Telemond Holding

Microsoft Dynamics NAV implementation in Telemond Holding

Introduction

Telemond Holding consists of 4 production companies: Teleskop, Montel, Henschel Engineering Automotive and Teleyard. Three of them are located in Kostrzyn nad Odrą, one ‑ in Szczecin. All the companies operate in the Kostrzyn-Słubnice Special Economic Zone. They differ in terms of their organizational structures, business operations and range of production. In 2015, the Microsoft Dynamics NAV implementation project was launched for all the companies within the Telemod Group.

 

Telemond Holding has been operating in Poland since 2001. Previously, the company operated in Belgium. Teleskop Sp. z o.o. was the first company established in Poland. The holding employs approximately 800 employees.

 

Teleskop Sp. z o.o. is a leading manufacturer of highly-durable welded structures for the most recognized crane manufacturers. It also specializes in telescope crane booms and crane assemblies. Moreover, the company produces assemblies for railway manufacturers. Presently, Teleskop employs 500 employees.

 

Montel was established in 2008. It specializes in welded lattice structures made of high-strength steel tubes for crawler cranes and giant car cranes.

 

Henschel Engineering Automotive has been present in Poland since 2009, producing light drop side bodies for vehicles. Henschel is a leading manufacturer on the European market, and it provides its products to such customer as Volkswagen, Citroen, Iveco or Peugeot.

 

Teleyard, as a member of the Telemond Group, has been operating in Szczecin since 2015. It produces welded structures of highly durable and abrasion-resistant steel. It specializes in the production of components for the off-shore industry and container handling systems, as well as special orders for over-sized and overweight products.

When choosing Microsoft Dynamics NAV 2015, Telemond set a few main project objectives. The requirement to standardize data in member companies within the group was one of them. Previously, inconsistencies were identified, at least within the chart of accounts or item numbering used in the companies. These discrepancies resulted from multiple databases used by companies, says Piotr Kopytek, Financial Controlling Manager, Teleskop Sp. z o.o. We were also focused on improving the quality of information retrieved from the ERP system and increasing the efficiency of data management processes in our company.

Challenge

Teleskop was the first company in the Telemond Holding where Microsoft Dynamics NAV was implemented. The project was launched in 2009 by a German partner company which implemented Microsoft Dynamics NAV 2009 with the German functionality. The Group was looking for a partner who to implement the Financial Management module in its Polish subsidiary. This way, IT.integro was contracted to participate in the project.

 

In 2011, IT.integro implemented the ERP system in Montel within an independent project. In the meantime, preparation activities for the project were launched in Henschel, which used only the financial module and the following programs for daily operations: Symfonia, Subiekt and Excel worksheets.

 

At the beginning of 2015, Teleyard in Szczecin was established and Dynamics NAV 2009 was roll out to this company.

 

Finally, in 2015 the Board of the Telemond Holding decided to deploy Microsoft Dynamics NAV in all member companies within the group. One of the reasons for this decision was the need to standardize and structure processes and data, which was to enable the companies to work with a single database.

 

The additional purpose of Telemond’s decision to implement the system was also to organize its IT infrastructure appropriately. The company had been using two databases, which caused numerous problems during modifications and updates.

The implementation has enabled us to organize our data within just one database. This way, we wanted to streamline the process of development and implementation of new functionalities. Previously, we had to implement functionalities separately in each of the companies in the Group. Optionally, we designed new functions, if one group of companies used a database with German application objects whereas the other one – a database with Polish objects. Item numbering was not consistent which caused problems when any new solutions and objects were implemented, says Kamil Olszewski, IT/ERP Department Manager, Teleskop Sp. z o.o.

Solution

Within the framework of the project, IT.integro has implemented Microsoft Dynamics NAV 2015 for Financial Management, Purchases, Sales, Manufacturing (Order Planning and Delivery), Electronic Banking. The time and usage recording module and MDMS (Master Data Management System) were also implemented. Presently, the ERP system is used by 87 users in the Telemond Group.

 

The decision to choose Microsoft Dynamics NAV was based on the high rating the functionality of the system received, in particular for its flexibility, from two other companies in the Telemond Group that were already using the system.

