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NOF Metal Coatings Europe chose to upgrade to Microsoft Dynamics AX 2012

NOF Metal Coatings Europe is the European subsidiary of NOF Metal Coatings Group, belonging to the Japanese chemical group, NOF Corporation. The group is the inventor of proprietary zinc flake anticorrosion coatings. The coatings ensure a high level of corrosion protection at low dry-film thickness. They are the benchmark in the automotive and truck industries as well as in other industrial sectors such as renewable energies. In 2011 NOF decided to upgrade their existing Axapta version 3.0 ERP system to the most recent version Microsoft Dynamics AX 2012. NOF’s choice for iFacto as implementation partner for this migration project was based on its knowledge and experience in the Semi-Process industry.

NOF

By implementring Microsoft Dynamics AX 2012 the need for customizations was strongly reduced, and made it possible for NOF to use the ERP’s integrated financial inventory valuation functionality. 

The main goal for the upgrade was the replacement of bespoke work by standard functionality available in Microsoft Dynamics AX 2012. Also, in the new AX version NOF was able to support certain business processes that were not automated at all before.

 

To achieve this goal, it was decided not to make a ‘copy’ of the existing Axapta 3.0 version into the new one. Business processes were reviewed and redesigned where needed, this resulted in a full, new ERP implementation.

Quality management

Lab and quality management was previously managed outside of the ERP system. Also the control of raw material and finished product batch properties was mainly managed manually. This resulted in redundant registrations and inconsistencies causing avoidable customer complaints. In Microsoft Dynamics AX 2012 full Quality management functionality was implemented which lead to improvement of the delivery quality in general and freeing time for NOF to revise its quality design.

Inventory valuation

As a result of the many customizations in the previous Axapta 3.0 system several bugs made the financial inventory valuation unreliable. NOF had no other option than to make very time-consuming monthly manual calculations.
The added standard functionalities in Microsoft Dynamics AX 2012 strongly reduced the need for customizations, making it possible for NOF to use the ERP’s integrated financial inventory valuation functionality.

Scanning

In the Axapta 3.0 system, the barcode scanning solution was based on NOF specific customizations. Limited system validations often resulted in wrong inventory registrations, sometimes leading to incorrect deliveries.
In order to reduce these risks, NOF decided not to use barcode scanning anymore for certain logistical flows.
During the Microsoft Dynamics AX 2012 implementation NOF evaluated ‘off the shelf ‘ barcode scanning solutions for replacement of the old one. The choice was made for the iFacto scanning solution based on the WMS Mobile+ framework.
Here again, all flows were re-analyzed, re-designed and successfully implemented.

Financial reporting

As a subsidiary company NOF is required to monthly provide extended financial reports to its French parent company. The reporting possibilities in the old system did not cover all the needs and most of the work was done outside of Axapta 3.0, manually re-entering the required data.
During the Microsoft Dynamics AX 2012 implementation the more extended reporting possibilities were set up, resulting in important time savings for NOF.