Steel Pipe Manufacturing Enterprise Management
The SIS ERP software solution applied at units specializing in steel-pipe manufacturing and processing, fine-tuned to fit each enterprise's specifics in the industry. SIS ERP helps an enterprise solve management and operating issues for processes on a single piece of software. ...
The SIS ERP software system has a "coordinate together – share together – control together – complete together" mechanism to help departments in a steel-pipe manufacturing enterprise improve and maximize production-business effectiveness.
The ERP system for the steel-pipe manufacturing industry is a comprehensive solution that strengthens management and improves production effectiveness. With all the necessary management features, fully suited to the steel-pipe manufacturing industry's needs, it meets production-management requirements, controls inventory, while also improving the sales and product-distribution process.
SIS ERP provides managers and staff with tools to standardize production processes and resource management, helping optimize cost and boost productivity. In addition, the SIS ERP software solution also provides features to manage and track products across the entire supply chain, from purchasing materials to production and distributing products to customers.
The ERP solution for the steel-pipe manufacturing industry also ensures flexibility and customization for each company. The resource-management function is integrated with other functions such as sales management, warehouse management, and cost management, helping production plans be deployed effectively.
With SIS ERP, steel-pipe manufacturing enterprises can optimally manage every step of the operating process, improve the production process, respond quickly to market needs, while reducing cost and boosting the enterprise's competitiveness.
Steel-pipe manufacturing and processing units, especially steel-pipe rolling manufacturing units, need to establish closed-loop processes to strengthen coordination, control, and optimal, fast, and effective resource distribution.
Data organization system at a steel-pipe manufacturing enterprise
The Sales department plays an important role in the production-business process, not only selling but also building the production plan based on sales figures and coordinating orders and contracts as they arise. Main tasks include:
- Sales management: revenue plan, sales policy, quotes, orders, goods issue, invoices, delivery slips, sales-return slips.
- Planning and tracking production progress: creating the output plan, tracking the production plan, production progress, and available inventory.
Production Management is the community of departments at the plant, carrying forward the production plan from the sales department and building a detailed production plan by production stage. During production, the main tasks include:
- The Production Scheduling department: receives and completes the production plan, creates detailed production orders, forecasts material supply, tracks production statistics and machine downtime.
- Carrying out production stages including: strip cutting, pickling, rolling, annealing (at the Steel Rolling plant) and wire, strip coating, cutting, strip welding, forming, dip coating, pipe threading (at the Steel Pipe plant).
- Coordinating, checking, and assessing the quality of completed finished products.
At the plant, the main functional departments include:
2.1. Production Statistics department
- Receives the production plan/order.
- Compiles production statistics by each stage.
- Manages consumed materials.
- Compiles machine-downtime statistics.
2.2 Quality Management department
- Controls and assesses the quality of purchased materials by material-purchase-request group.
- Measures and controls finished-product quality including mechanical, physical, and chemical properties.
- Manages the material and finished-product weighing station.
- Tracks production progress.
2.3. Mechanical-Electrical Engineering department
- Manages the machinery, equipment, and production-line catalog.
- Manages machinery and equipment maintenance and repair.
- Manages and forecasts materials.
- Aggregates material-supply requests, including repair, maintenance, and new-purchase materials.
- Controls and assesses the quality of purchased materials by material-purchase-request group.
- Controls pipe molds.
- Creates the cutting-order calculation slip.
- Tracks machine-downtime.
- Tracks production progress.
2.4. Plant Warehouse and Accounting department
- Receives receiving notices.
- Receives goods-issue/hold orders.
- Manages warehouse receipts, including purchase receipts, recovery receipts, and finished-product receipts.
- Manages warehouse issues, including sales issues, material issues, assembly issues, and transfer issues.
- Updates accounting data arising at the plant
- Monitors supply and demand and coordinates materials for production and business.
- Aggregates material forecasts based on the production plan and actual inventory.
- Manages material requests from other departments and carries out controlling and processing supply.
- Requests quotes and assesses material requests before selecting the most suitable supplier.
- Creates orders and contracts after approval by leadership and tracks the purchasing process.
- Organizes receiving goods and distributing notices to related departments for goods assessment and inspection.
- Creates payment records for suppliers and forwards them to the Accounting department to make payment.
- Assesses supplier quality to improve on future purchases.
