Corporate profile
The group is a leader in power supply and automation technology in China and is one of the biggest power supply plants with an automated billing system for consumed electrical power. Kingdee is dedicated to providing solutions for power supply plants and makes positive efforts in creating customer values. The business of KGE covers different provinces in China, Hong Kong, and Southeast Asia. Headquartered in Guangzhou, the predecessor of KGE was Guangzhou Keli Tongyong Electric Co., Ltd., which is the first firm in China engaging in the research and production of the automation of billing on power consumed in the industry. In the wake of organizational form and market need, this company was transformed to establish into KGE. KGE has an automated production base and several research centers of advanced technologies, including a joint venture with the Department of Electronics and Information Engineering of Huazhong University of Science and Technology in a research and development lab for basis research of advanced technologies as well as the “Joint KGE Lab of the State Engineering Lab for the Connection of Internet for the Next Gen.” Further, KGE also established the Greater China Automated Power Distribution Research and Development Center with sale and service offices in Beijing, Chengdu, Nanning, Guiyang, Shenzhen and other major cities jointly with SEL of the USA. KGE offers full-range servce including research and development, production, sales, and service. In 2008 alone, the total sale of KGE amounted to hundreds of millions in RMB. Now, KGE is capable of the development, production, and services in a smart power grid, billing on the basis of power consumption covering the whole grid, automated allocation, and digital power transforming station operation. The areas of service covered volume calculation, power distribution, road lighting control systems in urban areas bundled in a solution. The products are extensively applied to high voltage consumers to low voltage residential use.
Challenge
KGE has an automated production base and research and development centers of advanced technologies. It also has sales and services locations in major cities including Beijing, Chengdu, Nanning, Guiyang, and Shenzhen, and engaged in the full-range of research and development, production, sales and service. All these activites are bound to be integrated for management. For KGE, the difficulty in the digitization of information systems is the lack of clarity in its core business process in contact, projection plan of product, production, and logistics. This is particularly the case in the cross-function process, which is yet to be improved.
After years of business development, KGE is capable of the development, production, and service of a smart power grid, billing on the basis of power consumption covering the whole grid, automated allocation, and digital power tranforming station operation. The areas of service covered volume calculation, power distribution, road lighting control systems in urban areas bunded in a given solution. The products are extensively appled to high voltage consumers to low voltage residential use and make its product lines complex.
There is a specific feature inherent to power systems. It takes a much longer time for the decision-making of a given product to supply it, but the delivery lead-time is very short. The change in standardization is also frequent. The objective market environment gives high demand for KGE in the control of materials, and the management of research, development, and production.
Solutions
The production plan of Nandian Science and Technology belongs to the model of forecasted production. The marketing department formulates a pre-production plan according to customer needs, and issues pre-production information to the manufacturing department in the form of an “information sheet”. The manufacturing department holds a pre-production meeting, and the leader approves the pre-production plan. Prepare materials for production. In this way, the “pre-production plan” is taken as the main line, and effective monitoring is carried out in all aspects of the planned procurement system;
Pre-production planning is independent of sales orders, and planned independent requirements are not consumed by sales orders in the manufacturing strategy. The master production plan does not consider the inventory and the quantity in transit. The material requirements planning (MRP) comprehensively considers the inventory and the quantity in transit of the analyzed materials, so as to fully reduce the inventory and avoid the backlog of funds. Effectively combine inventory-oriented production methods with forecast-based production strategies;
How to effectively combine the inventory-oriented production method and the forecast-based production strategy? This requires that the pre-production planning is independent of the sales order, and that the planned independent requirements are not consumed by the sales order in the manufacturing strategy. The master production plan does not consider inventory and in-transit quantity; the production process control is relatively smooth. Material requirements planning (MRP) comprehensively considers and analyzes the inventory and in-transit quantity of materials to fully reward low inventory and avoid capital backlogs.
The value of application
To realize the integration of financial business, marketing department, product department, production department, and finance department operate under a unified platform to achieve production and sales coordination and resource sharing. According to different contract types and different product categories, different production operation modes, manufacturing strategies, and planning strategies are formulated, and material requirements are automatically and accurately generated to improve the utilization rate of human resources and materials.
Through the codification and compilation of basic data, and the introduction of K/3, the group can standardize different basic data.
Production planning and materials requirement plan prepared with the help of K/3 allows for coordination of sale and accurately calculates production and material requirements.
The entry of financial data no longer requires manal labour from the datasheet but directly from respective modules of the supply chain for convegence. This helps the retrieval and verification of data improve significantly and also allows for the sharing of various data. The result is the integration of financial and business information and the marketing department, product department, production department, and financial department can work on a united platform for coordination of sale and production and resource sharing.