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Nam Wah Watch Case Factory Ltd.
Major Watch Case Manufacturer Enhances Product Development and Customer Service with ERP System based on Microsoft Dynamics AX

Publication Date: Sunday, May 8, 2005

When Hong Kong-based OEM Nam Wah Watch Case Factory Ltd. set up a joint-venture manufacturing facility on the Mainland with its key customer, it needed a way to streamline interactions with its partners and suppliers, better control costs, and enhance its business processes. To achieve these aims and make the most of this opportunity for growth, Nam Wah built a new IT foundation for its business based on Microsoft Dynamics™ AX.

The multiple-language, multiple-currency enterprise resource planning solution from Microsoft has improved communications and cost-control, reduced the new product development cycle, and ensured on-time delivery of client orders. Nam Wah's management now has easy access to vital company data through multidimensional reports and staff members are empowered to make sophisticated customizations to accommodate frequent changes to business processes. As a result, Nam Wah has emerged as a more flexible and productive organization capable of providing even better customer service.


Customer Profile
Nam Wah Watch Case Factory Ltd. is an Original Equipment Manufacturer with a 45-year history. Based in Hong Kong with manufacturing operations on the Mainland, it supplies watch casings to watchmakers worldwide.


Nam Wah Watch Case Factory Ltd. is a Hong Kong success story. Established in 1961, it remains a family-owned and operated business with a reputation for quality and an international client base.

In 2000, Nam Wah entered a new era in its development history with the establishment of a joint-venture manufacturing facility in Shenzhen with one of its key customers.

"To support this important joint venture, we needed to build an IT foundation for our business through an enterprise resource planning (ERP) system that would allow us to control costs and streamline our interactions with partners and suppliers," explains Andrew Chiu, IT Project Manager at Nam Wah.

Initially Chiu built an ERP system in-house to replace Nam Wah's outdated manual systems and automate sales and distribution.

After three years of operation, this ERP system could no longer meet Nam Wah's critical business needs. In particular, it did not facilitate e-commerce interactions or adequately support New Product Development - the mission-critical process by which a prototype is created to determine optimal product design, suppliers, and costs.

Nor was the in-house ERP solution scalable or customizable enough to support frequent and rapid changes to business processes across company departments with diverse and constantly evolving requirements.


Chiu then began looking at ERP solutions from leading vendors. He conducted online research and attended the Hong Kong launch of Microsoft Business Solutions in March 2004. It was there that he met representatives of Enterprise Solutions Group (ESG), an international IT consultancy and key Microsoft partner.

"After an extensive evaluation, during which I involved my department heads and core users, I selected Microsoft Dynamics AX as our new ERP solution," says Chiu.

"For Nam Wah, the key ERP requirements were flexibility, cost-efficiency, and compatibility with our IT infrastructure and the systems used by our partners and suppliers. No solution could better Microsoft Dynamics AX in these areas. We also appreciated the level of ongoing support we could expect from Microsoft and ESG."

"As a multi-language, multi-currency ERP with comprehensive functionality, Microsoft Dynamics AX is a very strong solution for manufacturers, particularly those with cross-border operations," adds Jaime Lee, ESG Regional Marketing Manager. "With Microsoft Dynamics AX, Nam Wah gets a centralized solution that can be localized at plant level and also be very quickly and cost-effectively tailored to support changing business processes."

Supporting the Microsoft Dynamics AX deployment as project manager, ESG helped Nam Wah with systems integration, customization, and training, and aided in updating the New Product Development processes.

Microsoft Dynamics AX was implemented at Nam Wah in two phases:
  • Sales, Distribution, and Product Builder modules were deployed first to support mission-critical New Product Development.
  • Then, 10 months later, Microsoft Dynamics AX's integrated Manufacturing modules were added.


"Implementing a new ERP solution is not just about having the technology in place; it is about using new tools to do things differently. Our people have been very supportive and the transition has definitely been made easier by the familiarity and ease of use of the Microsoft platform. We have not had to re-train our staff or partners on the new system," says Chiu.


Faster sales and on-time delivery
With Microsoft Dynamics AX deployed, Nam Wah has achieved better than 95% on-time delivery and at least 20% faster product prototype delivery.

Says Chiu, "Taking advantage of the improved communications and more flexible production planning made possible by Microsoft Dynamics AX, we are able to get new products to market sooner, generate sales more quickly, and consistently deliver products when our customers need them."

Better use of data for operational improvement
By improving data transparency across the company and with customers and partners, Nam Wah is streamlining product development and manufacturing, and enhancing customer service.

"Our business data is more integrated and more useful with Microsoft Dynamics AX. We have eliminated errors and wastage due to duplication and manual input, and improved data analysis. Now we can view our business from any angle with a straightforward system for creating and using multidimensional reports, helping us to monitor our performance, identify potential problems, and control costs," Chiu summarizes.

Flexibility and customization for enhanced productivity
"Microsoft Dynamics AX delivered fast deployment, allowing easy integration with our internal processes to help our people get up to speed quickly and improve their satisfaction with the new system. At the same time, it was relatively simple for us to create an entirely new set of processes to support New Product Development," Chiu continues.

"Staff members with minimal technical skills - but no special programming knowledge - are also empowered by Microsoft Dynamics AX to make sophisticated customizations to accommodate changes in our systems that can occur on a day-to-day basis."

Looking ahead, Nam Wah will be able to continue to take advantage of these benefits as it scales Microsoft Dynamics AX to accommodate business growth both in terms of sales and additional manufacturing facilities.


For more information, please do not hesitate to contact us:
Microsoft Hong Kong Ltd
Microsoft Customer Service
Phone: 852-2388-9600
Fax: 852-2560-2217




Case Study

Nam Wah Watch Case Factory Ltd.-Major Watch Case Manufacturer Enhances Product Development and Customer Service with ERP System based on Microsoft Dynamics AX
"For Nam Wah, the key ERP requirements were flexibility, cost-efficiency, and compatibility !K No solution could better Microsoft® Dynamics™ AX in these areas."

Andrew Chiu,
IT Project Manager,
Nam Wah Watch Case Factory Ltd.

"Our business data is more integrated and more useful with Microsoft Dynamics AX !K helping us to monitor our performance, identify potential problems, and control costs."

Andrew Chiu,
IT Project Manager,
Nam Wah Watch Case Factory Ltd.

"[With] Microsoft Dynamics AX, we are able to get new products to market sooner, generate sales more quickly, and consistently deliver products when our customers need them."

Andrew Chiu,
IT Project Manager,
Nam Wah Watch Case Factory Ltd.

Date

Sunday, May 8, 2005

Industries

Manufacturing

Scenarios

  • Microsoft Dynamics > Enterprise Resource Planning > Microsoft Dynamics AX

Product Used

Windows Server

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