1, Konka Group ERP implementation cases
2, Fuzhou Delta Auto Parts Company Limited ERP implementation cases
3, Shandong Airlines to implement ERP cases
Konka ERP implementation cases
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At the end of the 70s, the U.S. manufacturing industry lost in the competition with Japan, forcing it to embark on a "search for a way out, enhance competitiveness "The road of exploration. In the enterprise system, market mechanism, property rights relations, industrial policy and even trade protection and other seemingly obvious but not the essence of the problem of detour after many years, the United States manufacturing industry from the perspective of their own management, to find the best solution. To plan, production and operation control of the main line of the manufacturing enterprise operation mode - MRP Ⅱ (Manufacturing Resource Planning) is widely used. 80's, MRP Ⅱ with the advanced management thinking and the development of computer technology, has been not only stay in the management of internal logistics, but also to expand to the enterprise internal and external resources as well as the overall management of the enterprise in the unified management, and gradually developed into today's ERP system.
ERP basic principles
ERP (Enterprise Resource Planning) directly translated as enterprise resource planning. Its meaning is that the establishment of computer information technology based on systematic management thinking, for enterprise decision makers and employees to provide the operation of the management decision-making means of information platform. It is a complete operation and production management plan system, but also to realize the overall efficiency of the enterprise's effective management mode.ERP as a carrier of information integration, its application and development can not be separated from the computer, so some people also regard it as the embodiment of the ERP idea of the computer information system software.ERP in the MRPII on the basis of the expansion of the scope of management, the customer demand and the internal manufacturing activities and suppliers of manufacturing resources integrated together. ERP expands the scope of management on the basis of MRPII, integrating customer demand and manufacturing activities within the enterprise as well as the manufacturing resources of suppliers to form a complete supply chain of the enterprise and effectively manage all links in the supply chain. At present, the world's two largest ERP vendors are the production of modular products ORACLE Corporation and the use of best business practices - from the successful enterprise management model and business processes extracted from the essence of the application of management software, product features detailed but the system is more large SAP company.
Konka Group Co., Ltd. formerly known as the "Guangdong Guangming Overseas Chinese Electronics Co. Ltd. was founded in May 1980 as the first sino-foreign joint venture electronics enterprise in China. It has built "Guankang", "Mukang", "Shaankang", "Ankang", "Chongkang", and "Chongkang" as sole proprietors and joint ventures. "At the end of 1997, Konka introduced the ERP (Enterprise Resource Planning) management software - R/3 system from SAP of Germany, which is a modularized product of SAP to meet the needs of the market. The most prominent feature of R/3 is to design solutions from the perspective of financial management, and fully integrated into the enterprise into, sales, inventory ideas.
ERP system implementation generally through the research, implementation, system operation of the follow-up work of three stages. Research work in the more central part of the demand analysis, it is often the success of the enterprise can implement ERP projects, the key to achieving the desired results.
The contents of the needs analysis include:
Problems in business management;
What kind of management software does the enterprise need;
Implementation of the system after the target;
After the implementation of the system, the original management procedures, workflow impact.
Konka Group's needs analysis
Problems 1. Group companies and their subsidiaries management system and management tools can not meet the needs of rapid business growth;
2. Program management;
3. Inventory;
4. Focus on the integrated business processing and integrated management;
5. Enterprise management control capabilities and business decision-making ability.
Project Objectives
1. To establish standard business processes within the Konka Group of Companies, as well as the information systems and standard functions of the systems that support their operation. Standardize the operation of the company's headquarters and its subsidiaries and production plants, improve the efficiency of operation management and decision-making, enhance information transparency, and strengthen the control of the group company over its subordinate companies.
2. Strengthening the group's financial analysis, financial control, cost management, and control of planning, procurement, production and inventory, realizing the unification of logistics, capital flow and information flow, and providing timely and reliable decision-making information for the company's managers at all levels.
3. Establish and improve the R/3 system of Konka Group's Shenzhen headquarters, including material management, production planning, sales distribution, financial accounting, management accounting, and fixed asset accounting.
4. In Ankang, Shaankang, Mukang, Chongkang and Communication Technology, develop and implement financial and cost management, material management, sales management and production planning and control management systems built on R/3.
