reduction, tally for accounting and Access software for updating sales order status

Present Limitations Data related to production and quality required more than 24 hours to track in case of customer complaint. Returns from the customer where not-accounted many a times due to lack of feedback system.

Present Limitations Three different Networking systems were used resulting in frequent breakdowns Applications were accessible at select locations only. Practically no data security as only password protection was used for Excel and Access applications.

Present Limitations Being an ISO 9001:2000 certified company, lot of analysis were generated regularly or only at the time of audit. This was a time consuming task and hence often delayed. At Least 5 working days were reserved to prepare records for each audit. Loss of 20 days for two internal and two external audits.

Present Limitations Managing Director used to visit plant once in a two weeks only for scrap, rejections and customer returns. Most of the time of Directors and senior management was wasted in verifying data entry and preparing reports.

Revamping IT Infrastructure Due to financial constraints Hard DiscLess systems were used but they were no more suitable for current business needs. In 2003 it was decided to implement QASoft ERP in steps instead of big bang approach.

Implantation Approach Initially QASoft was implemented for Sales, Purchase, Production Planning and quality control. In second stage machine maintenance, human resource training and corrective preventive actions system was implemented.

Signs of ROI ERP investment has given visibility to production process. (Zinc Film was supposed to be used within 36 hours of opening sealed package) Planning approach shifted from “Production for Stock” to “Production for Order”

Benefits Derived Up to Date MIS reports available at any time Updated Accounts status reduced from average 3 days to 1 day (that’s only because office and factory were not linked and up-dating was offline.

Benefits Derived Quality Assurance being built-in then ERP system reduced the inspection waiting time from 8 hours to 1 hour. Duplication of data entry eliminated as legacy systems abondoned.

Benefits Derived Data tracking for production and quality available instantly (earlier it was 24 hours) in case of customer complaint resulting in immediate resolution of customer complaints. Customer Returns accounted immediately and even reduced by 90%. As batch to batch tracking enabled disallowing returns.

Benefits Derived Upgrading hardware system reduced frequent breakdowns. QASoft application was accessible in any type of windows network. Microsoft SQL 2005 provides latest security features to meet international requirements.

Benefits Derived Audits of ISO 9001:2000 were carried out solely from the software data. Analysis and reports needed by the management and the auditors were available instantly. No overnight preparation of reports.

Benefits Derived Scraps and rejections are totally under control. Internal rejections even reduced from 30% to 0.3% for zinc coated films which needs to be used within 36 hours. Cross verification time (for scrap and rejections) of top management reduced to negligible.

Future Readiness QASoft is based on .Net technology, and hence Saif Electronics is future ready. QASoft has given the company a solution which will grow with its business and does not require heavy investment for IT infrastructure

ISO 9000 compliance Today ISO audit (record verification and tracking) is done entirely on QASoft software during internal and external audits. company generates paper only for internal audit and management review reports. This is also because internal e-mailing system is not in place yet.