Introduction of the Production Management System : Work efficiency with using mcframe CS (ERP)' Package Software What is ERP?

About MAT Material Automation (Thailand) (MAT) is a company that provides the ERP system 『mcframe CS』, which specializes in production management, to the manufacturing industry. In this article, we will talk to Mr. Nishimoto (Consultant) of MAT, who has been selling and supporting production management systems in Thailand for 28 years.

▲ Mr. EIJI NISHIMOTO / consultant　SI Department 4

Q: Can you tell us about mcframe, which is sold by MAT?

The mcframe series is an ERP software developed and sold by the Business Engineering Corporation of Japan. In addition to production management, it also has modules for accounting, cost calculation, etc. It is sold not only in Japan but also in many countries around the world, mainly in Asia. The production management module of the mcframe series, CS, has been adopted by more than 500 companies.

x

▲ Click to enlarge

Q: Can you tell us the good points of mcframe CS?

First, it is a multi-language system that is designed for overseas usage. The same data can be handled in Japanese, English, and Thai. Although it is desirable to use the package software as it is, some customization is still necessary. mcframe CS is designed with customization in mind, and the source code can be obtained from the developer upon request. Unlike black-box systems where only the input and output can be modified, mcframe CS allows for more user-friendly customization that takes the customer's side into consideration.

Another advantage point of mcframe CS is having long-term support. ERP software is usually updated every few years, and it is common to require a large amount of money to update to a major version. However, mcframe CS has been supporting all versions since its release.

Of course, it is possible that in the future, there will be a need to make major changes to the system due to the policies of Microsoft or Oracle (database), but at least for now, customer support has been continued for more than 20 years since its release. I think this is a big advantage in terms of running costs.

Q: Are there any things to keep in mind when introducing a production management system in Thailand?

There are a few things, but I will talk about two of them here.

① Management Level
It is often said that the site and management are like the wheels of a car. I think this is a very good methaphor. If only one side rotates faster, it will just go round and round in the same spot and not move forward. If there is not proper management in place, trying to start up lot management or actual cost management, which require a lot of input, at the same time can result in system that does not work. Especially in the case of introducing a production management system for the first time, we recommend a minimum implementation that focuses on 'inventory'.


② Production Methods Different from Japan
In Japan, I feel that there are many cases where adapting to ‘small-lot and multi-variety production' is required in order to meet the diversifying needs of customers. In 'small-lot and multi-variety production', many products are manufactured, so the number of raw materials used increases and the frequency of ordering also increases. The frequency of manufacturing process changes also increases, and it becomes difficult to grasp the actual cost.

In order to manage this, it is necessary to improve inventory accuracy and realize automatic ordering, and to input setup time and manufacturing time strictly and in real time in order to grasp progress and calculate actual cost. In addition, the production environment also becomes an important factor in supporting this production method. In order to respond to short delivery times and multiple orders from customers, a short procurement lead time is required, and I think this environment is often in place in Japan.

So what about Thailand? I think it is common for major parts and materials to be shipped from Japan and require a procurement lead time of two months. In this situation, it may be the right answer to produce in a certain amount and lower the production cost. In some cases, it is not a bad idea to have the necessary product inventory. It boils down to the necessity of understanding the best production method in Thailand before introducing the system.

Q : Could you tell us about some advantages of the Production Management System 'mcframe CS' wchich MAT sells and Implements, compared to other venders?

① Adaptation of Japanese and Thai Language Support From the pre-estimate hearing to the post-implementation support, we will respond in Japanese and Thai according to the customer's request. Of course, documents can also be prepared in Japanese, English, and Thai upon request.

② Aiming for High-Accuracy Estimates
Normally, the estimated price is presented as the package price, wchich includes the annual maintenance fee, and standard implementation support fee, taking into account the number of terminals required. The implementation support fee is a standard price for requirements definition, operation support, training, etc.

The actual system price cannot be disclosed until after the requirements definition is complete and the customization items are listed. In some cases, problems occur at this stage. For example, if the estimated implementation support fee is set at 5 million baht, but after the completion of the requirements definition, an additional customization fee of 10 million baht is needed. This is not favorable for either the customer or the support company. It is difficult to completely avoid this, but MAT performs the following tasks before the estimate in order to improve its accuracy.

a) Interviews with Each Department
We will provide an interview for the staff of each department, such as sales, production management, purchasing, manufacturing, accounting, and management, to learn about their current operations, problems, and areas they would like to improve.
We will also ask them to provide samples of their current forms and Excel files. The interviews will be conducted for each department for 20 minutes to 2 hours, over one or two days.

b) Creation of Customer Business Flow
Based on the interviews, we will create a flowchart of the customer's current business flow and the flow if they use our recommended system.

c) Identification of Assumed Customization Items
Based on the interviews, we will identify the assumed customization items and provide an estimate. We believe that by performing these tasks, we can improve the accuracy of the estimate as much as possible.

③ All-in-One Support for Hardware, Software, and Networks
For example, if an error occurs in the system, it is necessary to identify the cause of the error, whether it is the application, Windows OS, the database, the hardware, or the network. At MAT, our specialized engineers can handle everything from troubleshooting to recovery, all in one place.