Leading Automotive Supplier Becomes Lean with IQMS

As a leading manufacturer serving automakers like Honda Motor Company of America, Inc™:, Toyota Motor Company, and Ford Motors, Nissen Chemitec America relied on technology to drive lean initiatives. By selecting IQMS, Nissen Chemitec America was able to eliminate shipping errors, improve internal and external communication through data transferring and labeling, reduce maintenance costs and eliminate excess data entry.

Previously, the company utilized several different systems to manage enterprise operations – at the expense of being lean. Thus, Nissen Chemitec America began looking for a more tailored ERP/MES solution—one built specifically for contract manufacturers.

"We were working for the system rather than the system working for us," explained Mike Hopkins, Production Material Control and MIS Manager at Nissen Chemitec America. "Our old system was designed for suppliers of the Big Three automakers, so it didn't meet many of our needs. It was cumbersome, required heavy data entry, and though we were striving to be lean, it blocked our efforts because of all the things we had to do to maintain it."

"We wanted an ERP/MES package that understood our particular business. If a system didn't understand family molds or multiple cavitations running at the same time, it would have cost us more in terms of efficiency and maintenance," said Hopkins. "But as a supplier to major automakers, we also had to comply with our automotive customers' quality standards and business transaction requirements."

Lean and Flexible

Ultimately, Nissen Chemitec America found the best solution with IQMS EnterpriseIQ. With specific functionality designed to meet the challenges auto suppliers face day to day, IQMS helps manufacturers stay flexible and lean within the distinctive confines of industry compliance and ever changing customer demands.

"We selected EnterpriseIQ because it uniquely supports our business from every angle," confirmed Hopkins. "In the past, when we had two parts running on two machines with two operators, our old system might calculate cost or capacity accurately, but not both. With EnterpriseIQ, both are correct, even for machines that make multiple parts. EnterpriseIQ delivers the perfect combination of manufacturing-specific functionality and automotive industry compliance standards. As a Tier One automotive supplier, we see that as a definite advantage."

"With our old system, 80% of the time we couldn't respond fast enough to EDI errors because the data transfer was slow. This problem was magnified with our biggest account because that customer's plant is only 40 minutes away, so shipping errors were arriving at the plant before we could catch them."

With IQMS, Nissen Chemitec America was able to reduce shipping errors from as many as 40 per month to zero. "We literally turned the IQMS system on and started shipping error-free immediately," said Hopkins. "And EnterpriseIQ EDI is so much faster and easier to use, it's helped us speed communication and better fulfill our customers' requirements for data transfer and labeling. Now our customers are happier, and we're saving time and money."

RealTime Power

Within the EnterpriseIQ system, the pushed data from EDI was elevated to new levels of accuracy because the company also uses IQMS RealTime™ Production Monitoring. Part of the EnterpriseIQ system, RealTime provides an easy, cost-effective means for capturing and using shop floor data, truly in real time, as production occurs.

RealTime Production Monitoring connects each work center to the EnterpriseIQ database, enabling the user to follow jobs as they move from the schedule through production. Because production data feeds directly into the ERP database, job status is automatically updated down to the minute.

"We added RealTime Production Monitoring so we could see what was happening on the shop floor without having to walk around," said Hopkins. "RealTime Production Monitoring allows us to step up our processes where we might be having a problem. Now our operators can see what a machine is doing and be proactive in catching issues before they get out of hand."

"Before we were operating with only half the picture," said Hopkins. "But now we have control over every part of the equation, from purchasing and scheduling to on-time delivery for every part we make. EnterpriseIQ gives us real power over our processes because it's user-friendly, comprehensive, and allows everyone in the company access to the same timely data."

Lean Supply Chain, Dynamic Future

"We are now managing a leaner supply chain," said Hopkins. "Any other system would have presented higher maintenance costs and diminished efficiency. With EnterpriseIQ, we have reduced maintenance costs over 70%, and achieved lean objectives, like reduced cycle time, automated workflow and the elimination of redundant processes."

Nissen Chemitec America's customers have seen the difference, too. With less delivery errors, better quality and streamlined communications in place, the company secured additional business from its largest customer.

"IQMS has proven to be a true partner in our business," said Hopkins. "In an industry as dynamic as the automotive industry, IQMS is the one constant we will continue to rely upon as we move into the future."

Click here to learn more about IQMS RealTime Production Monitoring.

Source: IQMS