[China Aluminum Industry Network] Abstract: It is pointed out that resource management planning (ERP) and management are serious problems faced by enterprises in China. It analyzes the difficulties of aluminum material companies in implementing ERP and puts forward measures to solve these difficulties, especially in light of production reality. The concept of a business decision-maker or investment manager is very important.

Keywords: Resource Management Planning (ERP); Aluminum Profiles; Difficulties; Ideas

Implementation of ERP business difficulties and investment management philosophy in the aluminum industry

Gan Zhongxin
(Guangdong Xingfa Aluminium (Henan) Co. Ltd, Jiaozuo 454591)

Abstract: Point out that resource management planning and management (ERP)is a serious problem faced by Chinese enterprises, analyzes the difficulties in implementing ERP aluminum companies, combined with the production practice, put forward to solve these difficult measures, especially the enterprise decision- Makinglayer or investment management concept is very important.

Keywords: Resource Planning (ERP); aluminium profileenterprises ;difficulties; concept

1 Introduction

With China's accession to the WTO and the hosting of the 2008 Olympic Games, the competitive environment of enterprises has undergone fundamental changes. With the advent of globalization, information, and surplus economic times, companies must establish efficient and dynamic rapid response systems. At present, Chinese companies are generally maladapted.

Informatization is an inevitable choice for enterprises, and it is also a weapon and means to enhance the competitiveness of enterprises. Many aluminum profiles industry also take this opportunity to expand enterprise reproduction and improve the company's operation and management level; at this time, many companies in the aluminum profile industry began to consider the use of or have been using resource management planning (ERP) to enhance the company's business management. However, enterprises have many difficulties in implementing ERP, many contradictions, and many uncontrollable factors. There are very few companies that implement ERP and have achieved success. In particular, enterprises in the aluminum extrusion industry implement ERP, and the application of ERP is not very good, and even if some of them are nominal Companies in the industry that have successfully implemented ERP are in fact only implementing the financial part of the ERP system.

The reason is mainly that the existing traditional ERP is not very suitable for such industries.

The major issue facing Chinese companies is management. With China's accession to the WTO and the acceleration of global economic integration, the adjustment of industrial structure will be carried out throughout the world. Whether enterprises can win competition in the market and whether they have the ability to continue to develop depends on management.

In the highly competitive international market, whether it is a process or a discrete manufacturing industry, whether it is a single production, a variety of small batch production, a small variety of repetitive or a standard product mass production manufacturing, manufacturing internal management Some of the following problems may be encountered: If the company may have excellent sales personnel to promote the product, but the workers on the production line are unable to deliver on schedule; the workshop managers complain that the procurement department did not supply the raw materials they need in time. In fact, The efficiency of the purchasing department is too high. Some of the materials stored in the warehouse can not be used for 10 years. The storage space is saturated and the capital turnover is slow. Many companies have to use 6 to 13 weeks to calculate the required amount of materials. , so the order period can only be 6-13 weeks; the date on the purchase order and purchase order is different from the date on the short list, and none of them is positive; the financial department does not trust the data of the warehouse department, not it To calculate the manufacturing cost.

It cannot be denied that the above situations are a serious management problem that most of our companies are currently facing. However, what effective solutions can we have to solve this problem? The fact is that when the Chinese business community is not fully aware of the seriousness of this issue, foreign ERP/MRPII software vendors have already quietly entered the Chinese market, and over time, ERP has begun. Gradually recognized by the Chinese business community and theoretical circles.

2, ERP implementation of business difficulties in the aluminum industry

For the sake of better explanation, I will use the production of aluminum profiles as an example. After the aluminum manufacturers purchase aluminum ingots or aluminum water from suppliers, they first perform fused melt forging to form aluminum rods, and then squeeze the aluminum rods. Forming, surface treatment and deep processing and other processing, compared to the final package, leaving the factory. Therefore, from the perspective of the entire production process and the use of raw materials, aluminum production itself is not very complicated, but this is not a very complicated production process, but the following challenges are encountered when using traditional ERP for production management:

2.1 The material coding scheme is difficult to determine

Since the products of aluminum profiles contain profile shapes (such as round tubes, square tubes, profiled tubes, flat tube tubes), wall thicknesses, profile outside diameters, lengths, wall thickness tolerances, length tolerances and even other special properties and specifications, From the concept of combination, if the specifications and attributes of these products are all reflected in the traditional material codes, they will be combined into thousands of material codes, making it very feasible to use traditional material codes.

2.2 The existence of a large number of one-time material codes

Since some aluminum profiles are produced based on national or industry standards, this part of the material code setting is still feasible using the traditional material code setting scheme. The main reasons for this are the product varieties and specifications of the national standard or line standard. The number is small.

