Case study
PT Kirana Megatara improves
eciency with ERP system
HP servers, storage and networking handle
business data from 15 factories
Industry
Manufacturing
Objective
Increase the quality and timeliness of business
information, to drive eciencies and improve
decision-making
Approach
Reviewed solutions from four major IT vendors
IT matters
• Simplied support due to entire solution being
from a single vendor
• Consolidated business data from 15 sites to one
ERP system at head oce
• Overhead of local standalone PCs removed from
mission critical system
Business matters
• Improved management, control and reporting,
with up to date information at all times
• Boosted business eciency due to accurate,
timely data and dashboard reporting
• Cut inventory from two months to one month
• Improved cash ow due to better monitoring
and control
• Increased customer satisfaction
• Accelerated ability to resolve manufacturing
problems, due to increased visibility
“Now that we can monitor and control factory operations
much better, we have improved company performance
in various areas, for example: inventory turnover,
cash ow and increased customer satisfaction.”
– Hartono Wijaya, IT division head, PT Kirana Megatara
Reliable, easy to manage system
Rubber producer PT Kirana Megatara wanted to replace
legacy systems with SAP ERP software to help manage its
business more eectively. HP supplied an entire solution
including servers, networking, storage, software and services.
This has enabled PT Kirana Megatara to improve the accuracy
of business data, to report centrally on 15 sites, and to cut its
inventory and improve cash ow.
Case study | PT Kirana Megatara
Challenge
ERP solution
PT Kirana Megatara is a major producer of
rubber, with a total capacity of 720,000
tonnes per year from its 15 factories across
Indonesia. Most of this production is exported
to tyre manufacturers around the world.
The company gathers a detailed set of
information from each of these factories
including raw material purchases,
production gures, and nished goods data.
Until recently, this data was then transferred
to legacy systems for review at the head
oce on an operations dashboard, with much
of the information contained in Microsoft®
Excel spreadsheets.
“We had no VPN connections from the
factories to head oce, and the information
was always a day late and it comes in
summary”, says Hartono Wijaya, IT division
head at PT Kirana Megatara. “We were also
having problems with the accuracy of data
and the process for transferring it, and if
something went wrong, it could result in
incorrect decisions at head oce.”
To solve these problems, PT Kirana Megatara
decided to implement an Enterprise Resource
Planning (ERP) system, which would help it to
manage its business and to handle growth.
Having decided to use SAP software for its
ERP, PT Kirana Megatara set out to nd the
best hardware platform for the system.
This would need to include servers,
storage and networking.
Solution
Complete system
PT Kirana Megatara contacted four suppliers,
and reviewed their proposals against
multiple criteria, including technology
direction, simplicity, scalability, reliability,
future expansion and pricing. Following this
review, they selected a solution from HP.
“Based on these criteria, HP was the system
that best met our requirements,” says Wijaya.
“The main factors were HP’s technology
features, and its simplicity of conguration.
HP’s people are experienced, and gave
us advice to ensure we chose the
right products.”
The system is deployed at PT Kirana
Megatara’s head oce in Jakarta, Indonesia.
It consists of a broad range of HP hardware,
including an HP BladeSystem c7000
Enclosure with ProLiant Server Blades,
and HP Enterprise Virtual Array (EVA) P6000
Storage. Networking is handled by various
HP switches, an HP MSR20 router,
an HP MSM720 wireless controller and
HP MSM410 access points.
Single vendor
A key factor in PT Kirana Megatara’s decision
to choose HP was that they wanted to
purchase the complete system from one
vendor, including storage, networking,
servers and services – something only
HP could oer.
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Case study | PT Kirana Megatara
Having everything from a single company
made implementation quicker, and ensured
that support was simpler. This saves time for
PT Kirana Megatara and reduces costs.
“We prefer having one supplier, so that if
something goes wrong we avoid having
multiple companies blaming each other,”
says Wijaya. “With HP as our single vendor,
its people are really helpful if there are
any issues.”
