Transformer products have a long history, and with the rapid development of electronic technology, their products are constantly being replaced. Currently, there are over 3000 factories in China producing electronic transformers, with hundreds of product varieties that can be matched with various types of complete machines. China has also become one of the world's major producers of electronic transformers. 60% of the production of electronic transformers is used to meet the needs of the international market. By implementing the strategy of "winning by quality", the export of electronic transformers in China has gradually taken shape.
Abandoning traditional operations and boldly embarking on the path of transformation
Suzhou Yangqi Electronics Industry Co., Ltd. (hereinafter referred to as "Yangqi Electronics") was established in 1996 and is one of the first foreign-invested companies in Wujiang City. The company mainly engages in the assembly of high-frequency voltage transformers and inductors. Our existing clients include world-renowned companies such as Delta Electronics, Mingwei Industrial, Genmao Electronics, and Datong Electronics. Relying on the parent company of Taiwan Jiexin, Yangqi has been able to undertake all types of transformers needed in the world (including medical/communication/military/solar energy, etc.) for 37 years.
?Yangqi's leading products are high-frequency voltage transformers, inductors, and filters, with a wide variety of products and complex specifications, belonging to the typical multi variety, small batch production type. All production is driven by customer orders and production is determined by sales. Due to the above characteristics, there are many difficulties in the production and operation management of Yangqi Electronics: on the one hand, the market demand fluctuates greatly, and the operation is too random; On the other hand, the diversity and real-time nature of downstream manufacturers' orders pose significant difficulties and pressures for production planning and inventory scheduling. After 14 years of operation, Yangqi has always adopted a traditional management model, relying on experience to determine management, and organizing data and transmitting information through manual forms and spreadsheets. With the development of enterprises and changes in the market environment, more and more problems are gradually becoming prominent.
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Realize the dream of perfect control through informatization
In November 2011, General Manager Gavin.Hong took over the baton of enterprise development, and under his clear strategic development plan, Yangqi launched a major reform and initiated the ERP selection plan. After six months of repeated research and evaluation by the Management Department Information Center team led by Vice President Eric.Yang, Yangqi Electronics ultimately chose Dingjie's Yifei system.
Vice President Yang said: When choosing Dingjie Software, there are several considerations. Firstly, Dingjie's Yifei is a standardized product, so there are naturally no problems in terms of product stability and adaptability. Secondly, Dingjie has a comprehensive product line, including low-end Yizhu, mid-range Yifei, and high-end Yituo. This not only demonstrates Dingjie's strength, but also makes future cooperation between the two parties possible.
Strategic procurement: reduce inventory costs
The cost structure provided by the European, American, and Japanese Enterprise Statistics Bureau is as follows: procurement expenses usually account for 53% of sales revenue. When procurement expenses (direct raw materials) decrease by 5%, in order to achieve the same results, direct labor must be reduced by 22% and manufacturing costs must be reduced by 24%; The management and sales expenses must be reduced by 17%; If the profit ratio wants to remain unchanged (8%), sales revenue must increase by 34%. From this, it can be seen that reducing procurement costs to increase corporate profits is not only easy, but also unlikely to attract competitors' imitation, and consumers have no choice but to resist. Therefore, 'it's better to buy than to sell' is not an exaggeration. Buying unused materials can also cause inventory backlog, increase management costs, form non-performing assets, turn into scrap materials, and ultimately deteriorate and become scrapped due to aging.
According to the procurement strategy, Yangqi classified the required materials, and developed a procurement plan for commonly used low value consumables (such as water, tin wire, tin bars, etc.) based on safety stock; Purchase other commonly used materials for production according to the production plan. All items are purchased strategically based on the principles of saving procurement costs, preventing inventory backlog, and preventing production shortages, fully considering factors such as economic batch size, minimum packaging quantity, minimum purchase quantity, and procurement cycle.
Previously, we had to check the demand of each production line, confirm with R&D if there were any irreplaceable materials, and confirm with the warehouse if there were alternative material inventory. The final purchase order may not be able to be supplied by the supplier in a timely manner, and every purchase order may not be accurate. After the system goes online, it can help fully consider supply and demand, just by moving the mouse, "said Yangqi's material control.
