Ginfong Precision Industry is a benchmark enterprise in the Thai mold manufacturing industry. To address various management issues in the metal industry, Ginfong joined hands with Digiwin to implement digital systems, ERP and SFT to embark on the path of digital transformation. One year after the system went live, Ginfong’s gross profit margin increased from 23% to 34%, and its annual revenue grew by 200% compared to 2020, proving the undeniable benefits of digital tools.
In the hardware sector, stamping is the most often used processing method. It requires accurate forging skills and patience to form metal by breaking it. Product quality is reflected in production yield, but how well can staff spot and correct mistakes with the naked eye? Major businesses are implementing information systems as part of Industry 4.0, not to “avoid issues,” but to “identify problems” and “fix problems.”
In the event that an organization is compared to a vehicle, the ERP system would be the dashboard in front of the driver’s seat. Managers are unable to directly monitor the condition of the engine or tell when the gas is running low. They can only drive securely in the direction of success by paying attention to the indicator lights.
Most managers believe that only large factories can implement ERP systems, but they overlook the crucial role that digital tools play in fostering business expansion. In 1992, Ginfong Precision Industry was founded. Ten years ago, President Zhu Qiupeng wanted to start down the path of digital transformation, but he was afraid to move because of widespread misconceptions. He didn’t take this step and allocate some of the revenues to the development and promotion of digital tools until three years ago when he noticed Ginfong’s ongoing positive progress.
The Best Time to Implement Digital Systems is “Now”
President Zhu Qiupeng is attempting to use the system to address the issue of opaque industrial data. Verbal notification is no longer suitable in the production process. It is too late to solve the problem since many staff are frightened of being held accountable and fail to voice concerns in a timely manner, which has resulted in progressively more significant issues later on. Fines have even been imposed.
He also expressed care and value for his family during the interview. He discussed the idea of implementing the ERP system with his wife and discovered that they shared the same objectives. As a result, they agreed and jointly outlined the requirements for the digital tools that would be the most beneficial for Ginfong. They then actively looked for the top system vendor.
7 Aspects for Selecting Information System Vendors
Ginfong decides to introduce DigiwinSoft ERP and SFT systems to strengthen their operational capabilities. During the selection process, they considered multiple factors:
Making Digital Tools a Strong Support to Counter the Post-Pandemic Era
Prior to the implementation of the system, President Zhu Qiupeng acknowledges that there were a few issues; nevertheless, once an abnormality arises, it is challenging to correct in a timely manner. After the use of digital tools, the ERP system can produce real-time notifications, enabling them to prepare and react beforehand.
|Insufficient raw materials affecting the production schedule||Employees manually recording incoming material information often leads to inaccurate inventory records||The system clearly records detailed quantities for each station, reducing human error|
|Materials are unused and idle||Materials are picked but unused, causing waste||Perform monthly account review and correction procedures to strictly check the number of materials used in the process|
|Errors caused by discrepancies in the reported quantity with outsourced manufacturers||Lack of evidence regarding the number of outsourced processing results in time-consuming review meetings||Clear system recording of outsourced quantities improves supply chain management|
|Inconsistent inventory records||Inaccurate inventory and unclear material consumption||Accurate recording of actual data and consumption in production records|
|Facing factory inspection bottleneck due to opaque production information||Product inspection lacks basis, unable to meet customer requirements||Easily retrieve the latest information and trace the production process by scanning the QR code|
|Unequal staff assessments cause disputes||The sales bonus system is influenced by human factors, leading to unfair rewards||Integrating the job reporting system with staff evaluations as the basis for salary and bonuses|
“ERP just uses data to reveal the issue; the solution rests with you,” President Zhu Qiupeng asserts that as corrections are made, such issues progressively disappear. He also holds that while firm management is still responsible for improving bad situations, information systems can help them by integrating data and assisting in decision-making.
In early 2021, Thailand experienced a third wave of the pandemic, and the government implemented and extended the “Emergency Decree” as a result. The daily infection rate even soared to over 100,000 in July. At that time, many colleagues at Ginfong also tested positive, putting the company’s manpower shortage to the test. Despite the strong market demand, the metal processing industry could not stop production, but Ginfong quickly grasped the number of orders, inventory, and materials through data analysis using information systems and rearranged personnel from different departments to maintain normal production and delivery.
The ERP system not only streamlined the original corporate system but also simplified the operation process in the post-pandemic era. President Zhu Qiupeng expressed his gratitude, believing that DigiwinSoft’s quickly implemented information system helped Ginfong cross this pandemic crisis.
Information Systems are evidence of the Manufacturing Age Reform
During the process of assisting Ginfong Precision with system implementation, Austin Wang, the consultant of DigiwinSoft, made great efforts to understand the company’s needs. He learned that President Zhu Qiupeng wanted to effectively manage and control the company’s operations through remote management. With the support of the ERP and SFT systems, Austin stated that the consulting team used data to calculate a reasonable formula to optimize Ginfong’s manufacturing process, avoid overproduction or procurement, and achieve a continuous supply of materials.
Austin also stated that many companies face the problem of insufficient materials, which is usually due to poor material requirements planning (MRP) in procurement policies. Therefore, mastering the three key points of “what is needed? How much is needed? When is it needed?” is essential to fully grasp and utilize resources.
In addition to improving operational processes, the implementation of the SFT system has also enabled personnel management to be improved. Production records are transparent in real-time, and abnormal indicators are reported to on-site personnel and managers for the first time, thereby increasing manufacturing efficiency. In addition, the factory uses barcode management to collect employee check-in and check-out, quickly calculate working hours, and fairly evaluate performance and distribute bonuses.
Internally, company operators can effectively control each stage of the factory process; externally, customers have more confidence in the company’s production quality and operational model. Handwritten data can be easily tampered with and cannot be securely saved, but the data from information systems is instantly connected and visible with just one click. Under the third industrial revolution, many factories hope to achieve precision manufacturing and production through information technology. With the foundation of the ERP system, companies can begin to move towards Industry 4.0 and gradually achieve smart and automated fields.
Managers are busy with thousands of tasks, but they should not neglect the management of their family life. To balance work and life, the introduction of information systems is an essential step, and this is the conclusion that President Zhu Qiupeng has drawn from decades of experience. Digital tools can effectively assist in handling standardized work, allowing personnel to spend time on more valuable decision-making.
“I never thought about the importance of family before… now I want to make up for this part.” President Zhu Qiupeng added at the end of the interview. Breaking away from tradition, small and medium-sized enterprises also need system introduction. Early reconstruction of digital processes can achieve a faster balance between work and life.