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Instruments & Meters Solution

Industry Background

In China, the instruments & meters industry is an important industry to offer measuring, detection, adjustment and control facilities to each department of the national economy, mainly developing and manufacturing general instruments & meters for the mechanical system with various categories.

In recent years, the instruments & meters industry in China has developed rapidly, the trend of developing the large instruments & meters enterprise group is obvious through the industry consolidation and reorganization, and the domestic enterprises are actively developing to the overseas areas. Moreover, the international famous instruments & meters enterprises, such as Agilent Technologies, ABB Group and Rockwell Automation are establishing self-investment enterprises and R&D manufacturing bases in China. In the future, this industry will develop in the direction of “Six High and One Long”, that is, high performance, high precision, high sensitivity, high stability, high reliability, high environmental protection and long life-span.

Industry Characteristics

Complex credit situations

Instruments & meters involve export sales and home sales, they can be sold to the final customers directly or sold through the distributors or agents, customers are various and the credit situations are complex.

Strict manufacturing requirements

Instruments & meters are in high precision, the technical values are high and the manufacturing organization requirements are strict. They can be sold only after the authentication of the relevant national departments. The product margin is high but the sales amount is low.

Various product types

The categories and models are various, there are a great number of product categories in an enterprise and the update is fast. Therefore, the enterprise is required to have powerful R&D capability and high R&D investment. The engineering data management is complex and the engineering change is frequent. Detection facilities for instruments & meters need to be flexibly configured as required.

Short order period

Products are completed manufactured based on the sales order (SO), finished products are not saved into the inventory generally, the manufacturing mode is in small mass with multiple kinds, the order period is short (in one week generally) and the planning management is very difficult.

High manufacturing efficiency

Products are assembled in the streamline efficiently. Some parts are manufactured by the special workshop. Some products such as optical instruments need to be processed by special devices and they are in continuous manufacturing mode as well.

Difficult purchase management

The purchase period is short but the parts quality requirements are high, so the manufacturing is always limited by the matching and quality of the purchased materials.

Important safety stock

Some precise parts cannot be manufactured in China so they need to be purchased from the overseas areas. Therefore, the purchase period is long and the safety stock management is needed.

Paying attention to quality management

Products can be manufactured and sold upon the national authentication so the quality control goes through the whole manufacturing process. Parts inspection and operation inspection are strict. Generally, there are several inspection operations in the streamline and the automatic inspection device is employed for inspecting the ration total amount. Thus the manufacturing onsite materials are easy to be scrapped due to the quality. To ensure the product traceability, the sequence number management is necessary.

Features

On the basis of abundant practice on a large number of customers, K/3 combines the successful application of the enterprises in the industry and abstracts a suite of advanced and integrated informatization overall solution that meets the features of the instruments & meters industry. This solution focuses on the key points and difficulties of the industry, deeply explores the industry requirements, fully exerts the self-defined and leading MPS/MRP of the K/3 business process and the cost management, emphasizes business process integration and follows the principles of “fast configuration, fast implementation, fast application and fast effect” to effectively solve puzzles and difficulties in the industry. Meanwhile, it completely integrates the enterprise logistics, capital flow, information flow and external resources and serves as the optimal choice to implement the industry informatization.

With respect to the personalized requirements of the instruments & meters enterprise, K/3 offers the fast developed application platform K/3 BOS, which can rapidly form the personalized solution through simple configurations.

Customer Credit Management

Due to multiple customers, complex credit situations and large management difficulty of the instruments & meters industry, the K/3 sets the credit limit and credit term based on the history credit situation of a customer, controls the credit in SO, sales delivery, sales invoice and so on, and offers multiple control intensity measures such as Alarm, Control with Password and Not Allowed so that the information can be saved only after the authorized person entering the password. Meanwhile, the difficulties of the enterprise are solved as well.

Planning Management

According to the order manufacturing mode of the industry, the relevant order strategy and lead time in the material main data will be set, and the defined MPS/MRP plan solution and the proper parameters based on the enterprise will be selected. Due to small mass scale and multiple orders, the MPS/MRP will be operated once or twice a day (it is automatically operated by the K/3 task manager in the background). The manufacturing plan and purchase plan will be released based on the MPS/MRP result.

Through the K/3 MPS/MRP, the working efficiency of the plan personnel is obviously improved for the MPS/MRP result, the manufacturing arrangement is smooth and the stock level is obviously decreased.

Engineering Data Management and Product Configuration

Make out the product architecture based on the product features and set a large number of public components as phantom part to simplify the BOM structure. In manual status, only the monolayer BOM can be handled, which cannot reflect the actual structure of the product and is inconvenient for use, storage or release. However, the K/3 can easily solve these problems, both where-used check and breakdown check are available for the BOM at any time and the BOM cost can be calculated as well. The K/3 engineering change process is employed for engineering change management, saving the changed history records and querying the status of the changed materials so as to effectively prevent the slow-moving inventory damages caused by the change.

Set the attributes of the material configured part and featured part to be configured with material in the master data, establish the mutually inclusive and exclusive relationships between the BOM and configured parts and start to configure them. The system will generate the relevant customer BOM and then this customer BOM can be referred by the SO. The operation is convenient and the BOM configuration difficulty in manual status is also solved.

Safety stock management

The order strategy for the material to be purchased from the overseas area is called “order point”. The material order point, safety stock, economic mass and lead time need to be set. When performing the MRP operation, the system will automatically generate the purchase requirements based on the order point to avoid the possible calculation errors in manual status.

Through the “Safety Stock Alarm Analysis”, the system will periodically analyze the safety stock and timely adjust it to avoid over-large stock due to unreasonable safety stock.

Manufacturing track and material shrinkage control

After the MPS/MRP releasing a manufacturing order, timely handling the stock-in/out based on the system manufacturing management process and registering the manufacturing daily report, the plan personnel will query workshop manufacturing status from the system to grasp the progress at any time. In addition, simulation issue can also be employed to query the material kitting.

In the K/3 system, the standard shrinkage will be set through the BOM and the system will limit the quantity of packing lists during packing. After the material is scrapped, packing is available for the scrap handling process and the material consumption in the manufacturing department is effectively controlled.  K/3 offers multiple analysis reports so that you can analyze the material shrinkage at any time.

Cost management

According to the industry features, you need to set the expense allocation standard, including the joint consumption expense, scrap and WIP. Then you can import the output and expense from the K/3 system or manually input them, allocate the expense, execute the cost calculation and fast search for the workshop cost and instruments & meters cost simply via the wizard.

The system provides abundant cost analysis tools to assist the instruments & meters enterprise in cost control, analysis, appraisal and decision, which effectively solve the cost accounting difficulties in the enterprise and improve the whole operation level of the enterprise.

 

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