In 2009 marked with economic recession maintaining controls on the costs thanks to Microsoft Dynamics NAV, GISAŞ achieved the same profitability compared to the previous year.
Deciding on using Microsoft Dynamics NAV for following up the services provided to the shipyards in Tuzla, GISAS, is equipped with the capability of electronically following up all processes through effective use of the technology. By virtue of this new system, being successful in cost minimization through easier and faster data analysis, GISAS presents Management the analysis results before investment decisions, shortening periods of the return on investment.
GİSAŞ Gemi İnşa Sanayi A.Ş. is founded in 1995 with the participation of shipyards and sub-industry businesses being active in Tuzla Ship Building and Overhaul Industrial Zone. The purposes and activities of GİSAŞ Gemi İnşa Sanayi A.Ş are listed as follows:
- To carry out all investments, which would not be rational in terms of cost and effectiveness should they have done them by their own means, in such manner that all shipyards will benefit from it.
• To operate the facilities realized or to be realized with such investments in an integrated structure with production activities of the shipyards.
• To provide the shipyards in more suitable conditions the services which are closely in the interest of the ship building and overhaul industry albeit extraneous to shipyard operations.
• To supply the materials and equipment which form the main inputs in ship building and overhaul in order to develop the Tuzla Shipyards Zone, as the largest shipyard zone in Turkey.For such purposes, GISAS is continually improving its activities in order to safeguard interests of and reinforce the competitive advantage of the shipyards in the said zone.
State of Business
However its obligations are of utmost importance, GISAS was not using a centralized system. Services provided, requests received, sea services and grit stocks are followed up in Excel files stored in different places and for recognition of such data, another software is used for entering them in the accounts, an unnecessary double work.
To solve the problem suggestions are made for migration to “Enterprise Resource Planning Software” with necessary explanations provided in the “Activity Report for 2008”. After several negotiations with other companies, they sit on the table with 6 Gen, which delivered a successful project in Yardımcı Shipyard. After the initial and single meeting, GISAS decided on 6 Gen to implement the project, seen by it as an important step towards establishing a corporate body.
Solution
Starting out the project with business partner 6 Gen, Microsoft Dynamics organized a team in order to deliver the target that is “automation of the Guidance and Towing Boat Activities” given them by Mr. Gökhan Esin General Director of GISAS.
First of all the parameters and formulas which define the service fees of Guidance and Towing Boat services are imported into the system, while at the same time dimensions to be used for accounting plan and analyses are defined. Then grit order and supply process is introduced into the system; followed by introduction of personnel employment rules according to payroll calculation and legal regulations into the system as an alert.
For all these works, support of senior management was crucial. To this end, whole company must spend the time as necessary, take faster decisions on design and implement necessary controls for everyone to use the system fully, which are all ensured fully resulting in a successful project delivery. The belief of GISAS in such kind of systems and being aware of the benefits if such system is used fully made it easy for both project team and other employees of the company got motivated. Thanks to the such positive motivation we got across GISAS, the project is completed and launched at the planned date and within estimated budget.
Benefits
Business Management Made Easier With Instant State Monitoring
A centrally managed processes with Microsoft Dynamics NAV rendered two important services monitored instantly. First is grit supply management. Since available grit stocks, grit requests from shipyards and unfilled orders are seen instantly in the system, supply chain management made easier and became effective as well as reconciliation with shipyards purchasing grit made easier. In addition, all weighing print-outs during grit sales are automatically imported in the system, detailed data about two types of shipment (bulk and bigbag) is entered in the system. Thanks to all these automations, it became possible to answer any kind of questions from customers just by looking at the system and all lost time expended for searching the past accounts of the customers is now a thing of past.
The second important service is the migration of service forms of towing boat service into the system. The ineffective and wasteful outdated process where documents are accumulated in the marketing then delivered to accounting for billing is completely eliminated. Thus, once the forms completed for ship movements are entered in the system, all data such as service fee, related tow boat and captain, entrance and leave times of ships in/out shore facilities are now stored in the system. As a result, a database which contains valuable data are now being created.
Activated Accounting Processes
With the launch of the system, a great progress has been made for minimizing the time expended for accounting processes and improving the quality of the data received. All receivables and payables are now visible to accounting personnel without requiring an additional report; payments forms are being created automatically by the system and delivered to anyone whose approval is required over the system. Previously all related invoice was circulated together with payment form all along the approval chain and controls were difficult in the midst of many pages. Today, a GISAS personnel who has a question about a payment order is able to access all details easily from the system.
In addition, ability to see the balance in receivable follow-up provides GISAS important information. Not only it became clear that balance of a costumer is due to bulk or bigbag grit purchase or due to guidance service but also it became easier to take instant decisions on the payment schedule related with receivables.
Migration into the system of the payroll accounts previously time consuming for accounting provided time and labor savings as well as made it easier to comply with regulations. Furthermore, thanks to automatic follow-up by the system the overtime limits of the personnel in charge of some duties, any kind of legal incompliances are avoided in this regard.
Efficiency in Reporting
GISAS is obliged to submit monthly activity report to both Senior Management and Undersecretariat For Maritime Affairs. The departments who once expends significant times for these reports are now only coordinating the data entry in the system and ensuring the accuracy of the data and the reports are created automatically in the system. In addition, instant creation of the reports which were once a difficult job for GISAS also expedite the decision-making process of the managers. With the launch of the system, sales reports on the Period/Zone/Customer etc. basis are now being created in a short time and healthily; it is also possible to create reports on Department/Cost items basis. Thanks to such reports enabled by the system, it is revealed that consumable inventories and their consumptions costs unnecessarily a lot to the company and such items are now fully subject to the approval only through the system and put under surveillance.
Support in Investment Decisions
After the data made obtainable from the reporting, it became possible to access many data over the system, which may be needed in the decision making process. Since guidance service request form is entered in the system, accumulating properties of all ships approaching the harbor, such data are being used as inputs in certain investment decisions. For instance; Variation of the size of ships entering the Tuzla Harbor Zone are taken into account in the investment decisions. Thus, investment on the Microsoft Dynamics NAV is amortized just thanks to the effectiveness and benefits obtained from the new investment decisions.
Declining Expenses Thanks to Cost Analysis
Once whole grit supply process is migrated in the NAV system, cost components become very evident and it is seen that some expenses increases in the supplies with small ships. On the basis of such data as well as considering the declining financing costs, larger ships are now being used for the grit importation.
Taking similar measurements in the towing boat service, GISAS achieved the same profit in 2009, where the crisis deepened, compared to previous year, thanks to all such cost controls.
Trust in Numbers, Not Feelings
GISAS General Manager says that after the launch of the system, whole company began to talk in numbers and reports. As a significant step in having a corporate body, together with adoption of certain rules and continuous improvement, it gives company the opporunity to boost its competitive power.