the change we can make and the chunk.ppt
TRANSCRIPT
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7/29/2019 THE CHANGE WE CAN MAKE AND THE CHUNK.ppt
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THE CHANGE WE CAN MAKE
THE CHUNK WE CAN HAVE
CENTRAL MATERIAL REQUIREMENT
PLANNING AND INVENTORYCONTROL DEPARTMENT
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Concept of PPIC:Currently, at Square we have adopted the concept of PPIC to bridge the gap among
PMD/IMD, Production, QA and SCM to ensure smooth operation of production,
procurement. For a business organization with small volume of operation such a
department is a burden but for an organization involving a large volume of operations
the essentiality of such a department goes without saying.
But a simple modification of the concept can save a chunk of the investment of the
corporation, which is being presented on forwards.
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Achievable Opportunities from Central Material
Requirement Planning & Inventory Control
Department:
1. Optimization of Inventory
2. Maximization of Support
3. Minimization of Order Processing Cost
4. Minimization of Loss of Low Consumed RMs
5. Maximum Output with Minimum Manpower
6. Optimization of Technical Resource Utilization
7. Save Communication Time, Save Money8. Central Monitoring, Tracking and Control of Finished Products
9. Total Solution from a Total Picture
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Optimization of Inventory
As we see in the below table, a good number of materials are commonly used among
the different plants and every material retains its own safety stock, only global
planning can dramatically change the total inventory picture. Total Inventory Level
can be minimized and thereby material holding cost can be decreased by maintaining
a common safety stock. Earlier it was difficult to arrange a Global Plan, as different
plants maintain different databases which were not integrated and the planning
patterns of every plant were not functioning in parallel.
Plant/Unit Total RM Common RM
Pabna 666 267
GPB 357 84
SCL 116 21
SVPO & Biotech 58 30
PMU 55 24
Agrovet 185 84
SHNL 61 22
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Maximization of Support
By viewing the total inventory picture of all plants from a single point with the help of
ERP, we can easily ensure the best support in Crisis Moments of any plant and
thereby efficiently managing Potential Sales. Earlier, it was difficult to give a total
solution due to lack of external plants information and absence of database
integration.
Minimization of Order Processing Cost
As almost all commonly used materials will be procured under a single LC, the Order
Processing Cost (LC Cost, Regulatory Cost, Landing Cost) will be at minimum level.
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Minimization of Loss of Low Consumed RMs
Every plant has some materials ( especially excipients) which are consumed in very
low quantity. Very often, even the MOQ of these materials can not be consumed
within the shelf-life of these materials. As a result a big portion of these materials
are rejected. These types of capital loss can be brought down to the minimum levelby increasing their use at different plants. Only a total picture at a single point can
lead to such a total solution.
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Maximum Output with Minimum Manpower
Manpower requirement will be dwindled to less than 50% than that of current one,
as the planning job will be rearranged vertically and obviously the work efficiency will
also be at the highest level then ever before.
Comparative Key Manpower Status in different PPIC Depts.
Parameter Pabna Unit Dhaka Unit Agrovet Herbal PMU & CD Pesticide CPD
Sr. Manager 1 0 0 0 0 0 1
Sr. Exe 1 2 0 0 1 0 1 or 0
Executive 2 2 1 0 0 0 2 or 3
Officer 2 2 0 1 2 1 2
Sub Total 6 6 1 1 3 1 6
Grand Total 18 6
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Reduction of Technical Resource Utilization
Technical (Hardware and Software) resource utilization will be at the minimum level
to ensure the highest output as the job function will be arranged vertically nothorizontally. It is mentionable here that each Client PC will be charged individually
after implementation of SAP. So, the minimum number of Client PC used, the
minimum will be the charge to pay.
Comparative Technical Equipment Requirement Status
Parameter P-PPIC D-PPIC Agv.-PPIC SHNL-PPIC PMU & CD-PPIC CPD
PC 15 9 1 1 2 6
Total Client PC 28 6
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Save Communication Time, Save Money, Efficient Utilization of
Resources
a. Inter-Plant Communication for Material Transfer:Currently, it is a common practice to maintain daily communication with other plants for
inter-plant material transfer in case of crisis. These type of communication will be totally
absent as the solution will come from the central point.
b. IMD/PMD - Plant Communication for Special Order Execution:This, also, is a common practice, at present, which consumes a lot of valuable time of both
end. A chunk of this time can also be saved with central planning idea.
c. Plant - Marketing - Plant Communication for Product Transfer:
A lot of efforts are made from time to time for inter-plant product transfer, which can be
simple then ever before with the help of central planning idea.
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Central Monitoring, Tracking and Control of Finished Products
With the help of ERP and Central Planning Dept., the finished products at
different depots can be monitored, tracked and controlled best then ever
before. This central monitoring will ensure smooth purvey of market
demand and at the same time ensure harmony of operation of cross-
functional departments.
Total Solution from a Total Picture
For making any decision we depend on data and information. With the total
data and total information from a single point, we can have a total solution.
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THANKS A LOT