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Posted: 5/23/2014
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BOCHEMIE a.s. Chemical Group Selects Enterprise Information System for Process Management

Bochemie Group is a multinational firm consisting of 7 companies specializing in chemical manufacture. It previously used a local enterprise information system consisting of several parts. Key elements had to be custom-built and standard system operations required continuous modifications. Due to group expansion and production requirements, Bochemie decided to replace the old information system at the end of 2010.

Business Needs

One of the main goals that the company set as relates to the change in its IS was the shift to an internationally common system based on industrial standards for process-managed companies. The main objective for the implementation of the new IS was to get manufacturing, sales and logistics processes throughout the entire company under control and to better plan the company’s restructuring. Another requirement was to decentralize IT responsibilities inside the company, to get under control requested system modifications and also, through the company’s own IT department, to independently provide for select system modifications. Thanks to its favorable price/performance ratio, its openness, very good references and the solution’s overall standards and implementation services, Microsoft Dynamics AX for Process Industries was the lead solution choice from the very beginning. The solution, offered by WEBCOM, is directly adapted to the specific needs of companies with process manufacturing. This system ultimately won the tender process.

Solution

The new IS at Bochemie was meant to run the entire manufacturing process; not only in the Czech Republic, but also at other European branch offices. Bochemie asked that the system be fully adapted to the specific needs of chemical manufacturing and process centralization throughout the group. It was important that the system offer both linguistic and legislative localization. The company also sought a detailed overview of the entire production cycle, tools for making use of stored invetories more efficient, planning, improved logistics and ensuring detailed reporting on data for more efficient, overall company management.

The actual implementation began in April 2011 and the system went into production in January 2012. In addition to standard functions, Bochemie required that the new system meet its specific needs. Because the company makes its own products, it also carries out its own research and development for improving existing products and for launching the production of new ones. For these purposes, a section „Projects“ was incorporated into the system. The company implemented a WMS (warehouse management system) module for the Bochemie distribution center, which is fully outsourced. The WMS provides support for these processes: income, storage, preparing deliveries and actual dispatch. Part of the delivered project was also an online connection to wireless readers of bar codes and complete EDI communications with the externer supplier of logistics services. In order to carry out everything in record time and before the start of the new fiscal year, the Microsoft Dynamics Sure Step method was used to manage the project. During eight months the company was able to launch the system at Bochemie factories in the Czech Republic as well as in Poland and Slovakia. It now plans to expand the system to parts of the Bochemie group in Bulgaria, Hungary and Romania.

Benefits

The system was able to handle growth in manufacturing and satisfy larger order volumes without growth in the number of employees
Company management expected the new system mainly to provide the company sufficient capacity in the form of reliability, data integrity (controlling) and tools for managerial analysis that will enable it to realize its new corporate strategy. And this did indeed happen. WEBCOM also implemented an extensive controlling solution directly in the Microsoft Dynamics AX environment; one that enabled, for example, the allocation of indirect costs for existing managerial accounting. Thanks to this, company management has a clear overview of price efficiency for the the manufacturing of individual product series and of the profitability of specific orders and customers. Shortly after its launch, Microsoft Dynamics AX also afforded another benefit – consolidation of the entire group so that it could be listed on the stock market. During the first month after the system’s launch, the optimization of implemented processes took place such that their routine operations were as efficient as possible for users. Also thanks to the introduction of workflows for select processes, the company shortened cycles for ordering, purchases, sales, etc. – and all while maintaining the same number of employees.

Main Solution Benefits:

  • Covers all aspects of company operations, including manufacturing processes

  • Increases data reliability and integrity (monitoring)

  • Enhances functions necessary for controlling

  • Introduces allocation of indirect costs for current managerial accounting

  • Overview of price efficiency for manufacture of individual production series

  • Overview of profitability for individual orders and customers

  • Consolidation of the whole group so that it could be taken public on the stock market

  • Fast launch of the system not only in the CR, but also in Slovakia and in Poland; all in just 8 months

This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.
Solution Overview



Organization Size: 1000 employees

Organization Profile

Bochemie Group is a top Central European manufacturer of brand-name home cleaning products. It is a global supplier of special chemicals for treatment of metal surfaces and accumulator substances.


Software and Services
  • Microsoft Dynamics AX 2009
  • Microsoft Dynamics AX

Vertical Industries
Life Sciences, Chemicals; Oil & Gas, Mining

Country/Region
Czech Republic

Languages
English

Partner(s)
WEBCOM a.s.

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