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Auto & Motorcycle Parts Solution

Industry Background

The auto & motorcycle parts industry develops accompanying with the auto & motorcycle industry in China. As new features of group orientation, high-tech, systematic supply and global business rising in the international auto &motorcycle parts enterprises, the domestic auto & motorcycle parts enterprises show the consequent development trend in the face of challenges and opportunities: setting up modular production and supply systems; gradually bringing up self-development capabilities to reinforce technical innovation.

In addition, the number of auto & motorcycle parts enterprises is starting to decrease after separation, reconstruction and incorporation. These enterprises strengthen their major businesses to establish their competitive edge. Taking advantages of low costs, these enterprises strive to enter the global purchase system of machinery factories with features of exquisite & prompt production, digital factory and ERP & network management. The ERP application degree is improving, and the enterprise is focusing on whole-process cooperation and e-commerce.

Industry Characteristics

Obvious enterprise category

Where “Machine Attachment” is integrated with the machinery factory, non-independent accounting and complement in factory by priority; “Government Assistance” refers to local allocation assistance, mandatory complement of the local machinery factory and major type; “Market Independence” refers to private enterprise, concentrated on the spare parts market, small scale, low technical level at initial step but developing fast; “Foreign Investment” has advanced technologies and management, international and domestic markets, and enjoys preferential policies in China.

Various sales types

Enterprises in different types have different sales modes. The complement enterprise uses the sales contract, sales plan and purchase consignment modes. The sales settlement quantity is the ordinal supply quantity to the machinery factory. The part enterprise delivers goods based on sales order and applies different prices and collection modes in accordance with customer relation, picking or order quantity.

Complicated production plan

The enterprise providing complement parts for the machinery factory shall synchronize the production plan of the machinery factory, decomposes the production plan to branch factories, workshops and general assembly workshop to build a hierarchical plan system, and makes purchase plan based on annual/monthly plan, especially for bulk raw materials (such as steel plates and import raw materials). The enterprise concentrating on the after-sales market makes purchase plan of bulk raw materials according to forecast and organize production based on market forecast or sales order.

Diverse product types

Considering product serialization, generalization and standardization, these enterprises provide several kinds of BOM configurations, quickly work out a design according to requirements of the machinery factory, process product design documents (such as material code, product BOM and routing) and then provide every link of the business at the product design & development phase. In addition, they change product design and upgrade product as required by the machinery factory.

Strict logistics management

The machinery factory generally prefers “Just In Time (JIT)” supply. It sends an order to the parts enterprise according to the assembly plan of production line and the parts enterprise usually sets up a production line or a remote warehouse near the general assembly line of the machinery factory to ensure timely delivery.

Precise production management

Drive the exquisite production system of accounting with the customer and eliminate waste in any form to satisfy customer requirements and to achieve zero stock, the enterprise target. In addition, the compact production process applies to different manufacturing requirements with the flexible production technologies to alleviate production fluctuation due to order change. Use the small-lot and versatile production technology and ordinal production technology for purchase to ensure raw material supply, balance operation process and avoid overstock of WIPs. The whole process is under on-site management for supervision of production input/output and resource consumption.


Kingdee K/3 brings up a solution optimal for the auto & motorcycle parts industry ERP degree with its advanced technologies and best application practices. This solution is developed on the basis of advanced international auto parts enterprise management practices and experiences from a large number of projects in conjunction with the current management status of domestic auto parts enterprises. It optimizes business process and project implementation method based on the auto & motorcycle industry features and helps domestic auto parts enterprises realize management innovation and drastic evolution.

With its advanced technical architecture, multifunctional MPS/MRP, customized business process, advanced cost management (operation cost and actual cost) and personalized BOS platform, the Auto & Motorcycle Parts Solution provides thorough guarantee for the auto & motorcycle parts industry.

Sales Management

Simulate cost analysis and guide quotation; provide delivery date and ATP query, prompt customer commitment, and promote customer satisfaction; apply installment collection control through the contract collection plan and performance report to speed up reflow of enterprise funds.

Support various sales modes for parts enterprises in different types:

  • Sales quotation, sales contract and sales order enable the machinery factory to make sales agreement based on contract and make sales delivery based on demand plan, realize order-based delivery for small order or after-sales market, provide business support for various market activities of the enterprise and facilitate enterprise management tracing process.
  • Cash sales, account sales and consignment apply to order stock-out and ordinal supply as well as accounting & settlement based on supply quantity required by the machinery factory.

