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The Brose Group Implements SAP - One Site at a Time

The Brose Group Implements SAP - One Site at a Time

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The Brose Group Implements SAP - One Site at a Time

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  1. The Brose Group Implements SAP - One Site at a Time MIS2 Group Presentation Reporter : Group 4 Instructor: Dr. Celeste Ng

  2. Group Members 971708 鍾其璟 971760 林鈺樺 1 2 4 6 3 7 8 9 5 971738 張佳惠 971736 范恕端 971747 陳玉珮 971731 顏漢軒 971714 卓知儀 961764 楊佳樺 971730 戴瑜廷

  3. The Brose Group(1) • Brose Group supplies windows,doors,seat adjusters,and related products for more than 40 auto bands. • Brose Group today employs more than 13,000 employees at more than 51 location in 21 different countries. • Brose hopes that relies on the science and technology, the quality and the service, occupies the leading position in the auto market. • Broseuse the SAP R/3,an ERP application licensed by SAP that supports more bussiness process.Because the existing information system were unable to support the company’ emering need. (http://big5.51job.com/gate/big5/search.51job.com/hot/11498949,0.html) 971760林鈺樺

  4. The Brose Group (2) • To accomplish lean manufacturing, SAP has invented a business process it calls JIS(Just In Sequence).JIS is extension of JIT(Just In Time) • JIS extends JIT so the parts not only arrive just in time,but also in just the correct sequence. (http://big5.51job.com/gate/big5/search.51job.com/hot/11498949,0.html) http://www.youtube.com/user/brosegroup

  5. ERP(Enterprise resource planning) • ERP integrates internal and external management information across an entire organization, finance/accounting, manufacturing, sales and service, etc. • ERP systems automate this activity with an integrated software application. • ERP advantages : immediately、Integration、foresighted • Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders (http://tw.wrs.yahoo.com/_ylt=A8tUwYuTi.RNnGkABt5r1gt.;_ylu=X3oDMTE1cW9sbTg5BHNlYwNzcgRwb3MDNQRjb2xvA3R3MQR2dGlkA1RXQzA3Ml8yODQ-/SIG=11jud5o5h/EXP=1306852371/**http%3a//wiki.mbalib.com/wiki/ERP)

  6. SAP • SAP R/3 is a well-known enterprise resource planning (Enterprise Resource Planning, adoption of ERP) software from Germany SAP company research. http://www.youtube.com/watch?v=EO2Df1p_tcw

  7. JIT(Just-In-Time) • JIT is only when needed, only for the space required by the required quantity and quality of the products needed for production.(http://wiki.mbalib.com/zh-tw/JIT) • JIT is a production, but the core inventory reduction, until the realization of zero inventory. (http://wiki.mbalib.com/zh-tw/JIT) • While allowing the production smoothly.The idea is a response to the logistics function, and JIT logistics application, means the right to correct the number of goods at the right time to the right place. (http://wiki.mbalib.com/zh-tw/JIT)

  8. JIS (Just-In-Sequence) • JIS (Just-In-Sequence) in the JIT delivery system is evolved on the basis of the forthcoming material good order by the assembly to the production line. (http://xyh95021.blog.163.com/blog/static/12879412520107310433324/) • System requirements JIS supplier of production systems and the equalization process. (http://xyh95021.blog.163.com/blog/static/12879412520107310433324/)

  9. Question 1 1-1 What kinds of data must Brose have in order to provide JIS to its customers? 1-2.It cetainly needs a bill of materials (BOM)for the items it produces.What other categories of imformation will Brose need?

  10. 1-1What kinds of data must Brose have in order to provide JIS to its customers? • Daily inventory status • Shipment processing load pickup and delivery capacity • Packagingschedule • Distribution load situation • Distribution operations design

  11. BOM • BOM is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, components, parts and the quantities of each needed to manufacture an end product. • It may be used for communication between manufacturing partners,or confined to a single manufacturing plant. (http://wiki.mbalib.com/wiki/BOM)

  12. 1-2It cetainly needs a bill of materials (BOM)for the items it produces.What other categories of imformation will Brose need? • Humanresource • Machine schedule • Production schedule • Production quantity • Product design • Production specification

  13. According to the description on page 396,the SAP system included applications for sales and distribution,materialsmanagement,productionplanning,qualitymanagement,and financial accounting and control.Describe,in general terms,features and functions of these applications that are necessary to Provide JIS Question2 971738張佳惠

  14. When an order proposal is made ,After approval by the customer,the goods completed during the day would have been shipped immediately to customers. • The supplier delivers the components and parts to the production line “just in time”and “just in sequence” to be assembled • For the JIS method to work, a number of requirements must be fulfilled: • ˙There must be dependable relationships and smooth cooperation with suppliers. • ˙The suppliers should be located near the company, with dependable transportation available. Sales and distribution(1)

  15. Sales and distribution(2) JITD flow diagram

  16. Zero Inventories: Maintaining a minimum level of inventory as part of a goal to reduce costs and increase profitability • Eliminate any waste:eliminate factor which lead to unqualified materials. • Purchase only enough materials each day to meet that days needs. Materials management

