Case Study NEW WEI SAN INDUSTRIAL CO., LTD. (NWS)

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1 Case Study NEW WEI SAN INDUSTRIAL CO., LTD. (NWS) Integrated System for Quality, Production and Traceability Management

2 Integrated System for Quality, Production and Traceability Management IBS:MES in use at Automotive Industry Supplier NWS NEW WEI SAN INDUSTRIES TIANJIN NEW WEI SAN INDUSTRIAL CO., LTD. (NWS) specialises in the construction and manufacture of highquality cast parts for the global market. In addition to component production in its foundry, NWS also offers further processing of the parts, including assembly into ready-to-install components. NEW WEI SAN, situated in Tianjin (China), is a leading manufacturer of automotive components in the field of metal processing. Renowned car manufacturers and automotive industry suppliers, such as Honeywell, BorgWarner, Mitsubishi, Volvo, Saab, Renault, John Deere and Wabco, rely on NWS' competence in the realisation of their sophisticated products. The company, which is a part of the Meita Group, founded in 1977, operates sites in China, Taiwan, India and Europe. An approximately 7,000-strong workforce in Tianjin manufactures an annual volume of 12,500,000 turbocharger casings and exhaust manifolds. Initial Situation and Customer Requirements In order to remain competitive and respond to the large number of customer requirements, such as internationality, multilingualism, integration capability and sustainability, NWS opted for the introduction of an integrated system for computer-assisted quality and production management (MES). The software was required to cover the following criteria, in particular: Compliance with ISO/TS16949 (APQP, PPAP, FMEA, SPC) Rapid availability and permanent access to high quality data, based on a centralised database FMEAs using the appropriate, standardised FMEA software Electronic input of quality data and evaluation in the production process using SPC Supplier management The project team comprised approximately 40 NWS and 15 IBS employees. Numerous workshops enabled the development of constructive solutions.

3 Production order management, fine planning and production order control, real-time data acquisition and analysis (MES/MOM) A large number of stand-alone, single systems were in use, none of which were interlinked or capable of data exchange and there was no standardised data base, such as Excel and Word. This resulted in a lack of transparency and duplicate data input was not only extremely time-consuming but also error-prone. Selection Process and Aim of the Project Following a functional test carried out among several suppliers, TANJIN NEW WEI SAN INDUSTRIAL CO., LTD. decided in favour of IBS AG's solutions in Pivotal factors in reaching this decision were the fact that the favoured system is a standard system and that IBS employees possess a great deal of industrial competence. This is reflected by the company's references from the car manufacturer and automotive industry supplier sector, such as those acknowledged by BorgWarner, BMW, Daimler, Kautex, Jost and JohnsonControls, to name but a few. Almost 40% of the TOP 100 automotive industry supplier are IBS customers. The joint venture was aimed at the development and softwareassisted execution of cross-plant standard processes throughout the entire product lifecycle. Reliable and consistent data enabled the precise analysis of all processes and process optimisation, as required. The software solution enhances the existing ERP and CAD system, whilst replacing or integrating various stand-alone solutions and local systems, thus harnessing key potentials. Realisation The realisation phase began in the summer of 2012, starting with the step-by-step introduction of the IBS software solutions CAQ=QSYS Professional (CAQ software) and IBS:prisma (MES software). Constructive solutions were developed and discussed within the scope of numerous workshops. Approximately 40 NWS employees and 15 IBS employees were involved in the project. The implementation period spanned from the 3rd quarter of 2010 to the end of the second quarter of 2012 and was executed within the scope of six main phases (see fig. 1). Fig.1: The implementation of IBS' MES solution at NEW WEI SAN INDUSTRIAL was carried out within the scope of 6 main phases

4 The following software modules are in use at NWS: Quality Management CAQ=QSYS Professional (CAQ software) Project Management The IBS project management solution supports all aspects of the product development process, across all areas of the company. This enables the mapping of not only internal project work, but also company-customer and company-supplier activities. The core focus is actions management, aimed at ensuring adherence to due dates and deadlines, as well as recognising the indicators of potential project postponements at an early stage and thus taking the necessary action to avert them. The project management feature also incorporates cost controlling to enable TARGET/ACTUAL comparisons. Advanced Product Quality Planning with FMEA The FMEA module supports preventative defect avoidance with the evaluation of failure consequences and associated risks as early as the planning phase. Integrated actions tracking ensures handling status clarity at all times. The FMEA software enables the identification and avoidance of defects prior to production, increasing functional and product reliability. All data is collected in a relational database, which results in the compilation of a comprehensive knowledge database that can be accessed at any time, even on a decentralised basis. This enables the execution of new FMEAs with greater efficiency. Past project experience is channeled into new developments, contributing to shorter development times and improving adherence to deadlines. This enables trouble-free series start-ups and a reduction in guarantee and goodwill costs.

