In general, ERP refers to a mechanism that optimizes and effectively utilizes the distribution of people, goods, money, and information, which are the management resources of a company.

Material Automation (Thailand)(hereinafter abbreviated as MAT) provides the manufacturing industry with an ERP system mcframe CS that specializes in production control.

In this article, we interviewed four people, President Yamashita of Thai Shibaura Denshi, Factory Manager Fujita, Accounting Manager Narita, and Mr. Abe of the Information Systems Department, who succeeded in improving operations by introducing this system.

■Introduction of Thai Shibaura Denshi

Shibaura Denshi which has been established in 1953 is an electronic component manufacturer that specializes in the manufacture and sale of thermistor elements and temperature sensors. Thai Shibaura Denshi which has been established in 1996 is providing thermistor elements and temperature sensors for Hybrid vehicles and water supply systems.

The reasons for the system renewal are "blackboxing of information" and "slow after-sales service"

Editor:
Please let us know the reason of the introducing ERP mcframe

President Yamashita:
Previously, we expanded the accounting system to control production.
In terms of manufacturing control, I think it was an unreasonable use.
Considering the future vision, I thought that the system needed to be renewed.

Fujita Factory Manager:
Blackboxing data was also a problem. Since each staff was individually in charge of production control, even if they asked the same question, the answer was different for each person in charge.

Narita Accounting Manager:
Also, I always downloaded the information from the system then use it after processing, so it was not comfortable to use. The core accounting system had many problems, and the support center was in Singapore, there were problems with response speed and language.

Promote system introduction with strong management leadership

Editor:
What was the hard part about the system deployment?

Fujita Factory Manager:
Thai staff had been managing the data individually for many years, so I was reluctant to introduce it.

Editor:
How did you overcome it?

President Yamashita:
I repeatedly told employees that it is important to exclude the Excel sheet management of each individual and build the work flow that should be.

Prompt support that earned the trust of on-site Thai staff

Editor:
I heard that MAT presented a deployment schedule of about 2 years. How was your support during that period?

Mr. Abe:
It was a much quicker response than Japanese vendors. I also think it was good to use groupware and share information with all the people involved.

President Yamashita:
We had MAT deeply understands our business and responded to build the own system. Our Thai staff also trusts MAT's SE very much.

Eliminate omission of orders and delays in delivery schedule by systematization. Real-time progress management is also realized!

Editor:
Please tell us about the changes after the system was installed.

President Yamashita:
Work efficiency has improved significantly, centered on the work of employees involved in indirect work. This is a big effect because this area was a difficult area to improve.

Fujita Factory Manager:
The MRP (Material Requirements Planning) function of the ERP system eliminates urgent process changes due to shortages of raw materials, making it possible to carry out stable manufacturing operations.

Mr. Abe:
Even under unprecedented production output conditions, it is now possible to put in the man-hours needed for the required processes as planned. In addition, with the deployment of about 50 handy terminals, we have been able to notice to grasp the progress of process and inventory status in real time.

President Yamashita:
In addition, the staff's consciousness seems to have changed, and the idea that "planned production makes work more efficient" has begun to be understood. Also, I feel the fact that the locus of responsibility has been clarified has provided a foothold. It can eliminate the “culture of another responsibility” that is often seen in Thailand. This is a great effect that will improve productivity.

Editor:
Please tell us your future plans.

President Yamashita:
We have grown steadily over the past few years and expect continued growth in the future. However, from now on, the challenge is to increase the operation of locations, personnel and equipment while retaining investment. By systematizing the current situation in real time, I feel that it has become easier to work on management such as proper staff allocations. I think this is the turning point to change the structure of the company.

Editor:
Thank you for your valuable story today.