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<strong>ARIS</strong> <strong>SmartPath</strong> <strong>for</strong> <strong>Automotive</strong> <strong>Suppliers</strong><br />

<strong>ARIS</strong> <strong>SmartPath</strong><br />

<strong>for</strong> <strong>Automotive</strong> <strong>Suppliers</strong><br />

1<br />

<strong>The</strong> process-oriented turnkey<br />

solution <strong>for</strong> Mid-Markets<br />

www.ids-scheer.com/midmarket


<strong>The</strong> process-oriented turnkey solution <strong>for</strong> Mid-Markets<br />

2<br />

<strong>ARIS</strong> <strong>SmartPath</strong><br />

<strong>for</strong> <strong>Automotive</strong> <strong>Suppliers</strong><br />

<strong>The</strong> <strong>Automotive</strong> Industry in Transition<br />

In the automotive industry today, suppliers, particularly small and medium<br />

enterprises (SMEs), are confronted with a wide range of challenges. <strong>The</strong><br />

industry is characterized by an increasing variety of models and shorter<br />

development times. Manufacturers are reducing their vertical production<br />

range and simultaneously shifting development activities to their suppliers.<br />

In addition, automotive suppliers find themselves subject to constantly<br />

intensifing cost pressure, which still has a firm grip on the entire industry.<br />

Process innovations, particularly in the areas of production and<br />

development, play a dominant role in overcoming these challenges.<br />

On-time delivery of accurate quantities of ready-<strong>for</strong>-assembly parts,<br />

synchronized with production processes, is the goal of the Just in Time<br />

(JIT) concept developed by Toyota during the 1950s. <strong>The</strong> JIT approach is the<br />

prerequisite <strong>for</strong> improved flexibility and shorter prodution times. <strong>The</strong><br />

concept of delivering at the correct time has since been extended to<br />

incorporate precisely timed sequencing, or Just in Sequence (JIS).<br />

<strong>The</strong> development process is also characterized by intensive cross-company<br />

cooperation and the close relationship between development and<br />

production. <strong>The</strong> target costs defined at the beginning of development must<br />

be adhered to at all times.


<strong>The</strong> process-oriented turnkey solution <strong>for</strong> Mid-Markets<br />

Focusing on Your Business Processes<br />

In order <strong>for</strong> you to successfully maintain your position in the automotive<br />

industry, all processes in your company must be lean and efficient. This cannot<br />

be achieved simply by implementing enterprise software. Lean operations<br />

require comprehensive, end-to-end solutions focused on business benefits to<br />

optimize your business processes. IT is merely a means to an end in this<br />

approach, and needs to be aligned with optimized business processes in order<br />

to yield the optimal return on investment (RoI).<br />

Focusing on business processes offers numerous advantages. For example,<br />

your actual business and the processes on which it is based is at the center of<br />

the discussion, revealing key areas <strong>for</strong> improvement. When the primary focus is<br />

not individual technologies (e.g. a CRM system), it is necessary to take a crosssystem<br />

view of actual business processes (e.g. optimization of customer<br />

management), which may also play a role in various other areas of an IT<br />

solution (e.g. production or financials).<br />

IDS Scheer is the partner <strong>for</strong> Business Process Excellence <strong>for</strong> Mid-Markets. All<br />

of our ef<strong>for</strong>ts are based on a single goal: optimizing our customers' business<br />

processes and, in turn, their competitiveness. Regardless of whether this<br />

involves internal reorganization, an enterprise software implementation or a<br />

combination of both, we want to help you become a leader in the automotive<br />

industry.<br />

3


<strong>The</strong> process-oriented turnkey solution <strong>for</strong> Mid-Markets<br />

4<br />

<strong>ARIS</strong> <strong>SmartPath</strong><br />

<strong>for</strong> <strong>Automotive</strong> <strong>Suppliers</strong><br />

<strong>ARIS</strong> <strong>SmartPath</strong>: <strong>The</strong> first process-oriented<br />

turnkey solution <strong>for</strong> Mid-Markets<br />

Through <strong>ARIS</strong> <strong>SmartPath</strong> <strong>for</strong> <strong>Automotive</strong> <strong>Suppliers</strong>, IDS Scheer offers<br />

