Case Study: Taiyo American
Solution: Deacom ERP
Industry: Solder Mask Manufacturing & Supplier
About The Company
Taiyo America, Inc., the largest supplier of solder mask in the world, has a global reputation for proven performance, extensive end-user acceptance and outstanding quality. Their customers range from garage-shop circuit board fabricators to major original equipment manufacturers.
In 1995, Taiyo installed a DOS-based computer system and three stand-alone software applications: SNAP for lab management; Micro-MRP for production and inventory control; and Great Plains Dynamics for accounting and financials. Despite efforts to integrate these systems, the company struggled with errors resulting from duplicate system entry and complex processes to obtain regulatory reporting. After years of trying to make it work, the management team at Taiyo decided to look for one system to replace the legacy software.
After an analysis of the current situation, Taiyo America determined that in order to remain the market leader, they needed a software solution that could handle their requirements without creating more internal complexity. Specific functional requirements included lab management, quality control/quality assurance (QC/QA), regulatory reporting, sales order entry, production, inventory control, purchasing, and accounting.
An internal ERP selection team evaluated five Enterprise Resource Planning (ERP) software systems. After onsite demonstrations of the systems, Taiyo found all but DEACOM to be either too complex or too customized for their business requirements. “We really liked how everything works together in DEACOM,” said Technical Manager Rick Carlson. “ Additionally Deacom’s fixed price implementation helped the company’s decision-makers feel more comfortable about investing in new business software.”
Results & Benefits
Taiyo and Deacom teams worked together to configure the software to the unique business requirements of the coatings industry. Since Deacom integrates every aspect of the business, from formulation to shipment, Taiyo did not experience any of the transition issues they had anticipated. The ease of transition allowed management to focus their efforts on building better business processes.
With all of Taiyo America’s data stored in one database, massive reports are a thing of the past, production no longer has supporting documents scattered on the shop floor, and technicians no longer document their work in notebooks, but within the system at the formula level. And, since DEACOM integrates lab management and production, when the lab determines that a formula is ready for market, all formulation data and historical information is available to the shop floor with the push of a button.
“We buy multicurrency, so when the Yen/Dollar exchange rate changes, I can make mass pricing changes in DEACOM to determine how the current devaluation of the U.S. dollar might impact our bottom line and individual products.” As a result, Taiyo has access to a detailed breakdown of past, present, and future costs for raw materials and manufacturing to show the effects of the Yen/Dollar exchange rate over time. “We were able to ask ourselves: Why produce Product A and Product B when they’re essentially the same, but Product B turns the best margin? It’s a great advantage to have that what-if cost analysis capability. We couldn’t do that before. Now we can drill down to an exact piece of information, because the system’s set up by part master, territory, region, part – whatever you want – and you can filter that information by date range or any other variable. Then you click, run, and the information’s there. It’s great.”