5. Improve the use of financial system from simple financial processing to the level of financial analysis and control, and realize its management functions.
6. Improve the efficiency and effectiveness of the program, reduce inventory levels and backlog inventory.
7. Reduce the manual collection, processing and classification analysis work required to improve efficiency.
8. Comply with international accounting standards and practices.
9. Provide timely and accurate classification for easy analysis and summarization to comply with the requirements of the China Securities Regulatory Commission (CSRC) for financial statements of listed companies.
Konka Group ERP implementation results
Starting in June 1998, Konka Group completely abandoned the original production management system, and at the end of the year successfully expanded the new system to five major production bases.
Mr. Wang Jianfeng, Senior ERP Project Manager of the Information Center of Konka Group, talked about the effect of the project implementation when he introduced the project implementation results, after the implementation of ERP, the most obvious effect is to reduce the occupation of funds by raw materials. Now, the system can provide accurate inventory information to help the material department to develop a reasonable procurement plan, change the past production and procurement according to plan to develop procurement plans according to demand, reduce the inventory level and save a lot of working capital. What's more, the implementation of ERP system carries out the most advanced management concept to the whole enterprise. The information communication within the enterprise has been greatly strengthened, the business objectives of the enterprise have become clearer, the sense of participation of the staff has been significantly improved, and a healthy and upward corporate culture has been established. the breakthrough of the ERP system in the integrated financial management and supply chain management realizes the timely application of funds and cost reports, and the decision makers can timely and accurately understand the operation of the enterprise's departments such as production, sales, purchasing, and inventory and take timely measures to respond to the changes of the market, and through the system, they can take timely action. The successful implementation of the ERP project has laid a solid foundation for the development of the enterprise.
ERP in the financial management
Financial work throughout the operation of the enterprise has always been the implementation of all the decisions of the enterprise's feedback focus on the characteristics of the financial management has always been the core of enterprise management, but also the implementation of ERP enterprises focus on the implementation of the ERP. ERP's goal is to integrate the information through the system in order to strengthen the management of financial information, control and decision-making functions:
● Global information on the global market, the inventory, and other departments to take timely measures to address market changes, and through the system to implement timely. >
● Rapid feedback on global market information ● Finding a balance between reducing various operating costs and shortening the cycle of product entry into the market ● Improving the level of financial management of other departments within the enterprise and external organizations ● Providing a richer range of strategic financial information ● Stronger financial analysis and decision-making support Wang Jianfeng, manager of the system, said that, in the new system, the finance department's functions have been expanded and extended. In the past, the financial department is in the whole production, manufacturing process after the end of the bookkeeping and accounting; now, the financial department through the system can more timely grasp of production, sales, material supply and other information, which for the financial department to participate in business management, to strengthen the control of the prior, during the incident to provide the possibility of financial departments have not only stayed in the accounting and auditing work.
Costing as an example:
Figure 1, the right layer by layer from the bottom up to the cumulative, so that the production cost of the final product is called the cost of rolling calculation method (Cost Roll-up). The basic data used in this calculation are: material consumption quotas (from the product structure chart and BOM), purchase costs (from the material master file), various hourly rates (from the work center file), and standard time (from the process route file).
Before the implementation of ERP, due to the incompleteness of various types of basic data and the complexity of the calculation, it is difficult to do in the formal production of products to make accurate cost analysis, often to the completion of the production of the real cost of the product to know. After the implementation of ERP, this all has a huge improvement, it is easy to realize in the design stage at the same time the cost analysis of the product, so as to determine the market sales strategy.
Ms. Huang Xiaochuan, Deputy General Manager of Konka Group Finance Center, believes that: the implementation of ERP promotes the accounting from accounting to supervision, management, control type of change. product cost and financial accounting functions in ERP can be generated by the production activities of the financial data, to ensure that the unity of the flow of logistics and capital flow. Financial personnel can get timely information on the use of funds to strengthen the control of enterprise costs and performance analysis, so as to participate in management decision-making, control of enterprise production and operation activities.ERP as a management information system, enterprise departments are based on the same database to provide information, information entry errors in one of the links will produce a chain of reflections, so we must be strict and serious about the data. All departments should pay attention to the work, strengthen the sense of responsibility of the post.