HP’s professional services team implemented
the storage, while HP’s partner, Password
Solusi Sistem, designed and implemented
other parts of the system, as well as
co-ordinating with SAP to ensure a successful
software installation. Wijaya comments,
“The implementation went smoothly.”
The HP networking equipment was supplied
with a lifetime warranty, helping minimise
total cost of ownership.
Benets
Easy to use and manage
The HP system is used to run two SAP stacks:
SAP Human Capital Management (HCM,
also known as HRIS) and SAP Logistics,
which includes FICO (nancial accounting
and control), MM (materials management),
SD (sales and distribution) and
PP (production planning).
As well as the SAP ERP system itself,
PT Kirana Megatara uses the HP solution
to run its own software, developed in-house.
This software is used for running automation
for the machines in the factories, and to
capture the data from this equipment and
route it to the SAP software.
According to Wijaya, the new system is
straightforward for end-users and for
his team. He comments, “Once our sta
become accustomed to the ERP system,
they use it with no diculties, and from
the IT perspective, the HP solution is
easy to manage.”
Improved reporting and control
With the ERP system in place, PT Kirana
Megatara now has better reporting,
and can more closely monitor its stock of
raw materials, work in progress, nished goods,
and the payments it receives.
“Previously, data in the factories was
stored on personal computers at each
site,” says Wijaya. “Now, the data is stored
and consolidated on the HP system at
our headquarters in Jakarta, and we have
exibility to look at summary reports,
as well as examine the detail that’s
there for each site.
“Management and control are improved,
and we can put the data on our dashboard
and utilise reporting tools,” continues Wijaya.
“Having this more detailed and accurate
information helps the business to run more
eciently and eectively.”
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Case study | PT Kirana Megatara
Customer solution
at a glance
Applications
SAP ERP
Hardware
• HP 5500 Switch
• HP 5406 zl Switch
• HP 4200 vl Switch Series
• HP ProCurve Switch 2500 Series
• HP MSM720 Wireless Controller
• HP MSM410 Access Point
• HP MSR20 Router
• HP ProLiant BL460c Server Blade
• HP ProLiant BL660c Server Blade
• HP BladeSystem c7000 Enclosure
• HP EVA P6000 Storage
• HP LTO 5 autoloader
Software
• HP Data Protector
• OS RHEL for SAP
HP services
• HP Care Pack Services
• HP Foundation Care 24x7 Service
“Now that we can better monitor and control
everything, we have improved company
performance in various areas including
inventory turnover, cash ow and
increased customer satisfaction,”
says Wijaya. “Before the ERP system,
our inventory stood at two months,
but now we have cut that to only one
month, and have improved our cash
ow in proportion.”
The SAP system also helps when there is
an issue at one of the manufacturing sites,
providing better visibility of what is wrong.
Wijaya comments, “We quickly know what
the problem is and it’s easier to nd out
what the issues are, and to x it faster.”
Reliable system
As the ERP system consolidates data from
production at 15 factories across Indonesia,
all in real-time, it is mission critical for
PT Kirana Megatara. This means that the
company needs the HP hardware to be
reliable, and to have a high level of uptime.
“The HP system – the servers, storage and
networking – is all running well, and keeps
our business owing,” says Wijaya. “We’ve
had few problems, but when any issues
arose, HP quickly helped us to solve it.”
“The HP system – the servers,
storage and networking –
are all running well, and keeps
our business owing.”
– Hartono Wijaya, IT division head, PT Kirana
Megatara
According to Wijaya, reliability is good,
with better than 99 per cent uptime so far.
For the future, the company aims to improve
this gure by adding an osite disaster
recovery site.
The company uses HP Data Protector
Software to back up SAP, and Wijaya
comments, “We rely on Data Protector –
it integrate with SAP, and is easy to use.”
PT Kirana Megatara is part of a group of
businesses in Indonesia. In future, it is
planning to add a private cloud to enable
closer integration and consolidation of
systems between various sister companies.
“We prefer HP hardware for all of the
companies in the group,” concludes Wijaya.
“I’m more than satised with the
HP solution overall.”
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4AA5-8546EEW, May 2015
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