From left: Ms Jasmine Kang (Project manager), Ms Lok Kah Mun (ERP Project Manager), Mr Kang (Director of Dee Noon), Ms Khor (Project manager)
Dee Noon Corporation Sdn Bhd (Dee Noon) was established on May 2006. Managing director of Dee Noon, Mr Kang and his team develop products on concept lifestyle furniture such as bedroom, living room, kitchen furniture and so on. Dee Noon export their products to over 20 countries including South East Asia, Asia and European countries. Currently, they are capable to produce about 70 containers every month. Beside homemade furniture, they manufacture OEM products for local seller and built-in kitchen cabinet for local housing projects as well.
Dee Noon provide services that allow customer to modify the specification of the model based on their own preferences. Research and development department produce model according to local culture for different countries, for example, bedroom set selling good in Indonesia so they make the product and export to the country. This shows that Dee Noon highly emphasize on customer’s preferences, so that they put effort to understand local trend and manufacture the best product of them to the customer. This reason has made Dee Noon become one of the most respected manufacturers in furniture industry.
Build up systematic internal process
By gaining customer’s trust, Dee Noon always ensure their product quality able to fulfil customer’s expectation. As business is gradually expanding, internal management should be the first step to start with in order to improve productivity. Mr Alvin Kang comes out with an idea to adopt ERP system in Dee Noon to improve internal process. Digiwin’s Workflow ERP system had become his choice after he understand what ERP system could benefit to Dee Noon. “The main point to implement ERP system is to improve my company workflow and assist my team to work effectively and improve the accuracy of the work done.” said by Mr Kang.
Implementation of ERP system
There are few reasons why management decided to implement ERP system to improve overall business process. Before we implement workflow ERP system, the ERP system currently using mainly control on stock and purchaser issue Purchase Order through the system, while marketing department issue Proforma Invoice (Sales Order) manually. Besides, accounting system do not link directly from sales, purchase and stock. Therefore, manual work is require to get all the information from different department and input the data into accounting system.
The second reason is production department are not using any system to control the whole manufacture process. They are using paper work most of the time from issuing Job Order, Travel Card and so on. While material requisition and production stock in was key in by store keeper. Based on the practice, head of production unable to track the status of the Job Order such as how much material have been used for particular Job Order and what is the quality of Finish Goods for one Job Order.
Based on the explanation as above, inventory system is important to a business because it should cover the all the process flow such as ability to check available stock when issue Sales Order in the system, item and quantity to be re-order to be generate according to parameter, material used for each Job Order and produced quantity should be capture for analysis purpose and so on. All the information shall link together with accounting for better monitoring and supervision for cost accounting calculation.
Consultant comes out with some solutions after the interview and introduce to user during standard training. During standard training and hands on practice, we observe users’ understanding and familiarities on the system, everyone understanding might not be in the same level at the same time, therefore we spend more time on strengthen their understanding in process flow and system operation.
During the implementation, we could find out some gap in between the system and actual process which is supposed to be follow. What we do was make some minor adjustment on the system by customization, the purpose is to fulfill customer’s requirement yet meet the internal control mechanism.
Took time to adapt with new system
We understand current process flow, we help to reorganize the process flow with some minor changes in order to fulfil internal control mechanism. This part was taking longer time as user have been doing thing in the current way for years, it is not easy to change the method immediately.
Among all the department, accounting department was the one facing biggest challenges on learning new system. ERP system structure is way more complicated compare with accounting system. Accounting module in ERP system not only cover accounting transaction but it covers all the business processes. Accounting department have to audit the data flow from other department so that they only can proceed, for example, the tax code chosen by purchasing department could affect Sales and Services Tax (SST) declaration. This step could take some time to do checking and verification even communication with purchasing department.
After we adjust the process flow, users give their full cooperation to follow the steps during daily operation. We always believe practice makes perfect, user put efforts on practices and management show their supports for the changes of the process flow because they understand the purpose and it fulfil internal control management.
Preparation of data
Besides, preparation of data is one of the most important steps during ERP implementation. The huge amount of data such as item data, BOM, unclosed Sales Order, unclosed Purchase Order and Inventory opening took user plenty of time to sort out and enter into ERP system although they need to deal with daily work at the same time.
Due to opening data need to be done before go-live, we have decided to start entering unclosed sales order which going to ship on June 2019. While purchasing dept have started to issue purchase order by using ERP system since May 2019. Research and development department was carrying the heaviest workload during opening data entering. They have to create item data for finish goods and raw material and also BOM data. However, they managed to complete all the data enter into ERP system before go-live date and it took about 20 days.
Project manager play a very important role during this period. They well organize in manpower and clear instructions to users induce to completion of above data before go-live.
Coordinate to make the bridge of communication in between department
In addition, project manager plays as a coordinator between department in the company. They get to understand responsibilities in each department and held up meeting for discussion. Under supervision and coordination of project manager, communication across department has become efficient. Now, user able to identify which department should refer to when they found some error or issue.
Dee Noon was successfully go-live on targeted date which is 1st June 2019 after being trained for 30 days onsite and offsite in the period of six months. One of the biggest benefits that we can see after ERP system implementation is BOM data are now enter into ERP system with multi selection of type of board and packing method, but previously BOM data mainly refer to the hardcopy but not system. After BOM data enter into ERP system, marketing department able to select the board type and packing method based on the setup of the BOM. This reduce communication by using hardcopy because user can directly get the information from the system.
Now, production department issue Job Order by using system based on Sales Order. They can know the board type and packing material immediately from Sales Order and this information will pass to purchasing department through the system for quicker preparation of the material. This practice will help to reduce over-purchase of material and well-managed of the storage.
We able to link all the process flow together which cannot be achieve by the system before we implement Workflow ERP system, the process flows are such as from BOM to Sales Order, Job Order and Purchase Order will be generate from Sales Order and so on. In future, management able to monitor the business process by using one system because all the process flows are linking to each other.
Overall internal process and communication has been improved after getting involved by external consultants. We believe continuous support from the management and cooperation from all members could lead to a productive and effective business process.