Now we have requested the R&D department to establish a corresponding relationship between the stagnant alternative materials and the main materials in the system, and require manufacturing to prioritize the consumption of inventory. Now that we are seeing the mountain of stagnant materials slowly decreasing, we can finally breathe a sigh of relief. For material control, the warehouse also has many feelings. Through the control of the ERP system, not only is material procurement and flow transparent, but the procurement and pricing of raw materials have also become transparent and controllable.
Process reengineering: Seeking benefits from data
Theoretical analysis of Business Process Reengineering (BPR) theory is centered around tasks, breaking free from the constraints of traditional organizational division of labor theory, improving customer orientation, organizational flexibility, employee empowerment, and the correct use of information technology to adapt to rapid and changing environments. It mainly includes three stages: business process analysis and diagnosis, business process redesign, and implementation of business process reengineering. The value of a correct ERP software lies not only in its ability to give the enterprise wings to soar, but more importantly, in winning time and strengthening competitiveness.
At the beginning of the project implementation, Yang Qi was guided by the consultant to streamline the process and began writing an SOP manual based on ERP. Having ERP alone is far from enough. ERP systems not only require continuous maintenance and improvement, but enterprises also need an effective SOP manual to operate in conjunction with the ERP system. This manual should gradually accumulate and include detailed descriptions and operating methods of various operating modes, business characteristics, operational precautions, system maintenance methods, and the responsibilities of relevant personnel for the enterprise.
By clarifying responsibilities and cooperating with the integrated financial business processing and management mode of Yifei ERP, all data has become transparent and visible, breaking the previous "information island" situation and achieving high integration and sharing of information. Which orders have made money and what is the profit? Which products contribute significantly to profits, and which customers contribute significantly to current earnings? Supplier and customer aging analysis, inventory turnover analysis, and more make everything possible.
Project Summary: Sharing the Joy of Success
After three months of process sorting, simulation operation, training, and trial operation, as of mid August 2012, the financial cost data has been successfully settled in the Yifei ERP system, and all financial statements have been sourced from the Yifei ERP system. The benefits brought by ERP management have shown initial results:
1）In the first month of launch, the inventory accuracy rate increased from less than 60% to 92%;
2) Implemented inventory query sharing, prioritized the use of replaceable obsolete materials for production line material requisition, effectively avoiding inventory backlog;
3) Excessive collection and consumption are subject to permission control, effectively avoiding the excessive collection and consumption of valuable materials;
4) Generate material procurement and production plans from the system, quickly and accurately;
5) Through the implementation and launch of the ERP system, Yangqi's performance evaluation has received strong data support, from not understanding computer operations to having a rational understanding of ERP; From each department working independently to using a unified information platform, Yangqi Electronics' management has been qualitatively improved. The business processes of enterprises are gradually becoming standardized and reasonable, greatly reducing repetitive labor and effectively improving the overall competitiveness of the enterprise.
Deepening application: We have dreams and ideals to pursue and achieve
Nowadays, ERP has become an indispensable component of Yangqi Electronics' daily management. Like eating and sleeping in daily life, ERP operation has become a habit for every member of Yangqi's work. With the cooperation of Dingjie Consulting Service Team, Yangqi has launched a deepening application, continuously optimizing processes, and exploring beneficial applications. With a unified SOP standard and a clear audit mechanism, the rest is continuous tracking and summarization.
As Vice President Yang Qi said, the launch of ERP is just the beginning. We hope that with the implementation of Dingjie values and the "Heart Service. New Value" service, Yangqi can achieve a new takeoff. Associate Yang: For someone who has been driving ERP for over 15 years, this is my first time stepping into this kind of iron plate... Too many people lack information awareness, and it is completely impossible for them to enter systematization temporarily. However, after going online, they still need to work hard in the future. The system launch is just the beginning, and we need to review the information in the ERP system every week, every quarter, and every year to ensure that it is correct. We need to regularly check and establish a reward and punishment system in order to continue to improve. Only by promoting an ERP system can we truly help us improve the company and continuously improve, just like improving ourselves. Life cannot be perfect, but we have dreams and ideals of pursuing perfection!
