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Collins & Aikman ready for future with SSA

Johannesburg, 08 Apr 1998

This international company anticipates significant savings while also addressing the need for rich functionality, Year 2000 compliance and a common technology platform. Many acquisitions, one solution New business acquisitions have expanded the global reach of Collins & Aikman, a leading international supplier of automotive interior products. The company has grown rapidly in recent years through savvy acquisitions to over 14 000 employees and $1,8 billion in revenue. However, as new companies came on board, they often brought along different information systems. These systems could not share information easily. And, many were not Year 2000-compliant. Senior management knew there had to be a better way. They decided to make one packaged software solution the company standard. Their choice: the BPCS solution from Systems Software Associates (SSA), running on RISC-based AS/400 systems. "We first began using BPCS software on the AS/400 platform in 1990," says Gary Hoskins, vice president, information services at Collins & Aikman. "When we acquired another 20 locations in Mexico, Canada and Europe in 1996, we inherited a hodgepodge of other systems. We believe BPCS V.6 offers us the functionality we need across our operations today. And, we feel confident that IBM and SSA would continue to work together to deliver new functionality into the 21st century." Technology challenge In 1995, Collins & Aikman corporation began the transition from a diversified, US-based manufacturing company to a specialised, multinational automotive supplier. Following a number of acquisitions in 1996, the company decided to move all its manufacturing operations to a standard technology platform. Key objectives included: * Leverage packaged software (as opposed to building custom code) * Allow Collins & Aikman to adopt new technologies easily * Ensure Year 2000 compliance. Technology solution Collins & Aikman chose to roll out BPCS Version 6 software from Systems Software Associates on the AS/400 platform throughout its international manufacturing operations. Benefits of this solution include: * Improved quality assurance * Better inventory control * Year 2000 compliance * Improved customer service * Reduced costs A Year 2000-compliant solution Just as important, BPCS V.6 addressed Year 2000 readiness, which was key for Collins & Aikman. The company has 60 plants to get ready for the new computing millennium. Hoskins says: "We looked at the other systems we inherited through our acquisitions. None, however, was Year 2000 compliant or offered equivalent functionality. The need for Year 2000 compliance added to the urgency of our BPCS implementation." In fact, by the end of 1998 Collins & Aikman will have implemented BPCS V.6 across its entire manufacturing operations. Annual savings BPCS automates core manufacturing functions and most of the business supply chain. In its V6 rollour, Collins & Aikman initially chose to focus on the following modules: * Billing * Manufacturing data management * Capacity planning * Costing * JIT scheduling * Inventory * Material resource planning * Shop floor control * Order processing and forecasting * Barcodes for shipping In addition, the company implemented another SSA product, dcServ, to improve the interface between its PC-based shop floor systems and BPCS. With BPCS, Collins & Aikman is positioned to run its manufacturing operations in a cohesive, organised way. "BPCS helps us improve our inventory management," says Hoskins, "and it gives us clear information about the efficiency and quality of our manufacturing operations - including the allocation of raw materials. We`ve been able to shorten our product development schedules. That has contributed to major savings across our business. "In fact, we`ve already exceeded our original savings expectations by three times. As we complete the rollout, we anticipate even greater savings." Improved price-performance The BPCS solution runs on the AS/400 platform, "an unbelievably reliable hardware platform", says Hoskins. Collins & Aikman currently operates seven RISC-based AS/400 systems. This upgrade has contributed significantly to the company`s cost savings. "With AS/400, we`ve decreased our hardware costs by a couple of million dollars over the last several years," says Hoskins. "Every time we upgrade, we get more horsepower for a better price. In fact, we anticipate further savings of $500 000 each time we upgrade, due to increased price-performance." For the future, Collins & Aikman can integrate new technologies easily, including Internet technologies. "Everybody in our industry is moving towards Internet-based topologies, and we feel well positioned to move there too," says Hoskins. "The technology backbone with BPCS and AS/400 is there, with full support for Web standards built right in. "We`re not interested in technology for technology`s sake," he adds. "We only implement technology that can affect our bottom line positively. Once our implementation of Version 6 is complete, we`ll have completed our company`s transformation into a singularly focused automotive supplier. We`ll then look at what added new capabilities our customers need. But we`re confident our BPCS solution, with AS/400, will get us there."

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Editorial contacts

Frank Heydenrych
Frank Heydenrych Consultants
011) 609-8156
frank@fhc.co.za
System Software Associates