Challenges of ERP
Can the introduction of ERP have an immediate effect, and can the management level be improved immediately? Manager Wang further explained that ERP is with the improvement of computer technology and MRP Ⅱ on the basis of decades of gradual exploration and development, in the process, the computer just acted as a computing tool, the key role is to run through the management of the idea of: through production, supply, sales, people, money, things and other information integration, so that the work of all departments closely linked, interlocked, thus driving the entire The effective operation of the entire enterprise body.
In the process of project implementation, first of all, we must affirm the advanced management thinking of ERP, from the overall operation of the level of the original management model for change, the original business process of the various aspects of a reasonable analysis and optimization, the establishment of a new management procedures, systems to make up for the shortcomings of the system, in order to truly improve the management of efficiency and level. For example: in the past, production, material departments often only need to ensure the accuracy of the number of materials received, collected, used, and the relationship between the financial sector is not close. In the ERP system, due to the unity of logistics and capital flow, the accuracy of each department's work will have a direct impact on the financial work, the materials department should not only ensure the accuracy of the quantity records, but also to ensure that the price calculation, record the correct. If the introduction of ERP is only on the basis of the original computer instead of manual operation, managers can not understand the system to provide data management value, ERP function will be very limited.
Many advanced industrial countries in the implementation of the ERP system before the enterprise, first of all, the management structure and mode of enterprise management to carry out a thorough innovation, that is, ERP and BPR (business process reengineering) combined with the overall structure of the enterprise, the organization, the process and all its links to examine and reorganize the company's IBM and General Motors is therefore enhanced competitive advantage, won the market.
Fuzhou Delta Auto Parts Co., Ltd. ERP implementation case
Fuzhou Delta Auto Parts Co. Specialized in processing metal rolling, plastic extrusion, one-piece composite extrusion, the main products are door frames, window frames, rear bail bars, running channels, slide rails, carpet presses, internal and external water cutting. The company was established in 1997. The total invested capital is 570,000 dollars. The company's business philosophy is: for more than micro-> from the individual to start, from small things, to lay the foundation for the company's growth, sustainable management to benefit the people.
With the company's continuous growth and business expansion, the company's performance surged from 9.55 million in 2001 to 24.9 million in 2002, and is expected to increase to 50 million in 2003. The company has developed a number of programs to address the surge in business, with the introduction of information technology as a priority. The focus of informationization is the introduction of ERP, and the ERP system of various companies, after comparison, chose to fly, there are the following reasons: the entire southeast supporting plant *** with the use of this system; complete functionality, easy to learn and easy to use. The first batch of modules purchased by Delta includes order, purchase, inventory, production, MRP and so on.
Because Delta has never used similar system management software, for information management is completely in a blank state, so in the ERP introduction, by the person in charge of the Chen Banglong manager to lead the task force for the principle of coding materials and the composition of the BOM, such as in-depth discussion and development. At the same time, the company's operating procedures to make detailed planning and development. Let the operation personnel according to the operation process to complete successfully. In some process aspects, Mr. Tim Liao, Chairman of the Board of Directors, will also personally participate to assist in the planning. Due to the delivery to the southeast of the day there are 8 times, how will each delivery can be timely and accurate management by the system, the process of operation time is detailed to the hour. In terms of documents, in order to better achieve the purpose of management, the project executor Wang Youming worked overtime to design the document format, most of the original documents are generated directly by the system, that is, to reduce the intensity of the front-line personnel operations, but also to improve the accuracy and timeliness. In the initial stage of procurement follow-up (other follow-up information similar), due to the incomplete implementation of the operating staff, resulting in inaccurate follow-up information. For this reason, Manager Mr. Chen Banglong and Mr. Wang Youming assisted the specific operators to correct the information pen by pen, to find out the correct method of operation, and patiently explained the impact on other departments. In the process, some historical data errors were found and corrected in time.
Now the company's ERP operations are basically automated: production: through MRP, orders automatically generate work orders, production orders, production is complete, check the work orders entered into the production warehouse receipts; purchasing: according to the MRP automatically issued; order sales: the use of EDI downloads, the automatic generation of the order and the bill of lading for the preparation of the goods, and the actual shipment of the audit confirmation.