Mid-Markets the first process-oriented solution based on SAP ® Allin-One.<br />

Along with the standard enterprise software, <strong>ARIS</strong><br />

<strong>SmartPath</strong> bundles pre-configurations and add-ons, processoriented<br />

business content, and consulting services.<br />

Our consultants work closely with you to develop a<br />

customized model of your ideal business processes, which<br />

acts as the binding specification <strong>for</strong> configuration of the<br />

SAP All-In-One enterprise software.<br />

To reduce the time and cost spent on model design and<br />

configuration of the solution, IDS Scheer provides an industry<br />

reference model and pre-configured enterprise software <strong>for</strong> the<br />

<strong>Automotive</strong> industry.<br />

<strong>ARIS</strong> <strong>SmartPath</strong> <strong>for</strong> <strong>Automotive</strong> <strong>Suppliers</strong> is based on best practices<br />

from many years of practical experience in the automotive industry.<br />

<strong>The</strong>re<strong>for</strong>e, adaptation of the process model and software only requires finetuning<br />

<strong>for</strong> individual projects, which saves a great deal of time and money. This<br />

enables IDS Scheer to guarantee a short implementation time, even <strong>for</strong> tailored<br />

customer solutions.<br />

Many companies are hybrids of various industries and types of business. For<br />

example, a manufacturer of paints and lacquers which supplies both the<br />

specialist retail sector and the automotive industry. <strong>ARIS</strong> <strong>SmartPath</strong> supports<br />

any combination of different industries and business processes.<br />

To guarantee you the maximum investment security, IDS Scheer offers <strong>ARIS</strong><br />

<strong>SmartPath</strong> at a fixed price. Once the customers individual process model has<br />

been defined, the scope of the project can be accurately defined in terms of<br />

costs and time.


<strong>The</strong> process-oriented turnkey solution <strong>for</strong> Mid-Markets<br />

Measurable Successes – Not Random Results<br />

Your company’s individual process model is not merely a documentation system.<br />

Instead, there is a direct technical link between the model and the enterprise<br />

software. Your users can toggle from the process view to the software as<br />

required during ongoing operation, and vice versa. For this reason, the model<br />

represents an online documentation of your target processes.<br />

During operation, the IT solution can also be used to extract process<br />

per<strong>for</strong>mance indicators, providing in<strong>for</strong>mation about the duration, costs and<br />

quality of processes.<br />

<strong>ARIS</strong> <strong>SmartPath</strong> allows <strong>for</strong> <strong>for</strong>ecasting and accurate measurement of<br />

improvements (throughput times, associated costs, on-time delivery, customer<br />

service, quality, etc.). Upon request, IDS Scheer can even give you a guarantee<br />

of success <strong>for</strong> the steps planned in your company.<br />

After implementation, your company's processes are continuously monitored<br />

and optimized. New process requirements caused by business changes can<br />

easily be implemented in the IT reality.<br />

5


<strong>The</strong> process-oriented turnkey solution <strong>for</strong> Mid-Markets<br />

6<br />

<strong>ARIS</strong> <strong>SmartPath</strong><br />

<strong>for</strong> <strong>Automotive</strong> <strong>Suppliers</strong><br />

Control of all <strong>Automotive</strong> Processes<br />

<strong>ARIS</strong> <strong>SmartPath</strong> <strong>for</strong> <strong>Automotive</strong> <strong>Suppliers</strong> manages all of the business<br />

processes that add value along the logistical chain, including planning,<br />

sales, production and procurement. In addition, the solution provides<br />

comprehensive support and integration of all other processes, such as<br />

internal and external accounting, quality management, maintenance,<br />

inventory management/transportation, and master data management.<br />

<strong>ARIS</strong> <strong>SmartPath</strong> <strong>for</strong> <strong>Automotive</strong> <strong>Suppliers</strong> facilitates integrated management<br />

of the a<strong>for</strong>ementioned business processes and is characterized by the<br />

following range of functions and processes:<br />

Customer Order Processing<br />

� Master data management (mapping of complex customer structures,<br />

several delivery plants and various partner roles)<br />

� Electronic data exchange between business partners with EDI<br />

� Delivery schedule management with cumulative quantities<br />

� Delivery call-offs and detailed call-offs<br />

� MAIS pickup sheet management (delivery schedule with shipping order)<br />

� Delivery schedules with external service providers (consignment<br />

management <strong>for</strong> delivery schedules)<br />

� Complaint and returns handling (credit, debit note requests, free delivery,<br />

correction of cumulative delivery quantities, external service provider<br />

correction, correction of MAIS pickup sheet)<br />

� Tool accounting<br />

� Sample management<br />

� Management of revisions<br />

� Management of carrier units


<strong>The</strong> process-oriented turnkey solution <strong>for</strong> Mid-Markets<br />

