Standard Guideline of Good Operational Production in the Automotive Industry

Operational Production in the Automotive Industry


If the company wants an optimal operational production, there are 2 things that need to be balanced. First, the company should be able to address the changing demands while simultaneously answering the changes of customer’s demands. Another thing that the company must be able to balance is optimizing costs from the business. The business should be able to utilize the funds properly. For example, if the company invests in a manufacturing machine that could run for 24 hours non-stop, the company must utilize the machine to its full potential.


In order to balance both changing demands and optimize costs, the company should be able to utilize an ERP system that has 5 features such as: comply reliably, tackle complexity, optimize production, make regulations a non-issue, and excite & the best. This is because the 5 features will help the company to balance the changing demands and cost optimization.


1. Comply reliably to the customer’s demands


With the ERP system, the company can comply reliably to the customer’s demands more optimally. For example, design to production control eliminates costly failed project launches and improves organization and collaboration. The complete program management reduces complex customer requirements that require rigorous, integrated management and improves collaboration, safeguard important assets, and integration of project management ties program details to costs. With the feature of complying reliably, the company can improve collaboration with suppliers and fulfill customer’s demands faster.


2. Tackling complexity


The feature of tackling complexity helps the company run operational production more optimally in terms of reducing design flaw and quality issues. This is due to increasing product complexity and the inability to manage embedded electronics over the life cycle. With ERP, the company is able to manage complex bills of materials. Despite different bills of materials that are required for each company utilization is increased and inventory levels are reduced.


3. Optimize production Cost


The ERP system could also optimize production costs. The system optimizes costs through accurate planning and scheduling with full shop floor visibility, asset management to maintain and preserve equipment for top performance, and synchronized management of demand and supply and speed to react to change. The system can improve productivity through planning and scheduling because of comprehensive planning, scheduling and sequencing capabilities in one solution across the enterprise, and planning optimization to make sure all lines are level loaded – minimizing waste.


4. Making regulation a non-issue


Making regulations a non-issue is also a feature the ERP system has. The system is capable of producing products that are in line with the government’s policies. The system also recognizes if the products have defects, and immediately notifies for recall by the system, or they manage to avoid the scenario of having to recall. They do this by getting materials from trusted suppliers and track the order to make sure there are no defects during shipping.


5. Excite and entice the best in the company


The ERP system is also expected to excite and entice the best in the company. So far, artificial intelligence is still unable to make decisions as good as humans. Therefore, they can only help enhance humans in decision-making skills. With the data collected by the system executives of the company can make better decisions based on the data. The system is also capable of compiling all the data into one place that could be easily accessed.


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