A quick shot of ERP
Advantec Coils implemented an ERP solution in 33 days and
was pleasantly surprised by the results
Advantec Coils (ACPL), a manufacturer of indoor units of split air conditioners
needed to scale up its operational efficiency to support its growth targets.
The goal was as ambitious as it was daunting. The company had to manage five
operational manufacturing units (sixth coming up) and was heavily dependent
on seasonal demand cycles.
Defying the traditional myth that
ERP is only meant for large enterprises, ACPL chose to implement an ERP
solution. It helped in effective inventory management and allowed the
company to cater to seasonal spikes in demand
Defying the traditional myth that ERP is only meant for large enterprises,
ACPL chose to implement an ERP solution. It deployed SSA Baan ERP IV in 33 days,
which helped in effective inventory management and allowed the company to cater
to seasonal spikes in demand.
Having already recovered almost Rs 8-10 lakh on its Rs 25 lakh investment within
the first year of implementation, the company is looking forward to more returns
in the future.
ACPL is an OEM supplier to vendors like Hitachi, Carrier, and Fedders, and has
its own brand of indoor air conditioning units called Azure. The company operates
in a highly competitive business environment, which is typified by seasonal
demand patterns and high requirements during festivals.
The onslaught of competition from low-priced Chinese products had further increased
the pressure to perform.
Issues with Tally
Prior to implementing ERP, the company used Tally for financial accounting and
stand-alone software to automate the HR function.
However, according to Gurvinder Pal Singh, Director, ACPL, the level of automation
was not robust enough to take care of the competitive environment as well as
Further, maintaining data security as well as the accuracy of facts, accounts,
and inventory management was just not possible with Tally alone. Apart from
these issues, the solution resulted in pile-ups of surplus inventory.
Without an effective enterprise-wide system the company was inclined to keep
higher levels of goods in inventory, which were often not required, leading
to inefficiencies and revenue loss. Due to the unavailability of even the smallest
of components like a sticker, production could get delayed, adversely impacting
On the other hand, maintaining excess inventory levels could be an expensive
proposition considering the costs involved in holding inventory.
What ACPL required was a solution that would help the company improve operations
while remaining competitive by performing the following functions:
- Effective allocation, planning and control of crucial
resources of men, machines and material.
- Well-tuned production environment with good synchronisation
among the various units to enable adaptation to fluctuations in demand.
- Effective cost control to be able to deliver better value
to its customers.
- Inventory visibility among various units and inventory
reduction across the supply chain.
- Availability of up-to-date and concise information to
the top management to allow better decision-making.
These requirements, the company understood, warranted an enterprise-wide automation
Why SSA Baan ERP?
According to Singh, while the need for an ERP was imperative, one of the key
concerns was the time taken to adopt a new information architecture and the
disruptions that could arise in an organisations operations. The fact
that ERP has been notorious for time and cost overruns was bound to create apprehensions
and influence the final decision. Especially so when ACPL had already deferred
the decision to implement an ERP system earlier.
Yet, one of the companys biggest compulsions was to
plan production for the coming season. It needed a solution that would allow
smooth and early adoption of a new system without compromising its functionality.
After considering several ERP solutions, the decision was taken in favour of
SSA Baan ERP IV. According to Singh, the solution provided everything ACPL was
looking for: robustness, close fit with business requirements, and cost-effectiveness.
Polaris was chosen for implementing the solution because of its extensive experience
in SSA Baan ERP implementation and project management skills. Moreover, its
Speed framework promised to carry out the implementation in less
than two months.
- The company: Advantec Coils, a manufacturer
of indoor units of split air conditioners, needed to scale up its operational
efficiency with the goal of supporting its growth targets.
- The need: Advantec required enterprise-wide
automation to improve its operations and help the company remain competitive.
- The solution: Implemented the manufacturing,
finance, and distribution modules of SSA Baan ERP IV. The project was
completed in 33 days.
- The benefits: Replacement of disparate
systems by a single system, effective inventory control and the inculcation
of a disciplined approach leading to a more effective and efficient
way of working.
Polaris Speed framework used in-built templates and pre-configured
business processes that helped ACPL deploy the ERP system in 33 working days,
including the training of users.
Keeping the ERP implementation in mind, the company procured two Intel validated
serversSE7501BR2 powered by Intel Xeon 2.40 GHz CPUs and running Windows
The company also connected its different locations through VSAT. These locations
included all the four production plants in Bahadurgarh, Haryana, and the fifth
plant in Jammu.
A Successful Implementation
Besides Speed, some of the other reasons for successful implementation
- Short turn-around time for resolving issues as regular
meetings involving top management of ACPL were held to sort out contentious
- Effective project management and coordination ensured
completion of mapping and master data for remote sites like Jammu.
- Some of the activities were carried out in parallel like
data collection, which began at the initial phase with the involvement of
second line users.
- Proper documentation of processes ensured effective knowledge
- Non-standard practices and procedures were streamlined
and changed using SSA Baan ERP procedures, BPR, and change management techniques.
- Effective and logical system-testing gave sufficient confidence
to the company to switch over to SSA Baan ERP rather than follow the normal
practice of using the legacy system simultaneously. This helped prevent duplication
of data entries.
Modules of Solutions
The company implemented the manufacturing, finance, and the distribution modules
of SSA Baan ERP IV.
The manufacturing module provides functionalities like Master Production Scheduler
(MPS), Material Requirement Planning (MRP), Shop Floor Control (SFC), Production
Planning (PP) and Control, and Capacity Requirements (CCR).
Under the Finance module, the solution delivers functionalities like General
Ledger, Accounts Payable and Receivables, Costing, Budgeting, Fixed Receipts,
and Taxation. The distribution module includes Purchase Control, Inventory and
Sales and Marketing functions.
How ERP Helped
One of the most prominent benefits of deploying ERP at ACPL has been effective
inventory control. The company is now able to maintain the right inventory levels
for all its product lines so as to avoid both over and under availability of
According to Singh, Rs 8-10 lakh of the Rs 25 lakh invested on the deployment
process has already been recovered within the first year of implementation itselfmostly
on account of proper management of inventory levels.
Inventory visibility across the various units has also helped make better-decisions
and meet commitments to customers.
Another key realisation with ERP has been the inculcation of a disciplined
approach leading to more effective and efficient way of working. The company
is now able to meet its delivery deadlines well on time in order to be able
to take the lead over its competitors, said Singh.
What Lies Ahead
As the system stabilises and once the required data is generated,
the company hopes to start utilising the system for generating intelligent analysis
reports like understanding demand patterns in the market, and specific patterns
of demands from its OEM partners.