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Concept of PPIC:
Currently, at Square we have adopted the concept of PPIC to bridge the gap among PMD/IMD, Production, QA and SCM to ensure smooth operation of production, procurement. For a business organization with small volume of operation such a department is a burden but for an organization involving a large volume of operations the essentiality of such a department goes without saying.
But a simple modification of the concept can save a chunk of the investment of the corporation, which is being presented on forwards.
Achievable Opportunities from Central Material Requirement Planning & Inventory Control Department:
1. 2. 3. 4. 5. 6. 7. 8. 9. Optimization of Inventory Maximization of Support Minimization of Order Processing Cost Minimization of Loss of Low Consumed RMs Maximum Output with Minimum Manpower Optimization of Technical Resource Utilization Save Communication Time, Save Money Central Monitoring, Tracking and Control of Finished Products Total Solution from a Total Picture
Optimization of Inventory
As we see in the below table, a good number of materials are commonly used among the different plants and every material retains its own safety stock, only global planning can dramatically change the total inventory picture. Total Inventory Level can be minimized and thereby material holding cost can be decreased by maintaining a common safety stock. Earlier it was difficult to arrange a Global Plan, as different plants maintain different databases which were not integrated and the planning patterns of every plant were not functioning in parallel.
Plant/Unit
Pabna GPB SCL SVPO & Biotech PMU Agrovet SHNL
Total RM
666 357 116 58 55 185 61
Common RM
267 84 21 30 24 84 22
Maximization of Support
By viewing the total inventory picture of all plants from a single point with the help of ERP, we can easily ensure the best support in Crisis Moments of any plant and thereby efficiently managing Potential Sales. Earlier, it was difficult to give a total solution due to lack of external plants information and absence of database integration.
CPD 1 1 or 0 2 or 3 2 6
18
CPD
PC Total Client PC
15
28
THANKS A LOT