ERP software solution for the oil manufacturing ready fit vertical

1. Roadmap ERP Digitally Refinesthe Workflow of Oil
Extraction Industry
Roadmap IT Solutions (P) Ltd.
No. 5, Republic Street | Reddiarpalayam | Pondicherry - 605 010 | India
Phone: +91 413 4207 333, Email: mktg@roadmapit.com
www.roadmapit.com
Roadmap ERP
Integrate Innovate Succeed
R

2. The Edible Oil Manufacturing industry is located in Tamil Nadu, India. Established in the year 1981 it began to
commercially manufacture Cattle, Broiler, and Layer feeds since the year 1983. At present the Company has a
production capacity of 90,000 Metric Tonnes per month. With continued improvement and innovation, the
company enjoys a pre-dominant position in the Cattle and Poultry Feed business in the states of Tamil Nadu,
Kerala, Karnataka and Andhra Pradesh.
Dried coconut cakes, Rice Barn powder, and Hexane are the major raw materials used by the company to extract
oil. Orders are received from direct clients and branches through emails only. The company always maintains oil
stock that would cater to the demand of a minimum of at least 3 days. From the stock maintained, ordered
materials are delivered through their own fleet of vehicles that are maintained in their own workshop. In the
event of non-availability of own vehicles other vehicles are hired and the freight charges are invoiced and paid.
The vehicles are fueled at the company’s own petrol bunk.
The own vehicles used for distributing FGs, after the delivery is made, are engaged with appropriate third
parties to transport goods while returning from their respective destinations. The freight charges for these
services are collected through receipts as direct income.
The following pain points are the major hurdles that led the Company to decide on retiring the existing software
and planning to deploy a new one:
The existing software in the branches and the existing software in the factory were different. The entries
made at one end were not automatically updated in the other, and so had to be manually repeated resulting
in double entries that caused a lot of confusion and errors.
POs have to be manually forwarded for hierarchical approval.
Orders from clients had to be manually written down and later converted into Sales orders at the branch.
While dispatching materials against orders from the branches the client raises appropriate invoices. On
reaching the point of delivery if the shop to which the delivery is to be made is closed the respective invoice
becomes redundant and disrupts the entire invoicing sequence.
Client does not have a system to monitor sales person performance.
The company generates tentative P&L statement for each day based on approximations
1
Brief Company Profile:
Production & Distribution Process - an Outline:
The Pain Points faced by the Company:

3. The Oil Extraction Company has a state-of-the-art production facility for extracting Rice Bran oil and Coconut oil.
Roadmap ERP perfectly aligns with each and every digital requisite of the production process that encompasses
and revolves around the following functions and units:
There are two solvent plants
Coconut cakes and rice bran powders are used to Extract the oil
Coconut cakes are purchased from domestic and non-domestic sources
Rice bran powders are in 6 grades they are
These are the raw materials that are used for extracting the crude oil (Rice bran oil).
SEP- I
Grade- I
Grade- II
Grade- III
Other state
Tamil-Nadu
Rice bran
SEP- II
The customer's existing digital facility did not provide details on AP and AR ageing
Excel sheet based manual calculation is used by the company to calculate GST (GSTR1 & GSTR2)
The existing system does not provide the company's top management with any MIS reports.
2
The Company had a siloed system that was quite ineffective when it came to digi-
tally governing its business process. Most procedures and entries were manually
performed, while some data was registered in Excel Sheets with no further scope.
In total, the absence of a coherent and comprehensive digital solution for the en-
tirety of the organizations business function made it seek for an ERP .
Of all the ERP solutions that responded to the Organization’s quest, it found
Roadmap ERP to be the technologically and economically best-fit system with the
most amicable answers to address each one of its pain points.
The Production Processes Governed by Roadmap ERP:
Solvent Plant
Why Roadmap ERP?

