R/3 is enabling PFG to consolidate its management structure, lower costs, compete globally and reduce manufacturing lead times. An additional plus is that the system requires minimum support from the information technology department.
PFG Building Glass, whose holding company is PGSI through Glass SA, is the only manufacturer of float glass in sub-Saharan Africa. The company, which comprises four operating divisions, also produces patterned glass, mirrors, high performance laminated architectural glass and toughened glass products.
Prior to the R/3 implementation, PFG`s divisions were run by general managers with their own individual sales teams. PFG now boasts one business interface through the customer service centre, despite the fact that glass for the company`s various divisions is manufactured at a number of different factories. This consolidation enables the company to capture all customer requirements at a single point.
The R/3 implementation is also enabling PFG to produce its glass products at lower costs, and to dramatically reduce its lead times.
"Like many South African businesses, we suddenly found ourselves competing in the world market," says PFG`s SAP project manager, Cassie Lessing. "To become a competitive global player we needed to become the lowest cost producer of glass products. R/3 enables us to see the exact costs of each aspect of our business and we can therefore introduce measures to drive these costs down.
"Our new system is also enabling us to reduce our lead times, which is vital in today`s competitive environment," he says.
The R/3 implementation forms part of PFG`s move to a cross-functional, process way of doing business. The company re-modeled its business along process lines, and then mapped these processes to R/3.
"Our three strategic initiatives are world class manufacturing, world class people and world class systems," says Lessing. "We chose SAP R/3 as our world class system because it provides a process model for our business; SAP Southern Africa is able to offer us superior service and SAP`s level of integration is higher than any other product available."
Lessing attributes the success of the implementation to the total buy-in by all staff, as well as to implementation partner Andersen Consulting`s strict implementation methodology.
"The biggest success factor was that everyone from our managing director to those on the shop floor were committed to R/3," says Lessing. "This has ensured the success of the project and enabled the system to settle well."
Phase one included the implementation of six R/3 modules throughout three of PFG`s four operating divisions. The modules are Financial Accounting, Controlling, Sales & Distribution, Production Planning, Plant Maintenance, and Materials Management, including the Warehouse Management sub-component.
Phase two, to begin next year, involves the roll-out of these modules in PFG`s Toughened Glass Division, and the implementation of the new releases of the Human Resources, Quality Management and Asset Management modules.
PFG`s Toughened Glass Division is a complex, made-to-order environment. Last year alone, it produced more than 50 000 different products, from stove tops to vintage car windows. PFG is investigating a new SAP product, Variant Configurator, which will allow the division to optimise production, as part of phase two of its SAP project.
PFG currently has 280 SAP users, which will increase to over 300 following Phase two.
"We have now completed basic system training for our users, and are currently focusing on role-based and process training," says Lessing. "Here we focus on the impact of the actions of all our users and the interdependence of all the roles within the company. Our entire business process consists of employees relying on one another.
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