5 Advanced Product Quality Planning with APQP Optimised product quality planning with the CAQ=QSYS APQP software supports a structured method for the definition and introduction of the necessary process steps. This systematic procedure considerably increases both product quality and customer satisfaction, whilst at the same time achieving shorter developing times. The fully-integrated product management tool supports process and goal-oriented project execution and thus also cost-saving. Inspection Plan Management The Inspection Plan Management module is a core element of the CAQ=QSYS quality management system. The inspection criteria for all quality-related company activities are defined here in conjunction with the Control Plan, ensuring product and process quality. Incoming / Outgoing Goods Control The software modules IGC and OGC support quality monitoring in the incoming and outgoing goods areas. The inspection results attained from random samples and dynamic sampling procedures serve as a basis for supplier or self-assessment. This increases the efficiency of quality assurance measures. Quality and costs remain under control, with a low vertical range of manufacture, increasing supplier involvement and complex supplier structures. Supplier Management CAQ=QSYS SAM increases the transparency of product and supplier quality statuses. In times of complex product and supplier structures, supplier management software assists with the selection of the appropriate business partner. First Sample Inspection Car manufacturers demand adherence to their own standards to guarantee the quality of delivered goods. This concerns supplier selection, first sampling and quality performance in series. The CAQ=QSYS First Sample Inspection module provides a convenient and efficient way to plan, create and manage first sample inspection reports in accordance with VDA and QS9000 standards. Productivity Advantage integrated quality and production management (CAQ/MES)

6 In-process Production Testing (SPC) The SPC inspection enables optimal production process control. Disruptions can be detected at an early stage, their causes removed and production processes optimised, thus establishing the prerequisites for zero defect production. Quality Main Control The main control module enables the cross-departmental visualisation of quality problems, providing the head of production, the foreman, the shift leader and the quality manager an insight into the production situation. Concern and Complaint Management The CCM (Concern and Complaint Management) module in CAQ=QSYS enables the acquisition of all relevant external and internal complaint data and associated costs. Fully-integrated actions management ensures timely, priority-controlled processing by the respective user. Integrated, comprehensive evaluation and analysis options provide optimal support for the continuous improvement of quality and productivity. Audit Management The Audit software is used for all planning, administration, execution and evaluation aspects of audits. IBS AG's integrated quality management solution (CAQ software) supports all phases of the product life cycle

7 Calibration Management The software solution, developed by IBS SINIC GmbH, is used for gage and calibration management. All gages are recorded and identified using specific data, and calibration results are transferred to the system. Production Management IBS:prisma (MES/MOM Software) MES Main Control NWS uses PSIPENTA Software Systems GmbH's Main Control software as a tool to support its fine planning activities. This is integrated in the IBS:prisma production management solution and enables optimised planning of the order situation, in consideration of the actual resources available in the company. ODA Operational Data Acquisition IBS' Operational Data Acquisition module is a powerful standard software tool that can be individually adapted to meet company-specific framework conditions. It offers a broad range of solution possibilities for the management of various tasks in the production area, based on the latest data from the areas of production planning, production control and order processing. The recording of running times, batch and serial numbers, process parameters, production figures (OK/NOK/rework and reject) and machine downtimes, along with the respective reasons (e.g. tooling set-up, machine error), form the basis for order tracking. Documentation of the production facilities is carried out on a TARGET/ACTUAL basis. The current machine status can be called in at any time. In addition to administrative functions for processing production orders, further control parameters can also be defined and allocated, such as machine service times and preventative maintenance work. Production Cockpit Cockpit is an instrument for the visualisation of freely definable key figures, including main defect analysis within the production process. It supports the company's internal reporting activities by visualising the information contained in the databases of the respective IBS software solutions. Cockpit enables a systematic analysis of production and quality data, enabling the rapid identification of production problems and the prompt initiation of corrective and improvement actions. The software plays a major role in establishing traceability within the production process. Interface with the ERP System The ERP system INFOR (Baan LN) is in operation. A bidirectional interface enables transmission of the most important master data (such as part data, BOMs, machine data, customer and supplier data) and movement data (such as incoming goods data, inspection order and production order data) to CAQ=QSYS or IBS:prisma. Information on inspection results, production statuses and production figures is sent to the ERP, where it remains available for further use. MDA Machine Data Acquisition The Machine Data Acquisition (MDA) module forms the basis for providing a full view of all machines and production facilities at shop floor level. IBS:prisma MDA manages the acquisition of all relevant machine and production data from the running production process to enable flexible and effective production control and/or the determination of process parameters and the monitoring of machines and facilities

