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THE CHANGE WE CAN MAKE THE CHUNK WE CAN HAVE

CENTRAL MATERIAL REQUIREMENT PLANNING AND INVENTORY CONTROL DEPARTMENT

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.

Minimization of Order Processing Cost


As almost all commonly used materials will be procured under a single LC, the Order Processing Cost (LC Cost, Regulatory Cost, Landing Cost) will be at minimum level.

Minimization of Loss of Low Consumed RMs


Every plant has some materials ( especially excipients) which are consumed in very low quantity. Very often, even the MOQ of these materials can not be consumed within the shelf-life of these materials. As a result a big portion of these materials are rejected. These types of capital loss can be brought down to the minimum level by increasing their use at different plants. Only a total picture at a single point can lead to such a total solution.

Maximum Output with Minimum Manpower


Manpower requirement will be dwindled to less than 50% than that of current one, as the planning job will be rearranged vertically and obviously the work efficiency will also be at the highest level then ever before.

Comparative Key Manpower Status in different PPIC Depts.


Parameter Sr. Manager Sr. Exe Executive Officer Sub Total Grand Total Pabna Unit 1 1 2 2 6 Dhaka Unit 0 2 2 2 6 Agrovet 0 0 1 0 1 Herbal 0 0 0 1 1 PMU & CD 0 1 0 2 3 Pesticide 0 0 0 1 1

CPD 1 1 or 0 2 or 3 2 6

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Reduction of Technical Resource Utilization


Technical (Hardware and Software) resource utilization will be at the minimum level to ensure the highest output as the job function will be arranged vertically not horizontally. It is mentionable here that each Client PC will be charged individually after implementation of SAP. So, the minimum number of Client PC used, the minimum will be the charge to pay.

Comparative Technical Equipment Requirement Status


Parameter P-PPIC D-PPIC Agv.-PPIC SHNL-PPIC PMU & CD-PPIC

CPD

PC Total Client PC

15

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Save Communication Time, Save Money, Efficient Utilization of Resources


a. Inter-Plant Communication for Material Transfer:
Currently, it is a common practice to maintain daily communication with other plants for inter-plant material transfer in case of crisis. These type of communication will be totally absent as the solution will come from the central point.

b. IMD/PMD - Plant Communication for Special Order Execution:


This, also, is a common practice, at present, which consumes a lot of valuable time of both end. A chunk of this time can also be saved with central planning idea.

c. Plant - Marketing - Plant Communication for Product Transfer:


A lot of efforts are made from time to time for inter-plant product transfer, which can be simple then ever before with the help of central planning idea.

Central Monitoring, Tracking and Control of Finished Products


With the help of ERP and Central Planning Dept., the finished products at different depots can be monitored, tracked and controlled best then ever before. This central monitoring will ensure smooth purvey of market demand and at the same time ensure harmony of operation of crossfunctional departments.

Total Solution from a Total Picture


For making any decision we depend on data and information. With the total data and total information from a single point, we can have a total solution.

THANKS A LOT

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