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Why KAMAZ can Win
in the Value Chain
PearlChain: The real-time open
        model company
Agenda
 Engineering Database
 Pearlchain Concept
 SupplyCockpit
   Coverage/Level Calculation
   Full Trailer Load
   Trailer Yard Control
   SupplyCockpit Screens
   SupplyCockpit Database
Slide 4




The Automotive Supply Chain
            80% added value                           20% added value

                    Supply Chain Management (external processing)

                                                       Enterprise border
                  ERP:
                  (internal processing)         Interfaces


      n tier          2 tier              1 tier             OEM
      supplier        supplier            supplier



                                                                           Logistic Flow




                     PearlChain - concept
Slide 5




    NedCar in a nutshell




•   The process is completed in four sequential phases :
    Press Shop Body Shop        Paint Shop     Final Assembly
•   NedCar produces 200.000 top quality cars / year or
    1000 cars / day or 1 / minute.
•   25% of all the industrial robots in the Netherlands are used by NedCar
•   Each robot needs control      Cell Control
MAN: Truck range



 MAN TGL:              MAN TGM:                MAN TGA:
 True class from 7.5   Mid-range power from    High performance
 to 12 tonnes          12 to 26 tonnes         from 18 to 50 tonnes




 Special-purpose                      Military vehicles
 vehicles

                                                                      6
Slide 7




Spotlight on NedCar
                            Pearlchain In




      Planning / Ordering / MRP & Production horizon and how they relate
Slide 8




Technical Requirements
•   Continuous three shift operation
•   1200 Cars produced every day
•   One car every 52 seconds
•   20 Control points in the production flow
•   2500 Items and 200 work instructions per car
•   10.000.000 New database records per day
•   200 Suppliers receiving more then 50.000
    messages daily

                                                   High availability
                                                    Fault tolerance
                                               Platform independence
                                                      Scalability
                                                     Performance
Slide 9




   From Manufacturing Execution System to
   Management Information System
Apollo Core Production Systems
                                                               Web Server
                      Production                          PI                      Computer




   BS-online             PS-online
                                               (op vakantie)
                  Integrated
   Manufacturing Execution System                                                 Computer




BS-DXV BS-MGX              PS              FA-DXV    FA-MGX


                WBS                  PBS
                                                                Web server
                                                TS       SE


                                                                                  Computer




                                                                             Web Browser
                                   PLC-Scada
Flow Based Logistics concept: Pearlchain
Synchronisation of production and logistics



                                              material
                                              view in
                                              sequence



                  PearlChain
                 sequence




    production                                              WOW
    view in
    sequence
                 keep             keep                   keep sequence
                          restore          restore                       delivery
                 sequence         sequence

             BODYSHOP            PAINTSHOP           FINAL ASSEMBLY
Slide 12




Lean at Porsche
          The Porsche production system is simple


                                                    Principles
                                                    •Pull principle
                                                    •Takt principle
                                                    •Flow principle
                                                    •Zero-defect principle
Pearlchain, production progress and supply control



                                                                         supplier   A
                                                                         supplier   B
                                                                         supplier   C
                                                                         supplier   D

                                      MATERIAL FLOW
  material avail.          material on traileryard    material shipped    material
  for production                                                          to be shipped




   NedCar

               NedCar                                                         supplier A
lineside   pull dock
                    pull
Slide 14




Engineering db – Inac / Shape-it
           Idea
                                  Product              Process
                                                         FMC                       Logistics
                   Product                           Process
                                                     VCC             Logistics
                                                                                                                    Multi Partner
   Developme



                       KDP
                     KDP
                  Engineering                            KDP
                                                        KDP
                                                      Process                KDP
                                                                             xx




                                                                         Authorized flows, Packaging
       nt




                    format                           definitions




                                                                             Material Addresses
                       Parts, Change Order
                        Prod Def Features,




                                                          PII
     Production
      Concept
                                                                                                                    Multi Plant
                                             Engineering Database
                                                                                                           Plants




  Order
                  OS                          MO        T&T         MD

                                                                                                       Product
                                             Production
Slide 15
Slide 16




