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AUTOLEANAUTOLEAN

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The PresenterThe Presenter

Garry Homer -

University of Wolverhampton G.homer@wlv.ac.uk

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The Autolean Project - The Autolean Project - ObjectivesObjectives

Provide a practical case study of introducing Internet to 20 SMEs, a ‘shop window’

Measure and observe any problems/weaknesses and strengths of this exercise

Measure and quantify benefits achieved by the use of Internet in the Supply Chain,E-Commerce, Process Mapping

Formulate any lessons to be learned and report these to other SMEs, so that the might mimic our successes (and avoid our failures)

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Overall Structure and Overall Structure and Operation of the ProjectOperation of the Project

The sponsors, Unipart, GKN, Rover, Bham TEC, ERDF The participants, Wolverhampton University, Warwick

Manufacturing Group, European Automotive Initiative Group, Unipart, GKN

Method employed (briefly)………….. Install Train Map Practice/Use Assess Support

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AUTOLEAN OrganisationAUTOLEAN Organisation

Rover

UnipartSME recruitmentSME comms

GKNSME recruitmentSME comms

SMEs

WMGProcess Mapping

EAIGBusiness Process/ Internet Assessment

Uni of WolverhamptonPrime ContractorHost ComputerSME Training and Support

Birmingham TecFunding

BTEC

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Unipart / Rover

RadiatorsMetalParts

SealAssembler

BrakesTurbo

ChargersElectrical

AssyMetal

Finishing

MetalParts

PlasticParts

FoundryBrass

StampingsAluminium

Assys

Tools ToolsPowder

Coatings

(Legend) In Autolean Programme

Toolmaker

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Case Study Case Study

Unipart and Chalcon Plating Unipart and Chalcon Plating Technology LtdTechnology Ltd

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Unipart Primary Supply ChainUnipart Primary Supply Chain

Customer DealerUnipart

WarehouseSupplier-Chalcon/Radshape

RawMaterials

PRODUCT FLOW

INFORMATION FLOW

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Chalcon Plating Technology LtdChalcon Plating Technology Ltd

BACKGROUND Electro-plating company Major 2nd Tier supplier - Jaguar, Rover, Nissan, Honda 1st Tier - Edward Rose, Bloxwich Eng, Sertec Number of employees: 150 Turnover: £4.5m

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Chalcon Plating Technology LtdChalcon Plating Technology Ltd

REGISTRATION - January / February 1998 Launch of Autolean Presentations and registration of SME’s Chalcon Technology Plating / Radshape Sheet Metal Ltd

INSTALLATION - March 1998 Delivery and installation of high spec PC Web site: www.william-bate.co.uk

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Chalcon Plating Technology LtdChalcon Plating Technology Ltd TRAINING - April / May 1998

Day1 : Introduction Computer set up and operation Internet - browsing / searches / email

Day 2 : (1/2 day) : Training Exercises Individual user completes exercises e.g email

Day 3 : Advanced Training Attachments and Forum

Day 4 : (1/2 day) : Advanced Exercises Sending and receiving email attachments Posting questions

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Chalcon Plating Technology LtdChalcon Plating Technology Ltd

PROCESS MAPPING May / June 1998

Information flows from Unipart to Chalcon Plating Technology Ltd

Ordering Process for Unipart Orders

Order sent by post / EDI ?

When and how schedule reviewed ?

Any schedule queries - frequency ?

Time based process map: from order to receipt of parts at Unipart

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Chalcon Plating Technology LtdChalcon Plating Technology Ltd

CURRENT USE OF THE INTERNET

Emails: Basic messages - Unipart

- Chemical supplier - weekly test results Attachments: spreadsheets, documents, presentations

Web site: Sales Team - potential new German customer

Search facilities: Background information on Customers and supplier activities

Training tool: Employees

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Chalcon Plating Technology LtdChalcon Plating Technology Ltd

NEXT STEPS Emails:

Increase basic online communication Increase use of attachments - preadvise, parts profile

Web site: Development of more comprehensive web pages Develop links to and from Customers and trade assoc. web sites

Search facilities: Increase knowledge, understanding and use of the internet

Training tool: Provide tools and encourage use of the internet internally and externally

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The SMEs ExperienceThe SMEs Experience

“Prior to Autolean, computer use was limited to a site network used primarily for

accounts and stock control. There are now many additional new PC’s on site,

many have modem facilities. Following the success of Autolean and the single

trial PC there is now a requirement for a co-ordinated network within Chalcon

Plating Technology.” Martin Williams

Chalcon Plating Technology Ltd

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Chalcon - Some ConclusionsChalcon - Some Conclusions Automotive industry is undergoing significant change:

Restructuring in pursuit of greater efficiency

Increased competition

Impact upon SME’s

Today over 50 million people world wide use the Internet every day - Chalcon Technology Plating Ltd is an example

of how the Internet can be used today and in the future...

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Some ObservationsSome Observations

Time is lost in non-essential unplanned activity

involving communications (“the stupid stuff”)…...

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Cutting large drawings into A4 tiles for faxing

Faxes running out of paper during trasmmission

Wasteful cycles of telephone tag with voice mail systems

Faxes may be hard to read / sometimes illegible / lost pages

Sending an engineer(s) to another country for a 1 hour meeting

Rekeying document information already produced by the customer’s

computer (EDI integration might help but the costs & practicalities of

implementation elude the SME.)

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The Internet…..some of the The Internet…..some of the problems…..problems…..

Quality/selection of ISP is crucial Training is crucial (many SMEs already ‘using’ the Internet

prior to this project had acquired ‘bad habits’, had an ‘incomplete’ understanding of what they were doing.)

But…….SMEs assign a very low (time) priority to being trained (There were some notable exceptions, a few SMEs did fully appreciate the need for time to be set aside for training.)

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Have your customers got the ‘appropriate’ software to

be able to read your e-mail attachments?

Requires ‘desk-to-desk’ e-mail in order to realise full

potential of Internet

How do you know if your e-mail has actually been

delivered?

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Implications to other SMEs in Implications to other SMEs in the Supply Chainthe Supply Chain

The Internet is here and is (increasingly) part of business You cannot ignore it, any more than you can ignore the FAX

(10 years ago, how many SMEs had a fax machine, NOW, how many do not?)

It represents another rapid, reliable method of communication, supplementing the telephone, fax and face-to-face meeting…….not replacing them!

Still in its infancy, but maturing by the day.

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You will experience problems, annoyances, frustrations……

but these ‘growing pains’ will be solved as the technology

matures. (remember the early unreliable days of Colour TV?,

that was only the early 1970s ?)

Part of the problems are associated with an explosion in

(business) demand, and the inability of the suppliers (ISP) to

cope with this demand.

Get on the Internet NOW, get some experience, make some

mistakes, benefit from those mistakes……don’t wait for the

technology to become stable …it never will !

(last)