: Network Management for the Automotive Supplier Industry Slide 1 Agenda 1 Objectives of the * Project 2 Current Status of the Project 3 Anticipated Results 4 Lessons Learned * = Network management for the auotmotive supplier industry Slide 2
The 7-Monitor Problem BMW Ford Porsche Opel DaimlerChrysler Audi Volkswagen Each OEM has a separate system for checking the availability of parts, capacity and requirements via the supplier network System supplier managing clerks use different systems at the same time To create transparency via the network, system suppliers integrate all subsupplier information Solutions are not feasible for system suppliers due to the effort and costs involved Slide 3 Focus Points of the Project Manufacturer Planning the program and the materials required; SCM Coordination LogDL Transport control 1 st tier supplier Areas under review Information ERP/PPS SCM Manual LogDL Coordination 2 nd tier supplier Prod. Trans. Prod. Trans Prod. Manual Research level Process description Network organization area Planning strategy and system configuration Not part of the project Control station / prop. format Control station Control station VDA data type definitions Coordinating control center Control station Control station IT support IaC (Information and Communication) platform area data formats Communication network Not part of the project Slide 4
Objectives of the Project To extend and harmonize standard supply chains to and with supplier networks To create innovative IT-systems suitable for small and medium-sized businesses for seamless supply management in the network To achieve company-wide and transparent supply and order processing using a standard control mechanism To structure the network organization by defining roles and responsibilities and encouraging cooperation and trust To set up a look-ahead and reactive fault management system based on a partnership approach To incorporate, depict and analyze the supply networks created by industry partners and to allocate requirements to network-compatible processes and organizational concepts To implement optimized processes and selected system applications in two pilot chains with the participation of software suppliers Slide 5 Areas of Activity and Consortium of the Project Development partners (voluntary) IT partners SAP Manugistics ASP*partner T-Systems ENX consortium *ASP: Application Service Provider 1 2 IaC platform Network organization 3 Just in sequence Piloting and validation Stock -> Just in sequence Supplier logistics center Logistics 4 Transfer of results Public/ associations Industrial organizations VDA BVL VDI Slide 6
Supply Network of the Industry Partners Supply Network of the Industry Partners Slide 7 Stages of the Project Network structure/drawing up of specifications White Paper Technical specifications (process description) Basis of analysis Specification of IT partners IT specifications Prototype Implementation Pilot 1 IT analysis and evaluation Jan/02 Prototype Implementation Pilot 2 Slide 8
AO 1 Material flow Areas of Operation (AO) in the Project AO 2 AO 3 Planning and control of the physical material flow Monitoring of material flow processes Execution time horizon Up-to-the-minute evaluation of material requirements in terms of what is required and when it is required Time horizon: From Execution to program Comparison of available capacity with calculated requirements Simulation of scenarios AO 4 Data model Definition of the data required for the IT conversion of AO 1-3 and AO 5 AO 5 Stabilization AO 6 Network culture and organization Preventive identification of faults Procedures for fault elimination Definition of the rules of the game Definition of the structures and roles of a network organization Slide 9 Planning and Tracking the Material Flow 2) 1) DI, DCO 1 st tier Readiness for shipment Readiness for shipment (other Vorlesung network Logistik-Management partners) 1) 8): Process steps 1) DI, DCO Return advices OEM 8) RDT* 3)/5)/7) LSP data, collection advices, RDT 4) DI, DCO, loadcontainerparameters, relevant data from all suppliers and LSP 6) Target-actual comparison of goods LSP* Collection orders, vehicle routing and scheduling DI, DCO (load-container optimized) or shipment parameters are transmitted to the control station Event-driven workflow distributes DI/DCO to LSP Consolidation of part shipments and optimized static vehicle routing and scheduling for all delivery stages Generation and transmission of collection orders, vehicle routing and scheduling, shipment consolidation * RDT: Remote Data Transmission * LSP: Logistics Service Provider * DI: Delivery Instruction * DCO: Daily Call-Off Slide 10
Overview of Processes - AO Material Flow Transmission of netrequirements Container management Checking parts availability for shipment Vehicle routing & scheduling Checking supply capability Monitoring readiness for shipment Monitoring delivery date Monitoring collection advice Monitoring collection Shipment Shipment inspection Transport flow control Goods inward process & check Preparing for shipment Grundlagen, Monitoring Trends und Strategien presentation Monitoring product life Monitoring product life Slide 11 and Planning OEM Secondary requirement item no./parts/ quantities 1st tier LSP Planning process - Monthly - Program plan (max. 24 months) - Explosion of bill of materials Transport requirement Secondary requirement item no./parts/ quantities 2nd tier - Load profile - Explosion of bill of materials - Compare old/new - Compare capacities Stocks Capacities - Load profile - Transport capacities - Compare old/new - Area, personnel Capacities Stocks (contract store) - Load profile - Explosion of bill of materials - Compare old/new - Compare capacities Stocks Capacities Triggering of alerts Initiation of workflows Simulation of require ment and capacity scenarios Slide 12
