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Siam Toyota Manufacturing
About:
Siam Toyota Manufacturing, founded by the Toyota Motor Corporation
and Siam Cement Group of companies, began assembling automotive
engines in Thailand in 1989. It casts engine cylinder blocks, heads and
camshafts and also assembles engines for Toyota's local assembly
operation, Toyota Motor Thailand (TMT). TMT produces and sells
passenger cars such as Corona, Corolla, Camry and small trucks such
as Hilux. STM and TMT also provide sourcing services and supply local
parts from Thailand to Toyota Motor Corporation in Japan.
The Situation:
Siam Toyota Manufacturing (STM) needed an
extended enterprise application solution that could
help the manufacturer streamline automotive parts
planning and production within its traditionally flow
manufacturing environment.
The STM production system mirrors the Toyota Production System, and the basic premise of the system is to maintain a continuous flow of products inside factories in order to adapt to fluctuating changes in demand.
As the team at STM began evaluating enterprise software solutions, their main concerns were with the ability of the software to meet STM's strict production planning and control requirements within its flow manufacturing setting.
"The ERP and manufacturing companies that first mastered the Toyota Production System were almost all headquartered in Japan. Still, not many Western firms understand the Toyota Production System," said Pricha Pantumsinchai, managing director of M-Focus [Verticent's Thailand distributor].
The Solution:
Superimposing the Toyota Production System of flow
manufacturing on existing production and inventory
control systems in Verticent ERP required several
customizations in order to satisfy STM's needs.
However, the flexibility of Verticent ERP enabled the
software system to transition from an ERP solution to a
flow solution as required by STM. Also, after reviewing
the capabilities of the Manufacturing module in
Verticent ERP, STM was satisfied with the solution's built-in
inventory management concepts.
Verticent ERP is a suite of fully integrated e-business, business intelligence, CRM and ERP applications that helps STM better understand and respond to the needs of its customers, suppliers and partners around the world.
Pantumsinchai said, "Toyota Motor Corporation in Japan pioneered the concept of the Toyota Production System many years ago. Today, not only manufacturers, but also ERP solution providers around the world are trying to embrace this innovative system - but they often find the going quite rough. This project with STM is an effort to implement the necessary transition from a traditional ERP system to the revolutionary Toyota Production System."
"We believe we are in the process of developing a very important production system that could propel Verticent ERP to new heights in Thailand for many years to come," Pantumsinchai said.
