SAP Business One Implementation for AutoMech Parts Manufacturing Pvt. Ltd.

May 2024 to Aug 2024

1. Executive Summary

Auto Mech Parts Manufacturing Pvt. Ltd. is a mid-sized industrial manufacturing company specializing in precision engine parts for motorcycles and cars. The company was facing challenges in process visibility, inventory control, production tracking, and financial reporting. A full end-to-end implementation of SAP Business One (B1) was executed over five months, resulting in significant operational improvements and aSAP Business One Implementation for AutoMech Parts Manufacturing Pvt. Ltd.

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Automation across departments.

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2. Client Background

AutoMech operates in a highly competitive automotive parts manufacturing sector. Their core business includes:

• Sourcing raw materials like metals, alloys, and casting parts.

• Producing engine parts such as pistons, valves, camshafts, and crankshafts.

• Maintaining quality control at every production level.

• Managing local and international sales and distribution.

Before SAP B1, the company used a combination of manual processes and disconnected software for procurement, inventory, and finance.

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3. Project Scope and Objectives

The scope of the SAP B1 implementation covered the following key objectives:

• Integrate all business functions into one centralized system.

• Enable real-time visibility across inventory, production, and sales.

• Implement cost-effective procurement and accurate material planning.

• Streamline financial closing and reporting.

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4. SAP Business One Modules Implemented

• Financial Management: Chart of accounts, journal entries, budgeting, and bank reconciliation.

• Sales & Distribution: Quotation to invoice process, credit limits, and delivery management.

• Purchasing: Supplier quotations, purchase orders, goods receipt PO, A/P invoicing.

• Inventory & Warehousing: Item master data, bin location tracking, stock transfers.

• Production & MRP: Bill of Materials (BOM), work orders, machine scheduling, and demand forecasting.

• Quality Control (via UDFs and validations): Quality checks at goods receipt and production levels.

• Reporting & Analytics: Custom dashboards, sales performance, procurement efficiency, and inventory valuation.

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5. Implementation Methodology

Phase 1: Project Preparation

• Project team formation

• Kick-off meeting and requirement gathering

Phase 2: Business Blueprint

• Detailed process mapping

• GAP analysis and documentation

Phase 3: Realization

• Configuration of standard SAP B1 modules

• Customization of UDFs (User Defined Fields) and approval workflows

• Integration of barcode scanning for inventory

Phase 4: Final Preparation

• Data migration (masters and opening balances)

• User Acceptance Testing (UAT)

• User training across all departments

Phase 5: Go-Live and Support

• Go-live in a phased manner across departments

• On-site hypercare for 2 weeks

• Monthly support and performance review

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6. Key Business Processes Covered

Procure-to-Pay (P2P)

• Requisition

• Purchase Order

• Goods Receipt

• A/P Invoice

• Payment Processing

Order-to-Cash (O2C)

• Sales Quotation

• Sales Order

• Delivery

• A/R Invoice

• Incoming Payment

Production Process

• BOM creation for engine parts

• Material issuance for production

• Operation routing (machine-wise)

• Production order execution

• Quality checks

• Finished goods receipt

Inventory Management

• Real-time stock tracking

• Bin location management

• Minimum and maximum inventory levels

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7. Sample Metrics and Achievements

• Inventory Accuracy improved from 72% to 95% within 3 months of go-live.

• Production Downtime reduced by 20% due to better scheduling.

• Sales Order Processing Time reduced from 2 hours to under 30 minutes.

• Monthly Financial Closing time shortened from 12 days to 5 days.

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8. Key Benefits Delivered

• End-to-end traceability of production and sales.

• Real-time visibility into material stock and consumption.

• Enhanced decision-making with reliable data.

• Improved compliance with audit-ready financial records.

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9. Conclusion

The SAP Business One implementation at AutoMech Parts Manufacturing Pvt. Ltd. successfully digitized the entire operational cycle—from raw material purchase to sales delivery—bringing transparency, control, and efficiency. The implementation stands as a robust example of how SAP B1 can be tailored to meet the unique needs of manufacturing SMEs.