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With the implementation of IFS Applications, Profim can access to all information in all wherever it is stored, and the common data format makes it easy to process and create various reports using all available sources. This translates into more effective management and contributes to customer satisfaction. Data under Control
Prior to implementation, Profim used a number of legacy solutions between which data—especially financial data— had to be transferred. “We started to look for a complex IT system to meet our increasing needs, provide us with control over ever-growing part numbers and allow us to calculate real costs,” explains Grzegorz Dybus, logistics director in Profim. As the company produces chairs, mostly in make-to-order mode with very short series, accurate calculation of material quantities and lead times for delivery is a business-critical issue. “These factors can be controlled only in a complex business application supporting the entire manufacturing chain, from order placement to shipment of final product,” adds Grzegorz Dybus. Also, functionalities to provide cost analyses and production forecasting were important as the two main issues on which the company focuses are cost reduction and achieving shorter, more reliable lead times for delivery to increase the company’s competitive advantage.
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Comprehensive Implementation
Profim decided to replace all its legacy systems with a single, integrated IT system. “We chose IFS because of the functionality of IFS Applications and the total cost of ownership,” says Grzegorz Dybus. The first stage of implementation covered functionality for financials, manufacturing, human resources, payroll and distribution. This included components for handling customer orders—to support on-time deliveries and allow efficient customer service— and purchasing, to support procurement for manufacturing processes and other business areas. Material procurement is supported by MRP processes based on customer orders, current shop orders and corporate master scheduling. The most business-critical area to be covered by the solution was manufacturing. This included keeping an accurate record of technologies used and maintaining control of production scheduling and execution within Profim, which consists of many plants and departments. Better cost control, both at enterprise and product levels, was another objective. The solution also contained payroll functionality, with career planning, recruitment, payroll and employee equipment functionalities included. “We need this level of complexity to ensure that our objectives can be met. This stage has already been completed and we can see the benefits,” explains the Grzegorz Dybus. The company is currently implementing CRM and maintenance functionality from IFS. The latter includes the IFS/Equipment™ component: as Profim develops and manufactures its equipment and has valuable assets that require supervision, this component is business-critical. Once the whole implementation process is completed, Profim will become one of the best equipped companies in the furniture industry in Poland in terms of IT support. Starting from material orders, through complex supervision of manufacturing, to production scheduling and forecasting, all business processes within the company are already supported by IFS Applications or will be in the near future. Once all lines of business are supported by a business application, the user will be able to perform multidimensional analyses (including comparative reports).
Increased Efficiency, Reduced Costs
IFS Applications is used to shorten lead times for orders and to reduce costs. After the deployment of IFS/Constraint-Based Scheduling™ and other manufacturing components is completed, the company will be able to forecast manufacturing capacity, which should improve management, capacity utilization and thus further reduce costs. The first financial effects of the implementation were noticed as early as in the first three months after golive. With IFS Applications, real costs can be identified (for the entire production, costs are divided across departments and products), and cost centers are defined. Materials and components are already accounted for, and soon it will be possible to schedule and balance manufacturing capacity. Another benefit was that inventory balances decreased, while inventory turnover ratios for materials increased. IFS/Constraint-Based Scheduling combined with the MRP solution provides an accurate rather than approximate date of delivery. “IFS Applications contributed to lower costs, greater efficiency and shorter lead times—and shortened the manufacturing cycle. Our plan is to expand production. With our new business applications from IFS, we are extremely well positioned to meet new challenges,” concludes Grzegorz Dybus.
About Profim
Profim manufactures office chairs. The company was established in 1991 in Turek, Poland. Today, 2 plants in Turek employ about 750 employees. The company produces 60,000–70,000 chairs monthly. Profim’s is unique in that almost all its production is make-toorder. Most of it (80%) consists of individual, small (up to 10 pcs.) orders with lead times of up to 14 days. In 2004, company revenue amounted to PLN 107.1 million. In 2000, Profim implemented the ISO 9001:2000 quality management system.
Software
- IFS Human Resources™
- IFS/Payroll™
- IFS Financials™
- IFS Distribution™
- IFS Manufacturing™
- IFS Maintenance™
- IFS CRM™
- IFS CBS™
- IFS Document Management™
Hardware
Server: Sun UltraSPARC z 16 GB RAM Matrix: Sun StorEdge – Fibre Channel Architecture - around 90 terminals
- up to 200 users of IFS Applications (currently 170 users)
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Benefits
• Greater understanding of the real manufacturing costs
• Confirmation of the actual date of order fulfillment
• More efficient business processes by means of reengineering
• Lower inventory, including work in progress
• Higher revenue
• Greater labor efficiency
• Shorter lead times “To ensure further growth, our business required complex support from information technology. IFS Applications allowed us to significantly reduce costs, shorten deliveries and schedule manufacturing more accurately” Grzegorz Dybus Logistics Manager in Profim
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