Case analysis of ERP project implementation of the

2022-08-26
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Kailong chemical ERP project implementation case analysis

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Hubei Kailong Chemical Group Co., Ltd. is a local military enterprise - state-owned Xiangsha chemical plant, which was restructured in 1994. With total assets of 300 million yuan, it has five subsidiaries and three branches, covering an area of 1.67 million square meters, with more than 1000 employees, including more than 300 professional and technical personnel, The company is a key backbone enterprise of domestic civil explosive equipment and new-type thermal insulation materials compared with pure polypropylene matrix and DLFT compression molding compound, and is a leading enterprise in the same industry in Hubei Province

the company mainly produces industrial explosives, aluminum silicate refractory fiber products, fine chemicals, paper plastic packaging and other four categories of products. Industrial explosives include expanded explosives, emulsion explosives, hypocenter explosive columns, and ammonium TNT explosives. It has a fully continuous automatic production line of emulsion explosives and expanded explosives, with an approved production capacity of 22000 tons/year. At the same time, the company can also provide customers with the design and construction of various kilns, thermal insulation and blasting projects, as well as roof waterproofing, corrosion prevention, coating construction, decoration engineering services, etc

the company has a sound sales network, covering 30 provinces (cities, autonomous regions) across the country. Its products are exported to the United States, Japan, South Korea, Italy, Austria, Singapore, Peru, Sudan, Yemen, Vietnam and other countries, and are highly praised by users at home and abroad

the company pursues the "triple" development strategy of focusing on science and technology, management and talents, and has established a provincial enterprise technology center and Hubei Kailong postdoctoral industry base. It has been identified as a high-tech enterprise in Hubei Province and a key enterprise associated with industry, University and research by the State Economic and trade Commission

historical problems looking back

before the implementation of Inspur ERP, our company used financial software in addition to the financial department, other departments such as procurement, inventory, production, quality inspection, safety and environmental management, etc. used manual management. Because the financial system is not connected with other systems, the financial data and sales data, inventory data and sales data, financial data and purchase data, inventory data and purchase data, production data, safety data, etc. are not shared. At the same time, the business process of each business department of the company has unreasonable division of Invoicing business functions between departments. As a result, the actual situation of the company's business data cannot be mastered in a timely, accurate and comprehensive manner, so that the company's leaders are difficult to guide and control the business management of each department, which seriously affects the company's leaders' business decisions

in the early 1990s, the company had two computers and three computer personnel, which were mainly used for some simple computing applications. The computer application of enterprises belongs to the stage of using automation instead of manual processing, and using computers to simulate manual single application. After 2000, the technology, production, planning and management departments of the company began to gradually invest a small amount of PCs to cope with the growing business work according to the needs of their respective departments. In 2002, the main departments of the company formed an independent financial system within the Department to facilitate the exchange and sharing of data within the Department. However, for different departments, due to the lack of unified planning, there is no communication between systems, and the data formats are different. Even the data copied with floppy disks cannot be used in different departments, resulting in a very serious duplication of data output/input. Although these applications have played a certain role in manufacturing and management, contradictions and problems also occur frequently

without computer-aided management, the whole operation of the enterprise will stagnate and eventually be eliminated by growing competitors in an increasingly competitive market economy. Since 2003, the company has officially begun to explore the road of informatization

implementation background

first of all, let's take a look at the output of our company's ammonium antimony explosive. In the same period of 2003, the output was 3 tons, and today, two years later, the output value in the same period is 15 tons. Facing such rapid development, the company's production management and planning have become the bottleneck for the further development of the enterprise. Moreover, the civil explosive industry is a highly customized product. Even if it seems to be the same two models, the electronic and microcomputer controlled products launched by the factory are of different grades. In fact, the wood-based panel universal testing machine is basically the same as the ordinary electronic universal testing machine, and there will be great differences, such as the scope of use, blasting coefficient, etc. Therefore, the production of explosives should set specific parameters completely according to the order. First, according to the order, it should be decomposed into raw materials or semi-finished products of various specifications, then the materials of the same specification should be combined and put into production, and finally the corresponding materials should be selected according to the order for production. The whole manufacturing process is very complex, and a slight error may cause material shortage, specification mismatch or excessive production, resulting in waste. If the plan changes in the production process, it is likely to bring a series of delays and chaos. Similarly, in storage, quality inspection and other aspects, due to manual operation, materials are not unified, and clerical errors also occur frequently. In short, in the case of manual management, the frequency of errors is very high, resulting in a situation of repeated work, long cycle and low customer satisfaction

in this case, the leaders of the company decided to use the advanced ERP information management ideas at home and abroad for reference to carry out unified management of the enterprise. The computer team was adjusted from technical preparation to management preparation, and an information center was established

erp model selection

for ERP software model selection, Kailong company successively contacted many companies in the process of model selection at the beginning. Although it finally did not adopt these products for various reasons, it accepted many advanced ideas in the process of contacting them, which laid the ideological foundation for today's success

the problems to be considered in the selection process are not only the problems of the software itself, but also the implementation and maintenance. At the same time, the problems that may occur in the implementation and maintenance process should be considered in the model selection, and the software provider should be raised to see if there are some better solutions

the choice of software providers is also very important. From the perspective of enterprise development, once the software provider is selected, the enterprise hopes to have a long-term cooperative relationship. Therefore, the software provider and the computer supplier should have strong strength and the ability of stable development, which is important for the stability of implementation consultants, the sustainability of technology, and the future expansion of the system

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