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Information Technology At Ici

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Information Technology At Ici

  1. 1. Information Technology @ ICI A Concise Report Course Faculty: Dr. Parag Sanghani Curriculum: Management Information System School of Petroleum Management (SPM)Pandit Deendayal Petroleum University (PDPU) Course: 15-Months (full-time) Exe-MBA-10 Prepared by: Abhik Tushar Das (Exe-MBA-10 / SPM@PDPU)
  2. 2. Introduction: ICI is a major paint, adhesive and speciality products business with products and ingredients developed for a wide range of markets. ICI has presence in Asia Pacific, Europe and Americas. ICI Paints, headquartered in UK and manufacturing in 24 countries, has some of the world’s top paints and decorative product brands. ICI India manufactures and markets paints, speciality chemicals, adhesives and starch. With employee strength of about 900, ICI India’s manufacturing sites, business and sales offices and distribution network span the length and breadth of the country. ICI India Ltd; a 100% owned subsidiary of ICI Plc UK is in the business of manufacturing of speciality chemicals and decorative paints. I have worked there for 5years in operations for manufacturing of decorative paints. This report gives you an insight about the need for Information Technology in a manufacturing shopfloor and the usefulness of IT in connecting with the customer.Leveraging IT in Warehouse: A paint manufacturing process involves several types of raw materials, like pigments, extenders, binders and stabilizers. To manage such a wide spread of inventory, manual operations are cumbersome. IT plays a significant role in warehouse management and promotes the concepts like lean management, just- in-time and zero defects. The inventory management was controlled by ERP Prepared by: Abhik Tushar Das Comments on: abhik.dexe-mba10@spm.pdpu.ac.in
  3. 3. packages like BPCS (Business Planning and Control Systems) where raw material purchase orders were generated and inventory was registered. This helped in tracking the real time status of the raw material and any shortages were promptly captured and reported. Thus use of IT systems lead to lower downtimes and increased operational efficiencies. Also the system of coding raw materials with ERP codes was helpful in identification as they had very complex chemical names.Leveraging IT in Manufacturing: IT also helped in the process aspect of manufacturing where paint recipes were fed into the system which controlled the batch time for each paint batch. This helped in maintaining high quality standards which would otherwise have been impossible with the manual operations. The use of IT in manufacturing would enable paint batches to achieve desired specifications after the very first cycle, a term known as RFT (Right First Time). This would reduce operational redundancies and help in optimising more number of batches per shift, thus achieving higher production targets.Leveraging IT in Quality Management: The next target for IT was the filling and packing units where paint cans were filled and packed using computer controlled machines. Not only were these machines faster and more efficient than the human interface but also the accuracy levels of filling were significantly improved. The errors per million cans filled were less than 1%, thus achieving KIAZEN benchmarks. This would ensure that the Prepared by: Abhik Tushar Das Comments on: abhik.dexe-mba10@spm.pdpu.ac.in
  4. 4. cost of reprocessing of wrongly filled cans was minimized and the efficiency levels in manufacturing rose significantly. The computer controlled manufacturing process also ensured that all process steps were followed and left no scope for human error in operations.Leveraging IT in Distribution: The manufacturing and distribution network was linked to the raw material warehouse through ERP; hence the coordination between availability of raw material, manufacturing capability, and demand from depots did not carry a latency period. Real time data regarding the inventory of finished product was available to the purchase department who could negotiate the best deal with the raw material vendors and this in turn would add a lot of value to the product line.Leveraging IT in Customer interface: Paint is an aspirational product. The customer demands various colour shades for painting his/ her house. Computerised colour vending machines have made it possible for paint vendors to deliver the exact shades of paint by mixing the right amount of pigments in the paint cans. This would also ensure in minimising handling losses for pigments which are very costly. The company website should represent a palette of colours and offer customers a rich experience in choosing the right shade. Paint company websites today boast of online colour selectors were a virtual home is created whose walls can be digitally coloured to get a real life impression of the paint. This would improve customer satisfaction and help in retaining customer loyalty. Prepared by: Abhik Tushar Das Comments on: abhik.dexe-mba10@spm.pdpu.ac.in
  5. 5. The website (www.dulux.in) is full with colours and information about its productrange and home décor solutions. It also educates the customer regarding theprocess of painting and tries to connect with the young customer base throughfacebook-links (fanbox).The website also promotes its CSR objectives on its website. This proves that IT can be leveraged to promote all business functions across domains. Prepared by: Abhik Tushar DasComments on: abhik.dexe-mba10@spm.pdpu.ac.in
  6. 6. Post 2008; ICI India was taken over by Akzonobel Group (www.akzonobel.com), butthe brand Dulux was retained. In 2009-10; Akzonobel (ICI) switched over its ERP system from dos based BPCS to the more advanced SAP. This would help the organization grow laterally in the future without having to worry about its IT capabilities. Although the website does not handle e-commerce applications, a simple privacy policy is displayed alerting visitors about cookies tracking the IP address of the visitor. Prepared by: Abhik Tushar Das Comments on: abhik.dexe-mba10@spm.pdpu.ac.in
  7. 7. Conclusions: It is thus a well established fact that all businesses across domains are leveraging their IT capabilities in building capabilities. Akzonobel (ICI) after successful implementation of its SAP package is all set to challenge the dominant players in the highly competitive paint market in terms of cost benefits in Supply-chain Management as well as increasing quality and efficiency of Manufacturing Systems. References:  www.dulux.in  www.akzonobel.com/paints  www.en.wikipedia.com  Literature collected in due course of employment at ICI Paints. Prepared by: Abhik Tushar Das Comments on: abhik.dexe-mba10@spm.pdpu.ac.in

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