Important Condition Relations (                                                                        in
INAC)
 Logical Expression          :    <attribute><operation><value>                   Atomic Condition
                             =
 Logical Expression          :    <attribute>                                     <operation> = ‘=‘, value =
                             =                                                    ‘TRUE’
 Logical Expression          :    ‘(‘ logical expression ‘)’                      Nesting
                             =
 Logical Expression          :    Logical expression + logical                    AND
                             =    Expression
 Logical Expression          :    Logical Expression ‘/’ logical                  OR
                             =    expression
 Logical Expression          :    - Logical Expression                            NOT
                             =
 1. UPG Mirror = Heated Mirror  Lux Level = ‘ High’       (Attribute = Lux Level, Value = High)
 2. UPG Mirror = Heated Mirror  Heated Mirror             (Attribute = Heated Mirror, Value = True)
 3. UPG Mirror = Heated Mirror  ‘Lux Level’ = ‘High’ / Heated Mirror
 4. UPG Mirror = Heated Mirror  (‘Lux Level’ = ‘High’ + Market = ‘Japan’) / Heated Mirror
 5. UPG Mirror = Not Heated Mirror  - Heated Mirror
Logistics Strategy
From warehouse stock towards Warehouse On Wheels




         Recent                            New




   internal warehouse stock        Warehouse On Wheels
Flow Based Concepts
SILS                                             JIS                                             JIT

•   well known but …                             •   Flow based, sequence                        •    Flow based, batch
•   Delivery in real (GC)                        •   2 h accuracy level                          •    2 h accuracy level
    sequence                                     •   Coverage calculations                       •    Coverage calculations
•   Delivery under                               •   Full Truck Load Calc.                       •    Full Truck Load Calc.
    responsibility of                            •   Delivery based on                           •    Delivery based on
    supplier                                         planned sequence                                 planned sequence
•   Meanly for modules                           •   Warehouse on Wheels                         •    Warehouse on Wheels


                             production flow



                    actual                                                                                        Supplier
                  realised      Material available
                                                       Warehouse on wheels         Material shipped      Material to be shipped
               production       for production



                                                        Available op traileryard   DELFOR / AVIEXP
                                                                                   processed
Process flow
Calculation coveragepointers algorithm

PARTCLUSTER_LEVEL
                           RPS      APS    RPY   APY             RPU     APU          HighestWU


PCH-in                                                            PBS-off             WU     MP   GOK

….                                                                                                ….
                                                                            ALU= 80
                                                        ALY= 60        RLU= 100
                                    ALS=40       RLY= 85
                                                                                         PEARLS
                                RLS= 65

                     PCH sequence                                              Realisation

 PART_COVERAGE
                                                                                             Previous
                                                                                             last WH
PCH-in   SPF             SPS         SPY                SPU       PBS-off             WU     MP   GOK
….                                                                                                ….
               LSF= 55         LSS= 40        LSY= 55                  LSU= 100

                                                                                       QUANTITY

                     PCH sequence                                              Realisation



                                          coverage calculation
Pearlchain monitor (order and
body early alert)



                         Square:Order
                         Circle: Body
Coverage Timebucket Screen (1)
Coverage Timebucket Screen (2)
Full Trailerload for JIT algorithm
                                                                                                       PBS-off
               E.G. JIT PARTCLUSTER 1 : PART 1, 2, 3     TRAILERCODE =10 QUANTIY = 9

PCH-in




                           Package part 1     Package part 1           Package part 1            COV. PART 1


                                                                                              UN+YA+SH+FI

PCH-in




                       Package part 2           Package part 2             Package part 2
                                                                                                      COV. PART 2

                                                                                                      UN+YA+SH

PCH-in                                                                                                   +FI



                                                  Package
                           Package part 3                          Package part 3
                                                     part 3                                   COV. PART 3

                                                                                                      UN+YA+SH
                                                                                                         +FI


         T12   T11   T10                T9   T8 T7            T6   T5 T4            T3   T2      T1

                                             FULL TRAILERLOAD FOR PARTCLUSTER (9 COLLI)
Trailer-flow

                                                                                  KanBan call-off by OEM
                                              Supplier
    Location: FIRM                                                                     to Supplier
    Call-off status: ‘ ’

                                                                   DesAdv by Supplier
                                                                           to OEM
                                                                                                                   Location: OFF YARD
                                                                                                                   Call-off status: ‘ ’
    Location: SHIPPED
                                                                                        Confirm trailer
    Call-off status: ‘ ’
                                                                                           off yard



                                                 Automatic Call-off
                           Confirm trailer
                                                  by coverage-alg.
                              on Yard
                                                                                                Confirm trailer
                                                                                                      off dock
                                                                                                                   Location: UNLOADED
                                                           Location: OFF DOCK
    Location: YARD                                                                                                 Call-off status: Empty
                                                           Call-off status: ‘ ’
    Call-off status: ‘ ’




                                                                                                                    Confirm
                           Call-off trailer
                                                                                                                  empty trailer
                               on Yard


