What does lean production bring to enterprises

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What does lean production bring to enterprises

Yanfeng Visteon Automotive Trim System Co., Ltd. (formerly Shanghai Yanfeng automotive trim Co., Ltd., hereinafter referred to as "Yanfeng Visteon") is a joint venture jointly invested by Shanghai Automotive Industry (Group) Corporation and Visteon International Holdings Co., Ltd. It is a well-known domestic auto parts manufacturer, including Shanghai Volkswagen, Shanghai General motors, FAW Volkswagen, Dongfeng DPCA, Changan Ford Beijing Hyundai and other companies provide products, and currently have a number of wholly-owned subsidiaries and holding companies

with the rapid development of China's automobile market, the demand of vehicle customers for spare parts is increasing day by day. Yanfeng Visteon has also developed from a small company into one of the largest suppliers of auto parts systems in China. With the continuous expansion of enterprise scale and business changes, ERP system has gradually been difficult to meet the new needs of enterprises

independently developed the lean production system

Yanfeng Visteon implemented the QAD ERP system: mfg/pro as early as 7 years ago. The software was designated and implemented by the then joint venture Ford company, and the implementation consultant was sent by the company from abroad. The reason why the joint venture chose this product is that QAD ERP software has a high reputation in the world, and the price and software complexity are moderate, the functions are relatively complete, and there are many cases of implementation in the automotive industry (Ford itself and many of its supporting parts factories are using QAD software)

when implementing the ERP system of QAD, Yanfeng Visteon was still relatively small. At that time, the successful implementation was the financial module. The operation effect of the procurement, manufacturing, distribution and other modules was general. It belonged to the mode of simulating manual and subsequent document input, and the business process was not rigorous enough. With the expansion of enterprise scale and the increase of customer demand, the implementation mode at that time could not match the subsequent business changes. The company's top management has put forward higher requirements for enterprise management, emphasizing that the company's management should be continuously improved to reduce costs and increase benefits

at the same time, new changes have taken place in the requirements of the vehicle manufacturer for suppliers. The whole vehicle has four modules, including instrument panel assembly, door panel assembly, front wall assembly and rear bumper assembly. The assembly of assembly modules is usually completed by the whole vehicle manufacturer. With the improvement of suppliers' ability, more and more automobile manufacturers outsource module assembly to suppliers, which is also a new feature of modern automobile logistics. Module supply is the most complex lean production mode, which requires the production and supply of assembly modules according to the sequence information of the whole vehicle, so as to realize the synchronous supply of assembly modules and zero inventory of finished products. In 2003, both Shanghai Volkswagen and Shanghai GM have outsourced the supply of instrument panel modules

qad's ERP software comes with a Kanban module, but its function is very different from Yanfeng Visteon's demand for lean production. In fact, it is difficult for a software product to fully meet all the business needs of an enterprise. The change of customers' demand and the management's requirements for cost reduction and efficiency increase have prompted Yanfeng Visteon Shanghai company to make up its mind to implement the lean 6 motor single direction rotation time production system in the enterprise. For this reason, the company has specially strengthened the strength of the IT department. Li Deqing, who has worked in the IT Department of a well-known automobile factory for 5 years and has been a senior consultant in the consulting company for many years, was invited by Yanfeng Visteon Shanghai company to take charge of this project

do you want to buy a set of lean production software or develop it independently? Before implementing the lean production system, lideqing and his colleagues made a technical evaluation. After comprehensive consideration of software implementation cost, system scalability, maintainability and integration, it was concluded that it was completely feasible to implement lean production based on QAD. At the end of 2003, Yanfeng Visteon Shanghai company began to carry out business process reengineering project based on QAD system, and the focus of transformation was to implement lean production

since the beginning of 2004, Yanfeng Visteon Shanghai company, with the help of the implementation consultant of QAD company, has made a lot of customized development of Kanban module based on QAD, implemented lean production system and extended its application on a large scale, mainly strengthened the implementation of procurement, manufacturing and distribution modules, and developed a seamless integrated e-commerce system. "In the process of peripheral development of QAD system, we feel that the functional logic design of QAD is very rigorous, and a large number of customized programs internally call the basic functions of QAD." Lideqing said

