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www.plex.com | 1.888.454.PLEX
No. 1 Rated ERP Solution for Manufacturers
Plex Online Case Study • AnintegratedERPsolutionhelpedanautomotivesupplier
improvemonthlymaterialcostdiscrepanciesbyover92%.
• Thesystemreducestheinventorytrackingprocessfromsixdayspermonthtojustafewhours.
• Linesidelabelsareautomaticallygeneratedattheproductionworkcenters,whichhashelpedimproveHondalabelaccuracybyover95%.
• Thesupplierachieveda78%improvementofdeliveryperformanceinlessthanayear.
• Dataflowsseamlesslyfrompurchasingandreceivingtoproduction,givingthecompanyreal-timevisibilityandbettercontroloftheirentireenterprise.
At a Glance
Taking Control: Integrated ERP Solution Helps Honda Supplier Cut Costs, Improve Productivity
Plex Online Case Study | page �
www.plex.com | 1.888.454.PLEX
About KAMCO IndustriesKAMCOIndustries,Inc.isaninjectionmolderthatsuppliestheautomotiveindustrywithinterior,underbody,andexteriorcomponents.KAMCO’sparentcompanyisKumiKaseiCo.,Ltd.,headquarteredinTokyo,Japan.
Over95%ofthecompany’soperationsserveTierIandIIsupplierstoHonda.KAMCOofferscustomersinnovativeprocessesincludingin-linefabricmoldinginwhichfabricismoldedatthesametimethattheplasticismeltedintothemold,suitableforinteriorcomponents.Thecompanyalsooperatesanin-linethermoformingsheetextrusionlineforproductssuchastrunkliners,andofferscustomassemblyservices.
Past ChallengesInpastyears,KAMCOmaintainedavarietyofstand-aloneITsolutionsandspreadsheetstomanagebusinessandproductionoperationssuchasqualitymanagement,electronicdatainterchange(EDI),productlabeling,employeetimetracking,inventorycontrol,andothermission-criticalfunctions.
“The SaaS model helps standardize business functions across multiple North American facilities.”
Noneoftheseparatesystemsinterfacedwiththeothersefficiently,anditwasachallengetomaintainandsupportthepatchworkofITsolutions—manyofwhichnecessitatedmanualprocessingordoubledataentrywithspreadsheetsanddatabases.
Manual Inventory MethodsAccordingtoTonyBrown,ManagerComputerServicesGroupatKAMCO,thebiggestchallengewasinventorycontrol.“Essentially,welostvisibilityoftrackingcostlyrawmaterials.Wecouldnoteasilyascertainwhereorwhenmaterialswereconsumedinourproductionoperations.”
KAMCOpurchasesplasticresinsreceivedin1500-lb.gaylords,50-lb.bags,andlargesilos.Theresinisusedinfinishedgoodproductionforvarious
Plex Online Case Study | page �
www.plex.com | 1.888.454.PLEX
finishedgoodandwork-in-progressparts.Componentssuchasclips,screws,foampads,andotherpiecesarealsopurchasedandinventoried.
KAMCOdidnotperformserializedinventoryofthegaylordsand/orboxesofcomponentsuponreceiving.Theymanuallyrecordedwhatmaterialswerebroughttothepressesandlistedthejobswherethematerialswereused.Attheendofeachmonth,thestaffthenconductedatime-consumingphysicaltaggedinventory.
Production InefficienciesKAMCOfacedotherchallengesrelatedtoeffectivelyschedulingpressesandworkcenters.Asanexample,full-timeassociatesmaintainedmanualspreadsheetstogeneratedailyproductionschedulesusingastand-aloneOEMdatabaseanddoubledataentryfortheEDIsystem.Itwastime-consumingtomanageproductionplansattheworkcentersandefficientlyschedulepresses.
Thesupplierwassusceptibletomachinedowntimeduetolast-minutemoldortoolchanges,plustheyexperiencedinaccuratework-in-progresstracking.
Manuallytrackingdailyinventoryandend-of-monthdataentrytooknearlysixdayspermonth,withoccasionalovertime.Aswithanymanualmethod,therewasthepotentialtointroduceerror.
Thesemanualinventorymanagementmethodsledtosignificantmaterialcostdiscrepancies.NotesBrown,“Atanyonetime,KAMCOcanhouseover$1millionininventory.Itwasaburdentotrackthevolumeofrawmaterialsconsumed,andevenmorechallengingconsideringattheendofeverymonthwesometimeshad20%discrepanciesofunaccountedinventory.”
