Project Overview

Customer Information

Xiamen Tungsten Co., Ltd. (XTC) is a public listed company on the Shanghai Stock Exchange. XTC is one of the National Key New & High-tech Enterprises, one of the Tungsten Material Industrial Base of National Torch Program, one of the First National Developing Circular Economy Model Enterprises. The company is mainly engaged in the production, sales and research of other energy new materials such as tungsten concentrate, powder products, tungsten molybdenum products, wire sheet, cemented carbide, various rare earth oxides, rare earth luminescent materials, magnetic materials, series lithium battery materials, etc. At present, it has more than 20 branches and subsidiaries including mining, smelting, alloy processing, mechanical processing, international trade and real estate development.

Customer Feedback

"In the past, we received a lot of publicity and training on ERP, but we always felt it was too mysterious. The biggest feeling of using Microsoft Dynamics AX 2012 R2 is that the mysterious ERP can be more civilian, and the complex ERP process can be displayed through simple tools just like using Office. "

"For XTC, ERP not only serves the financial management and control of the group, but more importantly, it can meet the industrial chain characteristics of XW across discrete and process manufacturing."

——Hong Chao-E, Vice President of Xiamen Tungsten Co., Ltd.

Project Background

With the diversified development of the group, XTC has become the first in the world in many subdivided industries. How to achieve the first in group governance, how to effectively integrate the upstream and downstream supply chains of the group, realize the unified procurement management, inventory management, marketing management and technical management of the group, and realize the efficient fund management, administrative approval, budget management and management Financial control and decentralized governance of the group have become the problems that the management of Xiamen Tungsten Group has been thinking about.

Solution1

Through the implementation of Dynamics AX ERP platform to achieve workflow control, group unified procurement management, quality management, refined cost accounting, production management, budget control and other functions. At the same time, it integrates with M.S. OFFICE, SMS, BI and other softwares to systematically manage the whole process of R&D, sales, procurement and manufacturing under the group company and unify the company's information platform.

As early as 2006, Xiamen Golden Egret Special Alloy Co., Ltd. (hereinafter referred to as "GESAC"), a subsidiary of XTC, determined and used Microsoft ERP AX3.0 after many choices. After six years of practice, it has been proved that Microsoft ERP has made great contributions to GESAC in many aspects, such as supply chain, quality management, production management, financial business integration, etc. However, with the development and growth of XTC, how to effectively integrate the upstream and downstream supply chain of the group, realize the unified procurement management, inventory management, marketing management and technical management of the group, and realize the efficient fund management, administrative approval, budget management, financial control and decentralized governance of the group have become the problems that the management of XTC has been thinking about. Therefore, XTC's management, after comprehensive evaluation, has the integrity of the latest version of Microsoft ERP product Dynamics AX2012, the flexibility to support various forms of business, the scalability of the system, the rapid deployment, the integration of Microsoft software ecosystem, and the successful experience of GESAC using AX3.0. XTC finally chose to implement Microsoft Dynamics AX 2012 ERP system and IWS as the consultant.

Business Benefits1

• The group information platform is unified;
• It unifies the technical resources of the group and realizes the standardization and sharing of master data in the whole group;
• It unifies the supply chain management between the upstream and downstream of the group, realizes the data sharing of each subsidiary, and eliminates the information island;
• Automatic data acquisition of production equipment is realized and integrated with ERP;
• It greatly improves the financial closing time of the company, and completes the consolidation of the whole group statements before the 3rd of each month;
• It unifies the approval workflow, budget management and fund scheduling of the whole group, so as to realize the unified management and decentralized governance of the group;

Solution2

In 2012, after a comprehensive evaluation, XTC chose to cooperate with Microsoft to implement Dynamics AX ERP platform, which is committed to the collectivization of logistics, production, quality, finance, budget, workflow management, statistics and analysis:

Unified product data management

User defined product classification, according to the product classification set different categories of products corresponding to the product attribute information. At the same time, according to different product classification, user-defined product code according to the rules. It realizes the unification and standardization of product information management under various product forms. Whether ore, powder products, wire products, sheet products, non-ferrous metals, cemented carbide and other multi form products are included in the unified product data information architecture.