4. Hexane Steam Labor, and EB
Coconut raw material cakes, composed of 80% imported cakes and 20% domestic cakes, are sent to the
conveyer for mixing
After mixing, Hexane is added to extract the coconut oil
After extracting, the oil is heated to make the Hexane evaporate and thus get separated from the oil
The evaporated Hexane is collected, cooled, and restored into the Hexane container. This Hexane is reusable
After filtering the oil the DOC (De-Oiled cake) is sent by conveyor and packed to be used as raw material for
feeds
The DOC contains 0.5% oil content
The rice bran raw material is combined in the ratio recommended by the lab results
All the raw materials are sent by the conveyor for the mixing processes
After the mixing processes, the raw materials are sent to be steam-cooked
After cooking, it is sent for the Pelleting processes
Then it is cooled to reduce the moisture
Then it is sent to the next process, wherein Hexane is added to it to extract the oil from the rice bran pellets
After oil is extracted, the oil along with Hexane is sent separately and the de-oiled rice bran (DORB) with
Hexane is sent separately
Both the extracted Oil and DORB are heated to make the Hexane evaporate and be separated from the oil
and DORB
The evaporated Hexane is collected, cooled, and restored into the Hexane tank. This Hexane is reusable.
The main cost factors involved in the extraction process are:
3
Coconut Crude Oil Processes
Rice Bran Crude Oil Process

5. In the Expeller Plant there is no refining process as the extracted oil is directly sent to the storage tank.
The gums are removed in this process by using 0.5% Citric acid at 50°c and by adding phosphoric acid
from 50°c to 60°c
After the neutralization process, settling is done for 3 hours. During this process all the gums settle
down, while the oil floats above the gums. The gums and oil are pumped out separately, and the oil goes
for the next process
In this process the sediments (Impurities) are removed from the oil by heating it, and the color is re-
moved from the oil by beaching it using bleaching agent
Coconut in the form of dried copras are purchased from Domestic vendors
The copras are sent to the expeller plant through conveyor belt for the cutting process.
All the dried copras are cut into small pieces for extracting the oil from the coconut.
There are 4 expeller tanks each tank is of 50 tonnes’ capacity.
The dried copras contain 60% oil, of which up to 48% of oil is extracted and the balance 12% oil remains with
the DOC
The extracted oil is sent to the storage tank.
The DOC is sent to the solvent plant to be stored as raw material for coconut crude oil.
Crude oil from the solvent plant is the input material for the process
There are two types processes involved in the refining
4
Expeller Plant
Process Flow for Rice Bran Oil Refining Process
A) Primary Processes
Neutralizer
Settling
Bleaching

6. De-Aerator
50% of Fatty acids are removed from the oil by heating it to 260°c at 750 mmhg (Millimeter of mercury)
of Vacuum
First Flasher
Another 25% of Fatty acids are removed from the oil by heating it to 260°c at 750mmHg (Millimeter of
Mercury) vacuum
Second Flasher
All the remaining fatty acids (25%) are removed from the oil during this process, wherein the oil is again
heated to 260°c at 750mmHg (Millimeter of Mercury) of vacuum
In this process the fat and PV (peroxide value) are removed from the coconut crude oil by using
caustic soda.
Crude oil from the solvent plant is the input material for the process
It is a batch refining process comprised of the following procedures:
Crystallization process is to remove the wax from the oil by cooling it to 20°c. In this process the wax
settles down and is drained separately, while the oil floats above the wax and is collected for further
processing
The evaporated fatty acids are condensed as liquid and sent to the storage tanks for sale
For every one hour the oil is tested for Fatty Acids. A maximum fatty acid content of 2.5meq/kg is allowed. If in
case the level goes above 2.5meq/kg the oil is sent for reprocessing.
After the Deodorization, the FG oil that comes as output is sent to the storage tanks
5
Process Flow for Coconut Oil Refining Process
B) Secondary Processes
Deodorization – It happens in 3 stages
Scrubber
Neutralizer
Crystallization

7. The moisture content of De-oiled Rice Bran (DORB) is checked on an hourly basis
The standard level of Free Fatty Acid (FFA) at the time of purchase is set at 15%. If it is more than 15% it
will be rejected and sent to be reprocessed.
1st grade raw material and TN rice bran go under the calcium test.
Rate will be decreased during the purchase based on FFA price.
In here the neutralized oil is allowed to settle so that the Fats get condensed at the bottom and the oil
floats above. Both are drained separately.
In this process the oil is heated to 120°c in vacuum in order to remove moisture
In this process the sediments in the oil are separated from the oil using Pressure leaf filtration
Peroxide is used in the Batch Deodorizer to get pure oil.
Then the oil is heated to 180°C at 750mmHg (Millimeter of Mercury) of vacuum to remove PV
Around 3-4 hours after the process the oil is checked for PV. The minimum PV level allowed is
0.5meq/kg, and the FG coconut oil contains 0.25meq/kg of PV.
The coconut oil cleared from the Batch Deodorizer process is cooled down to 50°c using vacuum cooler.
The FG coconut oil is slotted for bulk sales and not packed for packet sales. Based on market price, the price
for coconut crude oil or refined coconut oil is decided.
The Oil Extraction Company involves a stringent quality process right from acquiring raw materials till the
packing of the end product. Roadmap ERP has been successfully deployed to digitally support and sequence
the entire flow. The following are the parameters and processes that are thus digitized by the ERP:
6
The Quality Lab Parameters/Processes that are digitally streamlined by
Roadmap ERP:
Settling
Batch filter
Pressure leaf filter
Batch Deodorizer
Vacuum Cooler

