MWUG – September 2013 TS Tech Global Locations Company Background Name: TS TECH CO.,LTD. Founded: December 5, 1960 Headquarters: Saitama, Japan President: Michio Inoue Employees: approx. 15,000 Main Business: automotive seating, interior trim TS Tech Group Companies Using QAD Company Loc. Launch Date TS Tech (Thailand) Co., Ltd. Thailand, Saraburi May-2003 TS Tech Americas, Inc. U.S., Ohio Mar-2004 TS Tech Alabama, LLC U.S., Alabama Mar-2004 TS Tech Canada Inc. Canada, Ontario May-2004 TS Tech USA Corporation U.S., Ohio Aug-2004 Guangzhou TS Automotive Interior Systems Co., Ltd. China, Guangzhou Feb-2005 Guangzhou Tech Interior Manufacturing Co., Ltd. China, Guangzhou Jul-2006 Trimont Mfg. Inc. Canada, Ontario Apr-2007 TS Tech UK Ltd. UK, Swindon Sep-2007 Wuhan TS-GSK Auto Parts Co., Ltd. China, Wuhan Oct-2007 TS Tech Indiana, LLC* U.S., Indiana Apr-2008 Ningbo EPZ TS Trimont Automotive Interior Inc. China, Ningbo Jul-2008 Ningbo FTZ TS Trimont Automotive Interior Inc. China, Ningbo Jul-2008 TS Tech Trim Philippines, Inc. Philippines, Biran Laguna Dec-2009 Industrias Tricon de Mexico, S.A. de C.V.* Mexico, Tamaulipas May-2012 TST NA Trim LLC* U.S., Texas Feb-2013 TS Trim Industries U.S., Ohio Feb-2014 (plan) *Sites using Freedom ErrorProof QAD Footprint at TS Tech in North America Newmarket, ON New Castle, IN* Reynoldsburg, OH (2) Athens, OH Boaz, AL Nuevo Laredo, Mexico* Hidalgo, TX* Irapuato, Mexico TST NA Trim Company Profile Nuevo Laredo Plant • • • • Established: March, 1986 Plant Manager: Francisco Lopez Plant Size: 17,915m2 Products: Seat covers for Honda and Acura Hidalgo Plant • • • • Established: April, 2012 President: Hiroshi Kitamura Plant Size: 12,449m2 Products: Laminated fabric and UL for Honda, Acura, and Mazda Business Case for QAD at Hidalgo • Simple process – – – – – 3 components per BOM (vs. 10-20+) 1 step process (vs. 3 steps) Straight line (no WIP) No system interface (e.g. production monitoring) No KD lot numbers Need to implement quickly -- less than 6-month window • Young operation – Low transaction volume – Small number of associates – Bad habits not established • Small scale – 11 suppliers – 62 RM parts – 126 FG parts Item Nuevo Laredo Hidalgo No. Suppliers 58 11 No. RM Parts 1,095 62 No. FG Parts 624 126 Background of Lamination Production Differing Lengths… Foam • What is flame lamination? – Three-layers (face, foam, backing) – Semi-continuous process • High product quality expectations – Incoming quality inspection • Measure net roll length • Check for spots or runs – Outgoing quality inspection • Measure final length of material • Re-check for spots, runs, de-lamination Face Backing Not to scale Hidalgo Plant Layout Trailer Yard Shipping & Receiving Office Shipping Area FG Inventory Racks 2nd Foam Staging Area Receiving Inspection Raw Material Racks N Offices Production Area Main Entrance Shop Floor Operations Production Process Raw Material Racks Foam Roll Storage Finished Goods Racks Problem Statement • No perpetual inventory • All record-keeping performed in MS Excel – Not scalable – Lack of data entry validation – Data integrity concerns • Time-consuming financial closing process due to manual record-keeping • Time-consuming physical inventory process • Difficult to consolidate financials at corporate level A Powerful Tool… Excavator Shovel (damaged fiber-optic conduit) Special Considerations • RM serialized by vendor – Not license plate; no guarantee of uniqueness • FG labels generated by internal QA inspection system (SQL database) • FG quantity varies based on inspection result – Deductions for quality defects • For shipping, actual length of rolls does not necessarily match the order quantity – Order quantity must be met, but slight overshipment allowed (max. one roll per item) • 24-hour aging period after inspection Why Freedom? • • • • • Ensure accurate inventory control through real-time scanning Efficient scanning by label serial Faster tag inventory Serialized traceability of material Ensure accuracy of business processes – Receiving: validation against ASN – Shipping: picklist control; backflush validation • Integration into final quality inspection system • Potential for future introduction of full traceability system • History of successful inventory control at Nuevo Laredo plant Implementation Timeline 2012 Task Area Aug Sep Oct 2013 Nov Dec Jan Feb Project initiation Business process design EP Development Semi-static data loading User training First Physical Statement of work creation CRP and testing Go-Live support* *Freedom on-site for 2 weeks, then remote support Project completed on-schedule and within budget Go-Live!!! Design of Processes • Step 1: Document current process state • Step 2: Identify risks and controls • Step 3: Apply best practices to future process (re-engineering) • Step 4: Review and obtain buy-in QAD Environment • • • • • • • QAD Version: 2011 SE, Automotive Bundle Progress Version: 10.2B OS: Linux Red Hat ver. 5.8 Freedom Version: 7.70 Server (QAD): VM Ware (remote, in Reynoldsburg) Server (Freedom): VM Ware (remote, in Reynoldsburg) Other QAD Partners at Location: – Report Writing: Cyberquery ver. 3.50 – Uploading of PO Shippers, Customer Schedules: SIG Connect ver. 4.1A – EDI: Gentran 4.0.02 • Repetitive scheduling (not discrete work orders) Processes Using ErrorProof •ASN receipts •Transfer by label serial (license plate or reprint) •Tag inventory •100% scanning Receiving •Count by label serial Cycle Count Location Transfer •Transfer by serial •WIP transfer •Relabeling Physical Inventory •Picklist print •FIFO lookup Backflush Shipping Scrap •Unplanned issue •Interface w/QA inspection system Freedom Application Details • ErrorProof Small Site License (max. 10 users) • Installed on virtual server, hosted at Ohio data center • Labels print to wired and wireless printers • Telnet sessions on handheld scanners (7 scanners) • Desktop application for generating picklist • Administrator application on Windows – Daily reports (even Production Manager) – Inventory tag printing Challenges and Lessons Learned • Modifications needed to in-house developed final inspection database – Duplicated serial numbers, no indexes in tables • Supply base not 100% controlled by company – Difficult to convert suppliers to required label format (license plate) – Over 50% of suppliers not EDI-capable (or willing) • Only 1 in 4 customers using ERP/EDI – Customer requirements must be hand-keyed • Success factors: – – – – Thorough review of current and future processes Daily wrap-up meetings Production management heavily involved and using reporting tools Accumulated experience of implementing Freedom and QAD at other trim facility Inventory Variances After Launch 99.8% accuracy!!! Nuevo Laredo Hidalgo 25 $ 1 , 0 0 0 s 20 20 15 15 9 10 4 5 -5 2 -4 -10 Month 1 Net Variance -8 Month 2 Month 3 -7 Month 4 Absolute Variance Thank you for your attention!