At the same time, the unified product data management department of the group conducts centralized management of product data and then issues it to each branch after the audit is complete.

Flexible configuration of product data

Based on the characteristics of different forms of products, according to the management needs of flexible configuration.

Double unit management: double unit management is used for the conversion of ore standard tons, metal tons, and the control of wire length and weight.

Batch number and serial number control: for the management details of different products, batch number and serial number are enabled for control and traceability.

Product type: according to the characteristics of the product, the quality dimension and tolerance dimension are used to distinguish the product data management with the same characteristics and different characteristics.

Production type: according to the production form of different products, different production categories such as BOM type, formula type, joint product type and by-product type are used to realize the management needs in the production process.

Master plan management

According to the product characteristics of different branches, design the master plan strategy of different companies. According to powder, wire, alloy, spare parts and other different product categories for classification management. Use different planning strategies such as demand, period consolidation and safety stock to make master plan.

Purchasing management under the overall planning of the group

Purchase price comparison: price comparison is conducted through the system. At the same time, the group company compares the inquiry prices of general materials purchased by each branch company. It is convenient for the group company to manage the purchase price and improve the bargaining power with suppliers.

Purchase application management: it supports two modes of group centralized purchase and independent purchase. For the purchase requests from different sources, they can be combined or decentralized to improve the efficiency of purchase.

Flexible purchasing strategy: set different purchasing strategies according to the business characteristics of different branches. Control the purchasing personnel, purchasing authority and purchasing objects, effectively prevent the purchasing fraud, and reduce the purchasing risk and overall purchasing cost.

Purchase settlement scheme of ore characteristics: double unit management of standard ton and metal ton based on ore characteristics, and determination of ore composition of supplier, demander and arbitrator. The final settlement content can be automatically determined according to the purchase system of each batch, and the purchase settlement can be carried out.

Bar Code Management System

According to the characteristics of XTC wire products with huge quantity and strict quality requirements, the barcode management system is used in the whole production and logistics. Bar code scanning is used for raw material storage, production collection, semi-finished product management, finished product storage and finished product delivery. Greatly improve the efficiency of field operations, product traceability accuracy and effectiveness.

Total integrated quality management

Quality management runs through the whole process of production and operation. Purchasing, inventory, manufacturing, process monitoring and sales are highly integrated with quality management.

User defined node trigger inspection: fully support IQC, PQC, FQC, OQC. It can flexibly define quality standard and quality association according to different operation links, and automatically trigger inspection. For example, purchasing, receiving, inventory, sales, delivery, production warehousing, process and process monitoring, etc.

Life cycle management of inspection order: manage the whole life cycle of inspection order from creation, distribution, inspection, inspection process, inspection information release and inspection order completion.

Convenient input of inspection results: for a large number of input work of inspection data, inspectors can customize and filter the required work data according to multiple conditions, which is a highly convenient data entry operation.

Summary of quality information: record various results of inspection records at the same time, including supplier's results, our results, arbitration results, customs declaration results and results confirmed by both parties.

Production central control management: it integrates the central control system management and quality management in the process industry, and can be applied independently. It establishes data interface to avoid repeated data entry.

Graphical inspection results: the relationship of sampling points in each process is displayed graphically, and the change trend of an inspection item over a period of time is visually displayed.

Disposal of nonconforming products: according to the product characteristics of different branches, user-defined automatic or manual creation of nonconforming disposal orders, and update the batch disposal code of the corresponding batch according to the disposal situation, so as to control the usable status of batch materials. At the same time, it can track the whole process of handling the unqualified products.

Feeding and delivery system based on batch attribute and serial number attribute

According to the characteristics of XTC products, the system can automatically mix materials for production or delivery according to the quality attributes of different batches and serial numbers in the feeding and delivery process. According to the quality requirements of different products, or the quality requirements of different customers, users can customize the relevant attributes to meet the quality requirements. The system automatically finds the batch or serial number inventory that meets the requirements.

