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MFG/PRO case studies
Remy Automotive Hungary Ltd.
The company was set up in the United States in 1896 by the Remy brothers for manufacturing electric starters and generators and became a part of Delco, a member of the General Motors Group in 1918. Delco Remy separated from General Motors in 1994, and now has 18 plants worldwide. Delco Remy Hungary Ltd. is a successor of Autovill Rt., a company that had been a leading manufacturer of electric starters for the past decades. The first foreign acquisition of the company also registered at the New York Stock Exchange was the buyout of Autovill Rt. Following the change in ownership in 1995, in addition to maintaining its earlier profile and customers, the company also started manufacturing the products of the parent company, resulting in an increased manufacturing capacity.
Activities of Delco Remy basically cover the manufacturing of electric starters and generators in Hungary. Full production was launched in Mez?kövesd. A new unit was added to the factory in 1999, when the Miskolc site was installed as a greenfield investment. Since then, it has become a separate ltd within the Group. Activities in Miskolc cover renewals. They disassemble incoming faulty starters and with the help of their usable parts, assemble new starters. This renewal activity is unique on the market. The Mez?kövesd unit has a staff of 600, while the Miskolc unit has a staff of 150 working in two shifts, ensuring continuous production. The Miskolc unit is continuously expanded, as the renewal of other products is planned for the near future.
The Challenge
The former corporate management system of Delco Remy was not suited for managing multiple sites and currencies, its functions lack full scale product management. The management of the company decided to introduce a system in June 1998 that would offer a solution for managing these tasks.
During implementation, a further requirement came up, according to which the management of the Italian unit newly acquired by the parent company should also be managed from our country. For this reason, the full product and materials list of the Italian member company also had to be entered into the system.
The introduction of the MFG/PRO system launched at the same time the Miskolc unit was opened. The objective was to have the data and bookkeeping of the new company in MFG/PRO from the first moment, even before actual manufacturing was to be launched. Ever since, the system has been developed with the company, production, logistics, and other processes are implemented parallel to factory development.
Answering to the Challenge
Implementation was carried out in two phases, an additional 20 users were added to the system that originally had only 15. The project was planned for 45 weeks and was concluded ahead of schedule, making it possible for Hungary to be the first country for the system to go live in April 1999 according to the international agreement between the American QAD and Delco Remy.
MFG/PRO 8.5 is deployed at Delco Remy with full functionality, making it possible to help everyday company processes in the fields of production management, finance, logistics, and also Hungarian accounting, material asset inventory, and customs.
The factory built in Miskolc was handed over in October 1999. Due to the quick work performed by the experts of ISYS-ON, the financial module of MFG/PRO was launched in Miskolc in January 2000. The number of users has been increasing ever since as the factory is growing, while the tasks of logistics and production control is continuously being tackled. Experts must take care of the disassembly of incoming starters and the reuse of disassembled parts in MFG/PRO, which is not a typical production management task.
MFG/ PRO is deployed in Mez?kövesd on an HP platform, and in Miskolc on an NT platform.
Plans
An additional five users in Mez?kövesd and three users in Miskolc are currently being added to the system, while Electronic Data Exchange (EDI) is being implemented between Delco Remy and its foreign partners. Long term plans include the introduction of the QAD Decision Support System management information system to make the benchmarking of company KPI-s possible on a European scope.
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