8. Moisture Acid content 0% of hexane content
Iodine value 10% Moisture Flash Silicon dioxide
FFA Oil content Sand and Silicon Crude Fiber Moisture
Rice bran (FG) stock QC method is followed on a daily basis. Based on usage the oil is transferred
for package.
The level Peroxide value (PV) allowed in rice bran oil (FG) is 0.25%.
Half-a-liter of rice bran oil (FG) is taken up to for QC once in every 2 hours. The parameters are:
For Purchase of Rice Bran powders the following parameters are checked:
Iodine value FFA Moisture
For purchasing coconut cake the following are the parameters that are checked
FFA Moisture Flash ( Hexane content)
For every 2 hours crude oil is checked for the following parameters
Moisture Temperature
For every 1 hour DORB will checked for the following parameters
Color Sediments Wax Gums
For every two hours rice bran refined oil is checked for the following parameters:
For bleaching process carbon powder and egg powder is added.
Pre-dispatch check of Rice bran oil is conducted before bulk sales.
Sales returns also undergo QC.
Gate Entry Operations are fully automated
Capturing Vehicle In/Out Time and the Vehicle location tracking inside campus
Implementation of Barcode to reduce redundant data entries
Unique Trip Plan Number to track multiple unit tracking & loading in different warehouses
Hassle-free assessment of the operational costs of the multiple trips made by vehicles
to load/unload Railway Wagons
Similarly, for Coconut FG oil, the parameters are-
7
Unique Digital Solutions offered by Roadmap ERP:
Gate Entry

9. Generation of Sales order using Mobile/Tab
Online as well as Offline Transactions
Customer-wise Outstanding details
Customer wise Credit limit and Eligible Balance Amount
Pending Sale Order against each customer
Unit Price displayed during Sales Order creation
Promotional Quantity displayed for every sales order
Mapping Invoice Value with Discount Amount for each invoice
Sales target Vs Actually achieved
Once Purchase stock transfer (from Branch) is made, it will be automatically converted to
Sales Order against the corresponding Branch.
Manager-wise sales report
Subclasses-wise report
Customer-wise report
Pending order history
Sales invoice delivery status
Pending collection history
Pending Sales Order
Sales target
GRN Batch Bill booking by Weighted/GRN based method
Weigh Bridge automation – Tare Weight/Gross Weight calculation
As per Weigh Bridge data Auto cash payment (for Freight) to Finance Department
Once Trip Plan Number is generated, it will be displayed in LED TV at the entrance
8
Sale Order through Tab
Reports on Tab

10. Types of invoice
Unique Invoice Running-Number creation as per requirement
5 discount columns in each line during Invoice creations
State-wise Revenue account formulation
Mail/SMS Integration
Tax Invoice
a) Customer Invoice
b) Stock Transfer
Intra Division Transfer
Inter Unit Transfer
Discrepancies in Stock Transfer Handling
c) Direct Invoice at Branch (New Screen developed)
Automated mailing of Purchase Order
Workflow hierarchy implemented
Item-wise rebate calculation
Separate Rebate calculation methods
Revenue based rebate calculation
GRN stock receipt before QC Acceptance
Auto document creation based on the QC parameters
Single PO generation for requests from multiple locations
Item-wise Inventory Method has been configured
Vehicle-wise Material issuance option enabled
Automated generation of Inter/Intra Document and Material Issuance Document
Inventory method changed from FIFO to Moving Average Method (Group-wise)
Bill of Supply
Delivery Challan
9
Invoice
Purchase & GRN
Inventory

