ČKD KOMPRESORY - Case Study
Within scheduled time and budget limits, Dynamica a.s. have successfully managed and executed a big project of implementation of a complex information system - Microsoft Dynamics AX – for ČKD KOMPRESORY. The implementation results can be seen in increased information handling and data processing levels, which a short time after the solution initialization shows important profit benefits.
ČKD KOMPRESORY is an established company with a long-time tradition in producing compressors and rotary electric machines. These are products mainly for metallurgical, chemical processing and power industry enterprises. High-output generators are intended for heavy industry and power industry sectors. Main company processes cover entire life cycles of the products from the development stage through production and assembly up to the long-term service. Customer deliveries are project-controlled.
Before the implementation, ČKD KOMPRESORY used an ERP system from a local provider that with the time passing failed to keep pace with the company needs, and the development of which could no longer guarantee the availability of advanced information-handling IT tools necessary for efficient enterprise management handling. Insufficient integration between financials and logistics and manufacturing parts of the information systems was one of the main restrains, as well as the absence of BI tools for the implementation of top quality controlling procedures.
The main objective of the ČKD KOMPRESORY Company was to implement an integrated IS solution, mainly for business processes of the areas below:
- Sales management
- Customer project management
- Production planning and management, related to project management
- Service planning and management
- Warehousing management
- Engineering data integration
- Integration of all processes to finance processes
- Setup of a complex integrated data base for BI tools and enterprise controlling management
- Quality management support and thorough identification of all manufactured parts up to the purchasing level
Partner and solution selection
The competition of tenders has yielded a winner, the Microsoft Dynamics AX 2009 software, as a most suitable solution platform able to fulfill all customer‘s demanding requirements, and a winner over all competitor solutions especially in the area of the interconnection with other Microsoft applications and in integration abilities.
Dynamica, a.s. has been chosen a solution supplier and implementation partner. The previous experience of implementation team members in implementing enterprise information systems for big manufacturing enterprises and the Microsoft Dynamics AX - Engineering Industry vertical solution prepared by the supplier as an extension to the standard functionality of the Microsoft Dynamics AX ERP system have been the most convincing decision-making aspects for the ČKD KOMPRESORY company.
Besides the standard enterprise IS functionality, the implementation has also included a detailed coverage of the manufacturing, planning, and project and service control areas for more than one hundred ČKD KOMPRESORY concurrent users. For the BI area, OLAP/SQL Analysis Services tools and SQL Reporting Services reporting tools have been used.
Tools and maintenance management areas have been covered with Dynamica’s vertical solution.
The project started in February 2011 with a complex analysis, based on which a detailed draft solution has been prepared and submitted to ČKD KOMPRESORY for thorough examination and assessment. The actual implementation started in June 2011, with the information system go-live on January 4, 2012.
Due to the project-controlled implementation approach according to the Microsoft Sure Step methodology, the implementation has finished on time as scheduled and without exceeding budget limits.
Implementation results and benefits
The MS Dynamics AX implementation procedure itself has provided ČKD KOMPRESORY with many optimized processes. During the implementation, also due to the customer’s helpful approach, special attention has been paid to prevent the information system from being adjusted to existing company processes, but – where possible – optimized and the know-how of the new system applied. This has resulted in solution adjustments aimed directly to areas essential for the customer and to the utmost utilization of the standard Dynamics AX functionality.
The objectives have been reached in all areas. Significant benefits have shown up in the area of project control where we have succeeded in clearly assigning expenses, incomes, items and activities to appropriate projects. Due to the applied dimensional approach, all project-specific data can be processed by controlling tools and financially evaluated.
With the new IS, ČKD KOMPRESORY now have an integrated and complex database upon which BI tools and enterprise controlling tools work. ČKD KOMPRESORY people themselves extend these tools, which allows them to respond immediately and on their own to company management needs.
Initially, a three-year return on investment period has been determined. However, according to the statement of the ČKD KOMPRESORY management shortly after the project completion it is evident that due to the achieved optimization of processes the ROI period will probably be significantly reduced.