Makina Takım Endüstrisi Inc. Increases Efficiency with SAP Project

The SAP Project of Makina Takım Endüstrisi Inc. (MTE) was taken live successfully with the solutions Medyasoft presents owing to its knowledge base accumulated from working on numerous SAP projects and its experienced consultants.
Founded in 1957 as Turkey’s first cutting tool producer and in 1960, three years after it was founded, becoming the first exporter of industrial products in Turkey by selling its products to USA, Makina Takım Endüstrisi Inc.’s SAP Project was realized by Medyasoft.

The Presented SAP Solutions and Services

With its SAP project, Makina Takım Endüstrisi Inc. achieved fully integrated traceability with minimum effort and cost.

Within the scope of the SAP Project, the operation of the hand terminals used in manufacturing were taken into usage over the ITS server.

With IT consultancy support before the project, Medyasoft gave end-to-end service.

Services within the scope of the IT consultancy:

  • ISO 27001 conformant system room construction,
  • Server&Storage Project, (Virtualization system in cluster structure, central management, disaster backup)
  • Network&Security Project, (Internet access control, attack detection and prevention system, Server-Client-Guest VLAN setup)

The following SAP modules were implemented within the scope of the Project:

SAP FI (Financial Accounting)
In the FI Module of the MTE Project, with the Packages implemented for the Credit and Leasing transactions in the scope of the Finance Accounting module, Credit and Leasing tracking and reporting can be made.

By making a Business Partner adaptation, the tracking and reporting of Group Company proceedings was established. By putting the UFRS Package application into use, the safe recording and reporting of UFRS processes was enabled. A structure in which the invoices made out over the FI module can be printed out instead of filling by hand was built. A reporting screen that shows checks’ current status about the fields added to the standard check report was prepared. An adjustment was made where BA-BS Reports are Conformed by the Customer and mail, fax or print can be taken directly over the system. The structure required for the tracking of Fixed Asset processes and the keeping of regular amortization records was set up.

SAP CO (Managerial Accounting)
Controls were written that made expenditure calculations work with the correct expense spaces and prevent user errors.

The items that made up MTE’s product costs were grouped into the required breakdown lists, enabling the products’ standard and actual costs to be viewed based on these items.

With the transfer program that allows for labor costs to go to the correct expenditure item, actual costs were acquired.

Outsourced purchasing, scrap and return processes were constructed in view of MTE’s requirements and the correct formation of costs was established.

The WIP (work-in-progress) process was activated and the tracking of the cost of incomplete orders was enabled.

The material ledger closing operations and material input, usage, the cost that arises from material movement based on categories was reported in the cost analysis report.

In profit analysis (CO-PA), the income and expenditure related records were made to be reported on detailed breakdown lists determined by MTE.

Reports were written in which sold and produced product costs are reported in breakdown of expenditure items.

Stock management was activated with stock reports that show the changes in the amount and cost of stocks down to every detail.

Cost control was enabled with SMM equivalence control reports.

SAP PM (Plant Maintenance)
Makine Takım Endüstrisi Inc. strengthened its processes regarding Maintenance and Repair with SAP PM.

Extensively using equipment configuration for the detailed tracking of all the firms benches, MTE Inc. will now be tracking its planned and predictive maintenance processes successfully over SAP PM.

The malfunctions in the benches, maintenance and repair requests, improvements and planned maintenance will all be tracked separately and the maintenance and repair costs will be tracked in this level of detail.

SAP QM (Quality Management)
With the SAP QM module, Makine Takım Endüstrisi Inc. has maximized the traceability of quality management processes and taken a successful step towards preventing errors and decreasing costs arising from lack of quality.

With the prediction of errors beforehand and prevention of probable problems with Statistical Process Control in production quality control, an important step was taken towards the increase of product quality.

Additionally, with the tracking of processes like Admission of Goods Control, internal and external reclamation over SAP, a long distance was covered in becoming a company that speaks the same language and works in coordination by integrating many departments from purchasing to sales and quality to production planning.

SAP MM (Material Management)
The tracking of material stocks, careful planning of requirements, both the improvement and the increase in the traceability of domestic and foreign purchasing processes at Makine Takım Inc. are the foremost of the SAP MM module’s benefits. The fact that the conditions of the purchases made from suppliers can be instantaneously seen over the SAP system and that the current state of the stock can be checked over the system has been beneficial in increasing the communication between the purchasing, accounting and warehouse management departments. The status, payment and additional expense tracking in the importing process have enabled the detailed reporting and broad analysis of foreign purchases. As a result, supply chain processes like purchasing agreements, the procurement of the material into stock, invoicing procedures, return procedures have gained a systematic structure.

SAP SD (Sales and Distribution)
By taking the Sales and Distribution module into use, Makine Takım Endüstri Inc. has eliminated the use of paper forms and ledgers, carrying sales and distribution processes onto the digital platform.

The tracking and reporting of all customers, materials, price main data in the sales and distribution processes was enabled by inputting them into the system. In case of any lack of conformity, backtracking was enabled. Additionally, the tracking of the order entries over the system, how many of these entries turned into deliveries and were invoiced was enabled. Backtracking over the system in case of any unwanted situation was enabled.

By recording agreements with vendor and industrial clients specific to MTE onto the system and inputting price, rebate deals of vendors, the prices are automatically brought to the order or invoice. The balance of the vendors can be tracked over the system. Additionally, in the phase of pricing of special products, the PP module can make out the correct sales price of these products in view of the cost information. The reporting of the profitability of the sales to the sales team and MTE upper management in the digital environment was established.

In the warehouse processes of MTE, hand terminals were put into use thus transferring all warehouse movements onto the digital environment. By tracking the sales parties, all the data of the products that are sold to customers can be backtracked.

MTE has started to take all printed-paper output over the SAP system (Offers, orders, dispatch note, invoice, etc.).

All reports used in sales and distribution processes are taken over the SAP system and the data that is taken is reported to upper management.

The Benefits of the Transfer to SAP Project Process

  • Price management for domestic sales was redesigned towards the current SAP infrastructure and requirements. This way a more effective price management system was attained using less main data and labor.
  • In export, both the workload was decreased and faulty data input was minimized by constructing the pre-invoicing process, which allows for the preparation of the manifesto before loading, together with the standard functions.
  • The automatic tracking of the vendor advance payment system was transferred to the system. This way the sending of excess products to vendors was prevented.
  • With the hand terminal implementation, both workload was decreased and faulty data input was minimized through the tracking of parties. Additionally, the production phases of the products being sold can now be reached.
  • All printouts and reports are now taken over the system.