TS TECH AMERICAS, INC.

The Challenge:

CONFRONTING OPERATIONAL OBSTACLES AND TRANSFORMING INEFFICIENCIES INTO STRATEGIC ADVANTAGES

Today’s manufacturers are under constant pressure to do more with less while facing challenges like labor constraints, rising costs, supply chain disruption, regulatory uncertainty and evolving customer demands. Adaptation is the key to not only surviving but thriving and that means having the ability to embrace change, effectively. 

TS Tech, a longtime QAD ERP customer, consistently met its production targets and benchmarks for overall equipment effectiveness (OEE), but a lack of visibility into and control over the material side of its operations resulted in inefficiencies. 

“If we have better control of our complete supply chain and can control those inventories, it really impacts the bottom line,” explained Jeffrey Baltazar, Vice President of Manufacturing at TS Tech Americas, Inc., during an episode of the Auto Supply Chain Prophets podcast.

Leadership recognized that MMOG/LE (Materials Management Operations Guideline/Logistics Evaluation), a comprehensive self-assessment required by many OEMs (original equipment manufacturers) throughout the automotive supply chain network, was so much more than a tool for complying with customer requirements. It also presented an opportunity to automate manual processes, increase efficiency, strengthen TS Tech’s workplace culture and accelerate its transformation into an Adaptive Enterprise that can respond to change with speed and agility.

TS Tech began laying the groundwork for MMOG/LE implementation with the AIAG Global Implementation MMOG/LE Training course and resource allocation, with a focus on driving lasting improvement. Ultimately, the company wanted to build an ingrained culture of supply chain excellence and that meant gaining the support of all stakeholders, from executive management to staff on the factory floor.

Team members finished the course feeling empowered and equipped with the necessary tools and knowledge to support a culture of continuous improvement. “Management staff all said how much the course helped them truly understand the direction we were driving and the benefits of our improvement activities,” explained Baltazar.

The Solution:

LEVERAGING QAD TOOLS TO BUILD TOP-DOWN SUPPORT AND STEER A SEAMLESS MMOG/LE TRANSFORMATION

TS Tech leveraged every tool available to them and even created some of their own to build enterprise-wide support for the company’s MMOG/LE transformation. Knowing that top-down support is critical for any major project, TS Tech leadership prioritized engaging and educating executive management. 

“There were some cultural differences that we had to overcome in a total consensus way of decision-making, so making top management understand what we are really going to gain out of this,” stated Baltazar. Once top management saw how alignment with MMOG/LE’s requirements could reduce inventory, improve customer relationships and drive value for the organization, the organization embraced the program wholeheartedly. 

With a strong system of top-level support in place, TS Tech got to work in the following action areas:

• A dedicated MMOG/LE team was established to guide implementation and oversee training
• Microsoft Power BI dashboards simplified reporting to help upper management monitor resource allocation and plant progress toward completing the assessment
• An internal tool with the six phases of MMOG/LE was created to facilitate implementation monitoring and provide visibility across all TS Tech locations
• An MMOG/LE training session led by AIAG-certified instructor Terry Onica, Director of Automotive at QAD, streamlined implementation and deepened the TS Tech team’s commitment to the program

“A big tenet of MMOG/LE is to automate. The less Excel sheets and manual processes, the better. So, one of our big pushes is to utilize technology as much as we possibly can,” explained Horwitz. 

“One other thing that was very visual for everyone was the company's dedication to create the MMOG/LE team. They were really putting their money where their mouth is and saying, 'This is serious. We want to support you, and we're here to give you the tools you need to be successful.'”

Another core tenant of MMOG/LE involves using ERP systems as a backbone for aligning data on customer demand, running material requirements planning (MRP), facilitating scheduling and managing supplier relationships. QAD has participated in the development of MMOG/LE since Version 2 and offers many resources to support customers, including specialized training led by certified experts like Onica, built-in process maps and a solution sheet mapped to all 176 MMOG/LE criteria. QAD customers report a 17 to 60% reduction in inventory and an 8 to 20% increase in supplier rating as a direct result of MMOG/LE. 

“QAD has a program, in large part, that integrates all the MMOG/LE requirements into it. The system can support all those activities we need to do. In addition, we’ve been able to also invest in new modules that relate more directly to the supply chain. But we’re really excited. As people are seeing how they’re going to be able to use these new systems and increase their efficiencies, this is going to help them be even better than they are,” stated Horwitz.

The Benefits:

BUILDING A CULTURE OF SUPPLY CHAIN EXCELLENCE AND UNLOCKING OPERATIONAL EFFICIENCIES WITH QAD AND MMOG/LE

Since implementing MMOG/LE with QAD’s support, TS Tech has improved its inventory turnover ratio and is approaching benchmark level at each of its Tier 1 facilities, resulting in a cost savings for the organization. 

MMOG/LE has also been tremendously beneficial for the TS Tech organization as a whole. Executive management has more visibility into the full value stream and is using insights from the Microsoft Power BI dashboards to optimize resource allocation. The company always performed well in terms of production efficiencies, and is now seeing the same results from the material side of its business while also complying with OEM requirements. 

Some of the greatest improvements, however, are visible among the TS Tech workers who interface with QAD Cloud ERP and the team’s MMOG/LE tools every day. By explaining the purpose and potential impact of MMOG/LE, as well as giving workers the tools they need to succeed, TS Tech reduced redundant work and automated manual tasks.

“We're uncovering the redundant work where we had three or four people basically doing the same thing. So, we're looking for those types of efficiencies. And that alone makes everyone's job easier. They all buy in. And our executive management can see that already,” explained Baltazar.

By automating once-manual processes and reducing redundant work, TS Tech has also strengthened collaboration and increased job satisfaction among employees.

“It’s giving them even more of a voice. We do have a lot of programs where we try to get feedback from our people in the Kaizen activities. However, they’re very excited because this is a program where we can talk to the materials management people that may not always get as much spotlight as the quality folks or other groups,” expressed Horwitz. “They’re excited to have their management engaged with them in their day-to-activities as a result of answering the MMOG/LE assessment.”

The only thing Horwitz would have done differently is embrace MMOG/LE even sooner. “Start now. Don't wait for a customer to come to you and say it's a requirement. Don't wait for the industry to force you into it. You need to get started,” advised Horwitz.

“Take the challenge. Embrace the challenge. And always remember that your competitors aren't waiting,” agreed Baltazar.