Challenges
Restructuring and global implementation of core information systems aimed at shortening manufacturing lead times
Implemented Products/Solutions
SAP R/3. Global Expansion Support Solution
Project Background
The major domestic electronics manufacturer in this case is one of the leading companies in the home appliance industry. In the home appliance industry, where product lifecycles are extremely short, shortening manufacturing lead times has become a major management issue in order to reduce product inventories and quickly respond to market needs.
As a measure to shorten manufacturing lead time, the company was considering the implementation of a system using a package to create a culture that generates benefits by allowing users to master the core system, as well as a plan to restructure and integrate the disparately operated systems of its overseas sites.
Project Outline
After comparing and considering multiple ERP packages, the company decided to introduce SAP to 50 production and sales bases in Japan and overseas. This project was a global implementation of SAP R/3 with the aim of shortening manufacturing lead times, and B-EN-G was appointed as a partner.
The implementation project began sequentially, starting with the introduction at overseas bases, and eventually led to the introduction at domestic factories. B-EN-G, which has been proposing SAP implementation from the planning stage, was in charge of building the SAP core system during the implementation phase and supported the installation of SAP at each base in Japan and overseas.
Implementation Results
At the first overseas factory that implemented the system, parts inventory was reduced by more than one-third, and lead times were also significantly shortened. As a result, short-term debt has become zero, leading to a dramatic improvement in cash flow.
Additionally, the company is steadily building a global SCM based on the implemented ERP.
*Please note that organization names, positions, numerical data, etc. in the article are based on the time of the interview and may have changed by current viewing.
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