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MFG/PRO case studies
MOFÉM Corporation
MOFÉM Corp., a company that celebrated its 100th anniversary in 2000 and is majority owned by the Spanish TEKA investment group manufactures faucets, industrial and household assemblies and parts. MOFÉM Corp. realized a sales revenue of HUF 5.1 billion in 2000., listing itself at the leading position in the Hungarian sanitary market. On an international scale, TEKA is the majority owner of more than 60 companies. Its main profile primarily includes the manufacturing of kitchen equipment, various ovens, stoves, dishwashers, and stainless steel storage bowls, but it is also heavily involved in implementing telecommunication systems and information technology. TEKA owns an advanced assembly line in Spain, and the Group also has interests in Asia and South America in addition to Europe. The domestic public company based in Mosonmagyaróvár has a subsidiary with a similar profile in Csorna (Mofém Csorna Ltd.), the product of which complement the MOFÉM Corp. range. Most of the manufactured goods are exported (to Spain, Austria, Germany, and Russia). Domestic sales is carried out using wholesale networks, department store chains and a proprietary distribution chain (Mofém Budapest Ltd.). A total staff of 750 are employed at the two sites.
The Challenge
For MOFÉM, the most important issue was to be able to manage the whole production process – covering molding, machining, polishing, and galvanization – with the new system to be implemented. During the complex production process it had to be ensured that materials flow between the plants are settled along with the changes in inventory, increasing the flexibility of production. Another expectation was the complete integration of sales, procurement, and related financial processes in a full scope integrated system.
A joint implementation project was decided upon at the two legally separate companies. During preparations, they strove to make the processes of the two plants similar, but there were still two complete systems to be implemented with two separate databases.
Answering the Challenge
The Spanish company of the TEKA assembly division uses the Baan enterprise management system. However, the Hungarian management decided to implement the MFG/PRO system. This choice was based on the price/performance indicator and the well known domestic references of MFG/PRO.
Following an intensive work of five days, a system covering the full scope of company processes went live. Modeling covered production management and settlement of the foundry, the machining plants, surface treatment, and final assembly as well as organization and management of cooperation between the companies. The system implemented supports domestic and export sales, as well as Hungarian and import procurement processes based on production requirements. In addition, the system also covers the complete functionality of accounting and financial processes complementing the materials flow.
Today MOFÉM also uses MFG/PRO to calculate operative and annual materials demand, making long term planning possible.
The features of the running system also made it possible to significantly reduce the master files within two months by standardizing technologies. The conscious and concentrated efforts of the company staff made it possible for the system to go live as of January 1, 2000. By the end of March, it operated seamlessly and up to date with full functionality including finance, logistics, and manufacturing, in both Mosonmagyaróvár and Csorna.
Results & Plans
Considering the relatively short implementation time, experts of ISYS-ON applied a modified and accelerated implementation process. As a result, the use of the complete MFG/PRO system started at both sites following projects of 12 weeks each.
The implementation of a decision support and data analysis system based on MFG/PRO is currently underway. This will offer support for analyses compliant with management and ownership expectations, as well as for decisions related to future investments.
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