Slow turnaround time forces Koyo Manufacturing to deploy SAP’s ERP software

Koyo Manufacturing Philippines has achieved process improvements, faster turnaround time, and high data visibility as a result of the pilot implementation of SAP All-in-One in the ASEAN region.

With NEC Philippines as the solutions provider, the JTEKT Corporation-owned bearings maker went live with SAP A1 on July 10 —10 days ahead of the expected Go Live Date – integrating its key Sales and Distribution, Materials Management, Production Planning, Financials and Controlling with the support of NEC’s SAP-certified implementation consultants in the implementation.

KMP is a manufacturer of bearings in the automotive and industrial sectors. Its Philippine plant is located at Lima Technology Center in Malvar, Batangas.

Takashi Ito, KMP President, emphasized the significance of the SAP A1 implementation for the company in a turnover ceremony at the KMP plant attended by top KMP and NEC Philippines officials.

Beth Pangan, NEC Philippines Director for Sales and Marketing, said it was a privilege to work with KMP to realize improvements in operations after implementing SAP A1.  “We are thankful that KMP gave us the opportunity to be their partner for deployment of solutions which will help them improve operational efficiencies,” Pangan said.

Identifying and addressing the pain points

“For the past 13 years, KMP has been doing everything manually. This meant the KMP members invested more time doing manual reports instead of other tasks,” Ito said. “We had a difficult time making production schedules, purchasing the parts, calculating accounting data. It took a long time because we were using Excel. It’s quite manual and very simple. It takes a long time to keep our operations efficient.”

The slow turn-around and cause of delay forced KMP to consider enterprise resource planning software to handle vast amounts of data processing within the company. “We asked for so many providers of solutions that might help us,” Ito said. “We made comparisons of different providers and different brands. Then we came up to choose NEC as a provider and SAP All-in-One as the ERP solution.”

JTEKT Head Office in Japan gave the go-ahead for the implementation on September 2012. Project implementation began last February and was completed in October.

“Although the target go-live date for SAP was achieved 10 days ahead of schedule, KMP polished each module until its completion date on October 18,”Ito explained.  The KMP members underwent extensive training to gain the knowledge and experience to operate the SAP system. “Our members were eager to know and understand how we can benefit from the system. Although we did not expect the migration of data to require long hours, we worked until midnight just to finish everything.”

SAP A1 is utilized on a per-module basis, with KMP identifying which module to address their specific pain points. It was worth the wait, however, as several improvements were attained in the SAP implementation, Ito said. This included a more efficient tracking of goods that were received and released, issuance of purchase requests and orders, identification of storage locations, monitoring the movement of raw materials in production, and budget visibility in the system for each production process.

Ito expressed KMP’s gratitude to the solution providers for the successful ERP implementation. “We are truthfully grateful for the support and assistance by NEC Philippines and extend it to all members of KMP,” Ito said. “The implementation would not be truly successful without the guidance of the consultants. We expect nothing but for them to continuously assist our members even after the conclusion of the implementation.”

For her part, Angel Denopol, NEC Philippines Enterprise Resource Planning Division Head, underscored the company’s unwavering commitment to provide support to KMP. “Our SAP-certified consultants are always on hand to assist and guide KMP members throughout the implementation and the actual use of the modules in their operations.”

With the successful implementation in the Philippines, Ito said KMP is set to expand the SAP implementation throughout the ASEAN region, with NEC extending its full support to this initiative.