11. Raw material details are GRN-based and the other materials are based on moving away cost
The input credit value that is not availed in the GRN is added to inventory item cost
Separate Overhead Cost Masters Screen was developed for Railway Receipt (RR) transactions
GRN-wise reduction of Gunny and HDPE bag quantity
Periodical Accounting
All accounting Master Data have been configured in periodical accounting system
All Entries have been converted into Periodical Accounting method
Vehicle-wise Material Issuance Journal Voucher (JV)
Department-wise Material Issuance with JV creation is enabled
Expeller and Solvent Raw material consumption against Production completion with JV creation
is enabled
Intra-Document is automated from one sub unit to another (Solvent 1, 2)
New Screen has been developed based on the legacy system screens – Bill Booking
Auto bill booking postings against Debit & Credit transactions
Branch and Intra Stock Transfer Bill booking Documents are automated
Provisional Journal screen has been developed newly
Avail Class/Subclass-wise Input Credit (AIC)
Auto mail configuration for Payment Advice and Quality Reports to Suppliers
Daily Payment sheet generations
Product-wise classification of Chart of Accounts (CoA) - Revenue Account
State-wise and unit-wise trail balance option enabled
Segment-wise trail balance option enabled
10
Finance Management

12. Vehicle-wise trip allotment
Vehicle-wise running kilometer and vehicle-wise mileage
Type-wise segregation of the vehicles arranged while generating the Trip plan
Two types loading document options are made available in the Trip Plan, namely:
Normal sales, and
Bulk sales
Trip Sheet completion screen has been developed and the following options have been enabled
and separately posted in JV:
Forward Income
Deemed Income
Return income
Trip Expense
Vehicle-wise Fuel Consumption based on start and end Kilometer readings
P&L generations with provisional journal
Segment-wise
Schedule-wise
Consolidated
Division-wise AP/AR Aging
State-wise and Segment-wise Balance Sheet option enabled
Unit-wise Customer/Supplier Master Account configuration
Based on value, Number of invoices, and due days Credit limit has been fixed
Corporate customer has been segregated separately
Option to auto-post Customer-wise monthly incentive has been enabled
State-wise as well as Segment-wise GSTR1 has been enabled
11
Transportation Management

13. New screen is developed for Return and Unplanned Trip (Railway Goods)
Freight-rate Master has been developed in branch
Vehicle based generation of P&L (Cost Center)
Expeller
Towards deploying the periodical accounting system the Expeller Production JV was removed.
JV option is enabled in Expeller production entry screen
Expeller Tentative PNL Report is developed as per the given format
Expeller overheads details report is developed as per the given format
Solvent
Deduction master is configured to calculate the FG quantity as per the predefined deduction
percentage, E.g. Rice Barn and Coconut
A report is developed for projecting the oil content for rice barn and coconut item based on
the deduction percentage
Solvent Production PNL Report is developed as per the given format
In periodical Accounting system JV option is enabled in Solvent production entry screen
Refinery
Refinery production cost calculation is revised
As the refinery cost sheet was revised the corresponding report is also altered
Packing
Packing production overheads calculation was freshly developed
Packing production overhead points' calculation screen was developed and production overheads
calculation was changed.
Packing material cost report was developed.
12
Oil Production

14. Solvent Lab
Gate Entry Integration
Weigh Bridge Integration
Transport Integration
Attendance integration
All Branch integration
Mail and SMS Integration
Staff
RO water quality entry screen (SFC1117) and report was developed
Oil tank wise lab entry screen (SFC1119) and report was developed
Oil tank stock details entry screen (SFC1405) and report was developed
NIR lab inspection entry screen (TQM1053) and report was developed
CTC Pattern based on the Staff role
Society Loan Handling
Thrift Calculation
Bulk Increment
Boiler
A new screen was developed to display the details of the total running hours and idle/shutdown
hours of the Plant Steam distribution system.
Boiler water consumption report screen (SFC1118) was newly developed to display
the following reports:
1. Daily report
2. Monthly report
3. Steam distribution details report
4. Boiler water consumption report
5. Shutdown and idle hours report
6. Boiler running details report
13
Auto-Integration
HR & Payroll

