Crowe Automotive Accelerator for Microsoft Dynamics AX Full ERP Functionality for Automotive Industry Suppliers Audit Tax Advisory Risk Performance The Unique Alternative to the Big Four
Crowe Horwath LLP Regardless of the industry in which it is applied, an enterprise resource planning (ERP) solution must be capable of performing a range of critical and fundamental functions. In the automotive supply industry, an ERP platform must also support and integrate additional industryspecific planning, scheduling, engineering, inventory management, production, and reporting functions due to the highly specialized requirements established by original equipment manufacturers (OEMs). Drawing on decades of automotive industry experience, Crowe Horwath LLP extended the functionality of the Microsoft Dynamics AX ERP solution to create the Crowe Automotive Accelerator for Microsoft Dynamics AX. This highly effective solution harnesses the power of the Microsoft Dynamics platform to perform the full range of essential ERP functions while also meeting the specialized capabilities required in the automotive supply industry. Implemented by experienced automotive industry teams from Crowe and supported on a global basis, the Crowe Automotive Accelerator for Microsoft Dynamics AX can help tiered suppliers respond nimbly and effectively to today s demanding automotive environment. 2
Crowe Automotive Accelerator for Microsoft Dynamics AX The Critical Components of an Effective ERP Platform The Crowe Automotive Accelerator for Microsoft Dynamics AX offers comprehensive ERP functionality with release accounting software and other capabilities that were developed specifically to address the automotive industry s unique requirements. At the most basic level, any ERP platform is expected to help a manufacturer manage and coordinate a wide variety of disparate functions in order to achieve several broad objectives. These include: Improving the company s overall operation, lowering costs, and reducing risk Consolidating existing systems and data sources into one single source of truth to meet operational, financial, and management reporting needs Enabling complete integration of financial and operational processes into one platform Producing time savings and process efficiencies by eliminating manual and redundant process steps and data maintenance Employing centralized, flexible reporting and analysis tools to monitor ongoing performance and facilitate better decision-making Implementing a structured knowledge base to eliminate the risk and vulnerability associated with having only individual knowledge sources Adapting to support future organizational strategies and initiatives Adhering to corporate policies and industry best practices, customer requirements, and government and industry regulations and standards In addition to achieving these broad objectives, an effective ERP platform for the automotive supply industry must also support and integrate a broad range of industry-specific planning, scheduling, engineering, inventory, production, and reporting functions. The Crowe Automotive Accelerator solution was developed specifically to perform these functions, which can be organized into the nine general categories shown on the following pages. www.crowehorwath.com/auto 3
Crowe Horwath LLP A Closer Look: Crowe Automotive Accelerator Primary Functionalities The Crowe Automotive Accelerator for Microsoft Dynamics AX offers a central solution for managing suppliers planning, scheduling, engineering, inventory, production, and reporting functions while at the same time complying with the industry s requirements for the deeply integrated electronic exchange of ordering, pricing, shipping, and payment information. Release Accounting The release accounting function provides for complete sales scheduling, forecasting, and tracking of customer demand requirements. Processing of incoming OEM orders via electronic data interchange transactions Translation of orders into a variety of OEM-specified metrics including cumulative quantities, discrete quantities, purchase order/release authorization numbers, and kanbans Support for in-line vehicle sequencing to accommodate granular JIT workflow and transaction tracking Specialized bar code labeling and shipping functions (through ASN) to comply with customer-specific standards Maintenance of cumulative receipt quantities and shipped quantities by date Integration of sales schedules with forecasting and planning functions Accounting for miscellaneous charges such as freight and packaging/container including compliance with the Chrysler 092 returnable versus expendable container clause 4
Crowe Automotive Accelerator for Microsoft Dynamics AX Electronic Data Interchange (EDI) Broad support for EDI transaction requirements allows for real-time supplier and customer communication. Real-time communications throughout the supply chain Seamless support for a range of trading partners and EDI transaction sets Both customer- and supplier-side EDI capacity Trading-partner-specific EDI transaction processing logic Linkage among OEM and internal planning, scheduling, inventory, and distribution systems Support for major sets of EDI standards such as ANSI X12, EDIFACT, Odette, and VDA www.crowehorwath.com/auto 5
Crowe Horwath LLP Lean Manufacturing Readily accommodated lean manufacturing requirements, including sales-based scheduling, demandpull production support, kanban management, and process flow tools Sales- and release-based scheduling including time establishment and automated handling of sales orders linked to production pull signals Demand-pull production support including production leveling and sequencing tools such as heijunka boards, constraint loading, and similar technologies Assembly or production schedules generated directly from sales orders and releases, eliminating the need for separate production orders Schedule visibility from book to order and cumulative perspectives Kanban management encompassing both point-of-use and pull-ondemand replenishment systems employing a variety of triggers 6
Crowe Automotive Accelerator for Microsoft Dynamics AX Bar Code Labeling and Shipment Verification Bar code labeling and shipment verification conforming with industry standards to fully automate shipping, receiving, and inventory management Custom bar code label generation, extracting information directly from the ERP system Part labels, rack labels, and serial number labels per trading partner or Automotive Industry Action Group (AIAG) guidelines Integrated shipping document generation, including shippers, bills of lading, master pack lists, commercial invoices, and other export documentation In-Line Vehicle Sequencing (ILVS) Support Automated workflow and sequencing of all manufacturing and distribution transactions including 866 and similar EDI documents Support for JIT production activity at the OEM or Tier 1 supplier Receipt and interpretation of production sequence transactions Downloading of sequence data from the OEM or Tier 1 supplier s FTP site Receipt of sequence data from broadcast pulse Built-in sequencing, batching, and packing to maximize the use of FIFO Interfacing with programmable logical controllers (PLCs) for verifying (pokayoke) and tracking production www.crowehorwath.com/auto 7
