Shunxin Electronics: an early BOM and MRP implementation
Shunxin Electronics Co., Ltd. is part of the Hongxin Group of Hong Kong. The engagement took place in an earlier era of computing, when the company introduced BOM and MRP functions using DOS. The figures below are those recorded at the time of this historical implementation.
Shunxin was one of the earliest successful clients to bring QUALI's ERP (formerly Jiang's software) into operation through a sustained implementation effort. Chairman Gao led the company’s planning and maintained the determination to carry the project through. He took part in the meetings and discussions that established product-coding principles and the BOM structure.
Connecting SOP work with computer operations
At the time, the main challenge was connecting the company’s SOP processes with the actual sequence of computer operations. The work required the teams to define each computerised step, specify the operating requirements, and position when operators should perform each task. Manager Jiang, then general manager of Jiang’s Computers, personally led the coaching effort.
After six months of adjustment, the system went live. The resulting operating specifications guided data entry and helped establish internal audit and control points. In this model, the system records were part of the company’s defined work process rather than a separate reporting exercise.
BOM as the basis for material planning
The BOM structure planned the material list in advance. This helped the production process avoid using the wrong material or purchasing the wrong material. When a production order changed, MRP could generate a material requirements list. The system compared that list with inventory and expected receipts and issues to produce a shortage list.
The system could then compare supplier prices and identify a suitable supplier before converting the result into a purchase order. This connected production changes, material requirements, inventory information, supplier comparison, and purchasing work in one sequence.
Reported and estimated effects
Through safety-stock planning and sales and production demand planning, inventory investment fell by 30%–50% and inventory turnover increased by 50%. Delayed deliveries fell by 80%, average on-time delivery improved by 55%, and average late-delivery rates fell by 35% through production planning.
MRP shortened the lead time from batch purchasing by 50%. The process reduced the time purchasing staff spent processing documents and allowed them to focus on value analysis, source selection, negotiation strategies, and understanding production issues.
Estimated downtime caused by material shortages fell by about 60%, as improved production and purchasing plans made part demand more transparent and supported timely, accurate arrivals. Estimated manufacturing cost fell by 12%, taking into account lower inventory, less downtime and related labour savings, and purchasing-cost savings.
Taken together, the historical case shows an implementation built around product coding, BOM discipline, MRP material planning, and the alignment of SOP work with computer operations. The system’s value in this engagement came from linking those steps so that production changes could flow into material planning and purchasing decisions.