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Author: Zhu Qiong
Module-level just-in-time delivery is like a horse.
For Shanghai GM or Shanghai Volkswagen, Yanfeng Vestong is no longer the traditional supplier of dashboard components. Starting from 2003 and 2004, the two vehicle companies respectively outsource their dashboard assembly production lines to Yanfeng Veston. However, the latter must satisfy such supply requirements: to ensure that the entire assembly line of the vehicle will be able to provide the required products when it travels to the instrument panel assembly node. This requirement sounds simple, but in fact it is almost "harsh" because the dashboard assembly is one of the relatively complex and relatively rapid changes in the structure of the car. When the market demand changes, the dashboard configuration may change before and after the two minutes in the automobile assembly line.
Before outsourcing to Yanfeng Veston, the dashboard was assembled by the automaker after it was assembled on its own assembly line and pulled onto the assembly line. For each vehicle manufacturer to start a complete vehicle assembly, an assembly instruction must be sent to the instrument panel assembly line to ensure that the desired assembly reaches the assembly line on the most accurate time. Today, Yanfeng Vestin has to complete such a strict match with the assembly line outside the assembly system, and no redundant spare parts can be stacked beside the assembly line. If the assembly line is discontinued because the dashboard cannot be supplied in time, Yanfeng Vestion will be punished by Shanghai Volkswagen - $500 for 1 minute. However, despite the high risk, Yanfeng Vesht started module-level JIT delivery with its two mainframe customers.
Synchronous production
At first glance, there is not much difference between the module-level JIT mode and the normal JIT mode - all at the specified time point, the specified product is provided to the designated location. In order to meet this demand, it is customary for parts suppliers to establish their own product warehouses around the designated locations of assembly plants, to supply them in batches, in order or in quantities, even if the suppliers of some module products are not covered.
However, when Yanfeng Weishitong provided modules to the automotive OEM, this method was no longer useful due to the complex composition of the dashboard and the short-lived nature of the shelf life. Even if the OEM does not implement consumer customization, the dashboard assembly has one or twenty different configurations, and each dashboard has as many as one hundred components. Therefore, if you want to mass production, order supply, inventory of instrument assembly and spare parts will be a huge number. In addition, the shelf life of each dashboard assembly is only 3 days. After 3 days, dashboard assemblies that were not "selected" could only be scrapped. Obviously, for this type of assembly with high value, complex structure, and large changes in configuration requirements, only after the demand is determined to be correct can the waste be kept to a minimum. However, due to the variability of this product, it is a very risky task to predict the production plan. In order to avoid inventory, OEMs generally try to shorten the lead time for the demand plan, sometimes even to the assembly line on the vehicle. Release the demand plan. Therefore, the modular supply in Yanfeng Veston can only evolve into a slight lag or in synchronism with the final assembly.
Every two minutes, the assembly line of the automaker will begin the assembly of a vehicle; at the same time, the Yanfeng Veston dashboard distribution line will receive the corresponding product specification demand information at the same frequency. . Subsequently, the assembly sight sheet was printed. The assembly visual list is the basis for the workers to assemble the product. Since the configuration of each product is likely to change, such visual operation reminders are essential.
From the time when the order is received, Yanfeng Ves- titan must ensure that the product is delivered to the assembly line within the time specified by the OEM (50-60 minutes for the public and 63 minutes for the GM). For it, operations such as preparation of spare parts, assembly of products, downline detection, and delivery need to be completed within about one hour. Yanfeng Visteon supplies VW's instrument panel assembly line to the VW plant, so the product will be shipped directly to the assembly line after passing inspection. While it supplies general-purpose products, it is produced outside the general factory area, and the products need to be assembled and transported in batches. In order to ensure that the product meets the general order when unloading the goods, Yanfeng Visteon must install the products in the reverse order of the up and down, left and right, and advanced and backward. Because the order is the key to this supply method, Yanfeng Veston has set several error prevention points throughout the entire process: When the assembly starts, the assembly visual list must be scanned online to ensure that the product matches the production system. There is a similar scan of the installed parts; when the product is loaded and shipped, the product must be scanned in order to match the shipping order sent by Shanghai Universal.
Modular "risk"
Although modular supply can help OEMs to reduce relatively high manpower and management costs, some auto manufacturers still dare not try. They are mainly worried that after outsourcing, it is difficult to effectively control the cost and quality of products, especially like dashboards. The complex assembly. Some OEMs believe that the most effective outsourcing is the outsourcing of packaging operations and related parts management to suppliers on the premise of ensuring quality. In theory, only those responsible for the quality of modules can have absolute say over the quality and cost-effectiveness of their component parts. Therefore, they must also control the selection of suppliers and determine the price of spare parts. Of course, this requires another premise. The person responsible for assembling the module must be the designer of the module. This design must be synchronized with the vehicle design.
However, to achieve such ideal outsourcing, the objective conditions are still not mature, because spare parts suppliers that can participate in the vehicle design are rare; in addition, to give up control of the following parts suppliers to the assembly, it is also the automaker. It is an unacceptable form of cooperation. For OEMs, once the modular supply is achieved, the first-tier suppliers that originally dealt with them directly, such as the automotive air conditioners in the dashboard, automotive instrumentation, car audio, etc., will turn to module suppliers directly. In this way, the control of the entire supply chain's profit will be weakened by the automaker. In addition, if the supplier of the module pursues his own interests, his behavior will be biased, such as crushing the spare parts supplier's profits. The resulting quality risk will eventually require the OEM to “pay the bill,†so the outsourcing of this sense is due to the objective The lack of conditions and the risks that may be hidden in it make most of the OEMs retreat.
