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BSP - Greek Household Appliance Manufacturer

Learn about BSP, a traditional Greek household appliance manufacturer that produces cookers and refrigerators for multiple brands. They have a production facility in Piraeus, export to over 20 countries, and deploy modern quality management systems.

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BSP - Greek Household Appliance Manufacturer

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  1. THIRD AEGEAN INTERNATIONAL CONFERENCE on DESIGN AND ANALYSIS OF MANUFACTURING SYSTEMS MAY 19-22, 2001 TINOS ISLAND, GREECE

  2. Who are we ? a traditional Greek household appliance manufacturer founded in 1865 and named PITSOS which was acquired in 1977 by B/S/H/ (Bosch und Siemens Hausgeraete GmbH) and has been renamed BSP which means:

  3. What are we producing? BSP has become a modern competence centre for the development and production of cookers and refrigerators for several brands, such as:

  4. Some inf.'s about us: • Our 62K m2 production facility is located in Piraeus • we produce more than 500.000 appliances per year • we employ more than 1000 people • we are holding more than 40% of the Greek market • we export 60% of our production to nearly 20 countries in Europe and overseas • we were able to constantly increase our annual turnover and PBT • we deploy modern Quality Management systems such as: ISO9001, ISO14001, and Total Quality Management • and are committed to achieve outstanding performance thanks to the “diligence of the individual and excellent management”.

  5. B/S/H/ Corporate Logistics Customers Order Confirmation Delivery Note Invoice Customer Order Order for products, Order for imported goods Distribution order Order Confirmation, Invoice, Inventory Production Plan, Delivery schedule Order, Direct loading to Regions E GR D TR Factories Suppliers

  6. BSP Logistics • For final products • For semi-finished products • For purchased parts Material masters, BOMs, work centers with availability capacity, work plans • Factory MPS: • finished product • Weekly reqs planning • for products • Monitoring MPS • result • Production • Orders • Factory MRP: • Semi-finished • Spare parts • customer reqs • Monitoring MRP • result • Requirement • planning • Production • Orders • GR Central • Production plan • Weekly reqs planning • for products • Net requirements • determination • Capacity leveling • Transfer of reqs to • factory • Factory MRP: • Purchased parts • Spare parts • customer reqs • Consumption • controlled mater. • Monitoring MRP • result • Requirement • planning • Purchase Orders • Delivery • Schedules

  7. Competitive Criteria • Production quality alone is no longer a decisive competitive advantage. Success is also based on the ability to meet customer requirements for: • time • volume • responsiveness • service level • Customer requirements in the future will only be met by collaborate relationships among trading partners on joint planning and execution

  8. Purchasing Manufacturing Sales/distrib. Supplier Customer P M S P M S Contracts Contracts Internet Electronic catalog Check customer's credit andavailability of goods Electronic invoice Intranet Electronic catalog Check customer's credit andavailability of goods Electronic invoice Improve ... • Business Infrastructure in multiple vendor environment • high transaction volumes • real-time decisions across the supply chain The Virtual Cooperation

  9. Why ERP? • boost organizational effectiveness and efficiency • improve level of decision making (quality!) • flexibility (internal and external) • integration of all organizational processes • cost reduction along the entire Supply Chain • operational data integrity and consistency • increase business value added • decrease the operation’s “time to market” • enhance business control and awareness • deploy basic infrastructure for extended enterprise and e-business • comply with corporate policy and strategy (SAP)

  10. SD Sales & Distribution FI Financial Accounting MM Materials Mgmt. CO Controlling PP Production Planning AM Fixed Assets Mgmt. R/3 Client / Server ABAP/4 QM Quality Manage-ment PS Project System PM Plant Main-tenance WF Workflow HR Human Resources IS Industry Solutions Which ERP (SAP) modules • Introduced: • Sales & Distribution • Materials Management • Production Planning • Financial & Accounting • Controlling • Workflow • Quality Management • (incoming materiel only) • Fixed Asset Management • Under Introduction: • Human Resources • Open: • Warehouse Management • Plant Maintenance

  11. Application Preconditions 1. Full, unrestricted commitment of the management 2. Financial funds availability 3. Business Processes Reengineering 4. Effective and efficient project management 5. Cooperation with the system provider (supplier) 6. Selection of efficient external consultants 7. Enterprise data reliability 8. Appropriate IS/IT infrastructure (internal) 9. Effective user training 10. Willingness to change culture

  12. 70% 64% k 55% 55% 60% 45% 50% 36% 40% 30% 20% 9% 10% 0% Small size of the enterprise Insufficient technological infrastructure Lack in the organization of processes Insufficient HRs for administration Lack of information Investment Why do Greek enterprises not adopt ERP systems SOURCE: PLANT MGT MAGAZIN, FEBR.-MARCH 2001

  13. Introduction time influence factors Average Introduction time of ERP systems more than 18 months 0% 12 - 18 months BSP 0% 6 - 12 months 48% Less than 6 months 52% coordination with the management Appropriate HRs Link to other systems BPR SOURCE: PLANT MGT MAGAZIN, FEBR.-MARCH 2001

  14. Critical Introduction Issues • 1. Technological: • Data transfer from the old system • Adaptation to operational requirements (customizing) • Adaptation to Greek legal requirements (customizing) • System’s response time (load) • Integration with other subsystems (interfaces) • Hardware Upgrade • Job scheduling to avoid lock entries and gain performance • Hellenisation • User Access Authorizations

  15. Critical Introduction Issues • 2. Financial: • Introduction cost mainly resulting from : • hardware • software • consulting services • intensive user training • installation • maintenance • data transfer and • customizing

  16. No Critical Introduction Issues Yes (BSP) No Yes (BSP) No System Maintenance Suppliers include maintenance in installation cost User Training Suppliers include user training in installation cost SOURCE: PLANT MGT MAGAZIN, FEBR.-MARCH 2001

  17. Critical Introduction Issues • 3. Organizational: • Cultural shock • The organization was not prepared to deal with the high • degree of interdepartmental process integration • Adaptation and redefinition of several operational • processes (Business Process Reengineering) • Adaptation and redefinition of organizational schemes

  18. Critical Introduction Issues • 4. Operational: • Error frequency in data entering/processing during the introduction period was extremely high • Continuous comparison between physical and system stocks was necessary • New material numbering was a source for confusion. • Definition & parameterization of master data cannot be taught, but only experienced. • No matter how good the level of training, it can not prepare someone for the productive start of the system

  19. Critical Introduction Issues • 5. Human Resources: • It became extremely difficult and costly to find and hire personnel with (ERP/SAP) related professional experience and expertise. • Great percentage of the existing personnel didn’t have any IT system familiarization/competency. • Special care had to be taken for these people, to ensure their quick adaptation and utilization in the context of the new system • The competency profile of the personnel had to be drastically upgraded.

  20. The bottom line • excellent reporting • fun • motivation • personal improvement • order • discipline • know how • upgraded services • coordination • quality • speed • organization • communication • Information • scheduling • forecasting • unification • soundness • transparency • control • online inf.s • direct access on data • integration

  21. The bottom line • After almost 2 1/2 years of operation with our ERP system, we do not doubt about the correctness of our decision. • The successful introduction and ERP-based operation of the company became possible because of : • the management’s commitment to change culture • excellent project management, which was a corporate joint effort • the continuously improving user support by our IT department specialists (business analysts ) • and last but not least, because of the extraordinary personal efforts and dedication of the key users

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