Process Overview of Subproject & Planning Sequential requirements and capacity Transmission of net requirements Analysis of variance explosion Calculation of capacity requirement check & alerting Monitoring of scope Simultaneous requirements and capacity Transmission of net requirements Analysis of variance Simultaneous requirements & capacity Simulation for support Simulation Slide 13 Overview of Simultaneous / Planning OR OR OR Inquiry production status Checking increased capacity Production checks New requirements for simulation Within target Checking bar material OR OR OR Simulation Checking feasibility Approval of simulation results New agreed requirements New requirements for simulation Internal problem-solving SBK for next level Slide 14
Simultaneous and Planning OEM LSP Deadline, quantities 1st tier LSP Volumes Deadline, quantities Volumes 2nd tier Deadline, quantities 3rd tier Slide 15 Initiation of Workflows for Fault Elimination OEM LSP 1st tier LSP alert alert Volumes Workflow Workflow Volumes 2nd tier problem Due dates, quantities Qual. requirements 3rd tier Slide 16
Alternatives to Simultaneous Planning Bedarfs - Kapazitätsplanung Planung Anpassen interne Planung Umplanung ZSB Verfügbarkeits termine N Bedarfs - Kapazitäts- Kapazitäts planung Planung angebot o.k. J Freigabe der Bedarfs - rechnung ------------------------------------------------------------------------------------------------------ 1 2 Anpassen interne Planung Umplanung ZSB Bedarfe Kapazitäts- Planung -auflösung Anpassen interne Planung Umplanung ZSB Verfügbarkeitst ermine Kapazitäts N angebot o.k. J Freigabe der Bedarfs - 2 rechnung Verfügbarkeitst ermine J N Kapazitäts Lösung angebot intern o.k. ohne J 5 Wirkung auf Kette J Lösung intern ohne Wirkung auf Kette Meldung neuer Liefertermin Zugang oben 8 N Produktion vorziehen Wirkung nach... unten ------------------------------------------------------------------------------------------------------ 6 3 Meldung neuer Liefertermin Zugang 7 oben N Produktion vorziehen Wirkung nach... 4 neuer Liefertermin Zugang 9 J oben N Lösung Produktion intern vorziehen ohne Wirkung Wirkung nach... auf Kette unten Tier N-1 Tier N Tier N+1 Alternative 1: explosion and forwarding without capacity Alternative 2: Forwarding following successful capacity Alternative 3: Forwarding following unsuccessful capacity and internal problem-solving without affecting the chain Alternative 4: Forwarding following unsuccessful capacity and impact above and below for over Slide 17 Distributed Architecture Company A Inventory application ERP* Company B BOM Requirement Inventory Data model SAP Interface/ collaboration Admin/ coordinator Data model ERP* Grundlagen, Trends und BOM Strategien Data model Manugistics * ERP - Enterprise Resource Planning Slide 18
Development of a Business Model Function model Central Distributed Combined Infrastructure Software Hardware Allocation Solution space for the business model Business cases Expenses Cost-benefit analysis Post model Tasks Participants/ operators Organization Possible network coordination Tasks (chain network) Allocation Competences Slide 19 Standardization Procedure Research Project Post Concept Sept/02 X/03 Industry Standard Development of standards for... User processes IT functions Data model/interfaces project pilots Implementation of the standard IT solution First customer shipment/pilot projects Committee work Sector roll-out Defined standard Sponsors/operators/marketeers Slide 20
Anticipated Results Requirement Definition for a collaborative and control of the automotive supplier network Definition of processes for collaborative and control Design of a network organization and rules of behavior for the collaboration of network partners Development of two software systems and piloting of these systems in different supplier networks Development of a business model based on a cost-benefit-analysis for the application Start of a standardization process for network processes and suppoerting IT-systems Slide 21 Lessons Learned What We Know Now Conception of the Project Researching networks is much more complex than researching supply chains Efforts to standardize software systems require financial investment from software partners The scope of pilot schemes is restricted bytime constraints (e.g. simulation, optimization) Software as enabler and constraint Collaborative reduces degrees of freedom for each player in the network (quantity/time schemes) Existing IT structures prove a hindrance for the realization of collaborative systems Software based on a decentral architecture will only be available in the future Ideally, the processes and the software architecture should be redesigned Slide 22
Lessons Learned What We Know Now Definition of roles in a collaborative context Changes in culture are only possible in the long term New rolesare emerging for small and medium-sized businesses, e.g. provision of logistics services (freight forwarding) Technical, organizational, and cultural barriers restrict the definition of roles Proving benefit potentials and cost savings Effective instruments for chain-based evaluation of benefit potentialsrequire further development (process cost calculation) New ratios are being developed within the framework of (e.g. chain processing time) Slide 23