Plex Online Case Study | page �
www.plex.com | 1.888.454.PLEX
An Integrated SolutionToaddressthesechallenges,andtostandardizeERPandbusinessprocesses,KAMCOteamedwithPlexSystemsandimplementedtheindustry-leadingPlexOnlineERPsoftware,deliveredviatheSoftwareasaService(SaaS)model.
ThegoalwastoincreaseefficiencyandstandardizeoperationswithasingleERPsystemthatansweredtheneedsofproduction,inventory,shipping,quality,accounting,andHRfunctions.
Standardizing ProcessesTheimplementationincludedthefollowingPlexOnlinemodules:ProductionControlPanelimplementationon85workcenters;Accounting;Purchasing/Receiving–InventoryRawMaterials;Shipping/EDI;ProductionControlwithlinesidelabelingandconsumptionofrawmaterialCoreQuality(ControlPlansandChecksheets);EmployeeTimeandAttendance;andtheWorkflowModuleforelectronicdocumentapproval.
“We received a Honda North American Assembly Plants Superior Delivery Performance Award one year after implementing Plex Online.”
AccordingtoKAMCO,PlexOnlinewasflexibleenoughtobeconfiguredtomatchhowtheNorthAmericanfacilitiesmanagetheiroperations,andtheimplementationmadeKAMCOlookatdifferentwaystodobusiness—whichinturnimprovedbusinessprocesses.TheSaaSsolutionisespeciallybeneficialinstandardizingbusinessfunctionsacrossthemultipleNorthAmericanfacilities.
BecausePlexOnlineishousedoncentralizedserversatPlexSystemsinAuburnHills,Michigan,KAMCO’ssystemsdepartmentnolongersupportsandmaintainsthepatchworkofstand-alonesystems.Brownadds,“Thefullyintegratedsystemreducesoverheadcostsofthird-partysoftwarevendorsandtheirannualsupportcontracts.
Plex Online Case Study | page �
www.plex.com | 1.888.454.PLEX
SincePlexOnlineishostedontheInternet,itactuallyhasreducedERPdowntimeontheproductionfloor.SincewenolongerrequireaserverforourERPsystemnorsoftwareupgrades,licensingfees,maintenance,hardwareupgrades,andotherserverrelatedsupport,weasanISgroupavoidthesetypesofissues.”
Improved Inventory ControlOneofthegreatestbenefitsachievedwithPlexOnlinewasreducingthehoursrequiredformanualinventorymanagementfromsixdaystoonlyafewhourspermonth.Inventorydataflowsseamlesslyfrompurchasingandreceivingtotheshopfloor,givingKAMCOreal-timevisibilityviaaneasy-to-useinterface.Thissavesthecompanycostlylaborandovertime,andfreesupproductionstaffformorevaluabletasks.
Cost, Productivity Improvements
PlexOnlineJobRequirementPlanningandWorkCenterProductionReportingreducedowntimeduetomoldortoolchanges,andprovidemoreaccurateWorkinProgressmetrics.
Thereisnolongeraneedforfull-timedataentryclerksorlabelprintingassociatessincereal-timeProductionReportingandInventoryseamlesslyintegratewithcustomershippingEDIrequirementsandotherenterpriseplanningmethods.
KAMCOachievedcostimprovementsduetothestable,lowerinventorylevelofRawMaterialandFinishedGoods,alongwithimprovedvisibilityofconsumptionontheshopfloor.Infact,KAMCOimprovedtheirmonthlymaterialcostdiscrepanciesbyover92%.Month-endclosingisnowaccurate,automated,andefficient.
About Plex Online
Plex Online, built on a “Software as a Service” (SaaS) model, offers more than ��0 functional modules, providing manufacturers instant access to vital information and management functions using a simple Web browser. The on-demand solution features product lifecycle management (PLM) functions such as program and change management, enterprise resource planning (ERP) functions such as accounting and finance modules, customer relationship management (CRM) features such as order entry and tracking, manufacturing execution systems (MES) functions such as production scheduling and machine integration and supply chain management (SCM) functions such as supplier quality and traceability.
www.plex.com
Plex Online Case Study | page �
www.plex.com | 1.888.454.PLEX
No. 1 Rated ERP Solution for Manufacturers
Linesidelabelsareautomaticallygeneratedattheproductionworkcenters,whichhashelpedtheKAMCOteamimproveHondalabelaccuracybyover95%.
KAMCOachieveda78%improvementofdeliveryperformanceinlessthanayear.Asaresult,HondaNorthAmericanAssemblyPlantsawardedKAMCOaSuperiorDeliveryPerformanceAwardafterjustoneyearoffullimplementationofthesystem.
“We cut the hours required for manual inventory management from six days to only a few hours per month.”
ConcludesBrown,“TheautomatedoperationsnowpossiblewithPlexOnlineimproveeverypartofouroperations.”