Through the successful implementation of EFI ERP system, Delta's inventory in/out document time difference is controlled within 1 day, the inventory accuracy rate reaches 98%, the order delivery tracking accuracy rate reaches 100%; the purchasing inbound tracking accuracy rate reaches 99%; the BOM completeness and accuracy reaches more than 100%, and there is a great improvement in the completeness and accuracy of the company's basic information and reduction of the The repeated entry of data from various departments has greatly improved the efficiency of the staff and the ability to react and adapt to unusual events.
In the on-line time of only two months, Delta was able to flexibly use the ERP system to carry out, in addition to the flexible scalability of the ERP system and the strong development capabilities of Digital China Management Limited, but also with the active participation of the management of the enterprise and supervision has a direct relationship with the active participation of the management of the company, and the enterprise's information technology must be optimized with the combination of enterprise processes, otherwise information technology can not achieve the best results. The informationization of the enterprise must be combined with the optimization of the enterprise process, otherwise the informationization may not achieve the best effect.
Shandong Airlines ERP implementation case
Shandong Airlines is a state-owned large-scale air transport enterprises, is China's civil aviation industry, the preparation of a short period of time, a high starting point, the development of one of the fastest airlines. Shandong Airlines to the modern enterprise system as the basis for the establishment of a unique and efficient operating mechanism, the implementation of the board of directors under the leadership of the president of the responsibility system. The company is headquartered at Jinan Yuanwu International Airport, with flight bases at Jinan and Qingdao airports, two helicopter companies in Qingdao and Tai'an, and the Jining branch of Shandong Airlines, as well as offices in 12 cities across China. Currently, the company owns 13 aircrafts of various types, including B-737 and SAAB340, and has fixed assets of RMB 1.5 billion.
ERP Deployment of Shandong Airlines
At the beginning of the creation of Shandong Airlines, special attention was paid to the application of modern management tools to the practice of enterprise management, and the use of advanced computer technology to improve the level of business operations and management. After several years of exploration, Shandong Airlines initially established a set of computer application system suitable for the characteristics of the airline.
In the process of implementing the computer management system in Shanxi Airlines, gradually come into contact with the ERP management ideas, and feel that in accordance with the ERP management ideas, unified planning of the airline's computer management system is very necessary. But how to make ERP management ideas in line with the actual needs of the airline, is the first problem we face. After in-depth research, we believe that: Mountain Air is not suitable to engage in "big and comprehensive" huge system, but there must be a global planning, according to the "overall planning, step-by-step implementation, breakthroughs" policy, from local to global, and gradually realize the comprehensive Computerized management. Following this principle, the ERP system is planned as three major parts: financial management system, aircraft maintenance management system, and flight operation control (FOC) system. Among them, the financial management system is at the core, emphasizing the rational use of internal and external resources, cost reduction and efficiency improvement; the aircraft maintenance management system and the flight and operation control system emphasize the comprehensive information processing of aircraft maintenance and flight to ensure the safe and reliable operation of the aircraft, and at the same time feed the expenses as much as possible to achieve the purpose of cost control. In this paper, we focus on the financial management system in the ERP system of Shanxi Airlines and our experience.
Mountain Air stand-alone accounting financial management system
Mountain Air's financial management system is developed in cooperation with Wave General Software Corporation and the Civil Aviation Institute of China. This set of financial management system to financial statement processing as the center, the organic combination of civil aviation transportation enterprises with the characteristics of stand-alone cost management, ticket settlement management, aviation material accounting management and other subsystems. Through this set of financial systems, the financial accounting work of the airline has been completed by the type of accounting to the single machine accounting changes, from manual work to all the computer accounting changes, so that the airline's financial management, cost control, analysis and decision-making level on a new stage.
Shanxi Airlines financial management system in the financial accounting of the biggest feature is the stand-alone accounting, that is, accounting for each aircraft as the object. Currently, all domestic airlines have adopted the financial management method of model accounting, and the single-engine accounting method adopted by Shanxi Airlines has refined the accounting object compared to the model accounting, which can provide more accurate cost and revenue data for the analysis of route operation results, and also provide single-engine cost information for the realization of single-engine fixed-contract program.