However, Shanghai Volkswagen and Shanghai GM, served by Yanfeng Vestion, have tried their best to avoid the risk of a modular supply model. They have allowed Yanfeng Veston to assemble and produce according to his own dashboard design drawings, while not giving up control of the suppliers below the dashboard. In 2003, Shanghai GM first proposed dashboard outsourcing suggestions. In 2004, Shanghai Volkswagen started the second outsourcing business in China.
In order to achieve a balance of interests in the supply chain, Shanghai GM adopted the "customer supply" model - suppliers below the dashboard have concentrated their products in the RDCs controlled by Shanghai GM. Yanfeng Weishitong When assembling the product, it must be picked up from the RDC. For each assembled dashboard assembly, Shanghai GM pays RMB 130 to Yanfeng Weishitong.
If Yanfeng Veeco is only an assembler of the dashboard assembly in cooperation with Shanghai GM, its freedom in the Shanghai Volkswagen project is relatively larger. Although Shanghai Volkswagen has controlled the price of spare parts, it has handed over the management of the parts suppliers to Yanfeng Vestong, including the payment of purchase fees, and Shanghai Volkswagen only pays Yanfeng Vestone at the price of the assembly. cost. Therefore, in cooperation with Shanghai Volkswagen, Yanfeng Veshton can not only earn assembly labor costs, but also can obtain profit margins from logistics lean management - it can control the inventory of the assembly funds, and can also use Shanghai Volkswagen to pay The time difference between the funds and their own payment to the supplier earns cash flow profits. Li Deqing, IT manager of Yanfeng Veeco, said that at present, they are discussing with Shanghai GM and hope that both parties can adopt a similar cooperation model with the general public.
IT control
For Yanfeng Veston, regardless of the cooperation mode between the OEM and the OEM, it must ensure sequential production and sequential delivery. For its part, the information system is a control and management vehicle that must rely on.
In June 2004, based on QAD ERP, which was launched six years ago, Yanfeng Vestion and Shanghai Volkswagen officially launched a production management system around Modular Supply. This system provides precise control of product assembly and assembly, parts logistics control, key parts traceability and error prevention, business document exchanges, and financial integration. With the help of a QAD consultant, the system only took 3 months to implement. In January and March 2005, the systems were transplanted to Shanghai General Line North and South Lines.
This system not only ensures the synchronization of the Yanfeng Vestin packaging line with the assembly line of the automaker, but also enables it to effectively control inventory costs. In order to replace defective products, Yanfeng Veston's assembly products will maintain 1 to 2 pieces of safety stock. The shelf life of inventory is strictly monitored by the system. Every 3 days, inventory products will be transferred to customers for delivery. Then, this position will be filled by a new product. At present, the spare parts inventory is an average of 2 to 3 hours, which is 3/4 lower than before.
Yanfeng Veston controls the spare parts inventory by JIT means, using kanban mode (showing inventory information above, when the inventory is less than a certain value, we must begin to supply) to show the spare parts demand and pull zero accordingly The supply of accessories. For this purpose, it has specially developed a digital signage system that is linked to each assembly station within the system. When the assembly consumes spare parts materials through the station, the electronic kanban system will automatically deduct this consumption value and reflect the result to the corresponding parts inventory and billboard display. When the material demand on the kanban display reaches a certain value, the system automatically sends the goods to the supplier through the business document subsystem. In order to ensure that suppliers can respond in a timely manner, Yanfeng Vespa, like most assembly plants, adopts different logistics distribution methods when managing mass product logistics - direct supply (DD), transit supply (ED) , orderly delivery (SD).
In the cooperation with Shanghai Volkswagen, Yanfeng Veshton can not only earn assembly labor fees, but also gain profit from logistics lean management.
After analyzing the demand instructions from the assembly plant, Yanfeng Vestl will begin to plan the distribution of material requirements and sorting in its own information system; afterwards, the system will automatically pass the relevant material requirement plan to the supplier. . Those suppliers that have passed inspection exemption and are closer to the assembly line will send the goods according to the material demand plan and the order list directly; if those products need to be inspected or transported by inconvenient suppliers, the goods will be delivered. RDC, but the cost of inventory in RDC wants it to bear. Yanfeng Veston's procurement settlement with the supplier occurred after the material was delivered to the plant where the subassembly line was located and received, so it could maintain such a low inventory cost.
Judging from the cost of the entire supply chain, the reduction in inventory of assembly suppliers such as Yanfeng Vestable is a good thing. The cost of complicated parts or assemblies is much higher than that of simple parts. If these higher-cost auto parts suppliers can flexibly tie upstream and downstream like Yanfeng Veste, the inventory will eventually be squeezed to the lowest cost parts, and the overall cost of the product Will reduce a lot.
However, in Li Deqing's view, due to the limitation of production lead time of about 1 hour, the assembly like the dashboard can only be sorted internally, and cannot be ranked externally, “it’s not timeâ€. Therefore, in Yanfeng Veston, only those parts with few varieties and sequence problems are supplied externally.
From this point of view, there is a limit to the cost reduction that this kind of modular supply brings. However, modular JITs are a good choice for components with complex structures, changing configurations, and the need to minimize the lead time for demand planning.
October 21, 2023