Yanfeng Visteon's lean production system consists of production flow system, part flow system and e-commerce system. So far, the system has been successfully applied to supply four instrument panel assembly modules for Shanghai Volkswagen, Shanghai General Motors and other vehicle manufacturers, and has become the first component supplier to undertake module supply projects in China. In addition, the part flow system in lean production has been expanded and implemented in three factories of Yanfeng Visteon in Anting, and more than 150 suppliers are using their e-commerce systems

transformation brought about by lean production

for automobile manufacturing enterprises, logistics will generally occupy 30% ~ 40% of the working capital of the whole enterprise. The implementation of the lean production system can help enterprises reduce the costs of inventory reduction, supply chain, logistics and insurance personnel. After the adoption of the lean production system, the material inventory of Yanfeng Visteon decreased to 2-3 hours (equivalent to 1/5 of the original), saving a lot of inventory funds and personnel. There is no record of system downtime, reflecting the true lean. So how did Yanfeng Visteon achieve it

first, the production is sorted according to the customer sorting information, and the product inventory is compressed to a level close to "0" (only for sorting supply business). Secondly, when the real high-precision and top-notch products are achieved, a regional distribution center (RDC) is established near the factory. Through logistics analysis, suppliers are divided into direct supply suppliers (DD) and transit supply suppliers (ED), and then the delivery frequency and delivery window time of suppliers are determined. Generally, the delivery frequency of RDC is 2 hours, that of DD suppliers' large parts is 2 hours to 1 day, and that of small parts can be longer. The delivery frequency of ED suppliers to RDC is relatively long. RDC implements menu service and supplier managed inventory (VMI). Suppliers pay custody fees to RDC or manage their own materials. The supplier consignment technology is applied to set the RDC inventory as the supplier consignment inventory, so as to achieve factory receipt and settlement. In this way, Yanfeng Visteon classifies the RDC inventory as the supplier's inventory, which is equivalent to dividing a huge burden into many small ones and then allocating them. At the same time, ed suppliers have a long supply frequency to RDC, and DD suppliers have implemented the "milk run", which can reduce the transportation cost of suppliers. Thirdly, Kanban technology is applied to provide the function of automatically issuing demand orders, which can save a lot of material planners. Fourth, barcode scanning enables real-time receipt and delivery, and data collection is fast and accurate. Fifth, real-time monitoring of production and materials to ensure the safety and stability of production and logistics. Sixthly, automatic payment can reduce the workload of financial personnel

in addition, the e-commerce system has established a stable and fast way of communication between enterprises and customers and suppliers. The supplier e-commerce system is used to transfer information between suppliers, such as material demand plans, purchase orders and their status, receipt information, and invoicing notices. There are three delivery methods for purchase orders: browser, forced print and forced fax, which can be selected according to the characteristics of suppliers. The customer data interface connected with the vehicle factory is a part of the customer's e-commerce. Yanfeng Visteon encapsulates the customer data (for example, the recycled plastic granulator with the material demand plan as the main processing machine will have a large customer group, demand list, ordering supply information and invoicing notification) and transmits it to the internal application system as standard data

in addition, through the implementation of lean production projects, many basic management problems that have plagued the company for many years have been exposed and thoroughly solved

pursuing perfection

Yanfeng Visteon's lean production system covers business areas such as production, material supply, distribution and quality management. It successfully integrates modern lean production technology into the traditional ERP system, improves the use value of the original system, and enables enterprises to flexibly respond to new changes in the market. At present, the QAD system used by Shanghai company can no longer be simply called ERP. It can collect the affairs in the manufacturing and logistics process into the system in real time. By using Kanban, synchronous supply, the supplier's custody of inventory and automatic release of demand orders, the inventory and personnel are greatly reduced, and the cost of the supply chain continues to decline, reflecting the characteristics of lean, In terms of supporting module supply business, it has reached the international leading level

after more than one year of hard work in this dazzling array of experimental machines, Yanfeng Visteon's lean production system is gradually maturing, and the system has been rapidly promoted and applied to the major factories of Yanfeng Visteon. At present, the system function can not cover all lean production modes. The existing production flow system can only meet the needs of module supply business. Module supply belongs to single piece flexible production mode. The production flow system will be improved in the recent system expansion plan to meet the business requirements of batch flexible production. "The lean production system still has a lot of room to improve. On the one hand, there is still much to be done to reduce the implementation cost, system maintenance cost and system stability, and the system architecture needs to be improved." At present, lideqing still has a lot to do

it is not easy to make a widely used information system complete in function, simple in maintenance, and solid as gold soup, but Yanfeng Visteon's goal is just like the goal of lean production: to pursue perfection. (end)

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