Shanxi Airlines' financial management system includes four core subsystems, including accounts and report processing, single-engine costing, revenue settlement, and aircraft material accounting and management, as well as a number of auxiliary management subsystems. All these subsystems around the center of stand-alone accounting, both independent and interrelated, complementary *** with the composition of the entire stand-alone accounting financial management system. The following mainly introduces the four core subsystems.
1. Accounts, statements processing subsystem
Accounts processing module mainly includes accounts initial, accounts processing, accounts query, auxiliary management of four parts. The content of account bedding includes the determination of voucher type, financial structure, and other environment definitions, etc. The account processing part completes the voucher type determination, financial structure, and other environment definitions. Account processing part of the completion of the voucher entry, voucher review, voucher summarization, month-end account transfer and other tasks. Accounts query and auxiliary management for the relevant personnel to provide query and auxiliary decision-making functions.
The report processing module includes five parts: report format definition, change report definition, report formula definition, daily report processing, standard report and report management. These modules respectively complete the registration of the report, formatting, definition of calculation formulas, analyzing and calculating, generating daily reports and performing data backup.
The implementation of this subsystem greatly improves the efficiency of accounting work, simplifies the reconciliation of the ledger and the general ledger, and completely frees the staff from the tedious work of registering books and calculating. The system adopts the computerized method, omitting many preparatory work for the preparation of statements in the past, such as the preparation of trial balance, reconciling the general ledger with the detailed accounts, and so on. Using the set formula, it can read data directly from the relevant database, analyze the operation and fill in the report. At the same time, you can also use the checking function to automatically review the data in the table and the relationship between the table. At the same time, after the use of this system, we can make full use of the advantages and features of computer software, accounting forecasting, accounting decision-making, accounting control and accounting analysis activities, thus expanding the depth and breadth of accounting, the true realization of the management function of accounting.
2. Stand-alone costing subsystem
The main content of this system is to set the degree of stand-alone costing work according to the management requirements, according to the stand-alone machine and the cost of the project accounting, the formation of stand-alone cost and single route cost. In single-aircraft costing, the costs incurred by a single aircraft, such as fuel costs, landing fees, etc., are directly attributed to each aircraft. The management costs, depreciation of assets other than aircraft and engines are apportioned according to a certain standard to form the cost of a single aircraft, and then, according to the cost of a single aircraft and the implementation of the route tasks are aggregated and reapportioned to form the cost of each route, and then analyzed with the route revenue together with the route efficiency. The system realizes the following functions:
In accordance with the enterprise financial standards and the accounting system of civil aviation transportation enterprises, the data of the current mission statement is used to make the withholding of the landing fees and fuel for the current period, and the data is also directly included in the cost of the single plane and the route.
The system defines cost attributes and cost components for each direct and indirect cost in bedding, which facilitates the analysis of the company's fixed/variable costs and direct/indirect costs.
According to the accounting system and financial management methods of civil aviation transportation industry, for the costs that can not be directly accounted for in a single aircraft, the design of a special cost aggregation and allocation standards, reasonable and accurate calculation of the cost of a single aircraft.
For the aircraft landing and take-off service fees charged by the airports, the possibility of duplicate payments has been eliminated. For the payments already made, such as fuel, landing and takeoff costs are marked within the system to determine whether payment is made without checking the accounts, realizing the function of self-control in accounting.
The cost of a single aircraft under manual accounting is only the total cost of a certain period allocated to each aircraft according to certain criteria, while the single-aircraft accounting system accounts for a large proportion of the cost of fuel, landing and takeoff costs, depreciation, etc. directly into the single-aircraft, to prevent inaccurate allocation to ensure that the calculation of the cost of the single-aircraft is also more accurate.
The analysis of route costs and benefits, which is one of the most important results of the financial stand-alone accounting system, provides a reliable basis for business decision-making.
