Jinan Diesel Engine Co., LTD. Sets Up ERP System Platform in China

| Client story

Capgemini assists Chinese National Petroleum Corporation’s (CNPC) subsidiary Jinan Diesel Engine Co., LTD. to create a unified ERP system strategy

“ Based on their co-operative spirit we formed an effective team with Capgemini. As the project was completed, Capgemini showed great willingness to collaborate from start to finish, respect for the work, professional competence, strong analysis, and ability to solve problems. This really was the basis for the ERP project’s success. ”Tian Shumin, JDEC General Manager

The Situation

Jinan Diesel Engine Co., LTD. (JDEC) is CNPC’s only internal combustion engine product-related enterprise. As a classic example of CNPC’s decentralized industry, JDEC was selected as a trial unit for the installation of a production Enterprise Resource Planning (ERP) system. JDEC’s ERP blueprint and solutions were used throughout the installation in CNPC’s other industries, making it an excellent model. Capgemini assisted JDEC in its ERP information and systems implementation, helping JDEC to optimize its production planning methods, utilize quality tracking, and raise the level of information management while showing the economic benefits of it.

The Solution

Following the unified principles of CNPC’s ERP installation, Capgemini utilized its global industrial knowhow and its localization experience, and making careful note of CNPC’s special characteristics, helped JDEC to successfully implement its ERP/SAP system. JDEC’s ERP had nine separate divisions and modules including finance, cost, production, materials, distribution, equipment, and quality management. In addition to SAP standard solutions, Capgemini designed and developed a quality tracking system, optimized its control of multiple products, and created a purchasing platform for outside suppliers. With these solutions, Capgemini has clearly raised JDEC’s management level and laid down a foundation for future development.

The Result

With JDEC’s new ERP, one could sense the difference in thinking and improvement in management, with marked effectiveness on both micro and macro levels.

JDEC’s ERP project micro level benefits include:

  • management reorganization, promotion of managerial change
  • emphasis on connection, and task integration
  • organization level planning, improvement in planning level of materials management.

JDEC’s ERP project macro level benefits include:

  • unified metrics, avoidance of information isolation
  • improved management, better internal controls
  • timely reactions, adequate analysis of reports.