  17. According how many buyer do we have,have to arrange  productive plan . • Produce units only as needed to meet actual customers demand • To reduce WIP(Work In Process ) inventories thorughout production system • To reduce manufacturing lead times, mainly achieved by drastically reduce WIP Production planning (1)

  18. Production planning (2) Eliminating waste: Overproduction- producing more than what is needed. Waiting time-the waste of machinery waiting time or idle time Transportation time-moving product but adds no value to product. Unneeded processing- using the wrong process to do a job. Unnecessary Inventory-idle resources, occupy space and increase cost Unnecessary Motion -waste of motion can be defined as whatever time is spent not adding value to the product or process Defective product – defect are a major source of waste in manufacturing environments

  19. Concentrates on quality including the purchase of raw material. • To increase the supplier quality two methods are used in a JIT system: • supplier quality engineering (SQE) : evaluate supplier capability, help suppliers develop process control, resolve quality issues. • receiving inspection (RI): provides an inspection service for purchasing. Quality management

  20. Financial and Accounting are most important to firm. • Most accounting systems focus on determining product costs for inventory valuation.  • Make information of product cost more correct • It is important to have cost entry • When JIT manufacturing systems come across to accounting, it result in a low inventory holding costs. • Increase the profit of the firm, result in more attractive financial statement to the end users. Financial accounting

  21. The JIS concept is a process for optimizing manufacturing processes by eliminating waste • This process should improve profits and return on investments • This is done by reducing inventory levels, increasing the inventory turnover rate, improving product quality, reducing production and delivery lead times, machine setup and equipment breakdowns Inventory Control(1)

  22. Inventory Control(2) • In the business progress, the control is important: • Raw materials and components from suppliers • Work in progress or part finished goods made within the business • Finished goods ready to dispatch to customers • To meet customer orders, product has to be available from stock. Otherwise, this can lead to a loss of sales and a damaged business reputation.This is sometimes called a ‘stock-out’. 

  23. Question 3 The Brose factory in Brazil produces more than doors for General Motors. The factory must coordinate the door orders with orders for other products and orders from other manufacturers. What kinds of IS are necessary to provide such coordinated manufacturing planning? 971747陳玉珮

  24. What does coordinated manufacturing planning mean? • coordinated: to organize an activity so that the people involved in it work well together and achieve a good result • manufacturing: the business or industry of producing goods in large quantities in factories, etc. • planning: the act or process of making plans for something http://zhidao.baidu.com/question/192312493.html?an=0&si=1

  25. Material Requirements Planning (1) • MRP is a production planning and inventory control system used to manage manufacturing processes. • Most MRP systems are software-based. http://en.wikipedia.org/wiki/Material_requirements_planning

  26. Material Requirements Planning (2) • A MRP system is intended to simultaneously meet three objectives: • Ensure materials are available for production and products are available for delivery to customers. • Maintain the lowest possible level of inventory. • Plan manufacturing activities, delivery schedules and purchasing activities. Back to MRP II

  27. Manufacturing Resource Planning (1) • MRP II is defined by APICS as a method for the effective planning of all resources of a manufacturing company. • APICS is a not-for-profit international education organization. http://en.wikipedia.org/wiki/APICS • Addresses operational planning in units and financial planning in dollars. • A simulation capability to answer "what-if" questions and extension of closed-loop MRP. http://en.wikipedia.org/wiki/Manufacturing_resource_planning

  28. Manufacturing Resource Planning (2) • Not exclusively a software function, but a marriage of people skills, dedication to data base accuracy, and computer resources. • MRP II systems provide: • Better control of inventories • Improved scheduling • Productive relationships with suppliers

  29. Manufacturing Resource Planning (3) • Benefits: • Improved design control • Better quality and quality control • Reduced working capital for inventory • Improved cash flow through quicker deliveries • Accurate inventory records

  30. Manufacturing Execution Systems (1) • MES are information technology systems that manage manufacturing operations in factories. • Originated from data collection systems. A wide variety of systems arose using collected data for a dedicated purpose.  http://en.wikipedia.org/wiki/Manufacturing_Execution_Systems

  31. Manufacturing Execution Systems (2) • International standards and models include: • Management of product definitions • Management of resources • Scheduling (production processes) • Dispatching production orders • Execution of production orders • Collection of production data • Production performance analysis • Production Track & Trace

  32. Manufacturing Execution Systems (3) • Benefits: • Connect the enterprise to the plant for greater visibility and control • Reduce lead time and manufacturing costs • Increase production throughput and product quality • Reduce efforts involved in compliance and governance http://global.wonderware.com/EN/Pages/WonderwareManufacturingExecutionSystem.aspx

  33. Comparison of MRPII and MES

  34. Question 4 Brazilians speak Portuguese, workers in the United States speak English and Spanish, and personnel at the Brose headquarters speak German. Summarize challenges to Brose and SAP Consulting when implementing a system for users who speak four different languages and live in (at least) four different cultures.

