Today, the cement industry is highly cost-conscious and is applying IT solutions to the hilt to streamline its business processes. The industry stands to gain a lot from embracing Enterprise Resource Planning tools.

The Indian cement industry is highly competitive, a place where the price gap between different brands is very small. So how can a company reap more profits than its competitor? The answer is: cost effectiveness. The higher the cost effectiveness, the higher the profit margin.

A company that consistently delivers high quality products and is able to meet customer commitments on time is always preferred by the market. Some of the day-to-day challenges that managers at cement plants constantly grapple with include planning and stocking right, managing regulatory compliances, keeping pace with rapid industrial innovations, responding to changing customer preferences and being ready with strategies for an ever-changing, socio-political-business climate. Tackling these issues becomes easy with IT- enabled processes and Enterprise Resource Planning (ERP) which gives managers the necessary cutting edge tools to deal with these issues.

Maximising asset utilisation

ERP tools can be integrated with existing process management systems and the data gleaned could be presented in a neat Management Information System (MIS). The business intelligence gained from the MIS can be applied for effective plant management.

Process control

With ERP integrated in manufacturing process controls, industries can achieve optimal performance levels at their plants while combating the technological, environmental, and contractual constraints.

ERP can help process managers to:

• Optimise processes and establish advanced process control systems with utmost ease.
• Reduce costs of operations, ensure high availability of assets and maintain product quality.
• Achieve optimal performance levels in plants, by keeping production efficiency high.

Maintaining assets

• The highest levels of capacity utilisation can be achieved using
• IT- enabled plant maintenance solutions tailored to cement plants.

With IT driven maintenance strategies, manufacturers can:

• Schedule and adhere to preventive maintenance schedules, and reduce downtimes.
• Eliminate unplanned plant shutdown and extend asset life through routine maintenance.
• Get complete control of maintenance cost and budget to optimise maintenance expenses.

Optimising power consumption

Power-intensive cement plants can optimise power consumption by applying intelligent systems that control lighting, HAVAC, etc. Taking energy control to the next level, using plant setup and capacity configuration, coupled with real-time integration of equipments, manufacturers can now have complete control over power consumption.

Manufacturers can reduce power wastage as they can:

• Use power optimally and lower production overheads.
• Achieve consistency in operations and increase productivity.
• Increase generator utilisation factor in captive power plants and reduce power consumption by monitoring operations in real time.

Logistics Management

Lower logistics cost is a critical success factor in the cement manufacturing industry. Information technology can be used to manage logistics effectively.

ERP on a Cloud computing platform can help cement manufacturers control end-to-end logistics operations, from raw material procurement to shipping. Manufacturers can ensure a hassle-free supply chain and monitor inventory in real-time, as well as manage raw material and fuel requirements efficiently.. Cloud sharing has made it possible to check for stock availability and book orders through mobile devices, drastically shortening the order servicing cycle time. Accessing information on smart phones can let executives get real time information about operations, sales, etc, in making well-informed and timely decisions.

Meeting raw material requirements efficiently

Raw material proximity and coal availability should no longer be a major concern. Manufacturers can plan and meet raw material requirements efficiently through IT solutions, for supply chain management. ERP-on-Cloud enables managers to make sure that the right amount of raw material is available at the right place, at the right time.

With ERP-on-Cloud, manufacturers can:

• Negate the raw material proximity issue by making long-term and short-term procurement plans.
• Take control of fuel supply using blanket purchase orders; firm up their fuel plans well in advance.
• Analyse fuel efficiency in terms of calorific value and market price in order to achieve an optimal fuel mix.
• Synchronise cement production with mining to meet raw material requirements.
• Manage the performance of captive mines, equipment and shifts effectively.
• Deliver on time
• With ERP on Cloud, the company can plan shipment well ahead of time, help reduce wastages in packing and increase revenue potential in many other ways.

The technology enables manufacturers to:

• Follow up pending orders closely with the order management system, execute customer orders within 24 hours and ensure customer satisfaction.
• Analyse freight and plan logistics effectively using shipment planning.
• Process shipment documents efficiently using mass processing capabilities; improve shipment volumes.

Business process management

Apart from logistics, ERPonCloud for manufacturers is typically suited to other industry verticals.

The functionalities that can be covered by ERP include:

• Customer Relationship Management (CRM).
• Enterprise Asset Management (EAM).
• Human Capital Management (HCM).