Main tasks:
- Material forecasting
- Controlling purchase requests
- Managing suppliers and assessing quotes
- Creating purchase contract/order records
- Organizing receiving notices/orders
- Tracking the receiving process
- Creating purchase-payment records
- Assessing supplier quality
- Receives data and controls financial activity in each production-business operation.
- Manages accounting types such as cash, assets, receivables/payables, and payroll.
- Calculates product cost price by each production stage.
- Carries out tax accounting and aggregates accounting data for the whole system.
Main tasks:
- Cash accounting management
- Bank accounting management
- Sales receivables management
- Purchase payables management
- Inventory accounting
- Asset and tools/instruments accounting
- Cost-price calculation
- Tax accounting
- Aggregating accounting data for the whole system
- Manages the purchasing process for materials and office equipment independently from the materials department.
- Manages administration, including document management and issuing labor uniforms.
- Manages HR, timekeeping and statistics, payroll, and tracking employee insurance.
Main tasks:
- Managing purchasing of materials and office equipment
- Managing documents and uniform issuance
- HR management
- Timekeeping and statistics
- Payroll
- Insurance tracking
1. Software database organization
Enterprises in the manufacturing industry usually have their business area and scope scattered across many different locations and regions, including offices, plants, sales warehouses, branches, etc. So, when building the ERP solution, S.I.S Vietnam will advise on organizing and routing data to make operations convenient, strict in managing arising issues, and aggregating all activity in the production-business organizational system, alongside meeting customer needs.
1.1. Models for organizing system data updating and mining
Since software-usage locations are widely distributed across different geographic regions, S.I.S Vietnam needs to build a data system combining a synchronized and distributed data solution to ensure data immediacy and continuity during the process of serving carry-forward, tracking, and managing data as it arises, while also ensuring continuity in sales and production activity when there's a connectivity incident, reducing latency in transactions requiring continuity such as sales, receiving, and other activities.
The SIS ERP software solution includes a "running program" and "database" installed on the Server. Departments can access the software (Client machines) after declaring (machine name, user ID) and installing the "running program." Users are managed with detailed permission assignment per each user's role at related departments. In addition, each department also has its own interface design suited to its management operations.
The SIS ERP software solution will include only the "running program" (not the "database") on department Client machines, letting users update and send/receive data online to the software on the server at the main office. Users are tiered and permission-assigned to ensure independence and accountability when updating data into the system.
An enterprise should equip a backup server to ensure data stability and safety when operating the software. The backup server has two main tasks: replacing the main server to operate the system and backing up the software's data. On the main server and backup server, equivalent physical hard drives are integrated and configured per Raid hard-drive solutions: Raid 0, Raid 1, Raid 10.
1.2. Grouping user-data layers at each usage location
In addition, user-data layers will be grouped at each usage location to ensure independence, security, and convenience in operating the software. Departments have their own private and sometimes confidential operations from other departments, so the user interface is divided by layer (Layout). Specifically:
AT HEADQUARTERS | AT THE BRANCH | AT THE PLANT |
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1.3. Software database
To help an enterprise manage and aggregate data arising at software-operating locations, S.I.S Vietnam will propose data-organization approaches suited to each enterprise's scale. This approach includes splitting the software database into data trays corresponding to each usage point to receive, store, and process data arising there. In addition, there is also a consolidated data tray to aggregate/consolidate data arising across the whole system.
2. Solving specific operations in the steel-pipe manufacturing industry
Tasks related to sales and exports are carried out at offices, including headquarters and branches. Meanwhile, issuing and delivering goods is done at the plant. So, effective software needs to meet high accuracy and continuity requirements when processing sales orders/contracts and the goods-issuing process.
At offices, sales staff can manage and monitor the flow of manufactured goods through production-statistics processes, as well as available inventory based on sellable products. There are still manual tasks in operation — an enterprise will need to determine cut-off times for figures between usage locations.
During production, which usually runs continuously, time milestones need to be set to cut off daily production figures. This lets the sales departments access actual output and build orders as well as goods-issue orders. For example, each day's production records must be updated and completed before 8am daily at the plant to ensure sales departments can carry out sales steps easily.
When sales completes an order/contract and creates delivery orders, related data must be displayed immediately at the warehouse, weighing station, and the plant's main accounting to carry out delivery procedures for the customer. This requires software, hardware, and IT-infrastructure elements (server, internet connection, power system) to be equipped to ensure continuity of the production-business process.
The Purchasing department is responsible for managing purchasing operations, but the operating process involves all departments in the company. Applying the software needs to separate distributed responsibility at each department.
