Reasons for changing the ERP System
The previous ERP system, implemented in 2003, required the use of many unintegrated tools. The finance department lacked insight into important data. Meanwhile, the IT department had to spend a lot of time transferring information between different systems. Additionally, the need to create custom solutions, such as a production management program, revealed the imperfections of the previous ERP.
Choosing a new system
The new system was expected to accelerate the company's development and build an advantage over the competition. It was important to match the specific requirements of Jiffy Packaging and the possibility of further system development. Dynamics 365 Business Central was chosen due to the company's existing use of Microsoft 365 tools. Key factors in the decision were integration with Microsoft Excel and Power BI, as well as the possibility to extend the system with WMS and a Production Panel. Nav24 was chosen as the implementation partner mainly because of their high responsiveness and good understanding of Jiffy Packaging's business needs.
Approach to implementing Microsoft Dynamics 365 Business Central
Preparation for the implementation began much earlier. Project assumptions were consulted with company employees. With the positive changes in work efficiency that the Business Central implementation would bring in mind, they approached this change optimistically. The implementation process itself went very smoothly, with Nav24 consultants supporting the company at every stage.
Implemented Solutions
Based on the company's needs, the decision was made to implement the Business Central system along with a series of additional solutions and modifications. The implemented solutions included among others:
- Nav24 Production Panel;
- MobileNav (modified) for full warehouse management, receipts, dispatches, inter-warehouse transfers, and production management;
- Netronic, an add-on for planners showing which machines will be used for specific processes;
- MRP planning sheet for automating material orders and generating production orders (a modification of the standard functionality of Business Central to meet Jiffy's needs).
Implementation effects
The effects of implementing new solutions are visible throughout the company: from production planning, through the warehouse, to customer service, and the accounting department.
The production plan is based on orders from the customer service department. Business Central provides information on resource availability, and the production coordinator generates production orders. An employee initiating production orders sees the availability of individual workstations and personnel. Efficient management of production processes is ensured by Nav24's proprietary solution – the Production Panel. It allows, among other things, real-time monitoring of all important factors (e.g., the number of operations and their time), assigning employees to teams, and collecting data on changeovers and breakdowns.
Warehouse employees, using mobile devices, have access to relevant data from the Business Central system, so they know exactly what and where to deliver. Data collection uses modern scanners. This change was revolutionary and sped up warehouse operations by about 30%. The logistics department gained access to current warehouse stocks and orders and plans the transportation of goods based on this information. Additional integration with scales allows for optimization of loading space.
The system enables tracking of how much material from a batch has been used in the production of a batch and on which machine the batch was made. Thus, the customer service department knows the actual cost of producing a batch, which is extremely important for customers. Integration with the shipping system allows for precise determination of delivery dates. In terms of accounting, the motivation to switch to Business Central was the desire to better comply with legal regulations and more efficiently support accounting processes. The new system significantly improved visibility into the production process, enabling better cost accounting and variance analysis. Reporting capabilities and efficient data extraction are of particular value, allowing for detailed analysis of the company's activities, such as determining the profitability level of sold finished goods. A major advantage of the Business Central system is also access to complete financial data for controlling purposes.
"After implementing Business Central, we transformed from a company that focuses on collecting and recording data to a company that focuses on analyzing data. Previously, we spent a lot of time collecting production data and embedding it in the system. Extracting this data later was also problematic. A lot of paper documentation in the form of warehouse requisitions was eliminated. WMS has made a significant improvement in terms of error elimination."
Paweł Sitkiewicz, Plant Director