CHALLENGES FOR THE AUTOMOTIVE COMPONENTS INDUSTRY
The effect of globalisation and the use of the Internet as a procurement and communication mechanism is resulting in a reduced number of component manufacturers and increased competition. To secure business, component makers must drive down cost, improve quality while increasing local content (government policy), and keep up to speed with international developments and design, while maintaining the complex life cycles of existing components.
SYSPRO FOR THE AUTOMOTIVE COMPONENT INDUSTRY
To succeed, the Automotive Components and Accessories industry must offer superior products in a collaborative environment in the correct quantity, at the right price and right time, while improving production flow and cycle times. SYSPRO for Automotive Components and Accessories provides creative, innovative solutions to these challenges. The Blanket Sales Orders and Releases module facilitates the unique requirement of the automotive industry in which automotive OEMs perform call-offs against order contracts they have with component suppliers on a regular basis.
HOW CAN SYSPRO HELP?
SYSPRO enables the industry to manage the entire supply chain, allowing an integrated view of all operations from production planning and scheduling, to purchasing and invoicing. SYSPRO helps you streamline your business processes; enables you to accurately forecast sales quotas and operating budgets; and track progress on the shop floor, in the warehouse and your distribution centres. Our inventory forecasting systems facilitate the forecasting, recording and replenishment of inventories, while our engineering change control applications provide the means to control and record changes to bills of material, as well as enabling archived bills to be accessed at any time.
CONTROL PRODUCT DESIGN CHANGES
Constant innovation is one of the key factors to remaining competitive, and on-going research and development to design new and better products are integral to the industry. Your ability to design new products and modify existing designs, as well as improve time-to-market is critical to remaining competitive and profitable.
SYSPRO provides tools to streamline and track the introduction of new product designs and amendments to existing designs, along with relevant costings. The Engineering Change Control (ECC) module enables you to apply strict control over your design-to-market processes by providing an integrated rules-based electronic workflow system with full version control, security and auditable history.
ECC gives you the tools to record and track new and modified product design and process changes, assess the impact of these changes on costs and associated data, and control the change routing and approval processes. ECC’s queries, audit trail, history and archive facilities give you quick online access to details of prior product versions, as well as the option of reverting to the production of a prior product version. In addition, the facility to attach copies of product design drawings to version and release levels provides access to visual details of revisions.
The Where-used Query facility enables you to identify all items affected by the raising of an Engineering Change order for all routes identified as being under engineering change control. In addition, SYSPRO provides a ‘replace component where-used’ facility that enables the quick replacement of one item with a valid substitute item, thereby streamlining design changes.
SYSPRO’s ECC, Bill of Materials, Work-in-Progress and Factory Documentation modules enable you to implement controls to ensure that your products are manufactured under consistent processes, to the correct designs and specifications. Single-level, multi-level, co and by-product bills are all catered for and flexible bill definitions accommodate complex component and sub-assembly requirements.
ADOPT LEAN MANUFACTURING PRACTICES
From enabling the identification and tracking of non-value adding activities inherent in your current operational processes, to the automation of manual processes, SYSPRO’s powerful functionality provides you with the tools to implement your LEAN initiatives. Its integrated nature and ease-of-use facilitate the effortless extraction of financial and operational information required for Value Stream Mapping (VSM).
SYSPRO’s Inventory module is a synchronised hub providing a consolidated view of all stock locations and those activities that impact inventory optimisation and customer service levels, as well as the end-to-end elements of costs and lead times. Features such as Pareto and obsolescence analysis can assist in identifying those products that are suitable for VSM focus, while SYSPRO modules such as Engineering Change Control, Bills of Material, Work-in-Progress and Factory Scheduling facilitate the evaluation of targets for kaizen programs, such as reduction in design and manufacturing costs, cycle times, queues and setups.
SYSPRO’s powerful inspection, serial tracking and lot traceability functionality aid in the identification and tracking of the source of defects, thereby enabling the implementation of kaizen initiatives towards the principle of ‘Quality at the source’.
The queries and reports in Work in Progress enable you to quickly assess the statuses, inventories and costs associated with work in progress, and provide metrics on utilisation, efficiency, scrap and rework, while the customer and supplier delivery performance metrics are provided by the Sales Order and Purchase Order and Inventory Optimization modules.
SYSPRO’s Inventory and Bills of Material modules enable the modelling of the LEAN techniques of batch size and setup reduction on costs, lead time and inventory. SYSPRO’s Factory Scheduling provides graphical tools to assist you in optimising scheduling and sequencing processes, to reduce setup and overall lead time, and improve manufacturing flexibility and sale-to-customer flow. This, along with the inventory optimisation and production planning features, enables you to refine the pace of production to match the pace of sales. Furthermore, features such as sales order/job/purchase-order linking facilitate the electronic implementation of true pull supply- chain processes where appropriate.
Document Flow Manager and SYSPRO e.net Solutions enable you, not only to automate resource and time-intensive processes such as order processing but also to handle increased volumes from global customers. By providing the capability for 24/7 order taking and acknowledgment, they improve lead time, and free up staff to perform other value-adding tasks. Furthermore, SYSPRO’s XML-aware solutions enable version-independent integration with best-of-breed shop floor monitoring and control systems.
The system’s sophisticated reporting and analytics tools enable user-defined reports and queries, while SYSPRO Workflow Services enable the creation of efficient workflows to implement business rules and standardize business processes. Electronic signatures and automation tools enable the automatic raising of alerts, triggers and events based on user-defined criteria, thereby aiding prompt problem solving and process improvement.
SYSPRO’s flexible integrated features and best-practice focus give you single-point visibility and control, providing support for the implementation of your LEAN initiatives.
IMPROVE FORECAST ACCURACY
While forecasting is, by definition, an inexact science, its purpose is to improve the quality of predictions and thereby enable the fine-tuning of the balance between supply and demand.
In forecasting environments where product ranges and configurations are extensive, bills of material are complex and raw material and component lead times are long, improved forecast accuracy is essential to minimizing inventory holding and obsolescence costs without compromising customer service and brand loyalty.
SYSPRO provides tools to enable you to track and evaluate your forecasts, as well as to identify the possible causes of forecast errors. These tools assist you in optimizing your forecasts to produce the best possible outcome with minimum forecast error.
The Inventory Optimization suite of modules enables the entry of manual forecasts, as well as the automatic generation of forecasts via a variety of forecast algorithms, including those that compute for trends, seasonality and cyclical events. In addition, the module provides a competition forecasting method (also known as focus forecasting or the tournament method) which attempts to select the most suitable forecast algorithm, based on a selected error measurement and your SYSPRO sales history data. This enables you to compare results to determine which method is the most suitable for any particular item, whether you forecast products at code, revision, release, or warehouse level. A tracking signal is used to indicate when the validity of the forecast might be in doubt; those items with high forecast errors are highlighted and can be reviewed and adjusted as required.
Forecast accuracy depends not only on the regular evaluation of the forecast error, but also on the integrity and nature of the source data. In SYSPRO, forecast accuracy is enhanced through the ability to automatically filter and adjust outliers, as well as to manually adjust forecast base data for quantitative and qualitative factors. Lost sales can also be included in the demand profile.
Furthermore, SYSPRO’s proxy functionality enables the forecasting of new products based on the sales history of similar superseded products which is useful in industries where product life cycles are short.