Client Overview

The client, a leading cement manufacturer, currently relies on SAP to calculate and manage their production costs a complex process involving numerous variables such as raw material costs, staff salaries, facility expenses, machinery depreciation and maintenance, employee housing, power generation, licenses, compliance and approval costs, among others. All of these factors are meticulously combined to determine the total production cost for cement. While SAP has been managing this process, the client sought alternatives due to ongoing challenges with the system. They needed confidence that the new solution could match the functionality of SAP and ideally enhance their existing operations.

The Challenge

The challenge was to develop a custom module using ERPNext that could not only track every detail of their production costs and replicate the functionality of SAP but also automate and simplify processes wherever possible. The goal was to create a robust module to fully replace SAP while improving efficiency.

QCS's Approach

QCS adopted a consultative and collaborative approach, spending 2-3 months working closely with the cement manufacturer. This involved extensive discussions, document sharing and a detailed analysis of their existing SAP system. Our objective was not merely to replicate the client’s current processes but to find opportunities for improvement and automation.

To tackle this, we developed a comprehensive Proof of Concept (POC) using the Frappe framework, creating a custom module designed to manage their intricate operations. Rather than duplicating SAP, QCS re-engineered the workflow, building an automated solution capable of handling the company's complex cost structures while streamlining data collection and processing. By gaining deep insights into the client’s unique challenges, QCS demonstrated how our module could surpass SAP's capabilities, proving the strength of our expertise.

Impact

By the end of the POC, QCS successfully demonstrated that our custom module could manage the cement manufacturer’s complex cost calculation process while providing several critical advantages over their current SAP system.

Key outcomes of the POC included:

1. Increased Automation: The production cost calculation process became fully automated, eliminating the manual interventions that had slowed down their SAP system.
2. Streamlined Cost Integration: Cost centers that previously required manual input were now integrated into one seamless system, allowing for more accurate and efficient tracking of production costs.
3. Scalability and Flexibility: Our module offered the flexibility to accommodate future changes in the company's production process, enabling them to scale operations without worrying about outgrowing their ERP solution.
4. Cost Efficiency: The custom QCS module would cost the client half of what they were currently paying for SAP, providing a significant cost advantage.

The client was particularly impressed with how our module could automate complex tasks like cost transfers based on varying conditions. They now had an ERP system that not only replicated their SAP processes but went further and improved upon them.

Conclusion

Through this Proof of Concept, Quark Cyber Systems (QCS) demonstrated that our custom module, built on ERPNext, is a powerful and flexible tool for managing complex manufacturing operations. By automating key cost calculation processes and integrating various cost centers into a unified system, QCS provided the cement manufacturer with a solution that not only met but exceeded their expectations.

This case study highlights the importance of not simply replicating existing systems but enhancing them through smart automation and re-engineering. By partnering with QCS, the cement manufacturer now has a clear path forward transitioning from their legacy SAP system to QCS's innovative cement manufacturing module for ERPNext.

QCS remains dedicated to helping companies discover innovative, tailored ERP solutions that foster growth and operational efficiency.