Departments create material-purchase requests per the set form, then forward them to the main department for approval and updating into the software. The Purchasing department will check and approve material requests, carry out requesting quotes/collecting quotes/comparing quotes to submit to company leadership for approval.
Approved requests will be displayed at the Materials department to carry out purchasing. Before receiving goods, the Purchasing department creates a notice and coordinates with related departments to prepare personnel and physical space serving the receiving process.
Other departments can also track receiving progress to create supply/material-issue requests for the warehouse department.
- Steel-pipe plants need to track input material, which is rolled-steel finished products such as steel sheet and coiled tin, to control output-product quality.
- The software supports this by creating an input information flow on original coil code, semi-finished coil code, steel grade, strip, and production batch.
- The Production Statistics function helps track completed-product quantity, machine-downtime, main and auxiliary material consumption, and inventory level of each finished-product group to control and support the sales department.
Managing assets and equipment at steel-pipe manufacturing enterprises is extremely important, since good management helps reduce breakdown risk and increase machine performance, thereby reducing production cost. SIS ERP can be applied as an asset and equipment management solution at steel-pipe manufacturing enterprises, and includes the following features:
Electronic equipment-record management
- Manages and updates equipment information, including registration license, inspection, insurance, and details on each equipment's parts and spare parts.
- Manages documents such as certificates, user manuals, maintenance regulations, and equipment images, also attached in this electronic record.
- Supports managing and tracking the operating log/history of each piece of equipment.
Maintenance and repair task management
- The software solution lets you flexibly declare types of norms for maintenance and replacement cycles for each piece of equipment, such as number of days, operating hours, or operating km.
- Declared parameter values can also be declared to change over time to fit each piece of equipment's age.
- Provides an alert-reporting feature for items, parts, and spare parts of each piece of equipment due for maintenance or replacement, and lets you declare consumption-material norms when carrying out maintenance/replacement by each equipment item.
- Supports updating material-purchase/repair-request slips, alerting the quantity of materials needed to purchase to carry out the periodic maintenance plan.
- Lets you manage incident-inspection and breakdown records for equipment, plan, track, and control the process of carrying out maintenance, repair, or manufacturing equipment internally or outsourced, and track equipment maintenance/repair logs.
In the highly competitive steel market, managing product quality is very important to ensure an enterprise's competitive advantage. So, from production to market distribution, an enterprise needs to control and track its product quality.
- During production: For input materials, an enterprise needs to track each material type in detail to control quality. However, at the plants, output products already have their mechanical, physical, and chemical indicators analyzed and aggregated by steel code.
- After production is complete: The software lets you update the product's characteristics and print a quality certificate for each production batch. This helps an enterprise trace back the production process of that product when there's a quality issue reported from the market.
1. Sales department
The Sales department provides accurate, real-time information on production progress and available inventory to optimally support the sales-transaction and negotiation process. In addition to continuously updating and controlling information on the goods-issuing process and tracking truck shipments, it standardizes product names and specifications to ensure transaction accuracy.
2. Production Scheduling department
The Production Scheduling department uses accurate, real-time information on production progress and available inventory to optimally support the sales-transaction and negotiation process. It updates and controls information related to the goods-issuing process and tracks shipments, standardizing product names and specifications to ensure transaction accuracy.
3. Purchasing department
The Purchasing department reduces internal transactions related to purchasing and supplying materials, reduces errors in technical specs, quality, and material origin, and helps control supplier quality during purchasing and receiving.
4. Warehouse department
The Warehouse department reduces internal transactions related to purchasing and supplying materials, reduces errors in technical specs, quality, and material origin, and helps control supplier quality during purchasing and receiving.
5. Mechanical-Electrical Engineering department
The Mechanical-Electrical Engineering department supports managing the machinery, equipment, and transport-vehicle system, from equipment-record information to maintenance and repair plans. Along with updating and looking up equipment operating logs, it helps improve the enterprise's operating productivity and effectiveness.
6. Accounting department
The Accounting department reduces re-entering data arising at other departments and raises the control role, maximally supporting operations requiring high accuracy such as calculating cost of goods and product cost price, along with analyzing and aggregating systemwide production-business results.
7. Board of Directors
The Board of Directors provides the fullest, most accurate, and most timely information on all matters related to the company's production and business, generating comparison and assessment reports based on indicators suited to the enterprise's specifics.
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