Bangkok--Oct 26--Aziam Burson-Marsteller
Will help AAPICO to deliver high quality auto parts on demand to world’s leading auto manufacturers
AAPICO Hitech Plc, Thailand’s fastest-growing auto parts company, today announced it is the first in the country to implement Oracle’s Lean Manufacturing solution. Based on Oracle core technology and applications, the Lean Manufacturing solution will enable AAPICO to meet the demanding, just-in-time inventory schedules of its customers, which includes many of the world’s leading auto manufacturers.
Listed on the Stock Exchange of Thailand, AAPICO is a progressive jig, die and automotive OEM (original equipment manufacturer) parts manufacturer, with operations in Thailand, Malaysia and China. It supplies OEM parts to all major car manufacturers in Thailand, including Toyota, Honda, Isuzu, Ford, Mazda and Nissan. AAPICO holds ISO TS16949, a quality certification for auto parts suppliers, and ISO 14001, which certifies the high standards of its environmental management system. More than half of the company’s products are exported directly by the company or indirectly through distributors.
APPICO began its Lean Manufacturing program three years ago with the support of Auto Alliance Thailand and Toyota. The program brought about quick success, as AAPICO received Toyota’s coveted TPS Championship Award in 2004 and again in 2005. Given the many accomplishments of the company’s Lean Manufacturing program, AAPICO decided to implement an ERP system to integrate the entire company to further enhance performance.
“AAPICO was enjoying tremendous benefits from our Lean Manufacturing system and we were ready to go to the next level with a comprehensive ERP application,” said Mr. Yeap Swee Chuan, President & CEO of AAPICO Hitech Plc. “AAPICO wanted more leverage through deeper information technology capabilities and real-time analysis to achieve continuous improvement and support our rapid growth. Oracle’s lean manufacturing solution best meets our requirements and we can take advantage of their experience in Lean Manufacturing installations.”
After a careful evaluation of several vendors’ offerings, AAPICO chose the Oracle Lean Manufacturing solution. APPICO’s implementation runs on Oracle’s core database technology and applications including Oracle Finance, Oracle Purchasing, Oracle Order Management, Oracle Discrete Manufacturing, Oracle Flow Manufacturing and Oracle Project Costing.
The Oracle Lean Manufacturing solution, which runs on IBM hardware using Unix, will take one year to evaluate and implement. The project, which started in September 2005, is worth 37 million baht. The Oracle Lean Manufacturing project involves Oracle certified partner A-Host which is providing the software and Deloitte which is responsible for consulting services.
Lean Manufacturing offers a high level of output with minimum waste by matching production as closely as possible to actual customer demands. Originally developed by Toyota in Japan, it involves small stockpiles of inventory, called ‘kanban’, in strategic locations around the shop floor. Process flow is carefully synchronized to ensure products move through production without interruption. Production schedules are “pulled” by customer demands for finished materials at short intervals. To ensure the whole system works smoothly, Lean Manufacturing requires highly efficient management of processes and information.
“Deloitte has proven Lean Manufacturing knowledge for delivering the Oracle Lean Manufacturing solution into our operations. Once this technology is fully implemented and combined with our strong focus on being Thailand’s leader in Lean Manufacturing, AAPICO will be even better positioned to deliver the highest quality auto parts to customers in Thailand and throughout the region, at a low cost and on schedule,” added Mr Yeap.
“Oracle has built a solid reputation in the automotive industry with our commitment to provide customers with outstanding technology solutions and deep expertise,” said Khun Natasak Rodjanapiches, managing director for Oracle Corporation (Thailand) Co. Ltd. “Nine of the top 10 automotive manufacturers on Industry Week's 2004 top manufacturing companies by revenue list use Oracle applications and AAPICO has now joined this elite group. We encourage all Thai auto parts manufacturers that want to succeed and grow their business with the top auto manufacturers to implement Lean Manufacturing, leveraging Oracle’s industry-leading technologies.”
According to Manufacturing Insights, an IDC to company, Oracle’s strength in enabling Lean continuous improvement disciplines is particularly appealing buyers in the automotive industry.
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“Manufacturing Insights Theory & Practice”, Robert Parker, VP Research Manufacturing Insights” - more details can be found at http://www.oracle.com/corporate/press/2005_mar/autofinal.html
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