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Freedom & QAD Implementation at TST NA Trim. 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

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ts tech global locations
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

Worldwide Locations

ts tech group companies using qad
TS Tech Group Companies Using QAD

*Sites using Freedom ErrorProof

qad footprint at ts tech in north america
QAD Footprint at TS Tech in North America

Newmarket, ON

Reynoldsburg, OH (2)

New Castle, IN*

Athens, OH

Boaz, AL

Nuevo Laredo, Mexico*

Hidalgo, TX*

Irapuato, Mexico

tst na trim company profile
TST NA Trim Company Profile

Nuevo Laredo Plant

  • Established: March, 1986
  • Plant Manager: Francisco Lopez
  • Plant Size: 17,915m2
  • Products: Seat covers for Hondaand 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
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
  • Young operation
    • Low transaction volume
    • Small number of associates
    • Bad habits not established
  • Small scale
    • 11 suppliers
    • 62 RM parts
    • 126 FG parts

Need to implement quickly -- less than 6-month window

background of lamination production
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
Hidalgo Plant Layout

Trailer Yard

Shipping & Receiving Office

Shipping Area

Receiving Inspection

2nd Foam Staging Area

FG Inventory Racks

Raw Material Racks

N

Offices

Production Area

Main Entrance

shop floor operations
Shop Floor Operations

Production Process

Raw Material Racks

Foam Roll Storage

Finished Goods Racks

problem statement
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
A Powerful Tool…

Excavator

Shovel

(damaged fiber-optic conduit)

special considerations
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
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
Implementation Timeline

First Physical

Go-Live!!!

*Freedom on-site for 2 weeks, then remote support

Project completed on-schedule and within budget

design of processes
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 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
Processes Using ErrorProof
  • ASN receipts
  • Transfer by label serial (license plate or reprint)

Receiving

  • Tag inventory
  • 100% scanning
  • Transfer by serial
  • WIP transfer
  • Relabeling

Cycle Count

Location Transfer

  • Count by label serial

Physical Inventory

Backflush

Shipping

  • Interface w/QA inspection system
  • Picklist print
  • FIFO lookup

Scrap

  • Unplanned issue
freedom application details
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
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
Inventory Variances After Launch

99.8% accuracy!!!

Nuevo Laredo

Hidalgo