Intelligent Manufacturing € May € 1996 € Vol. 2 € No. 5

Johnson Controls Automates Processes with Software

Johnson Controls (Milwaukee, Wis.), a manufacturer of temperature control systems, plastic containers, batteries, and automotive seating systems, has implemented a new environment based on advanced manufacturing techniques at its UK-based Automotive Systems Group (ASG).

In the auto industry, production on an automaker's assembly line is inextricably linked to operations at dozens of supplier subassembly and feeder plants, both far and near. If just one supplier fails to meet delivery deadlines, production on the automaker's assembly line is disrupted. The resulting payment penalties and lost revenue cost dearly. Those companies that can keep pace with such technological developments as lean production, agile manufacturing and Just-in-Time (JIT) manufacturing can gain a significant competitive edge.

Realizing that Europe held the potential for tremendous growth, ASG's European division launched a program of expansion, construction and acquisition. However, as ASG Europe was gearing up for expansion, the division's information technology (IT) was becoming obsolete. ASG Europe had inherited its computer strategies software from the parent company in the U.S. The MRP software package had been modernized for Europe, but support from the European-based systems integrator was poor. The company decided to revamp its systems.

The overall goal, according to Lee Brocklesby, ASG Europe's MIS director, was to develop a new advanced manufacturing environment to stay competitive. "We had a lot of experience using Just-in-Time techniques," he explained, "but we wanted to automate that process more so we could respond faster to our customers." It was also hoped that ASG Europe would eventually be able to standardize its diverse information technologies and integrate its operations throughout Europe.

In addition, Brocklesby wanted to ensure that ASG minimized costs by retaining the good parts of its legacy systems, reengineering with new technology when required. Brocklesby's team had written its own Just-In-Time software package to control minute-to-minute operations on the shop floor. The in-house package was considered to be a major factor behind ASG's success. Naturally, such competitive edge technology would have to be preserved.

Given these requirements, Brocklesby's team decided to pursue a solution that would be based on open systems. "That would enable us to use the same software without necessarily replacing all our hardware across Europe," he explained.

Brocklesby's requirements for a new MRP software package were extensive. Not only did it have to operate in an open systems environment, but also it would have to handle all the company's materials planning, purchasing, inventory control, supply schedules, warehousing, financials, and electronic data interchange (EDI) in a multitude of languages and currencies. ASG ultimately chose a solution based on MFG/PRO, a manufacturing and distribution management software solution for enterprise-wide, client/server, open systems architectures, from QAD (Carpinteria, Calif.). At the very first plant constructed under the new expansion plan, Brocklesby was able to get a factory up and running by operating from a nearby hotel with nothing more than a PC.

Hewlett-Packard's HP 9000 line was chosen as the operating platform. "We can now take data from one plant in one part of Europe and quickly install an identical system at another plant, on any UNIX platform, with a huge savings in time and labor," Brocklesby reported. ASG has reduced implementation time at outside sites from 18 months to four to six months, and reduced implementation costs to about 60% of the original budget.

In addition, ASG Europe has now achieved true JIT manufacturing. Moreover, the company is close to achieving true interoperability. "We're trying to synchronize 44 locations to operate as one virtual enterprise and share data," said Brocklesby. "If someone wants to know sales volumes or purchasing at those different locations, we have the network to bring it all together. Somebody in Germany can negotiate central purchasing agreements for us in the U.K. since he has total visibility into those activities."

If Brocklesby had to do it all over again, he'd hire more people and take more time. Nevertheless, Johnson Controls has been able to make the most of its opportunities because they have installed advanced manufacturing software.

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