Surana Industries Moves On With SAP

by Neelu Lekhi    Mar 09, 2007

Surana Industries Limited (SIL), a Chennai-based manufacturer of steel, has decided to deploy SAP ERP across its entire organization.

V.M. Swami, Director-Finance, SIL, said, “We hope to improve the operational efficiency of our manufacturing units. The implementation will give complete control of production, inventory, stores, and administration.”

“This will also help to trace the ageing of receivables. Any overdue stocks not moving will be indicated which can be sold off as scrap,” he added.

“The system will provide a foolproof process of controlling the movement of inventory and end products. It will control the entire process right from when the voucher is prepared, till it is posted, and no unauthorized person will be able to access the system. It will be able to trace the process of issuance of voucher to the responsible person,” he opined.

With this implementation, SIL will integrate operations all three manufacturing units at Gummidipoondi Plant and Madhavaram and Raichur, Karnataka. The Raichur unit is in the development stage.

Tally was implemented five years back. In this case, SAP’s Advanced Business Applications Programming (ABAP) methodology will be deployed in two phases.

Phase I will cover the corporate Office, Gummidipoondi Plant, Madhavaram Works and Bangalore Yard and will be completed in four months.

Phase II will comprise the Raichur plant. The entire implementation is expected to be executed in the next nine months.

ERP will ensure complete enterprise transformation of the unit and standardize reporting and management information. Efficiencies in reporting system will enable personnel to devote more time to high value activities like cost reduction, strategic sourcing, contract procurement compliance, financial analysis etc, a news release said here today.

The implementation will bring down the cost of inventory, working capital, borrowing and interests, and also indicate overdue assets; etc.

The cost of the implementation will exceed Rs. one crore.

Dinesh Surana, Managing Director, SIL said “The Programme will automatically ensure generation of Trial Balances, Balance Sheets, Assets Management and Accounting, control the sales and distribution net work as sell as Production Planning.”

Mumbai based SAL Technologies and Solutions Private Limited is deploying the solutions as well as training the end users at SIL.