Case Studies > GLOVIA G2 Delivers Streamlined Operations and Foundation for Efficient Global Business

GLOVIA G2 Delivers Streamlined Operations and Foundation for Efficient Global Business

Company Size

1,000+

Region

America
Asia

Country

Japan
United States

Product

GLOVIA G2

Tech Stack

Oracle database

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Productivity Improvements

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)

Applicable Industries

Automotive

Applicable Functions

Discrete Manufacturing
Procurement

Use Cases

Inventory Management
Manufacturing System Automation

Services

System Integration

About The Customer

Keihin Corporation is a $1.8 billion principal manufacturer for Honda that produces fuel systems, electronic controls, and heating, ventilating and air conditioning products. The company is headquartered in Tokyo, Japan and has manufacturing facilities in Japan, North America, Canada and other countries. Keihin is a long established Japanese company, with roots going back to 1950, but the corporation in its present form derives from a series of mergers in 1997. In the United States alone, Keihin has annual revenue of around $600 million and its global turnover runs into billions. This is big business and information technology is one of the mainstays of that business.

The Challenge

Keihin Corporation, a principal manufacturer for Honda, was facing a business problem where their three North American facilities needed a single solution to replace their existing, individually procured applications. This was necessary to support the increasing fluidity of customer schedules. The company was operating in an intensely competitive industry and needed to have quick and accurate information. Their customer schedules were very fluid and they were becoming more so by the week, month, and year as the car makers continued to respond to increasing consumer demands. In 1995, one of Keihin’s pre-merger companies, Indiana Precision Technology (KIPT), realized they were wasting time and duplicating effort by using standalone PCs running a variety of individually procured applications. The rapid growth and associated disjointed applications, combined with more stringent and fluid customer schedules, made an imperative case to change business processes and implement an ERP system with the goal to streamline operations, increase operational responsiveness, and meet customers’ growing demands as effectively as possible.

The Solution

Keihin chose Glovia’s extended ERP solution, GLOVIA G2, to replace their standalone applications with one proven, robust solution and to streamline operations, synchronize cycle times, tighten inventory control, and increase operational responsiveness. Glovia is now installed at Keihin’s three North American facilities. The transition was very smooth and clean. They imported some data from KIPT, then added their own financials and bills of materials. Glovia professional services helped them to get the different modules up and running. The Keihin Corporation has now implemented GLOVIA G2 in its three North American companies and the common software platform simplifies the incorporation of new factories into the manufacturing chain. The product is so rich in features that the company only utilizes those for which there is an immediate business need.

Operational Impact

Keihin’s North American businesses now have accurate companywide visibility into crucial operations, which enable the businesses to run a leaner operation that has eliminated overtime and allows Keihin to meet customer demands and look ahead to global expansion and efficiency.
The IT team has acquired a wealth of Glovia expertise—they understand the architecture and can customize the various modules.
Keihin’s North American operations have become more efficient and responsive by revolving the company’s operations around the needs and operations of their primary customer, Honda.
Keihin uses Glovia’s Supplier and Customer Releasing modules to manage customer requirements and their subsequent distribution to their suppliers.
Keihin employs what they call a “roaming warehouse,” meaning they do not use the typical vertical racking found in most manufacturing plants. Keihin instead uses floor storage, which is easier and faster to access but holds less quantity and thus increases the need for tighter inventory management.

Quantitative Benefit

Prior to implementing GLOVIA G2, Keihin kept roughly four days’ worth of inventory in stock. Today, they have only half a day’s inventory in stock.
Keihin is able to eliminate a great portion of time and space spent storing parts as well as virtually eliminate overtime for employees, who can now finally work a normal day.