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2004 Press Releases

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Leading Global Automotive Parts Manufacturer Goes Lean with Glovia

Glovia's Extended ERP System Enables Keihin Aircon to Further Lean Initiatives by Streamlining Operations, Synchronizing Cycle Times, Tightening Inventory Control and Increasing Operational Responsiveness

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El Segundo, Calif., March 10, 2004 - Glovia International, a subsidiary of Fujitsu (TSE:6702) and a leading provider of extended ERP solutions for engineer-to-order and high volume manufacturers, announced today that Keihin Aircon, North America Inc. (KAC), a leading global manufacturer of heating, ventilating and air conditioning components for the automotive industry has furthered their lean initiatives through the use of Glovia's extended ERP solution, glovia.com.

The lean concept of manufacturing focuses on revolving a company's operations around the needs and operations of their customer. The first critical step KAC had to take in furthering their lean initiatives was to optimize their cycle times on the production line to match those of their customer so their finished goods come out at the same rate or cycle time, thus eliminating excesses and shortages of finished goods. Glovia's Factory Planning module enables KAC to assimilate customer information and run simulations looking at their inventory, production schedules, finished goods, inventory etc. to be able to react within minutes or hours as well as provide visibility into line loading and timelines for jobs, making it easy to see the status of their operations as well as identify problem areas quickly.

In addition, a synchronized production line requires tight integration between KAC and their suppliers so the right inventory, in the desired amount, arrives at the correct time. KAC uses Glovia's Supplier and Customer Releasing modules to successfully manage customer requirements and their subsequent distribution to their suppliers. The Customer Releasing module allows KAC to take in and assess the customer requirements in order to know what needs to be accomplished. The requirements are then converted into the Supplier Releasing module and made available via the Internet. This quick and accurate communication speeds the coordination process between KAC's purchasing agents and their suppliers as they are now looking at the same information, in real-time, as it arrives from the customer.

Inventory control also plays a crucial part in this streamlined flow process. KAC employs what they call a "roaming warehouse" meaning they don't use the typical vertical racking found in most manufacturing plants. Instead KAC uses floor storage, which is easier and faster to access but holds less quantity, thus increasing the need for tighter inventory management. Their suppliers pack their trucks in such a way that when a truck arrives the parts are unloaded and used on the line immediately rather than being unloaded and stored until use. By adopting this methodology KAC is able to eliminate a great portion of time and space spent storing parts.

As the trucks are KAC's warehouse, the tightest of inventory control is imperative for this method to work effectively as it is crucial to know exactly where the inventory is at any given moment. Glovia's Inventory control provides KAC with full visibility of all material movement through an enterprise-wide system with integrated, interactive management of all inventories, including physical stock room, in-transit etc.

"We operate in an intensely competitive industry. We have to have information quickly and it must be accurate. Our customer schedules are very fluid and they become more so by the week, month and year as the car makers try to respond to consumer demands," said Mike Mitsch, vice president of operations at Keihin Aircon, North America. "The great thing is that glovia.com is geared up for our industry. We're now confident our inventories are correct, we have accurate sales figures and a full breakdown of materials costs. Glovia has enabled us to run a tighter ship and a more efficient business."

"Keihin Aircon is a prime example of how an extended ERP system can help demand driven manufacturers realize the tremendous benefits of lean manufacturing," said Dennis Michalis, president and CEO of Glovia International. "We took a look at the general principals of lean in order to provide manufacturers with industry leading lean functionality to enable lean transformations by delivering specific functionality to address each of the lean technical elements directly."


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About Keihin Aircon, North America Inc.
Keihin Aircon, North America, Inc part of the Keihin Corporation has established a worldwide reputation as a quality manufacturer of functional parts, and is in the process of evolving into a comprehensive manufacturer of devices and systems to enhance its competitive edge. Keihin is utilizing its technological expertise and development prowess nurtured in the production of various functional parts used in engine fuel supply systems, drive systems, and chassis, as well as air conditioners, industrial valves, and advanced electronic control units in order to develop systems with new and innovative functions. Keihin's ultimate objective is to pioneer advanced technology and reliable products to create a better future for people, industry and society. For more information about Keihin and its products please visit www.kac-inc.com or call (765) 213-4915.

About Glovia International
Glovia International, Inc., a subsidiary of Fujitsu (Tokyo Stock Exchange: 6702), is one of the world's most experienced and solidly backed providers of extended ERP solutions for businesses of any size - from small and mid-sized companies to global enterprises. The powerful and flexible Glovia ERP suite, glovia.com, provides for the unique needs of engineer-to-order, make-to-order, high volume and mixed-mode manufacturing environments through comprehensive, end-to-end functionality for the entire product lifecycle. Headquartered in El Segundo, Calif., Glovia has helped manufacturers to cut costs, improve productivity, and meet customer demands for over 30 years. For more information, please visit www.glovia.com or call (800) 223-3799.

About Fujitsu
Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting technologies, highly reliable computing and telecommunications platforms, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that open up infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.6 trillion yen (US$38 billion) for the fiscal year ended March 31, 2003. For additional information, visit: http://www.fujitsu.com.