Dispatch/Invoicing<br />

� Delivery/picking<br />

� Efficient packaging management (management of returnable packaging and<br />

packaging regulations)<br />

� Special dispatch functions (goods labels, shipping agent advice, analysis of<br />

empties)<br />

� Invoice schedules <strong>for</strong> tool sales<br />

� Optimized credit note procedures using workflow<br />

Production Planning<br />

� Sales and program planning<br />

� Production plan (master schedule)<br />

� Series order<br />

� Sample order<br />

Procurement/Inventory Management<br />

� Order processing and monitoring<br />

� Subcontracting/outsourced processing<br />

� Goods receipt and issue<br />

Quality Testing<br />

� Goods receipt and production-related quality testing<br />

� Test management with recording of results and usage decisions<br />

� Quality management using quality control cards<br />

7


<strong>The</strong> process-oriented turnkey solution <strong>for</strong> Mid-Markets<br />

8<br />

<strong>ARIS</strong> <strong>SmartPath</strong><br />

<strong>for</strong> <strong>Automotive</strong> <strong>Suppliers</strong><br />

Highlights and Special Features<br />

Electronic Data Interchange (EDI)<br />

Delivery call-offs are received by EDI, which guarantees the fast and secure<br />

exchange of call off quantities with the manufacturer. All <strong>for</strong>mats relevant in<br />

practice are supported. A monitor provides a complete overview of received EDI<br />

messages and allows <strong>for</strong> identification of faulty or anomalous data. From the<br />

messages, it is possible to branch directly into the relevant document.<br />

Delivery Schedule Management<br />

<strong>The</strong> goods are produced and dispatched based on delivery call-offs, which are<br />

replaced by detailed call-offs <strong>for</strong> short-term orders. <strong>The</strong> relevant cumulative<br />

quantities are updated in the delivery schedule. Delivery schedule management<br />

is also possible using the pick up sheet. In this case, delivery is made using a<br />

special shipping order.<br />

Management of External Service Providers (EDL Management)<br />

<strong>The</strong> automotive manufacturer engages an external service provider to operate a<br />

logistics and delivery center close to his plant. <strong>The</strong> supplier delivers his<br />

products from the plant to this center where the goods are managed as<br />

consignment stock until call-off. <strong>The</strong> external service provider picks or<br />

assembles the goods and delivers to the manufacturer in precise sequence<br />

based on a detailed call-off.


Series Production<br />

<strong>The</strong> process-oriented turnkey solution <strong>for</strong> Mid-Markets<br />

<strong>The</strong> use of series production has the following objectives:<br />

� Time and quantity-related creation and processing of production schedules<br />

� Reduction of production management costs and simplification of actual data<br />

recording while still retaining the possibility of using the full scope of PPS<br />

instruments<br />

� Replenishment management <strong>for</strong> production lines<br />

Credit Note Procedure<br />

Deliveries are often charged to the manufacturer using the credit note<br />

procedure. <strong>The</strong> manufacturer automatically generates a credit note to the<br />

relevant supplier when receipt of the goods is posted.<br />

Packaging Logistics<br />

<strong>The</strong> end products are packaged in line with stored packaging regulations, either<br />

in production or dispatch.<br />

Management of Returnable Packaging<br />

<strong>The</strong> manufacturer's own packaging and carriers are managed using returnable<br />

packaging accounts and automatically posted upon posting goods receipt or<br />

issue.<br />

Tools<br />

Tools are either invoiced to the customer after production or amortized against<br />

the parts sold. If the tools are paid <strong>for</strong> after production, they become the<br />

property of the customer. <strong>The</strong> corresponding customer order must record the<br />

associated costs and revenues. It the tool is financed by the supplier, the tool<br />

costs are taken into account in the manufacturer cost calculation and amortized<br />

against the parts sold.<br />

Quality Management<br />

Quality testing, per<strong>for</strong>med during goods receipt and during production, is of<br />

great significance in automotive manufacturing. Test management includes the<br />

recording of results and the usage decision. Lastly, quality management using<br />

quality control cards is also possible.<br />

9


<strong>The</strong> process-oriented turnkey solution <strong>for</strong> Mid-Markets<br />