How Google can help

Google offers several Application Programming Interfaces (API) to software developers. Basically an API is a specification used by software components to communicate with each other. Madras Cements (MCL) combined ERP data from Ramco Systems with the API for Google Maps to add an extra layer of information to its data. This allowed the company to visualise information such as distributor performance comparison and location mapping of their wagon movements. The company was also able to understand the real issues affecting operations and performances across the region. A V Dharmakrishnan, Chief Executive Officer, Madras Cements, commented that traditional means of reporting using Microsoft Excel sheets were complex and time-consuming, hindering business decision-making. They needed a data visualisation solution, one that offered richer, dynamic, interactive graphics that could integrate with RamcoÆs ERP offering.. Ramco Systems added location-awareness and visualisation capabilities of Google Maps to its Cloud ERP product. With this integration, MCL was able to get a real-time view of their business, anytime, anywhere. By superimposing its data onto Google Maps, the company got a rich data visualisation tool that facilitated idea generation and improved productivity. All across India, over a thousand employees access reports and transactions on a daily basis from the Ramco ERP system integrated with Google Maps. Management at MCL uses Google Maps as a tool to help them monitor and identify discrepancies and develop appropriate strategies for business growth.

The field sales team now has the capability to easily view information ranging from competitor distribution networks in their area to the performance of the dealers, on their mobile devices. This not only enables them to make faster sales strategies on-the-go, it also helps the management improve their market penetration strategy and competitiveness as they can locate their cement warehouses and key customers on Google Maps. Google Maps also illustrates data at various levels like which regions were experiencing strong growth, which dealers were performing best or had the most potential for growth.

Reaping profits

Google Maps, together with their in-house SMS notification system and the Ramco ERP solution, has formed a solid communication infrastructure. This helped Madras Cements reduce penalties, losses and damages arising during the wagon clearance process by up to 70 per cent, and improved consignment clearance time by up to 40 per cent.

Google Maps has also made it easier to identify and analyse performing markets with the potential for growth. Since implementing Google Maps, the company has successfully captured 20-30 per cent of the market share. Robust IT backbone has played a pivotal role in helping Madras Cements gain a 6-7 per cent market share in the Indian cement business; with its data visualisation, the company multiplied the benefits gained via Ramco ERP data.

Unlimited possibilities

There is a huge scope for IT to facilitate both manufacturing and the business process. Real benefits start showing up when the two are integrated with ERP. Managers can focus on making strategic decisions rather than being unnecessarily burdened with the nitty-gritty of managing the business. Indeed, IT has a lot to offer cement industries at various levels.

Case Study

• Although there are several ERP solution providers in the market, Ramco Systems stands apart from the rest. Having a strong cement manufacturing background, ERP solutions offered by Ramco fit the needs of the cement industry like a custom-made suit. A clear understanding of the entire process and the peculiarities associated with it has enabled Ramco to craft a perfect package specifically for the cement industry.
• RamcoÆs ERP on Cloud has features such as limestone-gypsum-silica source tracking and reservation, production scheduling both kiln-wise and clinker-wise, waste recycling/reprocessing from electrostatic precipitator, power and fuel consumption tracking per unit quantity of output, JIT management for packing and delivery, vendor managed inventory for coal-limestone, quality control based on attributes, forward and backward lot tracking, monitoring energy both equipment-wise and unit-wise, integrated daily/shift production report, yield analysis, variances with respect to plan and design, and more.
• Ramco Process Control & Automation Systems enables engineers to design, configure, install and commission the control and automation system, from crusher to packer for cement industries, using a state-of-the-art OPTO22 Ethernet- based distributed control system and client/server- based SCADA and historian systems.
• Madras Cement, one of the six largest cement operators in India, the flagship company of the Ramco Group, has gained tremendously by implementing ERP solutions from Ramco Systems. The ERP solutions provided by Ramco Systems helped Madras Cements bag a net profit of Rs 68.85 crore for the quarter ended June 2013.
• Ramco Systems, a part of the USD 1 Billion Ramco Group, is one of the leading software companies focused on consulting, products and services business. Started as an R & D division of Ramco Industries Limited in 1992, Ramco Systems was later established as an independent company in 1999. Headquartered in Chennai, Ramco has over 150,000 users from more than a thousand customer organisations, globally since its inception.

AV Dharmakrishnan, CEO, Madras Cements