Transforming Operations: Oracle ERP Implementation for an Automobile Manufacturer

An automobile manufacturer faced significant challenges managing operations manually and sought to upgrade their processes. To achieve this, they hired AF Ferguson to implement an Oracle ERP system. Our team was brought in to oversee the project, ensuring seamless information flow and timely execution.

Step 1: From AS-IS to TO-BE Documentation

We began by assisting AF Ferguson in understanding the existing AS-IS processes, such as placing import and local purchase orders, goods receipt workflows, and stock issuance procedures. Using this analysis, Ferguson prepared TO-BE documents that outlined the proposed processes after implementing Oracle ERP. These documents were reviewed and approved by the executive committee, with our team facilitating the management review process.

Step 2: Providing Material Master Data

The next step involved supplying the critical data required to create the Material Master Data. This included details like lead times (pre-processing, processing, and post-processing), unit costs, selling costs, item types, and sourcing information.

A specific challenge arose with items where consumption units differed from purchasing units—such as metal sheets, which were consumed in numbers but purchased by weight (tonnage). To address this, a dedicated project was conducted to accurately convert sheet numbers into tonnage, enabling the Material Requirements Planning (MRP) system to calculate requirements based on Minimum Order Quantities (MOQs).

Step 3: System Configuration

We initiated a comprehensive configuration of the system, setting timelines to define elements such as MRP areas, routings, workstations, storage locations, and sourcing rules. Our team provided the required data and monitored progress, reporting to top management.

Additionally, we coordinated with supply chain departments to design and develop key report formats within the system, including:

• OEM Tracking Reports

• Planned vs. Actual Consumption Reports

• Store Stock Reports

• Import Status Reports

Step 4: Train-the-Trainer Program

A "power user" was trained on essential and advanced ERP functionalities, including:

• Forecast Uploads

• Running MRP

• Setting Up Item Master Data

• Managing Purchase Orders (POs) and Purchase Requisitions (PRs)

Step 5: System Testing

After data migration to the test environment, reports were generated and validated to ensure the system's accuracy and functionality.

Step 6: User Training

This phase proved the most challenging, as many employees had relied on legacy systems for 20–30 years. We conducted multiple department-specific training sessions to familiarize employees with the new system. To ensure long-term success, we also developed detailed training manuals, enabling both new hires and existing staff to quickly adapt to the ERP system.

Step 7: Go-Live

In the final stage, data migration was completed, and the new system went live. This was only done after receiving approval from all departments and ensuring employees were fully prepared for the transition.

Challenges and Outcomes

The project, originally planned for 24 months, was completed in 28 months. The delay was largely due to the time employees needed to adapt to the new system and the complexity of managing over 7,000 SKUs sourced from 21 locations and 325 vendors. Ensuring data accuracy and timely input posed significant challenges, as departments had to balance ongoing operations alongside the project.

Despite the delay, the ERP implementation delivered substantial benefits:

• Reduces Planning Lead Time: Implementation oracle reduced pre processing order lead time from 15 days to a few hours. All planners had to do was to feed sales orders and forecast and run an MRP and they had list of PRs straight away. Furthermore, the PFI and PO approvals became quite automatic.

• Advanced Analytics. The earlier system ( BPCS) had limited capability in terms of recording stock movement, for example, it could not track the SOH on daily basis over the last few months. The implementation of Oracle helped company kept the history of SOH stock that helped planners look deeper into the past trends and do the root cause analysis efficiently in case of outliers ( stock outs or excess stock)

• Better Inventory Tracking at Subcontracting Sites: The company was resorting to the toll manufacturing. However, the biggest challenge for them was to track the inventory at subcontracting sites. The implementation of Oracle helped them create a webapp through which their contractors can easily update on stock levels at their sites. Moreover, the subcontractors had a live visibility of stock status at central warehouse and can raise request for stock transfer whenever they require.

• Enhanced Decision-Making: Improved access to information enabled strategic planning and better operational decisions. With new ERP system, company had an option to record and maintain data at various levels. Such as system had option to raise alerts where POs missed the deadlines or ETAs.

• Improved Project Costing: It was easier for company to assign the cost to various batches through generating specific batch codes and assigning labor and material cost to the batch. That helped tremendously in allocating accurate costs to batches and in turn calculate profitibility

This successful implementation marked a transformative step for the company, positioning them for future growth and operational excellence.