3. Revenue settlement subsystem
This system mainly includes revenue accounting, sales accounting and ticket management in three parts. Revenue settlement subsystem strengthens the management and control of revenue settlement, which allocates the revenue to a single plane, a single route, and can predict the regional sales, decision-making flight schedule, and route capacity according to the specific conditions of each route. Due to the detailed and extensive information gathered, the analysis of operating results is comprehensive and accurate, which improves the credibility of pre-decision making and effectively reduces the blindness and arbitrariness of decision making. Pressure on the agent unit of the situation, previously only limited to the settlement of the month part of the previous ticket individual specialized collection, that is, increased the workload of the settlement staff and not accurate and complete. After the operation of the system, the pressure of the situation can be accurately quantified, to be determined after the monthly transportation revenue, you can accurately verify the unsettled situation of the subordinate and agency units, so that the pressure of money to solve the problem has a reliable basis. At the same time, the operation of the system to solve the problem of matching the accounting union and passenger union, which is unimaginable before the ERP system, due to the realization of the function, maximize the recovery of the company's potential losses of all kinds, to safeguard the interests of the company, and set up a company's image.
4. Aviation equipment accounting and management subsystem
Aviation equipment is an airline in order to ensure that the normal flight of the aircraft and the reserves of various aircraft parts, with a variety of large quantities, high value characteristics. The accounting and management of aviation equipment is an important part of the stand-alone accounting and financial management system, that is, the physical management of aviation equipment can be carried out, but also the value of aviation equipment management. The main functions include the receipt, issuance and storage management of aviation equipment, accounting for aviation equipment and reasonable management of aviation equipment procurement.
Usually, aircraft material accounting needs to provide the following four aspects of information: inventory (receipt, issue, inventory), procurement costs, equipment cost differences, transportation costs. Aviation material management system closely around the actual workflow, the functional modules are interlinked, mutual constraints, to facilitate the establishment of a binding mechanism. Through the establishment of the constraint mechanism, the blindness of the ordering of aviation materials can be greatly reduced. Mechanisms established before the ordering of quantities and prices are determined by the business sector, the financial sector can not play a supervisory function; the establishment of a binding mechanism, the business sector's ordering plan reported to the financial sector, the financial sector through the understanding of the inventory situation, the consumption of the situation, it is recommended to reduce the number of unreasonable varieties and quantities, and through the review of the contract history of the ordering situation, it is recommended that the business sector on the price of the ordering of the high price for the re-inquiry to determine the ideal The company also suggests the business department to re-quote the over-priced orders to determine the ideal price, thus realizing the supervisory function of finance and reducing the cost.
Application experience
The work of financial accounting is actually data processing work, the objective need for computer data processing capabilities. Civil aviation enterprises unique ticket settlement, aviation material accounting and management have to deal with a large amount of data, relying solely on manual mode of operation, it is difficult to analyze the control aspects of the stage. And the successful implementation of computer systems need to pay attention to the following aspects:
* Using the right development
With professional financial software development companies and civil aviation enterprise management experts to ensure that the financial management system of the Mountain Air both advanced computer technology to support and absorb advanced financial management experience. Wave general software company in the last two years in the field of financial software to rise, its strong technical strength for the successful development of the mountain airline financial management system to provide a reliable technical guarantee. Experts and professors from the Civil Aviation Institute have been engaged in the research of civil aviation transportation enterprise management for many years and have accumulated rich experience, and they have provided advanced management ideas for the financial management system of Shanxi Airlines.
* Leaders attach importance to the real work
The president of Shandong Airlines and the leaders of the planning and finance department of Shandong Airlines are very supportive of the development of the financial management system, often encouraging the developers to work hard and solve the practical problems encountered in the development process. The leadership of the Department of Planning and Finance is to lead by example to work overtime, and successfully through the computer and manual parallel operation of the burden of the period, for the computer management system formally put into operation to lay a solid foundation.
* Cultivate the enterprise's own computer maintenance team
The enterprise's own computer management personnel involved in the development of the system from the beginning to the end of the system, in the process of system development, they participate in the system analysis and design of the entire financial management system has a more in-depth understanding; after the completion of the development of their assumption of the system's maintenance tasks, to facilitate the timely resolution of the financial management system for the daily use of problems arising in the process.
In the process of system development, they participate in the system analysis and design, and have a deeper understanding of the entire financial management system.
Summarizing the above, we believe that the financial management system is a subsystem of the overall ERP construction of the airline, but also a very important system. The control of costs and expenses in the financial management system, the control of transportation revenue is the control of the most important enterprise resources - funds in the ERP system. The successful establishment of the financial management system for the construction of a comprehensive ERP system has accumulated experience, laid a solid foundation and established confidence.