Production In Auto Industry --- Chandran, CIO, Daimler

Datum (Tag.Monat.Jahr)

Daimler India Commercial Vehicles Pvt. Ltd.

Production & Business Application in Auto Industry

T/ICI, 30.04.2010

Chandran RCIO, Daimler India Commercial Vehicles Pvt.Ltd

Department / Date 2


Introduction to DICV

100% subsidiary of Daimler Trucks

Planned investment of Rs. 4400 crores over the next five years

DICV will manufacture trucks in the 6 - 49t category for the Indian volume market

Proposed plant to come up in SIPCOT industrial complex at Oragadam in Kanchipuram District of Tamilnadu.

Department / Date 3


Quality ManagementQuality Management

Core areas of IT in an Automotive Industry

Financial ManagementAccounting System

Controlling & Cost Management

Treasury Management

Indian Taxation

Retail Systems

Dealer Management System

Sales Mngt Systems

Sales Planning

Forecasting

Sales Order Management

After Sales

Sales Planning

Order Management

Warranty Management

Parts Documentation

Service Management

Production & LogisticsProduction Planning & Scheduling

Supply & Inventory Management

Shop Floor Control

Warehouse Management

R & DCAD/CAM

EDM

Part Numbering

BOM

Supplier Collaboration

Change Management

Plant MaintenancePlant Maintencance

ProcurementProcurement Management

System

Human CapitalHR System

Enterprise Portal Interface

Busi

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Website

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Mail, Workflow & Cooperation Tools: Lotus Notes

Document Management System: tbd

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CRM

CRMCRM System

Department / Date 4


A structured approach was used to arrive at DICV IT options for the core areas• Based on the process design and IT requirements, required applications would

be listed. IT Landscape would be developed for these applications.

• Options for these applications would be selected based on Daimler current systems and prevalent packages used in Industry

• Comparison of the IT Options will be based on the DICV IT Guiding Principles

• Applications where urgency of implementation is high would be prioritized for Options comparison.

IT Requirements

IT Options

IT Guiding Principles

IT Option Comparison

CoMeT5.5.5 Measure and control commodity planning

CoMeT5.5.4 Perform Year end closing

CoMeT5.5.3 Analyze Expected actual

CoMeT5.5.2 Perform Weekly reporting within annual negotiation period

CoMeT5.5.1. Set targets (organization and lead buying commodity) within operative planning

5.5 Commodity Planning

Templates - Daimler Intranet, GLOBUS, DMS Archiving system

5.4.1 Contract Management5.4 Contract Management

SD-net5.3.4 Perform financial supplier risk management (FSRM)

GPSIS5.3.3 Assess external balance score card (EBSC)

SD-net5.3.2 Internal/ cross functional assessment

SD-net (Daimler) - with interface to GLOBUS supplier master data

5.3.1 On Site assessment 5.3 Supplier Evaluation

- CoMeT(aggregated report),- GLOBUS (part level report)

- GLOBUS (lead buying approval process)

5.2.1 Lead buying5.2 Commodity Strategy(Lead buying)

SD Net - Supplier Development Network5.1.2 Strategic supplier development (SSD)

SD Net - Supplier Development Network5.1.1 Identify cost reduction potential (OSD) 5.1 Supplier Development

Present system (only while studying Daimler / Hero)

Sub-processes broken down to a level where different systems are required

Business component as depicted on the functional

map

L2

ApplicationProcessBusiness Component

CoMeT5.5.5 Measure and control commodity planning

CoMeT5.5.4 Perform Year end closing

CoMeT5.5.3 Analyze Expected actual

CoMeT5.5.2 Perform Weekly reporting within annual negotiation period

CoMeT5.5.1. Set targets (organization and lead buying commodity) within operative planning

5.5 Commodity Planning

Templates - Daimler Intranet, GLOBUS, DMS Archiving system

5.4.1 Contract Management5.4 Contract Management

SD-net5.3.4 Perform financial supplier risk management (FSRM)

GPSIS5.3.3 Assess external balance score card (EBSC)

SD-net5.3.2 Internal/ cross functional assessment

SD-net (Daimler) - with interface to GLOBUS supplier master data

5.3.1 On Site assessment 5.3 Supplier Evaluation

- CoMeT(aggregated report),- GLOBUS (part level report)

- GLOBUS (lead buying approval process)

5.2.1 Lead buying5.2 Commodity Strategy(Lead buying)

SD Net - Supplier Development Network5.1.2 Strategic supplier development (SSD)

SD Net - Supplier Development Network5.1.1 Identify cost reduction potential (OSD) 5.1 Supplier Development

Present system (only while studying Daimler / Hero)

Sub-processes broken down to a level where different systems are required

Business component as depicted on the functional

map

L2

ApplicationProcessBusiness Component

IT Principle 3: Incorporating business needs in solution design and evolution (Functional requirements)

IT Principle 1: Weigh total cost of ownership

Support & Maintenance

Enhancements & modifucations

One time -Infrastructure

One time - licences

One Time -implementation

Non-Production materialProduction Material

Non-Production materialProduction Material

SAP MMGLOBUS

Costs are considered for best case scenarios

Constant Exchange Rate (EUR vs INR), Applicable more for GLOBUS

Number of DHCV users : 76

Indian resources(people) cost 20 % of German resources(people)

