THE CHANGE WE CAN MAKE AND THE CHUNK.ppt

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

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THE CHANGE WE CAN MAKE AND THE CHUNK.ppt