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Case Studies > Leading Automotive Supplier Accelerates Lean Operations

Leading Automotive Supplier Accelerates Lean Operations

Technology Category
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
  • Analytics & Modeling - Real Time Analytics
Applicable Industries
  • Automotive
Applicable Functions
  • Discrete Manufacturing
  • Quality Assurance
Use Cases
  • Predictive Maintenance
  • Supply Chain Visibility
Services
  • System Integration
  • Software Design & Engineering Services
The Challenge
Nissen Chemitec America, a leading manufacturer serving automakers, was managing enterprise operations with an AS/400-based system, which was eventually replaced with an ERP software that promoted its design for automotive manufacturers. However, the latter system, while conforming to automotive customers’ stringent requirements, hindered Nissen Chemitec America’s ability to advance lean manufacturing principles. The company was looking for a more tailored ERP solution— one built specifically for contract manufacturers serving the automotive industry. The previous system was cumbersome, required heavy data entry, and blocked the company's lean efforts due to the maintenance required. The company needed a fully automated system that not only adhered to the automotive compliance requirements like electronic data interchange (EDI), Labeling, and quality functions, but was also robust as well as scalable.
About The Customer
Nissen Chemitec America, a leading plastic injection molding company, supplies quality plastic parts to leading automobile manufacturers such as Honda Motor Company of America Inc.™, as well as to a diverse range of other leading manufacturers around the world. Founded in 1988 by Nissen Chemitec Corporation of Niihama, Japan and Ohio based steel company Worthington Industries, Nissen Chemitec America is now owned and operated solely by Nissen Chemitec Corporation. With over 250 employees at its London, Ohio plant, Nissen Chemitec America is ISO certified and provides a full range of quality solutions, including: research and development; design services; mold building; injection and insert molding; finishing; assembly; and just-in-time (JIT) delivery.
The Solution
Nissen Chemitec America found the best solution to be EnterpriseIQ from IQMS. With specific functionality designed to meet the challenges auto suppliers face day to day, EnterpriseIQ helps manufacturers like Nissen Chemitec America stay flexible and lean within the distinctive confines of industry compliance and ever changing customer demands. EnterpriseIQ from IQMS fully supports Nissen Chemitec America’s lean initiatives, unlike the company’s previous ERP system, which impeded lean progress in a number of ways. For example, their previous system was built upon multiple databases that required repetitive data entry across various modules and functions. Additionally, the previous package was not automated and had limited bar code scanning capabilities. Scheduling was done manually using spreadsheets and production data had to be keyed in separately for reporting. The IQMS EDI module is seamlessly embedded within the EnterpriseIQ system, which operates entirely within a single database, so Nissen Chemitec America has no cumbersome third party hardware interfaces to manage. Incoming EDI files are automatically translated into the ERP system, instantly updating all pertinent records. Outgoing files are automatically transferred back to customers and suppliers. And there’s never a need for manual data entry, so Nissen Chemitec America benefits from accurate, automatic and timely communication across its entire supply chain.
Operational Impact
  • With EnterpriseIQ in place, Nissen Chemitec America reduced its monthly EDI cost by roughly 90 percent to only $300 and eliminated most shipping errors altogether.
  • The IQMS EDI module is seamlessly embedded within the EnterpriseIQ system, which operates entirely within a single database, so Nissen Chemitec America has no cumbersome third party hardware interfaces to manage.
  • Incoming EDI files are automatically translated into the ERP system, instantly updating all pertinent records. Outgoing files are automatically transferred back to customers and suppliers.
Quantitative Benefit
  • Reduced shipping errors from as many as 40 per month to zero
  • Reduced maintenance costs more than 70%
  • Eliminated excess data entry

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