However, in fact, a large part of the production of aluminum profiles is produced according to customer orders. Due to different customer specifications, or different specifications of the same customer at different times, it is bound to result in the use of With the traditional material coding rules, there will be a large number of one-time code generation in the system. Also, the existence of a large number of one-time material codes will also seriously waste the resources of the system.

2.3 Inventories can not be queried to a large extent in accordance with the order number, aluminum shape, surface color, length and other specifications attribute query Traditional inventory of ERP systems is basically in accordance with the warehouse, material code, etc., but for aluminum profiles On the other hand, to a large extent, based on the surface color, length, wall thickness and other specifications attributes for inquiries, and many times, it may only use the value of a few product attributes of the product to query.

In short, its queries are mostly fuzzy, not exact queries like using material codes. The reason why this method is used for searching is mainly based on the production or sale of aluminum profiles that can be substituted.

To give a simple example, if the warehouse has a group of 6-meter-long aluminum profiles, and the length of aluminum profiles required by customers at this time is 5.5 meters, if according to the traditional ERP concept, aluminum profiles will be The aluminum profiles stacked in the warehouse are two different material codes, so there is no doubt that the MRP material demand plan at this time will require the production department to arrange 3.8 long aluminum profiles for production.

However, in fact, in the actual production and operation process of aluminum factory, it is not always the case. Many times, aluminum manufacturers prefer to shorten the 6-meter-long aluminum saw in the warehouse to 5.5 long (considered from the point of view of manufacturing cost). ) and then sell it. Therefore, for enterprises like aluminum profiles, the inventory query is largely concerned with the fuzzy query of the range and does not require an accurate query. Therefore, it also poses a challenge for the traditional ERP inventory management module to adapt to the inventory management of these industries. .

2.4 Measurement of production and sales

Generally speaking, the production organizations of aluminum profiles factories are generally organized and produced in counts (production and warehousing are carried out according to the number of counts. Note: when customers place orders, they also place orders based on the number of counts), but However, actual sales are largely based on actual weight (kg, tons). Here, many people may think that this is a simple unit conversion problem, but it is not.

Traditionally, the conversion of ERP units (counters and kilograms) is based on theoretical weights. Therefore, actual sales always use a certain unit of count (such as the number of counts) for price calculation, but for similar aluminum profiles. In the industry, due to the fact that the actual weight and theoretical weight are larger, and because the weight price is higher, many times, for the sake of fairness, the actual weight is used for billing and billing. This is also more difficult to deal with in the traditional ERP sales delivery.

2.5 Corporate Management Concept

There are some deficiencies in the management of some enterprises in China for information technology. This can be said as a common problem of technical personnel. Some managements of the company blindly believe that informationization is still only investment without output, and information construction projects are not One of the projects that will be able to see results one day is that it emphasizes continuous improvement and long-lasting efforts.

Therefore, on the one hand, informatization projects rely on the long-term sustained support and understanding of superiors; on the other hand, it is also inseparable from the continuous exploration and innovation of information-based constructors. The experience of predecessors or other peers can be used as a reference or reference, but more often we must combine the actual situation of the company itself, such as the economic strength, the pressure of competition in the industry, and the discussion of related information construction projects. Buying an expensive system does not necessarily result in good informational results, but rather to find systems that are more suited to the operations of your company.

3 References to Improve Difficulties

3.1 Consensus reached with the top leaders of the company to promote the implementation of ERP projects ERP is not the end point, it is a starting line. The implementation of ERP by enterprises is the beginning of the entire management reform. When companies need to reorganize and integrate their own resources, they will be faced with changes that include: business processes, staffing, and product configuration rationalization. Therefore, the leader of this change can only be the top leader of the company. Only when he reaches a consensus with the project team can an ERP project be started.

3.2 Clear project implementation goals

The implementation of ERP is a profound management revolution. It is a system project that is costly, has a long implementation cycle, and involves a wide range of areas. Therefore, strategic planning needs to be carried out and project analysis should be well done, including budgets, process control, manpower allocation, and organization. System design is ensured for such issues as safeguards and clear implementation goals. A clear and practical implementation goal is the guarantee for the successful implementation of ERP, and it is also a measure of the success of an ERP project.

The implementation goal of the ERP project is to be based on the company's basic situation and the company's development strategic goals. The ERP project implementation team has conducted a comprehensive analysis of the advantages and disadvantages of the company and the bottlenecks affecting the development of the enterprise, puts forward the needs and expectations of the enterprise information construction, and formulates the project's overall goals, goals, and phases.

