The Merx concern automates production management

In Merx concern implementation of an information system for planning and production management based on functionality of SAP is complete. The project is executed by EPAM Systems company.

The new solution is integrated with earlier implemented modules of SAP (management of material flows and sale, controlling, finance) and allows to automate operational management of assembly production according to customer orders and production of semi-finished products.

For the purpose of increase in production volumes of the company, expansion of presence in international markets, opening of the new furniture centers the decision on development of a new production management system was made.

Within the project the main problems in the field of management of discrete production are solved. In particular, all technology processes connected with production of kitchen furniture are normalized. Preparation of production documents is automated. There was an opportunity for application of a semi-finished cost accounting method in production.

In a single system two different models of production are automated: assembly of finished goods (on the basis of incoming orders of clients) and production of semi-finished products (on the basis of forecasts) with daily updating of production schedules and logistics.

For finished product output in a system customer requirements to characteristics of the necessary product are fixed that allows to make works orders automatically. For production of semi-finished products orders form on the basis of statistics of previous periods. In both cases availability of necessary components and capacities is checked: if at present it is impossible to execute the order, a system suggests to postpone it to the next possible date. After execution of the order production costs automatically are calculated, the used materials are written off, contractors are fixed.

In a project deliverable it was succeeded to avoid completely formation of operational works orders and pick lists in the semi-manual mode and to provide operational accounting of the executed production orders. There was an opportunity to use more exact scheme for calculation and the analysis of planned and actual cost.

Accurate control over process of production of each batch of semi-finished products, over material issue in production and their write-off on the turned-out products is exercised. Use of a system promotes significant increase in effective management of production of finished goods and semi-finished products, optimization of stocks and costs, cost reduction.