A Three-month Project of Productivity and Operational Improvement with Yachiyo Indonesia : NSIDN’S MS D365 ERP Implementation
16 May 2024
Case Study
PT Yachiyo Trimitra Indonesia (Yachiyo Indonesia) is an Indonesian brand company of Yachiyo Industry Co, Ltd. Just like its Japanese parent company, Yachiyo Indonesia is involved in the fuel tank production business. It was first established in May 2012 and started its operation in Indonesia in August 2013. The production capacity of Yachiyo Indonesia’s fuel tank reaches the number of 250,000 sets per year. Its main office and its production factory are currently located in Karawang Industrial Area, West Java.
In 2021, Yachiyo Indonesia had officially reached its 8 years of operation. To support their operational activity with a proper enterprise resource planning system, Yachiyo Indonesia installed the company-wide Microsoft Dynamics software. However, after 8 years of usage, the software had become outdated, and it was already difficult for Yachiyo Indonesia to maintain it as they must rely on different support vendors for the maintenance whenever issues arose. Thus, Yachiyo Indonesia needed to find a proper solution for this problem and NSSOL Indonesia proposed to act as an all-in-one vendor who can both implement and perform maintenance support for Yachiyo Indonesia’s brand-new Microsoft Dynamics environment.
To fulfill Yachiyo Indonesia’s operational needs as well as upgrading its prior enterprise resource planning system, NSSOL Indonesia proposed to improve the system by implementing a newer generation of Microsoft Dynamics software, now called Microsoft Dynamics 365 Finance and Operations (FO). This software is a new generation of Dynamics AX application that integrates customer relationship management (CRM) together with enterprise resource planning (ERP) on top of Microsoft’s cloud technology. While empowering enterprises with its latest cutting-edge technological environment, it is also used to manage, develop, and transform businesses into a more efficient system.
The modules of Microsoft Dynamics 365 FO include:
- FinanceMS Dynamics 365 FO offers a variety of features that focus on financial management and business accounting, which helps companies to streamline and automate their financial processes, which includes all transactions, financial management, taxes (complying with the Indonesian tax system), and financial reporting.
- ManufacturingMD 365 FO offers a manufacturing module that enables a more streamlined process of manufacturing, which includes all necessary steps from planning and production to delivery to the customer or distributor.
- Supply Chain/DistributionThis module allows Yachiyo to effectively manage their supply chain and distributional systems, which include the planning phase, procurement, warehousing/inventory management, quality control, delivery, and aftersales services.
The project for implementing the brand-new MD 365 FO to Yachiyo Indonesia’s environment took ten months to complete. It started in March 2022 and continued until January 2023, consisting of six phases.
NSSOL Indonesia first initiated a pre-project assessment in 2021 to determine the client’s requirements the extent of customization required for the new software, and the workload needed for successful implementation. The second phase involved providing Yachiyo with a basic plan, where NSIDN team detailed the scope of solutions to give Yachiyo a better understanding of what they would receive at the end of the project. In the third phase or the basic design phase, NSIDN elaborated further to provide Yachiyo with a clearer image of the functions. Moving to the fourth phase or known as the development phase, SOL Indonesia team built and develop the entire solution for Yachiyo based on the provided basic plan and design in the previous phases. The fifth phase encompassed deploying the solution to Yachiyo’s current environment to replace the previous existing system. This phase, often referred to as the go-live phase, marked the point when the solution was deemed fully operational. Finally, the sixth phase was the post-go live phase, entailing all post-maintenance services for Yachiyo with NSIDN serving as the responsible all-in-one vendor for both implementation and maintenance support.
The project concluded on 31 January 2023, and NSIDN entered the post-go live phase, assuming responsibility for annual technical services for Yachiyo Indonesia’s MSD 365 FO’s environment. This contract is renewed annually and operates on a ticket-based system with 1 issue addressed per ticket). Currently, Yachiyo Indonesia remains a regular user of NSIDN’s services.
Yachiyo Indonesia’s business is projected to develop further in line with the growth of the manufacturing demand. NSIDN is looking forward to once again cooperating with Yachiyo Indonesia to accelerate and enhance their business development.
Yachiyo and NSSOL Indonesia's cooperation started with the management’s initial interest in NSIDN’s services and an established connection as fellow Japanese companies operating in Indonesia. Mr. Cahya Firdaus, the head of IT department of Yachiyo, acknowledged that the implementation has positively impacted various operations within Yachiyo especially in the purchasing, finance, production, IT and post-production departments. The planning system became more organized with the newer ERP software As it facilitated easier focus on workload and tasks with the brand-new functional arrangement. Mr. Cahya also appreciated that complaints significantly decreased compared to when Yachiyo utilized Microsoft Dynamics AX, where NSIDN’s prompt responses impressed him and the Yachiyo team.
Previously, Yachiyo faced maintenance resolution issues with the old Microsoft Dynamics AX software, but the situation improved considerably after upgrading their software to NSIDN’s MS Dynamics 365 FO. Most, if not all, maintenance tickets were quickly resolved with only 60 actual issued tickets as opposed to the expected 100. Mr. Cahya also expressed his desire to move forward with NSIDN in the future to progress to the upcoming phase of the project to develop and realize a software solution that they have been conceptualizing.
The deployment of Microsoft Dynamics 365 Finance and Operations has proven to be beneficial in increasing Yachiyo Indonesia’s overall productivity With NSSOL Indonesia’s expertise and knowledge in enterprise resource planning with MSD 365 FO, your business can easily be digitalized and accelerated to enhance productivity. For more information, you can contact us on 0852-1535-7287 or send us an e-mail to sales@id.nssol.nipponsteel.com.