  35. The challenges to Brose and SAP Consulting when implementing a system (1) • People Communication • Inconvenience to communicate because users speak four different languages. • Difficulties in education and training employees because the materials need to be prepared in the four languages.

  36. The challenges to Brose and SAP Consulting when implementing a system (2) • Culture difference in thinking • Difficulties to understand information raise the barrier to cooperate. • Difficulties to integrate all the information into what users need. • Different company culture and process cause conflict.

  37. The challenges to Brose and SAP Consulting when implementing a system (3) • Time differences • When New York, U.S.A is 12:00 p.m., Brasilia, Brazil is 1:00 a.m. and Berlin, Germany is 6:00 a.m.. • If unexpected situations happened, the staff can not discuss in the same place together.

  38. Question 5 • Visit http://sap.com/industries/automotive and investigate SAP for Automotive with JIS. 5-1 What features and functions does this product have that standard SAP R/3 does not have? 5-2 What advantages does SAP obtain by creating and licensing this product? 5-3 What advantages do SAP’s customers obtain from this product? 971714卓知儀

  39. Why SAP need to create the “SAP for Automotive”? • Cars are highly complex industrial products, manufactured by highly complex companies with networks that span the entire world. • The automotive industry has complex business processes ranging from design,development,manufacturing to sales and service.

  40. 5-1 What features and functions does this product have that standard SAP R/3 does not have? • Flexible Manufacturing Technology (FMT) • Produce different types of products on the same production line • Can be individually tailored for customers • Just-in-Sequence (JIS) • JIS extends JIT so that parts not only arrive just in time, but also arrive in just the correct sequence • Reduced cycle time and inventory

  41. 5-2 What advantages does SAP obtain by creating and licensing this product? • Get new customers • Different products can attract different customers • Increase market share • Increase income • Increase customer satisfaction

  42. 5-3 What advantages do SAP’s customers obtain from this product? (1) • Improve efficiency • Manage and control costs, improve quality, improve profit margins, reduce cycle time and inventory. • Reduce risk • Give real-time information and early warning of shifts in demand, customer requirements, and economic conditions.

  43. 5-3 What advantages do SAP’s customers obtain from this product? (2) • Faster time to market • Accelerate time to market by enhancing communication, improving collaboration design over the product life cycle. • Increase sales • Anticipate and adapt to market needs, identify new business opportunities, and explore new ways to grow market share, revenues, and profits.

  44. 5-3 What advantages do SAP’s customers obtain from this product? (3) • Enhanced aftermarket service • With SAP solutions, you can understand customer needs, enhance customer service. • Improved supply chain management • Locate-to-order, make-to-order, and make-to-stock processes provide insights into demand, inventory, and capacity – enabling you to respond to customer needs.

  45. 5-3 What advantages do SAP’s customers obtain from this product? (4) • Increased visibility and control • Advanced analytics allow you to identify precisely where you're incurring product and production costs, enabling you to increase efficiencies across all assets. • Lower total cost of ownership • Reduces total cost by providing best-of-breed functionality and eliminating the need for the costly interfaces required by point solutions.

  46. 5-3 What advantages do SAP’s customers obtain from this product? (5) • Expanded reach • Manage the entire value chain, communicating through enterprise portals and enabling global collaboration among employees, partners, and customers.

  47. Question 6 6-1 Brose seeks to provide JIS to its customers. Does this goal necessitate that Brose suppliers provide JIS to Brose? 6-2 What can Brose do if suppliers do not provide such service? 6-3 Is there any reason why Brose would not want then to provide such service? 971730戴瑜廷

  48. 6-1 Does this goal necessitate that Brose suppliers provide JIS to Brose? • Yes, Brose’s suppliers necessitate to provide JIS to Brose, too. • The reason is: • Inter-enterprise Integration can increase enterprise’s profit efficiently. • Services relate to JIS that Brose provide to customers need Brose Suppliers’ support.

  49. How can inter-enterprise Integration increase enterprise’s profit? • The goal of only maximizing company profits can sometimes lead to conflict between stages of a supply chain. • For example: One manufacturer force their suppliers to hold part inventory, so they don`t need to raise money for their inventory. But if do so, suppliers have to raise the price they sell to manufacturer. That manufacturer doesn`t increase its own profits efficiently. • Each organization integrate with each other and operate at less than its own maximum profitability will let profitability of supply chain increase. Source: Chopra, S. & Meindl, P. (2004), Supply Chain Management (3rd ed. ),Pearson

  50. WhatSuppliers’ support does Brose need? • quality constant ─ JIS implicitly assumes that input parts quality remains constant over time. • suppliers should help to improve their processes to reduce variation. • Total Quality Control (TQL) should be implement. • price stability─ JIS implicitly assumes a level of input price stability that obviates the need to buy parts in advance of price rises. • Supply Stability ─ Supplier should provide part stability to its customers. • Frequent deliveries ─ shipments of the same part can come in several times per day. • Frequent deliveries will reducelead time. Source: Wikipedia,http://en.wikipedia.org/wiki/Just_In_Time_(business), Data Accessed 2011/5/27