Manufacturing Transformation: From Push to Pull

Transcription

1 Manufacturing Transformation: From Push to Pull Dassault Systemes 3DX Forum Las Vegas November 12,

2 Agenda 1 Introduction / AGCO Background 2 Apriso Project / Implementation 3 Post Implementation 4 Lessons Learned 1

3 AGCO Background AGCO Corporation Established in 1990 with purchase of Deutz Allis Corporation Branded heritage reaching back to the mid-1800s Become a worldwide farm machinery company through market growth, strategic acquisitions, and cutting edge agricultural solution Largest manufacturer in the world purely focused on agricultural equipment Currently 272 on the Fortune 500 Purchased Hesston (Hay & Forage Ind.) in

4 AGCO Background 4

5 AGCO Background 5

6 AGCO Background Fabrication De-coil Machine Weld 6

7 AGCO Background Paint Fabrication De-coil Machine Weld 7

8 AGCO Background DELMIA Apriso Project Business Drivers MES Solution to Drive Demand Flow Manufacturing / Push to Pull Eliminate Work Order Packets / Reduce Labor Material Reductions: Inventory Levels Obsolescence Line Loss Scrap / Rusted Material Loss FTE Reduction / Overtime Productivity Improvements Rework Costs / Overtime Warranty Cost Reduction Market Competitiveness 8

9 Accumulated Savings - Costs Apriso Project / Implementation Implementation Approach AGCO / Apriso Team Develop Value Assessment Identify Areas of Potential Savings Define Cost Reduction Areas has Hard/Soft Savings $13,500,000 $11,500,000 $9,500,000 $7,500,000 Break Even Time Savings Costs BreakEve n Add Quantifiable Metrics To Calculate Savings $5,500,000 $3,500,000 Calculate ROI Project Future Savings $1,500,000 ROI% over 3 Average ROI% Avg. Savings Internal Rate of Years (NPV) per year BreakEven Return (5 yrs) 396% % 1.06 months 1088% ($500,000) Year 0 Year 1 Year 2 Year 3 Savings $0 $8,341,270 $3,647,660 $3,647,660 Costs $574,200 $1,827,190 $306,390 $270,390 BreakEven -$574,200 $5,939,880 $9,281,150 $12,658,420 Elasped Time (Years) 9

10 Apriso Project / Implementation Big Bang Approach All Business Areas With The Exception of Maintenance $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Apriso Hard Benefit Opportunities Material Labor Warranty Overhead People Time and Labor Process Production Quality Material Warehouse Big Bang Approach Flip the Switch Push to Pull Overnight 100% Paperless Overnight 10

11 Apriso Project / Implementation Key Process Objectives Synchronous Manufacturing Part Management / WIP & Stores Inventory Pull Material to Assembly Process Sequential Manufacturing on Assembly Lines Task Based System What To Do When Relieve Inventory at the Time Of Consumption Kitting Reduce Line Side Inventory Create Flat BOM Eliminate Paper No More Work Order Packets Time & Labor No More EBAY!!!! 11

12 Apriso Project / Implementation Project Implementation Timeline 2007 to 2009 Infrastructure Upgrade Web Based Application Better Throughput September 2008 Project Kickoff February 2009 Project Start (After Apriso completed design documentation) September 2009 Go-Live December 2009 System Shutdown/Reconfiguration January 2010 System Restart Stabilization Phase / Continuous Improvement 12

13 Apriso Project / Implementation Shop Floor Support??? 13

14 Post Implementation Measurable Areas of Success Inventory High-rise Storage Area Reduced by approx. 40% Line Side Inventory Reduced by approx. 80% Inventory Accuracy Increased by approx. 10% Quality Missing Parts Represented 90% of Defect Rate Look Ahead Report 400% Improvement Right First Time Scrap / Rework Cost Reduced by approx. 15% Labor Material Handling FTE Hours Reduced by approx. 20% Reduction In Material Headcount by 10% Unplanned Savings Safety Metrics Improved by approx. 10% On Going Video 14

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16 3 - Simultaneous Transformations Business Transformation Reengineering the manufacturing process that had been in place for decades Cultural Transformation Required a collective acceptance of change to shop-floor job responsibilities around a disciplined, repeatable paperless process Technology Transformation Distributed the use of technology across the entire manufacturing shop-floor. Replace data entry gathering from a small group of clerks located in a centralized dispatch office 16

17 Lessons Learned Develop a Good Plan!! Understand Your Business Document Current Processes Document Ad-Hoc Processes Dive Deeper Into The Work Force In Development Stage System Readiness Test Test Test Test Test!!! User Acceptance Testing High Volume Stress Testing Test Interfaces Understand Processing Time Apriso Training IT & Developers Establish Call Center Staffed 24/7 Document All Issues Ultimate Flexibility Can Result In Ultimate Complexity!! Understand your needs Keep It Simple! 17

18 Future Plans / Summary Future Plans Apriso 9.6 Upgrade Go-Live December 2014 SAP Integration 2016 Summary By providing a reliable and flexible platform, Apriso has been a key enabler for AGCO to develop tools necessary to meet market demand and sustainable growth. 18

19 Dassault Systemes 3DX Forum Questions & Answers!! 19