Manufacturer of automotive systems and facility management and control, Johnson Controls, has entered into a partnership with QAD, whereby the companies will collaborate to develop a next-generation Just-In-Time (JIT) Sequencing software module for MFG/PRO, QAD`s flagship enterprise resource planning software.
Through this partnership, QAD gains software components developed by Johnson Controls, incorporating more than 10 years of Johnson Controls` knowledge and expertise on JIT Sequencing. This approach allows QAD to take advantage of its strong partnership with Johnson Controls to reduce the time-to-market for this functionality and improve the software product design. The QAD JIT Sequencing module for MFG/PRO is planned to be available before the end of 2003.
JIT Sequencing is designed for automotive suppliers seeking to respond to the increased market pressures placed on them by the automotive original equipment manufacturers (OEMs), whose mission is to increase flexibility in the assembly and configuration of cars and trucks, while reducing the overall lead time required to deliver a vehicle to the final customer.
This "build-to-order" concept requires that key, custom-built vehicle components be produced and delivered in the exact sequence to vehicles moving down the OEM`s assembly line. Success for a supplier in JIT Sequencing lies in providing this configuration and delivery capability, while at the same time maintaining control over production and inventory carrying costs.
"We are pleased to be working with Johnson Controls on the development of JIT Sequencing capabilities for the automotive industry," said Pam Lopker, president and founder of QAD. "By working together, we will be able to deliver a truly innovative solution that addresses the critical needs of this industry. Currently, it takes about six weeks for demand information to flow through a typical automotive supply chain. Lean enterprise systems, like the QAD JIT Sequencing module for MFG/PRO, will help improve communication through the supply chain, and can increase a supplier`s ability to deliver built-to-order components."
Using the QAD JIT Sequencing module, OEM demand requirements will be communicated via assembly broadcast signals directly to the supplier`s production planning and scheduling system. This will permit the manufacture and delivery of "customised" products to be performed. With its integration to MFG/PRO the traditional capabilities and controls over manufacturing processes will also be in place and companies will gain insight into critical management information required to analyse and manage costs and profit margins critical in the automotive business. Finally, the JIT Sequencing module will provide "extended" sequencing capabilities so that suppliers further down the supply chain can also provide their products using "build-to-order" concepts.
Johnson Controls has standardised its worldwide manufacturing operations on QAD MFG/PRO, and through this partnership will work with QAD to define and develop the requirements for JIT Sequencing. It plans to deploy this critical functionality initially in its plants throughout Europe and North America. Over the past 18 years, Johnson Controls has focused its processes not only on providing the highest levels of customer delivery and quality, but also on developing highly collaborative OEM supply relationships.
In addition to manufacturing seating, interior, electrical systems and batteries, Johnson Controls is leading the supply industry in the development of complete component integration capabilities with the goal of being a system integrator to OEMs around the world.
"Johnson Controls uses QAD as our core execution software for running our manufacturing operations," said Guus Dekkers, vice-president, information technology ASG Europe & International, Johnson Controls. "Our cooperation with QAD will allow us, in a short time-frame, to expand our current JIT implementations to be prepared for new trends and requirements in the automotive supply chain. This initiative will help the automotive supply chain become more transparent and efficient in the future. We are pleased to work with QAD to define this innovative capability."
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