Crowe Horwath LLP Program Management The program management function provides full program and cost-tracking capabilities throughout the life cycle of each part or program. Tracking of entire part life cycle from prelaunch through service Tracking of change history Tracking of program costs (such as tooling and prototyping) and comparison to budgets Tracking of PPAP status Logging of customer communications history Quality Management Support for all aspects of comprehensive quality management including policy and procedures, quality-related engineering concerns, and product-planning aspects Support for the day-to-day operational procedures associated with quality management and nonconformance Incorporation of proven and recognized quality management principles and programs such as failure mode and effects analysis (FMEA) and advanced product quality planning (APQP) Compliance with relevant AIAG quality management guidelines 8
Crowe Automotive Accelerator for Microsoft Dynamics AX Supply Chain Management The entire procure-to-pay process and life cycle are strengthened through the use of proven supply chain management principles. Extension and coordination of kanban throughout the supply chain Automated receipt procedures and preconfigured material routing Improved real-time visibility of forecasted demand and significant data trends Support for kanban replenishment and vendor-managed inventory initiatives Engineering Change Management The creation, management, prioritization, and tracking of change requests and engineering change orders (ECOs) are fully automated including necessary generation of bills of materials and routing updates. Creation and management of engineering change requests (ECRs) and generation of ECOs ECO prioritization, task workflows, notifications, and time tracking Management of engineering revisions and incorporation of changes Establishment of release dates and stock disposition codes Management of items, bills of materials, and routes Generation of all necessary reporting, including change history, revision changes, release dates, and ECR/ECO reports by reason code and origin www.crowehorwath.com/auto 9
Crowe Horwath LLP Built on the Powerful Microsoft Dynamics AX Platform Microsoft Dynamics AX is a powerful ERP solution that is built for manufacturing organizations. The goal of this robust platform is to provide all workers in an organization regardless of where they are located with single-source access to the specific information they need to perform their roles. This unified approach enables a manufacturing business to run and continuously improve its own unique mix of manufacturing processes across multiple sites and geographies. The powerful and agile Microsoft Dynamics AX enables manufacturers to scale their organizations quickly and expand into new geographies with a global manufacturing solution. Role-tailored user experiences enable users to gain immediate insight and boost productivity by using self-service business intelligence and reporting for significant operations. The user experience helps speed onboarding and adoption, making it easy to find, use, and share information through the use of kanban boards and other visualization tools, touch-based screens for floor workers, and a familiar Microsoft look and feel for productivity and reporting tools. Deployment, management, and upgrading are also simplified through the use of application life cycle management. 10
Crowe Automotive Accelerator for Microsoft Dynamics AX Crowe, Microsoft, and the Auto Industry Crowe has a long history of working with automotive suppliers and consulting on specific industry technology solutions. In that time our teams have developed exceptionally deep and specialized knowledge of the challenges of the automotive industry. Crowe has dedicated resources that focus on a broad range of industry issues including performance improvement initiatives, strategic sourcing and spend reduction strategies, merger and acquisition diligence and integration leadership, and general IT advisory services. Crowe is also widely recognized for its strong relationship with Microsoft, developing specialized configurations and industry-specific accelerators such as the Crowe Automotive Accelerator for Microsoft Dynamics AX. Crowe is one of a very few select companies that have been named: A Microsoft Gold Certified Partner A President s Club for Microsoft Dynamics member An Inner Circle Winner for Microsoft Dynamics Microsoft Security Partner of the Year Microsoft CRM Partner of the Year www.crowehorwath.com/auto 11
Contact Information For more information about the Crowe Automotive Accelerator for Microsoft Dynamics AX or any of the other performance advisory services and solutions offered by Crowe, please contact: Josh Cole 616.752.4274 or josh.cole@crowehorwath.com If you would like to start receiving information via email about topics of importance to you, please sign up on our website at www.crowehorwath.com/emailsignup. Crowe Horwath LLP, The Unique Alternative Crowe Horwath LLP (www.crowehorwath.com) is one of the largest public accounting and consulting firms in the United States. Under its core purpose of Building Value with Values, Crowe uses its deep industry expertise to provide audit services to public and private entities while also helping clients reach their goals with tax, advisory, risk, and performance services. With a total of more than 3,000 personnel, Crowe and its subsidiaries have offices coast to coast. The firm is recognized by many organizations as one of the country s best places to work. Crowe serves clients worldwide as an independent member of Crowe Horwath International, one of the largest global accounting networks in the world, consisting of more than 150 independent accounting and advisory services firms in more than 100 countries around the world. www.crowehorwath.com/auto When printed by Crowe Horwath LLP, this piece is printed on Mohawk Color Copy Premium, which is manufactured entirely with Green-e certified wind-generated electricity. Microsoft and Dynamics are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. Crowe Horwath LLP is an independent member of Crowe Horwath International, a Swiss verein. Each member firm of Crowe Horwath International is a separate and independent legal entity. Crowe Horwath LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath International or any other Crowe Horwath International member. Accountancy services in Kansas and North Carolina are rendered by Crowe Chizek LLP, which is not a member of Crowe Horwath International. 2013 Crowe Horwath LLP PERF14507