We have decided to implement Microsoft Dynamics NAV because of its flexibility. Now, we are able to implement many modifications on our own, using only our resources from IT/ERP department, without engaging external consultants, says Piotr Kopytek. Moreover, when the NAV 2019 and NAV 2015 versions are compared, multiple advantages can be noticed such as the possibility to generate reports faster. Presently, we receive better quality and more coherent information. We have aligned the data structure and process registration method across all companies. By improving the management of user rights, the risk of errors has been eliminated. We have defined roles, which can be assigned to users. In order to streamline daily tasks on one hand and on the other, to ensure data security, the scope of information available to specific users has been also defined and tested by users. Our IT/ERP department have created tailored-made user roles within Dynamics NAV.

MDMS

Each day, the Telemond Holding has been struggling with problems due to inappropriate data structure and inefficient information flow. Companies worked on their own databases, with different systems, which resulted in incoherent communication, and unproductive processes.

Therefore, the company decided to implement a master data management system, which enabled data synchronization and central data management. MDMS (Master Data Management System) is a Microsoft Dynamics NAV add-on solution which has been developed by IT.integro and certified by Microsoft.

Owing to MDMS, data is entered only once for all companies, which eliminates multiple data entry for each company, says Piotr Kopytek. Previously, when MDMS was not used, we had to fill in data separately in each company. It caused the risk of errors and inconsistencies. In addition, substantial differences among companies made combining and creating consolidated reports difficult, he says.

The MDMS module has enabled us to group data into master data, which is shared by all companies, and local data which can be managed separately by each organization. Master data is entered and set up within MDMS and then it is replicated to local companies. The fact that the whole group uses uniform data translates into time savings at data entry and setup. The solution made it possible to standardize financial and inventory data, processes as well as item and vendor cards used by all the companies.

ADCS – Automated Data Capture System

In order to enable processing of warehouse receipts on handheld terminals, an ADCS solution was implemented. By then, the purchase planning department used to send a printed warehouse receipt to warehouse staff. Goods received were counted and then entered into the system. Presently, all receipts are registered automatically with ADCS terminals, says Jakub Abram.

Automated data capture enables instant processing of information entered. ADCS supports proper data registration. Owing to its integration with the workflow within the warehouse management system, the functionality automates warehouse processes.

 

The Telemond Group uses ADCS for warehouse receipts of specific items. This solution has not been implemented for all types of receipts because of specific requirements of different vendors. For example, not all vendors use barcoding for product identification. Until now, in a typical delivery receipt process, a warehouse worker entered each delivery note manually. The warehouse worker also verified the delivery and filled in all data for the item received including its lot number etc. This process has been simplified and streamlined. Consequently, the warehouse worker scans only a label barcode, and data is automatically sent to the ERP system.

 

It has been also planned to implement this functionality for warehouse transfers.

agiles Workflow

Improper workflow management was a real problem in the Telemond Holding, which meant insufficient monitoring of business processes in each of the companies.

In the Telemond Group, we have implemented a module for workflow management, agiles Workflow. The workflow management system supports management of business processes in the companies. The solution enabled us to set up a structured workflow between team members, says Jakub Abram.

The agiles Workflow module is used mainly for the process of creating BOMs. Previously, special Excel files were used for this purpose. By using a workflow management solution, it was possible to improve the quality of information available within the system and ensure timely delivery of tasks. In the past, users used to forget to fill in the Excel file on time. Presently, the system generates tasks for users and users are obliged to complete them within a defined period of time.

 

The module is also used for item indexing. This is a huge improvement, because now, there is no risk that settings will not be filled in or someone will forget to add information

Previously, item cards could be created only by one person. For this purpose, this person had to collect information from different departments and then to enter it into the system. With agiles Workflow, cards can be created by multiple users from different departments. Based on the workflow setup, the process is transferred to users responsible for filling in specific fields related to different departments, says Kamil Olszewski.

Owing to Agiles Workflow, it has been possible to define roles and actions to be assigned to users of the workflow process. Each team member has realized that he is a stakeholder, who is responsible for the timely delivery and performance of the whole team. Workflow has also become a precious source of information in the control process in the Telemond Group.

BOM management module

Programmers from the IT/ERP department at Teleskop have designed and implemented their own BOM management module. With this module, it is possible to create an assembly BOM for an item to be manufactured. This means that as soon as a new production order is entered, the system creates a material requisition worksheet. The module has been integrated with the ERP system, which made the assembly process more efficient.

The BOM management module, which is tailored to the specific needs of our holding, was the most important of the non-standard functionalities that we have implemented. Technical documentation that we receive from our customers does not correspond to our requirements, items, routings or BOMs. Therefore, this documentation is entered as a text. At this stage, items are not linked to inventory or accounting entries and therefore they are registered as non-inventory items. Such item records are used to create a BOM, says Kamil Olszewski.


