Datum (Tag.Monat.Jahr) Daimler India Commercial Vehicles Pvt. Ltd. Production & Business Application in Auto Industry T/ICI, 30.04.2010 Chandran R CIO, Daimler India Commercial Vehicles Pvt.Ltd
Jan 19, 2015
Datum (Tag.Monat.Jahr)
Daimler India Commercial Vehicles Pvt. Ltd.
Production & Business Application in Auto Industry
T/ICI, 30.04.2010
Chandran RCIO, Daimler India Commercial Vehicles Pvt.Ltd
Department / Date 2
Daimler India Commercial Vehicles Pvt. Ltd.
Introduction to DICV
100% subsidiary of Daimler Trucks
Planned investment of Rs. 4400 crores over the next five years
DICV will manufacture trucks in the 6 - 49t category for the Indian volume market
Proposed plant to come up in SIPCOT industrial complex at Oragadam in Kanchipuram District of Tamilnadu.
Department / Date 3
Daimler India Commercial Vehicles Pvt. Ltd.
Quality ManagementQuality Management
Core areas of IT in an Automotive Industry
Financial ManagementAccounting System
Controlling & Cost Management
Treasury Management
Indian Taxation
Retail Systems
Dealer Management System
Sales Mngt Systems
Sales Planning
Forecasting
Sales Order Management
After Sales
Sales Planning
Order Management
Warranty Management
Parts Documentation
Service Management
Production & LogisticsProduction Planning & Scheduling
Supply & Inventory Management
Shop Floor Control
Warehouse Management
R & DCAD/CAM
EDM
Part Numbering
BOM
Supplier Collaboration
Change Management
Plant MaintenancePlant Maintencance
ProcurementProcurement Management
System
Human CapitalHR System
Enterprise Portal Interface
Busi
ness
An
aly
tics
/ R
eport
ing
Sup
plie
r Porta
lSA
P S
RM
/ Glo
bus
Deale
r Syste
mB
ank
Website
Eng
Porta
l
Mail, Workflow & Cooperation Tools: Lotus Notes
Document Management System: tbd
Offi
ce IT &
Info
rmati
on M
anagem
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IT M
onit
ori
ng
Syst
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IT A
sset
Managem
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ler
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ero
co
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CRM
CRMCRM System
Department / Date 4
Daimler India Commercial Vehicles Pvt. Ltd.
A structured approach was used to arrive at DICV IT options for the core areas• Based on the process design and IT requirements, required applications would
be listed. IT Landscape would be developed for these applications.
• Options for these applications would be selected based on Daimler current systems and prevalent packages used in Industry
• Comparison of the IT Options will be based on the DICV IT Guiding Principles
• Applications where urgency of implementation is high would be prioritized for Options comparison.
IT Requirements
IT Options
IT Guiding Principles
IT Option Comparison
CoMeT5.5.5 Measure and control commodity planning
CoMeT5.5.4 Perform Year end closing
CoMeT5.5.3 Analyze Expected actual
CoMeT5.5.2 Perform Weekly reporting within annual negotiation period
CoMeT5.5.1. Set targets (organization and lead buying commodity) within operative planning
5.5 Commodity Planning
Templates - Daimler Intranet, GLOBUS, DMS Archiving system
5.4.1 Contract Management5.4 Contract Management
SD-net5.3.4 Perform financial supplier risk management (FSRM)
GPSIS5.3.3 Assess external balance score card (EBSC)
SD-net5.3.2 Internal/ cross functional assessment
SD-net (Daimler) - with interface to GLOBUS supplier master data
5.3.1 On Site assessment 5.3 Supplier Evaluation
- CoMeT(aggregated report),- GLOBUS (part level report)
- GLOBUS (lead buying approval process)
5.2.1 Lead buying5.2 Commodity Strategy(Lead buying)
SD Net - Supplier Development Network5.1.2 Strategic supplier development (SSD)
SD Net - Supplier Development Network5.1.1 Identify cost reduction potential (OSD) 5.1 Supplier Development
Present system (only while studying Daimler / Hero)
Sub-processes broken down to a level where different systems are required
Business component as depicted on the functional
map
L2
ApplicationProcessBusiness Component
CoMeT5.5.5 Measure and control commodity planning
CoMeT5.5.4 Perform Year end closing
CoMeT5.5.3 Analyze Expected actual
CoMeT5.5.2 Perform Weekly reporting within annual negotiation period
CoMeT5.5.1. Set targets (organization and lead buying commodity) within operative planning
5.5 Commodity Planning
Templates - Daimler Intranet, GLOBUS, DMS Archiving system
5.4.1 Contract Management5.4 Contract Management
SD-net5.3.4 Perform financial supplier risk management (FSRM)
GPSIS5.3.3 Assess external balance score card (EBSC)
SD-net5.3.2 Internal/ cross functional assessment
SD-net (Daimler) - with interface to GLOBUS supplier master data
5.3.1 On Site assessment 5.3 Supplier Evaluation
- CoMeT(aggregated report),- GLOBUS (part level report)
- GLOBUS (lead buying approval process)
5.2.1 Lead buying5.2 Commodity Strategy(Lead buying)
SD Net - Supplier Development Network5.1.2 Strategic supplier development (SSD)
SD Net - Supplier Development Network5.1.1 Identify cost reduction potential (OSD) 5.1 Supplier Development
Present system (only while studying Daimler / Hero)
Sub-processes broken down to a level where different systems are required
Business component as depicted on the functional
map
L2
ApplicationProcessBusiness Component
IT Principle 3: Incorporating business needs in solution design and evolution (Functional requirements)
IT Principle 1: Weigh total cost of ownership
Support & Maintenance
Enhancements & modifucations
One time -Infrastructure
One time - licences
One Time -implementation
Non-Production materialProduction Material
Non-Production materialProduction Material
SAP MMGLOBUS
Costs are considered for best case scenarios
Constant Exchange Rate (EUR vs INR), Applicable more for GLOBUS
Number of DHCV users : 76
Indian resources(people) cost 20 % of German resources(people)
Indian resources cost increase is not considered
Implementation team will be mix of european/indian resources
Interest rates are not reflected or considered in the cost (if 8%)
SAP MM means SAP MM with additional required functionalities
All values are in EUROS
Assumptions :
Costs are considered for best case scenarios
Constant Exchange Rate (EUR vs INR), Applicable more for GLOBUS
Number of DHCV users : 76
Indian resources(people) cost 20 % of German resources(people)
Indian resources cost increase is not considered
Implementation team will be mix of european/indian resources
Interest rates are not reflected or considered in the cost (if 8%)
SAP MM means SAP MM with additional required functionalities
All values are in EUROS
Assumptions :
Department / Date 5
Daimler India Commercial Vehicles Pvt. Ltd.
