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Solution Characteristics and Benefits
About the Auto Parts Manufacturers’ Industry
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Industry Trends and Pain Points
- Failure to deliver products on time to client’s assembly lines, which leads to loss of business
- Carrying high inventory levels to avoid penalties or failures
- Unbalanced client demand vs. plant capacity
- Poor integration leading to inaccurate planning, accounting, costing, etc.
- Management distracted to focus on “putting out fires” and client’s changes
- Large obsolete inventory due to unsynchronized engineering changes
- Difficulty in keeping with increasingly demanding supply-chain requests
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Key Business Requirements
- Repetitive manufacturing for subassemblies, components, and OEM parts
- JIT and PPU (product at point of use) parts supply to auto makers’ facilities
- Long- and short-term planning for manufacturing and capacity plans
- End-of-year model supply-chain management
- Correct management of engineering changes
- Total inventory-ownership management along the supply chain
- Lean manufacturing management
- Automotive EDI management
Then… JIT Supplier Automotive TM
Product Description
JIT Supplier Automotive ™ is an All-In-One Solution based in the latest SAP Base Line release R2R. This is a world-class solution and a fully SAP-configured product that upgrades the performance of the auto parts manufacturers and helps them respond to the increasing challenges of the automotive industry. Key client benefits include:
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- Improvement of JIT delivery based on total logistic synchronization among auto parts manufacturers and car makers
- Increased internal resource productivity
- Reliable, on time, and accurate inventory information
- Mirroring (Plant – SAP) of materials flow and operations
- Increased effectiveness in manufacturing and materials planning
- Reduction in product shortages
- Improvements in cost, quality, and information
- Reduction of cycles from new car designs to go-to market
- Enhances business image and credibility
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JIT Supplier Automotive reflects more than 20 years of industry experience added on top of SAP’s leading technology, resulting in a solution that provides key competitive factors and benefits:
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- Integrated EDI Industry documents management.
- Document # 830 / releases
- Document # 862 / Shipping scheduling
- Document # 856 / ASN
- Integrated planning and simulation: MRP, CRP, MPS
- Repetitive manufacturing management including initial samples
- Easy-to-use production planning balance tool (from the MPS sheet)
- Product Master Data management: BOM, Routings, Drawings
- Standard product costing, cost centers, and internal orders
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- Integrated access to additional key functionality:
- Key Performance Indicators (LIS & FIS)
- Bar coding printing labels and RF functionality enabling
- SAP totally extended functionality available: PLM, BI, CRM, SRM, APO …
- Turn-key solution, out of the box and easy to use
- Lowest market TCO (total cost of ownership)
- Built-in knowledge and industry best practices
- Fixed and quick-time implementation: 20 weeks - including 4 weeks Go-Live support
- Fixed cost: from $396,000
- Not a generic ERP implementation; it is a specific tool for auto parts companies
- Developed and supported continuously by VTEC Group’s unique Knowledge and Technology Transfer Center (CT2)
- Full Web Project Management Tool integrated; ready to use for quality and processes certifications -- PMTool™ based on ASAP Focus methodology
- Full payback within the first 8 months of operation.
Timeline for Implementation:
20 weeks
- Implementation project 16 weeks
- Go-Live support 4 weeks
- Client MUST be committed with a dedicated internal team (key users)
- Before quoting, we recommend a 1-day on-site assessment to verify scope and client profile qualification (All-in-One Baseline Prospect Qualification tool)
- Timeline can increase depending on client’s final scope
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Value Proposition of JIT Supplier Automotive
JIT Supplier Automotive, an SCAi-SAP qualified solution, is an ERP application that improves the performance, increases revenue, and lowers cost, enabling clients to meet and exceed the key challenges of the industry. |
JIT Supplier Automotive out-of-the-box functionality includes:
A review with the qualification SAP team will help to define a better fit for your needs.
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Manufacturing and Supply Management |
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Integrated planning and simulation: MRP, CRP, MPS |
X |
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Full EDI Industry documents management (GM, Chrysler, Ford, Others): |
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Document # 830 / releases |
X |
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Document # 862 / Shipping scheduling |
X |
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Document # 856 / ASN |
X |
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Production planning balance tool (from the MPS sheet) |
X |
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Operational Manufacturing planning (MPS) & short-term capacity planning (CRP) |
X |
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Balance planning simulation models based on critical resources (prog. sheet) |
X |
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Supplier / Client contracts and release management |
X |
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MRP according to customer requirements: Annual, Monthly, Weekly, Daily |
X |
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Long- and medium-term planning (SOP) and long-term capacity planning (RCCP) |
X |
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Manufacturing Execution |
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Final product operations and assembly management |
X |
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Discrete and make-to-order (for prototype, try outs) manufacturing |
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X |
Repetitive manufacturing management (high-volume manufacturing) |
X |
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Repetitive manufacturing for initial samples and first-run production |
X |
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Advanced working capital management for: Inventories, raw materials, components, subassemblies, and finished product |
X |
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Bar coding printing labels (GM, Chrysler, Ford, Others) |
X |
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RF functionality |
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X |
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Finance and Controlling |
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Standard product costing |
X |
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Advanced finance integration on manufacturing operations |
X |
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Automatic accounting and posting on transactions of materials and production |
X |
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Standard accounting and end period defined by the user |
X |
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Data Master (Product and Process Engineering) |
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Product Master Data management: BOM, Routings, Drawings |
X |
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Line functionality according to the process and facility layout design |
X |
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Product configuration (BOMs) management related to engineering changes or end-of-model year |
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X |
Advanced engineering product and processes management for BOMs, Routings, drawings … |
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X |
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Business Intelligence |
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Basic information and analytic (LIS & FIS) KPI´s |
X |
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Key Performance Indicators based on SAP BW visibility |
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X |
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Extended Functionality |
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SAP totally extended functionality availability: PLM, BI, CRM, SRM, APO … |
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X |
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