Indian resources cost increase is not considered

Implementation team will be mix of european/indian resources

Interest rates are not reflected or considered in the cost (if 8%)

SAP MM means SAP MM with additional required functionalities

All values are in EUROS

Assumptions :

Costs are considered for best case scenarios

Constant Exchange Rate (EUR vs INR), Applicable more for GLOBUS

Number of DHCV users : 76

Indian resources(people) cost 20 % of German resources(people)

Indian resources cost increase is not considered

Implementation team will be mix of european/indian resources

Interest rates are not reflected or considered in the cost (if 8%)

SAP MM means SAP MM with additional required functionalities

All values are in EUROS

Assumptions :

Department / Date 5


• IT Guiding principles are used to capture the fundamental, underlying truths about how the organization intends to utilize and deploy both information technology assets and resources

• The principles provide a framework which can be used to support IT decision making

• At DICV IT Guiding principles are recommended to be used for comparing IT options

The approach should be based on IT Guiding Principles

Department / Date 6


Current IT situation at DICVCurrent IT situation at DICV

Business TrendsBusiness TrendsTechnology trendsTechnology trends

IT GoalsIT Goals

Business GoalsBusiness GoalsT

B

B

T

T Primarily Technical point of view B Primarily Business point of view

B THigh Level IT Goals aligning with business goals

IT Guiding principles aligned to IT GoalsIT Guiding principles aligned to IT Goals B TIT guiding principles are used as criteria for IT options evaluation

IT Guiding Principles should be driven by Business and Technology Trends

Department / Date 7


Quality ManagementQuality Management

SAP

DICV IT Strategy/Landscape - utilization of DAI Systems

Financial ManagementAccounting System

SAP

Controlling & Cost Management

SAP

Treasury Management

SAP

Indian Taxation

SAP

Retail Systems

Dealer Management System

SAP-DMS,VMS / Autoline (light)

Sales Mngt Systems

Sales Planning

Bus – SD

Forecasting

Bus – SD

Sales Order Management

Bus – SD

After Sales

Sales Planning

SAP/ GSP

Order Management

SAP/GSP

Warranty Management

SAP/GSP

Parts Documentation

SAP/GSP

Service Management

SAP/GSP

Production & LogisticsProduction Planning & Scheduling

SAPSupply & Inventory

Management

SAPShop Floor Control

Manufacturing Ops. Mgmt

Warehouse Management

SAP

R & DCAD/CAM

CATIA

EDM

Daimler Systems

Part Numbering

Daimler Systems

BOM

Daimler Systems

Supplier Collaboration

Daimler Systems

Change Management

Daimler Systems

Plant MaintenancePlant Maintencance

SAP

ProcurementProcurement Management

SystemDaimler Systems

Human CapitalHR System

Daimler Systems

Enterprise Portal Interface

Busi

ness

An

aly

tics

/ R

eport

ing

Sup

plie

r Porta

lSA

P S

RM

/ Glo

bus

Deale

r Syste

mB

ank

Website

Eng

Porta

l

Mail, Workflow & Cooperation Tools: Lotus Notes

Document Management System: tbd

Offi

ce IT &

Info

rmati

on M

anagem

ent

IT M

onit

ori

ng

Syst

em

IT A

sset

Managem

en

tH

elp

Desk

MS

Offi

ceD

aim

ler

& H

ero

co

mp

ati

ble

CRM

SAP-CRM / Siebel

CRMCRM System

SAP-CRM / Siebel

Department / Date 8


ERP provides integrated solution to core business area and product planning applications Major pain areas of an automotive company in Business application includes

Financial accounting/Controlling

Logistics (Supply chain management)

Product planning

An integrated ERP solves the above mentioned pain points

Department / Date 9


Integrated PLM and MES solutions are feasible options for product engineering and operations Product Engineering requires careful consideration of IT options in the areas of

CAD/CAM

Bill of Material Management

Engineering Data Management

Change Management

An integrated PLM, even open source ones, should always be kept in mind for Product Engineering

Decoupling of Manufacturing plant network from corporate network is suggested as a risk management measure for continuous operation

Department / Date 10


Control Architecture in a typical SME Control Architecture in a typical SME environmentenvironment

Field LevelField Level

Sensor / Actuator Sensor / Actuator LevelLevel

Control LevelControl Level

Plant Management Plant Management (SAP)(SAP)

Production Level Production Level (MES)(MES)

>>> Body and paint shop, assembly>>> Body and paint shop, assembly



TCO and ROI are important parameters in determining IT options for SMEs IT Landscape should be integrated, with minimum of number of disparate systems

Industry standard solutions should be focused for implementation

Scaled down versions of ERP

Open source PLM

In house coding of lean manufacturing & control systems integrated with Master ERP



Thank you

Production In Auto Industry --- Chandran, CIO, Daimler

Business

Transcript of Production In Auto Industry --- Chandran, CIO, Daimler