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Presented by: Y. Nagasuresh reddy Ashok.

Back ground:
Founded in the year 1942 by CHAMPAKLAL,

CHIMANLAL, SURYAKANTH & ARAVIND. By 1957 asian paints emerged as Indias biggest company In 1990 it had become twice the size of its competitor NEROLAC BY 2000 It entered middle east countries. In 2002 it entered Egyptian market It has 23 manufacturing facilities in 22 foreign countries.

IN 2004 it has become the marketing leader in Indian


paint industry with 46% share value. It has a turn over of 22.7 billions It has a strategy of going where the consumer is. The company created its mascot GATTU as an representative to meet the customers. Its 4 subsidiaries are apco coatings, berger international and SCIB chemicals.

Vision of the company


To become one of the top 5 decorative coatings

companies world wide. For this they computerized its operations in manufacturing as well as distribution & inventory control. Its strong customer focus and innovative spirit has lead asian paints to become the market leader.

Quality assurance
It has 6 manufacturing plants around India which
have ISO9001 certification for quality standards and ISO14001 certification for environment standards.

I2 Technologies
It introduced i2 technologies for an efficient supply

chain network . This system helps to integrate 4 plants, 6 regional distribution centres, 38 outside processing centres and 74 branches catering to around 15000 dealers and 500 industrial customers.

Advantages
Enhanced flexibility of operations
Lowered lead time Lowered delivery cost

Improved pricing decision levels

Due to this system AP was awarded a CHEMINOR award for 2002 .

operations
In 1998 AP was restructured into 3 strategic business units.

The decorative-India business unit 2) Decorative-International business unit 3) Industrial and Chemical business unit AP has implemented Right first time Problem solving through root cause analysis TQM techniques in production
1)

Distribution system
Success factor of decorative paint is availability of

wide range of shades and extensive distribution network. AP has more than 2800 SKUs supported by 6 regional distribution centres, which caters 55 depots. Colour world the retailing shop of the future Linked 55 depots through VSAT

Information technology in operations


1971- purchased mainframe the ICL190 at a cost

of 5mn. 1978- all the accounting functions of AP transfer to ICL190 1980- moved to mini computers then introduced Foxpro system and later shifted to RDBMS based platforms , subsequently it moved to client servers. 1981- Introduced Cp/m machines, highly proprietary system. Functions- customer billing & dealer requirements
It reduced APs 2days work to half a day

Conti.
1982-Ap developed its first Manufacturing Resource

Planning(MRP) application. 1983- Decided to extend computerization to shop floor


AP became the first Indian company to use UNIX on

the shop floor 1994-Ap installed VSATs in three plants and 16 branches Based on a consulting company Booz, Allen and Hamiltons(BAH) recommendation AP started its IT restructuring in late 1990s.

It allow AP to integrate disparate planning system with

workflow management system and optimize business performance in real time. 2000- Implemented SCMS from i2 technologies and later SAPs ERP solutions
Each of the company's 88 locations nationwide was

linked for accessing the SAP & i2 servers 2003-total of 49 VSATs installed at a cost of 30mn, linked six factories and 43 depots.

2002-03 Company launched a supplier portal and

employee portal This performs service as the common backbone for connecting these systems and provided universal data model to exchange information about scheduling and ordering processes across all systems. AP believes in maintaining it in-house. A team of network professionals managed the entire WAN

SCM solutions from i2 Technologies


Asian Paints was first Indian company in the paint

segment to implement SCMS from i2 technologies This gave Ap the facility of pre-planning and optimizing various parameters like capacity, inventory, honouring the customer services commitment etc. Demand planning, supply chain planner and factory Planner.

i2 Factory Planner
i2 Factory planner is designed to provide intelligent

decision support for production planning and scheduling. The Factory planner enabled Ap to plan considering both the constraints (material or capacity) to meet customer demand. Ability to model manufacturing problems ,involving a complex bill of material structures, engineering changes.

The new software enabled AP to quick react to the

changing customer demand

i2 Demand Planner
It is a powerful planning and forecasting tool, enabling

AP to understand, anticipate and manage customer demand across its value chain It optimized collaboration , collection and rationalization of multiple forecasting inputs through a web-based user-friendly interface combined with statistical techniques and unlimited casual factors Demand planner empower Ap by proactively manage customer demand through the use of forecasting processes with existing package and legacy systems

Conti..
The tool satisfies the Aps requirement of a flexible

demand planning system The i2 demand planner also provides visibility to supply constraints across the value chain through its link with downstream production planning system It resulted in increased efficiencies and faster time-tomarket by enabling Ap to easily create more realistic demand plane.

i2 Supply chain Planner


Supply chain planner provides visibility to exception

that inevitably occurred like accident s, machine breakdown etc. It aims at prioritizing demand against safety stock and replenishment requirements It provide a extra flexibility and interacting planning. Ap can interactively adjust the constraints for better performance

Concluding Notes
The SCM helps AP to build a strong transaction

backbone and enables better data generation i2 solutions enabled Ap to have a full return on investment within a year APs turnover is estimated to grow at 12 to 13 % during 2004-05 Working capital requirements are reduced by 50% Material costs reduced by 57%, spelling a 900mn savings in the last five years

Thank you