PT Pupuk Kujang

IFS Applications helps major Indonesian corporation modernize operations while cutting costs

With sales in excess of US$ 50 million, PT Pupuk Kujang is one of the biggest producers of fertilizer in Indonesia, supplying both the home and export markets. To meet the challenges of a growing export market and the turn of the millennium, the company realized it needed to improve its management information system (MIS) and rationalize its cost structure. But it was not just a change of systems that PT Pupuk Kujang, Indonesia, desired. The company also wanted to achieve a change in the behavior of its employees, raise their level of competence, and implement a shift in responsibility down to employee level. To accomplish these goals, PT Pupuk Kujang turned to the component-based IFS Applications to provide the flexibility and speed of access to business-critical information required by modern enterprises regardless of their geographic location.

The problem

PT Pupuk Kujang planned a major overhaul of its IT environment, looking for a solution that would provide the basis for enhanced long-term and short-term planning. The MIS in place was very departmentalized, and almost all information input was done manually. Moreover, run on a mainframe computer, and with the turn of the millennium in the offing, the company realized that making its legacy system Year 2000 compliant would be very expensive. The system was quite simply unable to meet the demands placed on it by a modern company. PT Pupuk Kujang, therefore, realized that it needed an automated, integrated solution that would increase the speed and accuracy of reporting, affording it greater control over its business processes and costs.

The solution

PT Pupuk Kujang employed consultants to analyze user requirements before investing in a new system. After examining what a number of business applications vendors, major global players as well as local suppliers, had to offer, the company opted for IFS Applications. “IFS was the only vendor that could provide us with the applications that would enable us to fulfill our plans, short-term as well as long-term,” according to Tossin Sutawikara, IT Implementation Project Manager at PT Pupuk Kujang.

Implementation

Beginning in July 1999, solutions for the first phase, financials, distribution and human resources, were implemented. According to Tossin Sutawikara: “The implementation went very smoothly. Projects like these can take up to a year. We were ready after eight months, on time and to budget. The support from IFS has been very good.” IFS’ implementation strategy consisted of training sessions, supported by workshops and conference room pilots. Weekly feedback meant that issues could be tackled and solved very quickly. In typical IFS fashion, knowledge transfer, more than mere implementation, was the ultimate goal. The second phase, including solutions for maintenance, marketing, manufacturing, and decision support, is scheduled to be completed by January, 2001. Beginning in July 1999, solutions for the first phase, financials, distribution and human resources, were implemented. According to Tossin Sutawikara: “The implementation went very smoothly. Projects like these can take up to a year. We were ready after eight months, on time and to budget. The support from IFS has been very good.” IFS’ implementation strategy consisted of training sessions, supported by workshops and conference room pilots. Weekly feedback meant that issues could be tackled and solved very quickly. In typical IFS fashion, knowledge transfer, more than mere implementation, was the ultimate goal. The second phase, including solutions for maintenance, marketing, manufacturing, and decision support, is scheduled to be completed by January, 2001.

Benefits

The most obvious benefit is that the company now has a modern integrated suite of business applications. Previously, all the information was generated by the management information system (MIS), which was unwieldy and not always reliable. Now the sources of information are more evenly distributed and the MIS simply administers the system. Thanks to IFS Applications, PT Pupuk Kujang can now create a database of integrated information systems and create its own set of business rules. For example, once a decision is made, it can be effected immediately throughout the entire organization. In addition, financial reports, previously done by external consultants, can now be issued more quickly and with greater flexibility, e.g. as spreadsheets, graphic reports, etc. Using IFS/Business Performance, company executives, too, will benefit from having access to three-dimensional analysis of corporate data, providing them with an added strategic advantage. Furthermore, competence levels in the company have been raised significantly, and with this, employee responsibility has increased. Since all input into the system is traceable, it is easier to isolate sources of error or areas where competence is lacking and quickly take appropriate measures. IFS Applications also facilitates expansion since it is based on globally available standards, and its component architecture is geared for scalability. As a result, investment costs will decrease. “IFS is generally more efficient in terms of cost,” claims Tossin Sutawikara. All in all, the use of IFS Applications has lowered the total cost of ownership for PT Pupuk Kujang.

Software

IFS Financials
IFS Human Resources
IFS Distribution
IFS/Business Performance

Hardware

Compaq PCs
Compaq server

Source : http://www.ifsworld.com/binaries/kujang_tcm31-1601.pdf