ERP system helps filter company-wide information
A filter products manufacturer anticipates from a manufacturing IT software system significant cost savings through increased efficiency in finance, customer service, engineering and manufacturing.
Microfiltrex is the first of four divisions in its organisation to introduce a new manufacturing and accounting IT solution; as the most complex of the four businesses, it is paving the way for company to integrate its financial andbusiness informationsystems.
Based in Fareham in Hampshire, UK, Microfiltrex is a division of Microfiltrex is one of four divisions of Porvair Filtration Group (PFG), part of the GBP 45-million-turnover Porvair group of companies.
Microfiltrex, which employs 120 people and turns over GBP 12 million manufactures filters for a range of industries including aerospace, energy, chemical, and food and drink.
Each division of PFG has its own separate manufacturing IT and accounting system and the company wanted to introduce a fully-integrated solution at Microfiltrex, which could then be rolled out to support all four divisions and enable financial management to be consolidated in the company.
Because of the complexity and diversity of its products (and its diverse range of customers), Microfiltrex needed a business system with extensive manufacturing capability - from product-based, make-to-stock, to fully bespoke.
After a thorough evaluation of the market, Microfiltrex shortlisted two systems, eventually opting for SYSPRO from K3.
The implementation begins in February and the 30-user system is expected to go live by the end of the summer.
The company is anticipating significant cost savings through increased efficiency and performance in its finance customer service, engineering and manufacturing operations.
John King, group IT manager, says the new system is also prompting the company to review its procedures and processes.
"Our IT people are experienced in migrating systems and they also have a good understanding of the business - this implementation gives us the opportunity to take a closer look at how and why we do the things we do; K3 has very good consultancy skills, which will be a great help to us in that process." Microfiltrex has up to 4,000 different order lines a month with significant variation in value and volume and John King, believes the visibility the system delivers, will prove to be its most valuable asset.
The business is predominantly high-value, low-volume - although it produces thousands of different items, there may only be one or two of each.
"That creates the complexity withinBecause of the highly complex nature of the business,and because it is often difficult to predict what's going to happen next and we need to have visibility to be able to exert control; SYSPRO will give us that through superior, more sophisticated and flexible reporting." As a supplier to the aerospace sector, the robust system of traceability, delivered by SYSPRO is particularly important, as are the improved, cost management and work flow within the company's sub-contract operation, which the company expects will enhance its relationships with suppliers and customers.
King adds: "It was important to us that the system was UK-centric (especially in accounting terms) and that we could rely on the stability and pedigree of the supplier; SYSPRO and K3 give us functionality and fit we need, and fully meet our requirements for multi-company consolidation." 'Roll out' at the second site begins at the end of the year (2006).
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