External device integration

The ERP system is directly integrated with the weighbridge to reduce the errors caused by manual operation and simplify the manual operation; Integrate with inspection equipment, read the measured value of inspection equipment directly; Integrate with central control equipment, read equipment data, simplify workload.

Financial management

Sales collection management: through the bank water bill claim, it can solve the situation that the collection does not correspond to the invoice, reduce the back and forth transmission of information between the financial department and the marketing department, and combine the sales collection with customer management and accounts receivable management, so as to realize the accurate management of accounts receivable.

Advance payment and purchase reconciliation Management: through advance payment control and reorganization of purchase reconciliation process, realize the internal control system of advance payment, and greatly improve the timeliness and accuracy of purchase reconciliation; Through the functions of matching invoices, allocating expenses, processing and tracking the advance payment of purchase orders, and adding content to invoices, the operation efficiency of accounts payable is improved.

A / P plan management: combining fund scheduling, cashier payment and accounting treatment, the system can automatically generate a / P arrangement suggestions, which can be flexibly adjusted manually. It also combines the payment schedule, payment approval workflow and accounting treatment.

Total cost management: the integration of Finance and business makes the fine management of production cost come true. At the same time, according to the different characteristics of the branch company, you can customize the allocation method of labor and manufacturing cost, and you can choose the allocation scheme by man hour, by output or by process output.

Budget management

From the budget project definition, budget control rules, budget process control and budget implementation result evaluation of the whole process management. At the same time, it is highly integrated with Excel to prepare budget through Excel. The group can evaluate and control the budget of each branch. Greatly improve the efficiency of budgeting and approval.

Equipment management

Integrate the fixed assets files and equipment and instrument files of financial department, construct equipment tree and location tree to meet the application needs of financial department and equipment management department. Through the selection and design of equipment, the transfer and premium of equipment, the maintenance of equipment, the revision and inspection of instruments and equipment, the whole life cycle management of equipment is carried out.

Approval management

Through the system approval workflow, the company's approval authorization system is configured in the ERP system to realize the integration of practical work with the system, improve the approval efficiency, and meet the decentralized governance needs of the group.

Business Benefits2

Microsoft Dynamics AX2012 combines XTC's lean production with ERP's powerful functions such as accurate MRP, production planning, procurement planning and inventory management, and achieves information integration in procurement, inventory, materials, planned production, quality management, sales and financial costs, accounts receivable, accounts payable, bank and general ledger. And the implementation of the approval workflow and expense reimbursement. It ensures the integrity, accuracy and timeliness of the enterprise information flow, not only solves many problems in the business and management of each department of the company, but also provides a reliable data source for the enterprise to make market strategic decisions, realizes the enterprise agile manufacturing, and improves the enterprise competitiveness.

Compared with the original system, the following functional improvement benefits are obtained:

• Unified product data management enables the whole group to use a unified product data structure for product data information. Improve the data management standards.
• The fineness of quality management has been improved, and the quality records and traceability have been enhanced. Quality tracking from top to bottom can be obtained from the system through batch number or serial number.
• Through the use of barcode management, the efficiency of field operation is improved. It not only satisfies the system data recording, but also ensures the operation efficiency.
• Through the use of system data for batch and serial number attribute screening, the unqualified rate in the manufacturing process and customer complaints about wrong material issuance are reduced.
• The financial business integration based on the system greatly improves the accuracy and timeliness of the financial monthly statement of the group company. Based on the system function, each branch company can submit the monthly financial statements of subsidiary companies before the 2nd of each month, and the group company can complete the monthly financial statements on the 3rd of each month. 3-5 days earlier than before the system went online. And the data is based on the system business data to ensure the integrity and accuracy of the data.
• By using AX ERP system approval workflow, the efficiency of approval in business process is improved. Improve the overall business operation efficiency.
• The system-based procurement management greatly improves the overall control of the group company in the whole procurement business process, and also provides complete data support for price negotiation with suppliers.
• According to the support of the system data for the flexible settlement method of ore, the manual calculation of the original business and financial personnel at the end of the month reconciliation is simplified, and the reconciliation errors are reduced.