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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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Freedom & QAD Implementation at TST NA Trim

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ts tech global locations
TS Tech Global Locations

Company Background


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…


  • 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



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



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…



(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


*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)


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

Cycle Count

Location Transfer

  • Count by label serial

Physical Inventory



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


  • 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