AMKA, a fast-growing FMCG (fast moving consumer goods) company, has raised its service levels from 65% to 95% with the implementation of IMPACT.
A manufacturer of toiletry, cosmetic, household and personal care products, AMKA has eight factories producing about 1200 store keeping units (SKUs). Although the company initially chose SAP R/3 as its MRP package, the need for a quick implementation led to the decision to run IMPACT in parallel with SAP R/3.
Jan Scholtz, planning manager of AMKA, says: "The scope of the project was huge, because we had to move from controlling our inventory on Kardex and doing our Bills of Material on spreadsheets to a fully integrated MRP system. We chose IMPACT because its superior user-friendliness helped us get up and running in only three months".
AMKA bought IMPACT from ProActive Integrators. The software has helped AMKA to identify and address problem areas quickly. For example, Bills of Material was validated with the relationship validation report, and stock accuracy was improved with cycle counting. In addition, all Economic Batch Quantities (EBQs) were reviewed to ensure they were in line with the real batch sizes. Batching rules were set as multiple EBQ lots.
"Because we relied a lot on our quick response to any order, forecasting was almost non-existent," Scholtz says. "With the help of ProActive Integrators, we developed a forecast spreadsheet where we calculate and do changes month by month. Then we split the forecast into weeks according to the sales pattern for each product. This information is easily uploaded into IMPACT, which drives our MRP."
Another benefit is that the shortages report has assisted buyers and planners to ensure that work orders are 100% kittable - that is, that all the components necessary to manufacture a product are available. A Weeks Cover Report was developed to alert planners timeously of sudden unexpected sales.
Furthermore, the dispatch list ensures that planners and production are always looking at the same picture. As a result, the purchasing department knows exactly what materials are required and when.
"Our next step is to identify which products are going to be Master Schedule items. The goal is to ensure a 98% service level on them," Scholtz says. "The biggest benefit of implementing IMPACT has been the improvement in our service levels. Another important advantage is the user-friendliness of the system, which enabled us to switch to MRP in such a short time."
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