Automotive plastics manufacturer delivers lean operations with DELMIAWORKS manufacturing ERP software

DELMIAWORKS helps Nissen Chemitec reduce EDI monthly costs by 90%

In Summary:

• Additional business secured from the largest customer due to improved operations
• Shipping errors reduced to zero
• Improved internal and external communication
• Reduced maintenance costs by over 70%
• Eliminated manual data entry.
• Located in Ohio, Nissen Chemitec America, an automotive plastics manufacturer, pride themselves on producing high-quality plastic injection moulded parts for the automotive industry
• Manufacturing for the likes of Honda Motor Company, Toyota Motor Company, and Ford Motors
• Focus on manufacturing automotive parts that require 700 to 2600 tonne size machines.

Background:

Established in 1988, Nissen Chemitec operates from a 31,088 square metre manufacturing plant.

Their legacy manufacturing management system was cumbersome with a heavy reliance on data entry that was restricting their ability to meet the needs of their growing business and quest for lean manufacturing processes:

• Previous system developed using multiple databases which required data to be entered repetitively across different modules
• Had limited bar code scanning capabilities
• EDI transactions were slow as they were transmitted via modem meaning there were delays in identifying issues. 30 to 40 EDI-related shipping errors per month
• Production scheduling performed manually using spreadsheets, with production data having to be keyed in separately for reporting.

“We were working for the system rather than the system working for us. Our old system was designed for suppliers of the Big Three automakers, so it didn’t meet many of our needs. It was cumbersome, required heavy data entry, and though we were striving to be lean, it blocked our efforts because of all the things we had to do to maintain it. We wanted an ERP package that understood our particular business. If a system didn’t understand family molds or multiple cavitations running at the same time, it would have cost us more in terms of efficiency and maintenance, but as a supplier to major automakers, we also had to comply with our automotive customers’ quality standards and business transaction requirements”

Production Material Control and MIS manager, Nissen Chemitec

Automotive manufacturing-specific functionality in a single ERP system

Providing specific functionality designed for automotive manufacturers, DELMIAWORKS (formerly IQMS, before they were acquired by Dassault Systemes) was the ideal choice for Nissen Chemitec to ensure they could remain competitive domestically and internationally.

Why did Nissen Chemitec select DELMIAWORKS? Their Production Material Control and MIS manager explains:

“We selected DELMIAWORKS because it uniquely supports our business from every angle. In the past when we had two parts running on two machines with two operators, our old system might calculate cost or capacity accurately, but not both. With DELMIAWORKS both are correct, even for machines that make multiple parts. DELMIAWORKS delivers the perfect combination of manufacturing-specific functionality and automotive industry compliance standards. As a Tier One automotive supplier, we see that as a definite advantage. ”

Real power over processes creates a leaner business

For a business driven by EDI data to set daily production schedules, determine future demand and communicate with their customers and suppliers, the fact that DELMIAWORKS helped reduce EDI costs by 90% was of huge benefit. EDI data efficiency and accuracy was further enhanced with the use of DELMIAWORKS’ real-time production monitoring, which enabled Nissen Chemitec to capture and use shop floor data as production occurs to identify any issues with each individual job, track downtime and view quality data without having to ‘walk the floor’.

• Production dats is fed into DELMIAWORKS directly, updating job statuses in real-time
• Production performance is displayed graphically and can be accessed by anyone in the business, from anywhere
• One central database structure means data from the entire business can be communicated and monitored more quickly, without error and at anytime
• Nissen Chemitec has complete control of all processes from purchasing and scheduling to on-time delivery for every part they manufacture.

“We are now managing a leaner supply chain. That simply isn’t as possible with an ERP solution made from component parts or one that did not understand the inner workings and external pressures automotive suppliers must manage to remain competitive. Any other system would have presented higher maintenance costs and diminished efficiency. With DELMIAWORKS we’ve reduced maintenance costs alone over 70 percent and achieved lean objectives like reduced cycle time, automated workflow, and the elimination of redundant processes. From undergoing an extensive certification process with our largest and most stringent customer to supporting our specific lean manufacturing initiatives, DELMIAWORKS has proven a true partner in our business. In an industry as dynamic as the automotive industry, DELMIAWORKS is the one constant we will continue to rely upon as we move into the future.”

Production Material Control and MIS manager, Nissen Chemitec

That future with DELMIAWORKS included the opening of a new production plant in Mexico as the business continues to go from strength to strength.