After the go-live of a new ERP system, the mid-sized electronic manufacturing services provider Krüger & Gothe suddenly lost track of things – order overviews were incomplete, material and inventory information inconsistent. Therefore the company introduced a software add-on: "MiG" (Materialwirtschaft im Gleichgewicht) from Perzeptron, which makes the connections visible and restored actionable and billable capability. This is according to a Perzeptron press release.
"With MiG we now have three central tools in hand: a delivery overview with all orders including one-off costs and framework orders, a manufacturing overview with call-off orders and current material status, and a dashboard with efficiency analysis. The latter shows us at a glance critical positions and backlogs in order management, purchasing and manufacturing.
The price and framework overview was particularly valuable at the outset — this allowed us to quickly identify and correct numerous import errors," explains Andreas Janele, Head of Purchasing at Krüger & Gothe.
The solution, according to the provider, also delivers various analyses, bottleneck assessments and operational overviews. As a web-based module, MiG runs without local installation, can be docked to existing ERP systems, and offers a Google-like search function. Results can be easily exported to Excel with a click. Through an integrated communications field, employees can exchange targeted information across departments.
The effects of MiG were already visible after a short time, according to Perzeptron. In planning/scheduling, backlogged orders with a total value of 8.4 million euros could
be reduced within four weeks to 2.6 million euros, and after four months they stood at only 345,000 euros. Also in manufacturing, the backlogs shrank: from 300 open orders at the beginning to 60 after four months; currently they are usually only one to three.
More transparency in direct costs
In procurement, the number of defective parts fell from 28 to just one part. At the same time, the inventory of raw, auxiliary and operating materials decreased from 8.6 to six million euros. Furthermore, the transparency in outstanding direct costs brought an additional financial effect: overdue receivables worth more than 100,000 euros could still be billed retroactively, according to the software provider.
"MiG has not only returned transparency but
also brought measurable financial effects on a massive scale," emphasizes Janele.
The rollout of Perzeptron's solution went smoothly.
"MiG has worked very quickly and well from the start. Since the tool only displays data and does not write into the ERP, the hurdle for employees was low. The worry about breaking something in the new system disappeared quickly. Also our improvement requests were implemented quickly and without problems. Everyone is thrilled with the tool," says Janele.
Currently, the solution is being expanded: The company is tying in a capital-binding cockpit to complement the complete order overview per customer, including raw, auxiliary and operating materials stock, work-in-progress and dead stock analysis. This should further sharpen the view of tied-up capital.