8 Effects and Benefits The System Solution at a Glance Industry: Automotive Industry Supplier Project: Introduction of a quality and production management system (MES software) Products and modules in use: CAQ=QSYS Professional with the modules APQP / Project Management, FMEA, SPC, IGC/OGC, SAM, FSI, IPM, CCM, LIVE, QMC, WFM, QAM, Audit Management, Batch Management CALVIN Calibration Management IBS:prisma with the Fine Planning, ODA and MDA modules Cross-module: Production Cockpit, NetCom and ToolCom The IBS MES software solution for quality, production and traceability management affords NWS a standardised and fullyintegrated system that has become a recognised Best Practice solution, considerably increasing production and quality management transparency. Optimisation and harmonisation of the process environments has led to a considerable reduction in administration costs. The IBS system serves as a strategic enhancement to the existing ERP and CAD system. The overall reduction in quality and production management costs was attributable to: Lower administration costs Defect and reject avoidance Machine down-time avoidance Improved production planning The Future The further automation of status and quantity notifications is currently underway in the various production areas. Long-term plans include a roll-out of the MES solution at the company's plant in India and the implementation of the CompliantPro compliance management solution in China. Dean Ding, IT Manager, TIANJIN NEW WEI SAN INDUSTRIAL Co., Ltd. TIANJIN NEW WEI SAN INDUSTRIAL CO., LTD. (NWS) TIANJIN NEW WEI SAN INDUSTRIAL CO., LTD. (NWS) is a part of the Meita Group, founded in 1977, and operates sites in China, Taiwan, India and Europe. NWS specialises in the construction and manufacture of high-quality cast parts for the global market. In addition to component production in its foundry, NWS also offers further processing of the parts, including assembly into readyto-install components. The company is a leading manufacturer of automotive components in the field of metal processing. Renowned car manufacturers and automotive industry suppliers, such as Honeywell, BorgWarner, Mitsubishi, Volvo, Saab, Renault, John Deere and Wabco, rely on NWS' competence for the realisation of their sophisticated products. The company's approximately 7,000-strong workforce in Tianjin manufactures an annual volume of 12,500,000 turbocharger casings and exhaust manifolds. With the integrated quality management software of IBS AG we ensure a continuous optimisation of our quality objectives. For automotive suppliers like us, process reliability, traceability and the compliance of international standards (e.g. AIAG, QS9000 and TS16949) are essential requirements. Due to the IBS solutions we reached a harmonisation of the shopfloor, this means elimination of isolated applications and creation of integrated processes from the idea across production to product reliability. "IBS' integrated MES software ensures a high degree of productivity whilst at the same time leading to a notable decrease in defect production. The accessibility of real-time data has helped us achieve greater transparency, thus facilitating decision-making. Use of the IBS solution has enabled us to harmonise our shop floor with the elimination of stand-alone solutions, the creation of integrated processes and the avoidance of wastage. IBS AG I Rathausstrasse 56 I Hoehr-Grenzhausen I Germany Tel.: +49 (0) 26 24/ I Fax: +49 (0) 26 24/ I info@ibs-ag.de LOCATIONS: Hoehr-Grenzhausen (D) Neu-Anspach (D) Boston (USA) Shanghai (PRC) 11013/01/x/0114

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