3.3 Comprehensive Inspection, Selection of Software Suppliers

First of all, the company must clarify its own purpose and needs, first for self-analysis and diagnosis, and then to in-depth inspection of a number of suppliers and suppliers of customer service, if necessary, please consult management agencies involved in the planning and identification. Enterprises should do a good job of input-output analysis and pay attention to the rationality of costs. They should not only unilaterally pursue the use of full-featured software to cause waste, nor must they save the momentary cost to make the selected software unable to meet the development needs of the enterprise, taking into account both practicality and openness.

Software should be a management service, not a management adaptation software, and should not be put aside. The software must be suitable for the company's processes, with a high degree of compatibility, so as to reduce the amount of secondary development, ensure the implementation period, and smoothly implement BPR.

The suppliers have better service experience with customers in the same industry, and they must have successful implementation of ERP cases. This will reduce the implementation risks and greatly shorten the implementation cycle in the basic data preparation such as the software coding system. At the same time, it is necessary to examine the comprehensive strength of software suppliers, the quality of implementation personnel, and their ability to follow-up services. Selecting a software supplier is like choosing a married couple. You must be careful, and choosing a good partner is half successful.

3.4 Gold Tower Implementation Team

In order to successfully implement ERP, there must be a group of consultants who are proficient in ERP management thinking, master software technology, and at the same time have experience in organizing and implementing ERP projects in the Chinese environment. The implementation of ERP projects depends on the entire team. A pyramid-based task group led by the “top leaders” of the company was established to manage the entire project, selecting and deploying competent trustees. At the bottom of the pyramid, application consultants, including business implementation and technology implementation, are responsible for the implementation of the two major projects. At the middle level, management consultants ensure the success of the project and control the progress and direction of the project. At the top is the consultant, who is responsible for integrating the business. Improve management. Application consultants work closely with the company’s specific business and technical personnel. Management consultants work with mid-level corporate leaders, and consultants communicate with senior corporate leaders. In this way, the entire project can be linked to each other and cooperate with each other to ensure smooth flow at every step.

3.5 emphasis on training, and throughout

ERP is the use of a new management model to transform the old management model of the original company. It is an advanced and effective management idea and method. It is based on the development achievements of management thinking, management technology and computer technology and reflects the supply chain of the company.

To successfully implement ERP, training must be emphasized. Training is more than just a system-based training. From the beginning to the end of the project, the corresponding training is consistent, with phases, sub-content, sub-personnel, and sub-level management. Systematic training was conducted separately. Training must also have a complete training knowledge base, focus on scientific, effective, practical, staged, hierarchically, with the help of training methods to unify the understanding of employees, improve management philosophy and technical skills. Otherwise, the software is used, but the employees may not really accept it; the concept accepts that the data and system may not be in place. ERP is an overall management solution that prevents the downgrading of software to manual operations.

3.6 Decisive battle - basic data preparation

After the entire target has been identified, there is a very important aspect, namely the preparation of basic data. The preliminary data preparation is the key to ensure the correct operation of the system. Many companies implement other systems that are often stalled at this stage, resulting in failure in the end. Also we must take this link very seriously and call it a decisive battle. The data of manufacturing companies is not only complicated but also very irregular at the beginning. These data include: customer data, supplier data, material data, product structure, process and process static data, also includes inventory, customer orders, delivery, delivery, invoices, receivables, payables, etc. will change every moment Dynamic data.

3.7 Strengthening Progress Control

The implementation of ERP is roughly divided into three phases: the first phase is mainly the preparation of basic data, and standardization; the mid-term definition of the interface, and the reorganization of business processes; the latter is the implementation of the adaptation period, the implementation of manual and computer operations, and the gradual resolution of the manual work on the computer The job is not adaptable.

The implementation process includes project startup, team formation, design, coding, testing, data preparation, software installation, software debugging, project commissioning, secondary development, and formal operation of the project. Each stage requires strong leadership and coordination by all parties, otherwise there will be risks of interruptions, delays, and over-budgeting. Problems that may arise in the implementation process include: forgetting the expected goals, reducing the original goals in the face of balancing various interests and difficulties; projects may temporarily affect normal business and have negative effects; unpredictable factors affect the progress of the project and resolve to shake the leadership. .

In view of the above situations, the leaders must plan properly, have a firm will, have strong supervision, implement project management, communicate in a timely manner, analyze in a timely manner the causes of deviation in the process, and actively seek solutions.

4 Conclusion

ERP has revolutionized management thinking and management techniques both in China and around the world. What is more noteworthy is that before MPRII has been fully recognized by the Chinese business community, it has developed into the ERP in the current era of e-commerce in a short period of time. It can be seen that this new management method and management tool is being used and developed in China’s enterprises at a speed that people can’t imagine. It undoubtedly infuses many of the companies that fought hard in the tide of the market economy. New blood. Therefore, for us to better grasp and use this revolutionary management tool, it is necessary to have a clear understanding of the difficulties and countermeasures in the implementation of ERP.

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