For a crane part which consists of 400 components, we develop a relevant production BOM with item specifications and provisional technology. Then, this data is used by the function we have developed to automate the creation of routings and BOMs. For example, a BOM can include 30 assembly items which have been entered as a text and compose one item registered in the system. The functionality enables us to create one item from these 30 assembly items. It also assigns a relevant technology and routing to the item. This has to be verified and approved by a technologist who changes the production order status for Firm Planned. The process also uses the workflow module which ensures that for each step required data is entered and tasks are assigned to users and the logistic and production planning departments, as defined in the technical documentation, he says.

Recording time consumption for Manufacturing

The Telemond Group has decided to implement a new module for recording production activities using the Microsoft Dynamics NAV Web client. The functionality is used to register defined routing operations and material consumption on production.

Implementation

The project was delivered using the Microsoft Dynamics Sure Step methodology, which groups all project tasks into five phases starting with the Analysis and Design through Development, Deployment to Operation. The implementation of Dynamics NAV was completed within a year and ended in February 2016.

Teleskop was a primary process stakeholder in the group. This company delegated key users, which were responsible for communication with users representing other companies.

The implementation process in the Telemond Group was very well organized. The project team including key users for production, purchases and accounting has been delegated by Teleskop. Teleskop’s task was to monitor its cooperation with other companies. This implementation was a model project. Understanding the need of collaboration, the company was very engaged in the project, says Jakub Abram. Data and process standardization was the biggest project challenge of all. We had to deal with the problem of creating one database and setting up a single system for companies with different production profiles. However, we have managed to provide all required functionalities to all companies within the group.

Benefits of Microsoft Dynamics NAV implementation

The fact that the ERP system was implemented parallelly in all companies of the Telemond group has resulted in the standardization of processes and system functionality, with all data stored in a single database. The companies have achieved many benefits that translated into improved data management, better and faster decision-making, more efficient production and business processes within the group. The key benefits of Microsoft Dynamics NAV implementation include:

A master data base for the whole Telemond Group

Standardized and coherent data available to all companies

Improved quality of data retrieved from the ERP system

More efficient workflow management

Precise cost allocation

Effective process management in companies

Central vendor card management for consolidation of cost and liabilities

Production statistics

Task sequence and delivery time control that reduces the risk of errors, delays and problems

Streamlined warehouse receipt processes

Functions that support employee efficiency improvement

Automation of business processes and repeatable actions. Some daily tasks have been eliminated; employees can plan their tasks based on the main company workflow.

Automated notifications and transition of tasks to other users or departments based on the defined workflow

We value Dynamics NAV most for its flexibility which enables us to implement system modifications on our own, without any support from external consultants, says Kamil Olszewski. The friendly user interface that resembles well-known Microsoft products that we use on a daily basis is also worth mentioning. This makes our work with the system more convenient and intuitive. The possibility to personalize and adjust views is also a great asset, he adds.

Presently, IT.integro focuses on integrating the ERP system with Lantek Expert Cut. Lantek Expert Cut is a CAD/CM solution for nesting, optimization and automated programming of codes for CNC laser cutting machines.

In the future, Telemond plans to implement other business and industry solutions, that will support the growth of the company. Business Intelligence reporting is one of the areas for which the company seeks effective solutions. The company has been also testing an application from Netronic that supports visual production scheduling. In addition, an EDI solution has been tested for the exchange of electronic data between Teleskop and Liebherr.

We have decided to start our collaboration with IT.integro on the Microsoft Dynamics NAV 2015 implementation because we evaluate very positively our previous long-term cooperation. Moreover, the company is the biggest system provider in Poland, a Gold Microsoft Dynamics Partner and the author of Polish Functionality for Microsoft Dynamics NAV, says Piotr Kopytek. We have a very positive opinion on collaboration with IT.integro, starting with the Analysis phase to the completed Deployment and Operation phases. IT.integro has always responded quickly to issues we submitted, he says.

The collaboration between IT departments of both companies was also highly evaluated.

We value Dynamics NAV most for its flexibility which enables us to implement system modifications on our own, without any support from external consultants, says Kamil Olszewski. The friendly user interface that resembles well-known Microsoft products that we use on a daily basis is also worth mentioning. This makes our work with the system more convenient and intuitive. The possibility to personalize and adjust views is also a great asset, he adds.