mwug – september 2013. ts tech global locations company background name: ts tech co.,ltd. founded:...
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TS Tech Global Locations
Company BackgroundName: TS TECH CO.,LTD.Founded: December 5, 1960Headquarters: Saitama, JapanPresident: Michio InoueEmployees: approx. 15,000Main Business: automotive seating, interior trim
Worldwide Locations
Company Loc. Launch DateTS 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-2013TS Trim Industries U.S., Ohio Feb-2014 (plan)
TS Tech Group Companies Using QAD
*Sites using Freedom ErrorProof
QAD Footprint at TS Tech in North America
Boaz, AL
Nuevo Laredo, Mexico*
Hidalgo, TX*
Irapuato, Mexico
Newmarket, ON
Reynoldsburg, OH (2)
Athens, OH
New Castle, IN*
TST NA Trim Company Profile
• Established: March, 1986 • Plant Manager: Francisco Lopez• Plant Size: 17,915m2 • Products: Seat covers for Honda and Acura
Nuevo Laredo Plant
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
• 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
Need to implement
quickly -- less than 6-month
window
Background of Lamination Production
• 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
FaceFoam
Backing
Not to scale
Differing Lengths…
Trailer Yard
Production Area
Offices
Shipping & Receiving Office
Receiving Inspection
FG Inventory Racks Raw Material Racks
2nd Foam Staging Area
Shipping Area
Main Entrance
N
Hidalgo Plant Layout
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
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
Task Area
2012 2013
Aug Sep Oct Nov Dec Jan FebProject initiation
Business process design
Statement of work creation
EP Development
Semi-static data loading
User training
CRP and testing
Go-Live support*
*Freedom on-site for 2 weeks, then remote supportGo-Live!!!
Firs
t Phy
sica
l
Project completed on-schedule and within budget
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
Physical Inventory
Receiving
Location Transfer
Backflush
Scrap
Shipping
Cycle Count
•Count by label serial
•Picklist print•FIFO lookup
•ASN receipts•Transfer by label serial (license plate or reprint)
•Transfer by serial•WIP transfer•Relabeling
• Interface w/QA inspection system
•Unplanned issue
•Tag inventory•100% scanning
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
Nuevo Laredo Hidalgo
Month 1 Month 2 Month 3 Month 4-10
-5
5
10
15
20
25
-4
-8
2
-7
15
20
4
9
Net Variance Absolute Variance
$1,000s
99.8% accuracy!!!