• IT Guiding principles are used to capture the fundamental, underlying truths about how the organization intends to utilize and deploy both information technology assets and resources
• The principles provide a framework which can be used to support IT decision making
• At DICV IT Guiding principles are recommended to be used for comparing IT options
The approach should be based on IT Guiding Principles
Department / Date 6
Daimler India Commercial Vehicles Pvt. Ltd.
Current IT situation at DICVCurrent IT situation at DICV
Business TrendsBusiness TrendsTechnology trendsTechnology trends
IT GoalsIT Goals
Business GoalsBusiness GoalsT
B
B
T
T Primarily Technical point of view B Primarily Business point of view
B THigh Level IT Goals aligning with business goals
IT Guiding principles aligned to IT GoalsIT Guiding principles aligned to IT Goals B TIT guiding principles are used as criteria for IT options evaluation
IT Guiding Principles should be driven by Business and Technology Trends
Department / Date 7
Daimler India Commercial Vehicles Pvt. Ltd.
Quality ManagementQuality Management
SAP
DICV IT Strategy/Landscape - utilization of DAI Systems
Financial ManagementAccounting System
SAP
Controlling & Cost Management
SAP
Treasury Management
SAP
Indian Taxation
SAP
Retail Systems
Dealer Management System
SAP-DMS,VMS / Autoline (light)
Sales Mngt Systems
Sales Planning
Bus – SD
Forecasting
Bus – SD
Sales Order Management
Bus – SD
After Sales
Sales Planning
SAP/ GSP
Order Management
SAP/GSP
Warranty Management
SAP/GSP
Parts Documentation
SAP/GSP
Service Management
SAP/GSP
Production & LogisticsProduction Planning & Scheduling
SAPSupply & Inventory
Management
SAPShop Floor Control
Manufacturing Ops. Mgmt
Warehouse Management
SAP
R & DCAD/CAM
CATIA
EDM
Daimler Systems
Part Numbering
Daimler Systems
BOM
Daimler Systems
Supplier Collaboration
Daimler Systems
Change Management
Daimler Systems
Plant MaintenancePlant Maintencance
SAP
ProcurementProcurement Management
SystemDaimler Systems
Human CapitalHR System
Daimler Systems
Enterprise Portal Interface
Busi
ness
An
aly
tics
/ R
eport
ing
Sup
plie
r Porta
lSA
P S
RM
/ Glo
bus
Deale
r Syste
mB
ank
Website
Eng
Porta
l
Mail, Workflow & Cooperation Tools: Lotus Notes
Document Management System: tbd
Offi
ce IT &
Info
rmati
on M
anagem
ent
IT M
onit
ori
ng
Syst
em
IT A
sset
Managem
en
tH
elp
Desk
MS
Offi
ceD
aim
ler
& H
ero
co
mp
ati
ble
CRM
SAP-CRM / Siebel
CRMCRM System
SAP-CRM / Siebel
Department / Date 8
Daimler India Commercial Vehicles Pvt. Ltd.
ERP provides integrated solution to core business area and product planning applications Major pain areas of an automotive company in Business application includes
Financial accounting/Controlling
Logistics (Supply chain management)
Product planning
An integrated ERP solves the above mentioned pain points
Department / Date 9
Daimler India Commercial Vehicles Pvt. Ltd.
Integrated PLM and MES solutions are feasible options for product engineering and operations Product Engineering requires careful consideration of IT options in the areas of
CAD/CAM
Bill of Material Management
Engineering Data Management
Change Management
An integrated PLM, even open source ones, should always be kept in mind for Product Engineering
Decoupling of Manufacturing plant network from corporate network is suggested as a risk management measure for continuous operation
Department / Date 10
Daimler India Commercial Vehicles Pvt. Ltd.
Control Architecture in a typical SME Control Architecture in a typical SME environmentenvironment
Field LevelField Level
Sensor / Actuator Sensor / Actuator LevelLevel
Control LevelControl Level
Plant Management Plant Management (SAP)(SAP)
Production Level Production Level (MES)(MES)
>>> Body and paint shop, assembly>>> Body and paint shop, assembly
Department / Date 11
Daimler India Commercial Vehicles Pvt. Ltd.
TCO and ROI are important parameters in determining IT options for SMEs IT Landscape should be integrated, with minimum of number of disparate systems
Industry standard solutions should be focused for implementation
Scaled down versions of ERP
Open source PLM
In house coding of lean manufacturing & control systems integrated with Master ERP
Department / Date 12
Daimler India Commercial Vehicles Pvt. Ltd.
Thank you