Current IT Systems: The Barriers to 3DayCar. Mickey Howard, University of Bath Technology Research

Transcription

1 Current IT Systems: The Barriers to 3DayCar Mickey Howard, University of Bath Technology Research

2 Key questions What / where are the IT barriers? s, VM s, Suppliers & Logistics. What s the significance to 3DayCar? In relation to current order lead-time best practice (How) can technology solve them? IT systems can be like a swan, smooth on the surface, but lots of paddling underneath..

3 VEHICLE MANUFACTURERS Batch processing Legacy systems Stovepipe / chimney Central management systems DEALERS DMS not integrated with DCS causing order entry duplication & system duality Order visibility Lack of common car description Purchase Sequencing Scheduling Planning NSC IT System Barriers Customer D.C. Suppliers Production SUPPLIERS EDI standards: dialect & label format The Future : Odette, Edifact, Web enabled PC or ANX..? Internet reliability & security LOGISTICS Lack of out-bound open access data system Lack of realtime forward data Vehicle labeling: wasteful, time intensive

4 DEALERS Purchase Sequencing Scheduling Planning NSC IT System Barriers Customer D.C. Suppliers Production

5 s IT System Barriers: DMS and DCS not integrated: duplication, re-keying, manual controls, 20 hard-copy documents per car! Order visibility: good for stock, poor for orders. VM Satellite link DCS Customer Enquiry Availability Location Write out enquiry PC Tracking Satellite bandwidth too narrow Acceptance note Lack of common car description DCS Hand key Finance DMS

6 s (2) Enabling Technology... Integrating DMS & DCS using Middleware, XML Adopt industry standards: electronic invoicing, EDI data formats, warranty certificates & finance application forms. Vehicle Lifecycle identification chip..or Process? Define the VM / role and the relationship with the customer.

7 VEHICLE MANUFACTURERS Purchase Sequencing Scheduling Planning NSC IT System Barriers Customer D.C. Suppliers Production

8 Batch Processing The major bottleneck to OTD: current process takes 4 to 5 days Large Buckets of Orders: In a fixed, sequential & time intensive process Too many physical computations for the period. The output of one process can miss the start of the next window. Resistance to change: Mainframe / Batch offers greater control & lower o heads Overnight Order Entry Order Administration Order Extraction Order Sequencing Operational Scheduling

9 Significance to 3DC Current order lead-time best practice (days): Order input: 1 Production: 8 Order bank 0.1 Scheduled orders 5 Sequenced orders 2 Physical production 0.9 Distribution: 1.6 Distribution to dealer 1.6 Total: 10.6 Source: 3DayCar 1st Year conclusions

10 Batch Processing (2) Interim solution: Smaller batches Run processes more frequently, e.g: 10min periods Continuous overlapping cycle Ultimately... Eliminate batch processing, move to 24/7 real-time.

11 Legacy systems Another major OTD inhibitor: Legacy systems were built for a different world : Mass production, specific tasks (not integrated) & association of control Based on central material & Plant optimisation: driven by in-bound logistics & push by production, than order demand No IT routes for re-processing late changes through the plant: customer orders locked 10 days prior to production Solutions? Cost & time intensive

12 Stovepipe / Chimney EDI / FAX MRP Monthly Weekly Daily Sub daily MRP Parts req s EDI Monthly Weekly Daily Sub daily Long term Forecasting Supplier Scheduling MRP Sequenced supply message forwarder O/n O/n Order Administration -Planning -Parts req s Order Bank O/n Order Extraction Scheduled Orders O/n Order Sequencing Comm s System Customer Interface, Website Mgt System 2 nd Tier Supplier Despatch Note/ Barcode MACHINING 1 st Tier Supplier Inventory Control System Inventory Files Electronic calloff to Warehouses & Suppliers MANUFACTURING Operational scheduling O/n Build Sequences VM Traffic Control Hand held computer Logistics Resource Planning EDI Road Transport Mail Sea Transport Vehicle Manufacturer Logistics

13 Central management VM IT mgt becoming centralised Lack of visibility at regional plant level Central batch-processing cannot allow for time differences: more stock held at regional plants Should we examine the balance between central v regional mgt?

14 Purchase Sequencing Scheduling Planning NSC IT System Barriers Customer D.C. Suppliers Production SUPPLIERS

15 Suppliers once you get past tier 1 there aren t any standards. Lack of adherence to EDI standards: Protocol & label format Uncertainty over the adoption of new IT: Bespoke EDI systems or Web-based PC s & Internet Exchanges. The Web: Perceived by many Suppliers as great potential, but still unreliable and insecure

16 IT enablers Suppliers require homogenous procedures & IT standards from VM s Experiments in Web-based supplier scheduling in EU The Covisint exchange in US, imminent in Europe... Schedule info Parts required Shipping order Goods desp. Goods rec. Billing Supplier? WEB Data flow Faxes Telephone calls Logistics VM

17 Purchase Sequencing Scheduling Planning NSC IT System Barriers Customer D.C. Suppliers Production LOGISTICS

18 Logistics In-bound logistics are more developed than out-bound.. Out bound logistics IT System Barriers: Lack of an open-access data system with VM s Current EDI interface poor: lack of real-time forward data Vehicle labelling: wasteful, time intensive, no standards..

19 IT Enablers Integrated systems using reliable data Mobile tracking to monitor job progression: Radio tagging, GPS, tracking by customer via Internet Geo-fencing A Logistics Trade Exchange as per Covisint

20 VEHICLE MANUFACTURERS DEALERS Purchase Sequencing Scheduling Planning NSC IT System Barriers Customer D.C. Suppliers Production SUPPLIERS LOGISTICS

21 Conclusion IT-System Barriers to 3DC and proposed enablers: 1 Lack of system integration: Eliminate system duplication. Adopt sharing strategy with partners. 2 Lack of connectivity: More co-operation via extranets. 3 Batch processing is an inhibitor: Fundamental rethink on processing activity. 4 IT Legacy: Mechanisms available for breaking up system dependency. Approach based on evolution, than revolution.

22 Conclusion (2) 5 Lack of EDI standards: Cross industry agreement on common data formats & car descriptions. Is Covisint a driver? 6 Central management systems: There are some activities which are best done centrally (purchasing). But balance with local flexibility. 7 Internet security & reliability: Benchmark other Industries. 8 Stovepipe / chimney : Break down function. I believe the Internet will be the moving assembly line of the 21st Century... William Ford II

23 IT Systems Barriers Mickey Howard Questions? WEB