Vitafoam-Plc

Introduction

Vitafoam Nigeria Plc founded in August 1962

Vita international ltd.

CWA holdings ltd.

Major products Foam products (polyether, rigid etc), Adhesive

Ownership change in 1978 (60% to Nigerian investor), CWA gave 20% to Vita
international.
1998 Vita gave share to employees (final 31%)
550 employees

IT system in Vitafoam (1982)

Data center consisted of Mainframe computer with financial applications and
ops.
Business systems:

Network and comm.

Saga line/200 finance and distribution system.

HR plus v2.5 for HR dept.
LAN and VSAT based internet connectivity

IT dept. with 3 people including unit head and 2 support

Responsible for system maintenance, data entry, report printing, user support and
vendor relation

IT - Finance and accounting dept.

Initial problem

Suggested changes

Terta accounting system upgraded

to Saga line/500
Utilization was minimum
Only General ledger, account rec.,
acc. payable modules operational
Manual financial entry, causing
time lag

Collaboration of all dept. with

finance dept.
Implement onsite data entry
system, dept. wise.
Real time access of info to finance
dept.

IT Engineering dept.
Initial problem

Inventory level tracking issue

Issue with scheduling preventive
maintenance

Suggested changes
Implementation of a central ERP
system, which would track the
inventory level at different plant.
Implementation of PLC
/SCADA(supervisory control and
data acquisition), to help record
real time data

IT Production dept.
Initial problem

Suggested changes

No automation support, which

caused lack to optimum production
Manual communication to related
units.
Production scheduling issues

Implementation of an intranet
connecting all the vendors,
suppliers and warehouses.
access to real time data from the
sales and marketing dept. for
production forecast.

IT - Logistics and purchasing

Initial problems

Logistics work was conducted

manually

Suggested change
Central inventory management
system to be installed.
Delay of raw material from
international suppliers can be met
through domestic suppliers

IT Sales and marketing

Initial problems

Suggested changes

Lack of information of the finished

goods
Records of payment, freight
charges are not easily consolidated

Warehouses will be connected

using the online network
ERP module will help maintain
proper log of payment details.
The online system connected with
wholesaler will help do sales
forecast

IT HR dept.
Initial problem

Management payroll is outsourced

Manual HR administration
Unstable system in place and lack
of knowledge about the system

Suggested changes
ERP system can be used to manage
business commitments like payroll
Training should be provided to
employees to make its use easy
Performance evaluation tool can
also be deployed using the same

Effect of new IT implementation

Improved efficiency across the organisation

Proper system for resource utilisation
Transparent and unbiased appraisal system
Better decision making through collaborative inter departmental work
Central data base repository to record data at both department and
organisation level
CRM system enabled with customer feedback system.

Cost implication of IT system

Maintenance Cost the system implemented will require maintenance from

time to time.
Operational Cost Initially it will be high and will be almost constant in future
Training Cost the ERP system will require initial training of staff
Infrastructure cost - The initially implementation of the system will be high
but in the long run it will be recovered.
Up gradation Cost upgradation of the system to utilize the technology to the
fullest

Thank you