10<br />

<strong>ARIS</strong> <strong>SmartPath</strong><br />

<strong>for</strong> <strong>Automotive</strong> <strong>Suppliers</strong><br />

Many Paths, One Goal: Process Optimization<br />

<strong>The</strong> path to Busines Process Excellence is different <strong>for</strong> every company. For this<br />

reason, IDS Scheer offers you a modular solution portfolio, which can be<br />

individually tailored to your requirements.<br />

Knowledge and Analysis<br />

Knowledge of your companys process weaknesses and possible courses of<br />

action <strong>for</strong>m the central basis of every business process optimization project. For<br />

Mid-Markets, various options are available.<br />

<strong>The</strong> Business Process Check is a fast measure that can be used to obtain initial<br />

findings. A rough analysis filters out the points in the companys processes<br />

where there is a need <strong>for</strong> optimization, and what benefits can be expected from<br />

the associated measures.<br />

Our Excellence Seminars or Business Process Excellence Workshops go even<br />

deeper. <strong>The</strong>se last <strong>for</strong> several days and the customer is presented with an<br />

accurate analysis of their actual situation and detailed recommendations <strong>for</strong><br />

action. <strong>The</strong> results can be used as a basis <strong>for</strong> independent reorganization and<br />

process optimization measures or <strong>for</strong> a comprehensive consulting engagement<br />

and optimization project with IDS Scheer.


Project<br />

<strong>The</strong> concrete implementation of optimization measures in the <strong>for</strong>m of a business<br />

process excellence project can compliment a concurrent IT implementation, but<br />

this is not always the case. <strong>The</strong> implementation of new business software is not<br />

always necessary to increase efficiency. In some cases, it is enough to merely<br />

reorganize the business processes. If the implementation of new enterprise<br />

software is required, the complete <strong>ARIS</strong> <strong>SmartPath</strong> solution will be applied.<br />

Services<br />

Optimization of business processes is an ongoing task. Similar to personal<br />

fitness, a company's processes can start to get “fat” again if left ignored. At IDS<br />

Scheer, we strive to be an integral partner when it comes to your company's<br />

fitness. Like a good fitness trainer, we provide you with continuous support and<br />

can regularly check whether the per<strong>for</strong>mance of your business processes is still<br />

optimal. Depending on the results, we will discuss implementing new measures<br />

<strong>for</strong> continued optimization of your business processes. Our method of<br />

Process Excellence Coaching allows you to concentrate on your business,<br />

while we take care of your process efficiency.<br />

You also have the option to manage the ongoing monitoring of your business<br />

processes yourself through a system of In-house Process Controlling. If you<br />

choose this path, IDS Scheer provides you with <strong>ARIS</strong> Process Per<strong>for</strong>mance<br />

Manager (<strong>ARIS</strong> PPM) a powerful, market-leading IT tool <strong>for</strong> monitoring KPIs and<br />

other business process metrics.<br />

IDS Scheer also offers a comprehensive portfolio of IT Service Packages,<br />

ranging from maintenance and IT service support to complete outsourcing and<br />

data center operation <strong>for</strong> your SAP solution.<br />

IDS Scheer is an integral partner <strong>for</strong> Mid-Markets, locally and<br />

globally. We can make your enterprise software fit your company.<br />

If your company is looking to achieve excellence, then IDS Scheer is<br />

the partner <strong>for</strong> you!<br />

11


<strong>ARIS</strong> <strong>SmartPath</strong> <strong>for</strong> <strong>Automotive</strong> <strong>Suppliers</strong><br />

“<strong>ARIS</strong>”, “IDS” and “Y” symbol are registered trademarks of IDS Scheer <strong>AG</strong>.<br />

”SAP NetWeaver” is a trademark of SAP <strong>AG</strong>, Walldorf.<br />

All other trademarks are the property of their respective owners.<br />

ID-Number: BR-A4-<strong>SmartPath</strong>_<strong>Automotive</strong>-EN-0407<br />

Copyright IDS Scheer <strong>AG</strong> 2007<br />

Headquarters<br />

Germany<br />

IDS Scheer <strong>AG</strong><br />

Altenkesseler Straße 17<br />

66115 Saarbruecken<br />

Phone: +49 (0)681-210-0<br />

Fax: +49 (0)681-210-1000<br />

E-mail: info@ids-scheer.com<br />

www.ids-scheer.com/midmarket

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