    Location: YARD                                          Location: YARD                                         Location: UNLOADED
    Call-off status: Called - off                           Call-off status: T-Master                              Call-off status: On Dock

                                                Select                                            Confirm
                                              trailer by                                         trailer On
                                              T-master                                              Dock
View PearlChain (2)
View EDI-messages




 Events                                                     Message types
 FP : Final Pearlchain release   RS : Resend                SP : Syncro Planned
 QC : Quick Change               MC: Manual Communication   SC : Syncro Call off
 DP : Delete pearl               UN : Unloaded              KC : Kanban Call off
 RP : Refreshed pearl            FI : Firm
                                 UF : Unfirm
                                 MT : Manual trailer
NedCar Workingcapitalinvestment in material
 VX/DX 2003   Volume


                        KD                                  Pearlchain benefits
                1,1 M
                        0,9 M   Value/Modules


                                 6,0 M



                                                WOW
                                            1,6 M     Stock reduction



   24,3 M
                                                        6,9 M

                                                                     NCC 2005




                                                                        7,9 M
Thank you for your attention
Rudy Hageman
Rudy.Hageman@PearlChain.net
0032 473 88 33 30




PearlChain.net
Roderveldlaan 2
2600 Berchem
Belgium

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Why KAMAZ can Win in the Value Chain