15. Workers
Both Staff and Worker Payroll systems are auto-integrated with Finance Management
Employee ID Auto creation based on Employee Category
Vehicle Assessment Tab
Leave Balance conversion
Cost-Center-wise Department
Individual Employee Master Screen
Labor Attendance System
Production based activity costs
Salary Preparation & Processing Screen
Team Configuration and Allocation
Employee Activity
Daily Wages
Insurance Claim
Company based Policies
AMC Details
Mobile Bills Handling
Hospital Expenses
Roadmap ERP provides end to end solution that integrates all branches of the company with its
factory to ensure the existence of a single version of data at all ends through the assimilation of all
data in a common repository.
In the process of procuring raw materials, Roadmap ERP is designed to assign rebate percentage to
the procured material based on quality parameters and appropriately increase or decrease the price
of the material using company policy-specific preset formulae
14
Administration
Generic Aspects Addressed by Roadmap ERP :

16. DC while dispatching materials and the point of delivery, based on the availability
of the recipient
Generate mobile invoices on the spot and synchronize the data with the main office in real-time
Purchase Orders (PO) are mostly raised to Brokers, who in-turn aptly furnish the required material
through qualified suppliers. At the time of raising GRN, Roadmap ERP captures all the details of the
materials procured and the details of Suppliers providing the respective raw materials. From that
point onwards, all procurement related data are automatically captured and processed up till the
generation of payment details to the suppliers.
Brokers are paid in relation to the quality and quantity of materials provided by them on an agreed
percentage level. If the payment demanded by the broker exceeds the ‘tolerance’ percentage level
the processing of payment is curtailed by Roadmap ERP through company policy-specific methods.
The system captures orders on mobile phones, which would automatically update the system at the
branch. Even in areas without network coverage orders can be taken in normal fashion, and as and
when the sales personnel reach an area with network coverage the order details will be updated at
the branch without any alterations.
The ERP has equipped the company with the Mobile App to create
Roadmap ERP enables the organization to fix the target for each sales person and subsequently
track and verify if the concerned sales person had covered the set targets.
Roadmap generates accurate P&L details for each day
Based on the client's Sales Invoices and Purchase Invoices, Roadmap is designed to automatically
capture GSTR1 and GSTR2 respectively. GST details are generated in Government format, ready to
meet statutory requirements.
Roadmap ERP solution provides accurate details to precisely plan the procurement and production process-
es of the Oil Extraction Company. Further, it empowers the Stakeholders of the Company to make faster and
better management decisions by providing crucial information in a timely manner. The ERP has ultimately
delivered high ROI by totally solving all the snags that were pulling the company behind from functioning
smoothly. Roadmap, through its Business Process Re-engineering (BPR) approach, understood the needs
and purposes of the organization’s business processes. Roadmap’s BPR experts effectively collaborated with
the Organization’s core-team and successfully implemented the ERP on time and within budget.
15
Implementation Success:

17. www.roadmapit.com
Roadmap IT Solutions (P) Ltd.
No. 5, Republic Street | Reddiyarpalayam | Pondicherry - 605 010 | India
Corporate Operational Office : Pramuk Aqua Heights, Flat# C-602, 6th Floor, C Block,Electronic City Phase I, Hosur Main Road, Veerasandra Village, Bengaluru 560 100. Ph: +91 9972319933, 9442586928
Regional Office-Chennai : II floor, No.43/46,Brindavan Street Extension, West Mambalam, Chennai - 600 033. Ph : +91 75502 47788
Regional Office-Coimbatore : Old.No.20, New No.39,Vinayagar Koil Street, 1st Floor, Krishnasamy Nagar, Ramanathapuram, Coimbatore - 641 045. Ph:+91 94425 80742
Regional Office-Pune : A/13, Erica, Magarpatta, Hadapsar - 411013, Pune, Maharashtra. Ph : 91722 62949, 82200 17670
Regional Office-Vadodara : 23, Upper Ground Floor, Silver Rock Complex, Bhavan's School Circle, Vadodara - 390004, Gujarat. Ph : 91722 62949
Overseas Office : Middle East: Zaitunah Commercial Center, Office Suit # 205; Bld No.7097, Jeddah-23343-3523, KSA. Tele/Fax: +966 12 6133817
Africa : 7 Troon Cresent, Silver Lake Golf Estate, Pretoria, South Africa.
Phone: +91 413 420 7333, 98430 93700 Email: mktg@roadmapit.com
16