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Michelin Tires and WMS – How to Extend Beyond Dynamics AX Limitations

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Presentation on theme: "Michelin Tires and WMS – How to Extend Beyond Dynamics AX Limitations"— Presentation transcript:

1 Michelin Tires and WMS – How to Extend Beyond Dynamics AX Limitations
Zoran Popovic, Tigar Tyres - Michelin | Damjan Nacevski, Infinite Solutions

2 Existing Context

3 Existing situation “Make to Stock” business model
More demanding market 3 brands and 350 products Low flexibility on spot orders Huge Stock level – high cost Production based on predictions and history Strong competition

4 New situation “Make to Order” business model
More than 50 direct customers 9 brands, over products High flexibility on spot orders Low cost of stock Production based on direct customer’s orders Strong competition – lower production costs

5 Keep with existing model
Business Dilemma Keep with existing model New challenges More and more demanding market Extremely strong competition Not Customer oriented mindset Low flexibility on spot orders Huge production and stock cost Small number of products 5

6 Keep with existing model
Deciding Factor Keep with existing model New challenges More and more demanding market Extremely strong competition Not Customer oriented mindset SURVIVAL! Low flexibility on spot orders Huge production and stock cost Small number of products 6

7 The only constant in life is
CHANGE! (Film Growing Together) 7

8 “NEW” Business model

9 New business model (customer commitment loop blueprint)
UOT’s DRP Web portal Commitment Sales orders ERP Forecast ERP Manufacturing orders MRP ERP MPS (master planning system) Purchase orders 9

10 Customer Commitment Loop
Direct customer forecast Sourcing global Sourcing local Net of stock (MPS) Manuf. orders Purchase orders Commitment Substitution UOT’s forecast Sales Supply Chain Manufacturing 10

11 Customer Commitment Loop - 1
1st working day Direct customer forecast Sourcing global Sourcing local Net of stock (MPS) Manuf. orders Purchase orders Commitment Substitution UOT’s forecast Sales Supply Chain Manufacturing 11

12 Customer Commitment Loop - 1
3rd working day Direct customer forecast Sourcing global Sourcing local Net of stock (MPS) Manuf. orders Purchase orders Commitment Substitution UOT’s forecast Sales Supply Chain Manufacturing 12

13 Customer Commitment Loop - 1
5th working day Direct customer forecast Sourcing global Sourcing local Net of stock (MPS) Manuf. orders Purchase orders Commitment Substitution UOT’s forecast Sales Supply Chain Manufacturing 13

14 Customer Commitment Loop - 1
10th working day Direct customer forecast Sourcing global Sourcing local Net of stock (MPS) Manuf. orders Purchase orders Commitment Substitution UOT’s forecast Sales Supply Chain Manufacturing 14

15 Customer Commitment Loop - 2
12th working day Direct customer forecast Sourcing global Sourcing local Net of stock (MPS) Manuf. orders Purchase orders Commitment Substitution UOT’s forecast Sales Supply Chain Manufacturing 15

16 Customer Commitment Loop - 2
15th working day Direct customer forecast Sourcing global Sourcing local Net of stock (MPS) Manuf. orders Purchase orders Commitment Substitution UOT’s forecast Sales Supply Chain Manufacturing 16

17 Customer Commitment Loop - 2
17th working day Direct customer forecast Sourcing global Sourcing local Net of stock (MPS) Manuf. orders Purchase orders Commitment Substitution UOT’s forecast Sales Supply Chain Manufacturing 17

18 Customer Commitment Loop - 2
19th working day Direct customer forecast Sourcing global Sourcing local Net of stock (MPS) Manuf. orders Purchase orders Commitment Substitution UOT’s forecast Sales Supply Chain Manufacturing 18

19 ERP – MS Dynamics AX 2013 2014 2015 2016 ERP integration Stabilisation
‘The need’ New Business model Go Live Stabilization ERP Evolution

20 ERP – MS Dynamics AX 236 Domain Sum of processes Central SC 7 Costing
15 Finance 59 Manufacture 21 Master data 9 MPS 22 MRP 2 Sales T1 23 Sales_Marketing 20 SFA Shipping 39 Warehousing 17 236 20

21 Warehouse management

22 AX limitations in the WMS
Main problems: The put away principle in AX didn’t work according to Tigar Tyres needs FEFO in AX works on batch level FEFO for tire industry works on monthly basis Pallet movements and picking Logical stock separation Quality assurance principles 22

23 Main needs in the warehouse
Able to pick any pallet from a given location Or pick a pallet with the same item from another location that satisfies certain conditions. Good put away principles … 23

24 Nice additional features
Multi pallet type locations. In TT two pallet types are in use and sometimes depending on availability some items are stored on either of those two pallet types For that reason locations with different capacity based on the pallet type were created Multi warehouse picking lists 24

25 Main obstacles Physical Constraints Locations and pallet types
Quality assurance stock Space Logical Constraints Allocation process and priority Logical stock TX integration 25

26 Adapting AX to the business
Two main developments Logical stock movement Start Picking development 26

27 Adapting AX to the business
Logical stock movement New put away rules Right pallet type FEFO period check Oldest location Location code check 27

28 Adapting AX to the business
Start Picking Development AX proposes pallet ids by FEFO principle on the batch level Physically those pallets are not available in most of the cases The development proposes a location The worker picks freely and scans the pallet id when he picks a pallet When he is done and moves on to the next location the system is updated and changes the reservations 28

29 Adapting AX to the business
Start Picking Development Helps the workers do their job with less errors Faster And easier Controls that the worker is always picking the right item and in the right qty 29

30 Stock levels Here I think we should put a nice presentation of the stock levels movement, either as absolute values or as percentages in terms of factory production capacity We can choose a representative month of the year or we can choose to show the average stock per year, or the total stock… 30

31 Final reminders CPE Credit Code: 53C2 Complete Surveys 31

32 Headshot And/Or Company Logo
Speaker contact info Damjan Nacevski Infinite Solutions Headshot And/Or Company Logo 32

33 Headshot And/Or Company Logo
Speaker contact info Zoran Popovic Tigar Tyres Headshot And/Or Company Logo 33

34

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