  • 1. Why KAMAZ can Win in the Value Chain
  • 2. PearlChain: The real-time open model company
  • 3. Agenda Engineering Database Pearlchain Concept SupplyCockpit Coverage/Level Calculation Full Trailer Load Trailer Yard Control SupplyCockpit Screens SupplyCockpit Database
  • 4. Slide 4 The Automotive Supply Chain 80% added value 20% added value Supply Chain Management (external processing) Enterprise border ERP: (internal processing) Interfaces n tier 2 tier 1 tier OEM supplier supplier supplier Logistic Flow PearlChain - concept
  • 5. Slide 5 NedCar in a nutshell • The process is completed in four sequential phases : Press Shop Body Shop Paint Shop Final Assembly • NedCar produces 200.000 top quality cars / year or 1000 cars / day or 1 / minute. • 25% of all the industrial robots in the Netherlands are used by NedCar • Each robot needs control Cell Control
  • 6. MAN: Truck range MAN TGL: MAN TGM: MAN TGA: True class from 7.5 Mid-range power from High performance to 12 tonnes 12 to 26 tonnes from 18 to 50 tonnes Special-purpose Military vehicles vehicles 6
  • 7. Slide 7 Spotlight on NedCar Pearlchain In Planning / Ordering / MRP & Production horizon and how they relate
  • 8. Slide 8 Technical Requirements • Continuous three shift operation • 1200 Cars produced every day • One car every 52 seconds • 20 Control points in the production flow • 2500 Items and 200 work instructions per car • 10.000.000 New database records per day • 200 Suppliers receiving more then 50.000 messages daily High availability Fault tolerance Platform independence Scalability Performance
  • 9. Slide 9 From Manufacturing Execution System to Management Information System Apollo Core Production Systems Web Server Production PI Computer BS-online PS-online (op vakantie) Integrated Manufacturing Execution System Computer BS-DXV BS-MGX PS FA-DXV FA-MGX WBS PBS Web server TS SE Computer Web Browser PLC-Scada
  • 10. Flow Based Logistics concept: Pearlchain Synchronisation of production and logistics material view in sequence PearlChain sequence production WOW view in sequence keep keep keep sequence restore restore delivery sequence sequence BODYSHOP PAINTSHOP FINAL ASSEMBLY
  • 11.
  • 12. Slide 12 Lean at Porsche The Porsche production system is simple Principles •Pull principle •Takt principle •Flow principle •Zero-defect principle
  • 13. Pearlchain, production progress and supply control supplier A supplier B supplier C supplier D MATERIAL FLOW material avail. material on traileryard material shipped material for production to be shipped NedCar NedCar supplier A lineside pull dock pull
  • 14. Slide 14 Engineering db – Inac / Shape-it Idea Product Process FMC Logistics Product Process VCC Logistics Multi Partner Developme KDP KDP Engineering KDP KDP Process KDP xx Authorized flows, Packaging nt format definitions Material Addresses Parts, Change Order Prod Def Features, PII Production Concept Multi Plant Engineering Database Plants Order OS MO T&T MD Product Production
  • 16. Slide 16 Important Condition Relations ( in INAC) Logical Expression : <attribute><operation><value> Atomic Condition = Logical Expression : <attribute> <operation> = ‘=‘, value = = ‘TRUE’ Logical Expression : ‘(‘ logical expression ‘)’ Nesting = Logical Expression : Logical expression + logical AND = Expression Logical Expression : Logical Expression ‘/’ logical OR = expression Logical Expression : - Logical Expression NOT = 1. UPG Mirror = Heated Mirror  Lux Level = ‘ High’ (Attribute = Lux Level, Value = High) 2. UPG Mirror = Heated Mirror  Heated Mirror (Attribute = Heated Mirror, Value = True) 3. UPG Mirror = Heated Mirror  ‘Lux Level’ = ‘High’ / Heated Mirror 4. UPG Mirror = Heated Mirror  (‘Lux Level’ = ‘High’ + Market = ‘Japan’) / Heated Mirror 5. UPG Mirror = Not Heated Mirror  - Heated Mirror
  • 17. Logistics Strategy From warehouse stock towards Warehouse On Wheels Recent New internal warehouse stock Warehouse On Wheels
  • 18. Flow Based Concepts SILS JIS JIT • well known but … • Flow based, sequence • Flow based, batch • Delivery in real (GC) • 2 h accuracy level • 2 h accuracy level sequence • Coverage calculations • Coverage calculations • Delivery under • Full Truck Load Calc. • Full Truck Load Calc. responsibility of • Delivery based on • Delivery based on supplier planned sequence planned sequence • Meanly for modules • Warehouse on Wheels • Warehouse on Wheels production flow actual Supplier realised Material available Warehouse on wheels Material shipped Material to be shipped production for production Available op traileryard DELFOR / AVIEXP processed
  • 20. Calculation coveragepointers algorithm PARTCLUSTER_LEVEL RPS APS RPY APY RPU APU HighestWU PCH-in PBS-off WU MP GOK …. …. ALU= 80 ALY= 60 RLU= 100 ALS=40 RLY= 85 PEARLS RLS= 65 PCH sequence Realisation PART_COVERAGE Previous last WH PCH-in SPF SPS SPY SPU PBS-off WU MP GOK …. …. LSF= 55 LSS= 40 LSY= 55 LSU= 100 QUANTITY PCH sequence Realisation coverage calculation
  • 21. Pearlchain monitor (order and body early alert) Square:Order Circle: Body
  • 24. Full Trailerload for JIT algorithm PBS-off E.G. JIT PARTCLUSTER 1 : PART 1, 2, 3 TRAILERCODE =10 QUANTIY = 9 PCH-in Package part 1 Package part 1 Package part 1 COV. PART 1 UN+YA+SH+FI PCH-in Package part 2 Package part 2 Package part 2 COV. PART 2 UN+YA+SH PCH-in +FI Package Package part 3 Package part 3 part 3 COV. PART 3 UN+YA+SH +FI T12 T11 T10 T9 T8 T7 T6 T5 T4 T3 T2 T1 FULL TRAILERLOAD FOR PARTCLUSTER (9 COLLI)
  • 25. Trailer-flow KanBan call-off by OEM Supplier Location: FIRM to Supplier Call-off status: ‘ ’ DesAdv by Supplier to OEM Location: OFF YARD Call-off status: ‘ ’ Location: SHIPPED Confirm trailer Call-off status: ‘ ’ off yard Automatic Call-off Confirm trailer by coverage-alg. on Yard Confirm trailer off dock Location: UNLOADED Location: OFF DOCK Location: YARD Call-off status: Empty Call-off status: ‘ ’ Call-off status: ‘ ’ Confirm Call-off trailer empty trailer on Yard Location: YARD Location: YARD Location: UNLOADED Call-off status: Called - off Call-off status: T-Master Call-off status: On Dock Select Confirm trailer by trailer On T-master Dock
  • 27. View EDI-messages Events Message types FP : Final Pearlchain release RS : Resend SP : Syncro Planned QC : Quick Change MC: Manual Communication SC : Syncro Call off DP : Delete pearl UN : Unloaded KC : Kanban Call off RP : Refreshed pearl FI : Firm UF : Unfirm MT : Manual trailer
  • 28. NedCar Workingcapitalinvestment in material VX/DX 2003 Volume KD Pearlchain benefits 1,1 M 0,9 M Value/Modules 6,0 M WOW 1,6 M Stock reduction 24,3 M 6,9 M NCC 2005 7,9 M
  • 29. Thank you for your attention Rudy Hageman Rudy.Hageman@PearlChain.net 0032 473 88 33 30 PearlChain.net Roderveldlaan 2 2600 Berchem Belgium