Support multi-directional customer credit management:

  • Realize overall control of customer funds and credit.
  • Mitigate fund risks in conjunction with sales and delivery control.

Planning Management

MPS/MRP operation and capability plan resolves the problems of rough plan and poor execution. It optimizes the production plan, outsourcing plan and purchase plan, ensures a timely and proper production and purchase, and improves the plan execution ratio by using the throughput effectively.

The MPS/MRP can calculate based on order and work out supply/demand quantities of the enterprise based on forecast.

The user can set the parameters according to their own service logic. The operation scheme is very flexible. It can meet the requirements of different enterprises in order production, order design, order assembly and make-to-stock product.

The plan has taken many order factors, secure inventory, purchase or production period, max purchase quantity, all inventory, WIP and on-way status into account through scientific plan policies, making its demand time and quantity more accurate and with higher executable degree.

Product Development Management
Provide personalized product configuration:

  • Determine configuration BOM among several product configurations, alleviating BOM maintenance workload for the engineering department.
  • Choose configuration BOM according to customer requirements for product during the sales procedure and calculate demands based on configuration BOM.

Purchase Management

Provide management of prices quoted by vendors to strictly control supply prices and reduce purchase costs; make purchase plan through the plan system and purchase based on the purchase plan, strictly control supply quantities through material purchase receipt upper/lower limit to decrease inventory; strictly control vendors and supply quality through vendor estimation and purchase inspection.

Cost Management

Costing automatically collects warehouse, production and financial data and calculates cost of parts and every type of work, product and workshop to refine management and help the enterprise reduce costs.

Product Data Management

Meet product standardization, serialization and generalization requirements by multi-configuration and configuration rules, and improve working efficiency; By engineering changing control, you can keep accuracy and retrospection of engineering data, strengthen enterprise management base; integrate PDM and K/3 data, open up computer-aided design, computer-aided process and computer-aided management, realize data sharing among systems, improve system efficiency and prompt responds to customer demands.

  • PDM interface integration, improve efficiency and accuracy of data maintenance.

Workshop Production Management

Realize limited issuing/picking control through issue simulation, material staging and operation management, thus to control production progress, eliminate postponed production, and reduce material consumption and production cost.

Refined on-site management:

  • Customized workshop process, subject to enterprise requirements.
  • Workshop Sl. No. management, operation report & lot report, on-site dispatch list (part list) management mode and effective list entry mode.

Integration of on-site process data and Time/Piece work wage, fast and accurately working out Time/Piece work wage.


Heading: Solutions

Sub-heading: Industry Solutions

Sub-sub heading: Manufacturing

Page: Product Lifecycle Management Solution

The Innovation Challenge

Manufacturing enterprises in China are growing and changing faster than ever before. With transformation from manufacturing to innovation, product research and development is making a greater contribution to commercial success by designing and producing better products in line with customer demand. Enterprises that once manufactured to order are now being “pulled” closer to the customer. As a result, enterprises have gained valuable insight to innovate. However, these enterprises have increasingly struggled to harness the information that this innovation has required. The demand for closer, quicker communication is difficult to master, and becomes harder with increases in information, shorter “go to market” deadlines, and an increase in partners.


In traditional manufacturing environments, it was difficult for companies to collaborate across departmental lines and share product information efficiently. For example, corrections to a minor design error, if communicated throughout the organization early might affect contract delivery. However, if not communicated effectively, this error might cause severe manufacturing problems, delivery delay and great financial losses. While markets have demanded greater responsiveness, it has been hard to control R&D projects; and often, ineffective controls have led to project delays or failure. This is why many successful organizations are turning to Product Lifecycle Management solutions, such as K/3 PLM, to “bind together” their R&D efforts. K/3 PLM can assist your organization by streamlining how your organization develops products, structures communication processes and collaborates in critical design activities.


Addressing the Innovation Challenge

Over the last two decades through its portfolio of ERP products, Kingdee has assisted manufacturingcompanies in handling rapid growth and managing their supply chain efficiently and with reducedeffort. Correspondingly, Kingdee has accumulated vital expertise related to the local product lifecycle management. Resulting from this experience, Kingdee has developed K/3 PLM to assistenterprises to function efficiently and accurately by addressing manufacturing requirements through:


Powerful Functionality

l   Structures improves project team member collaboration

l   Encourages compliance with project schedule and quality requirements

l   Improves electronic data collection, archiving, query, and exchange

l   Integrates 2-dimension/3-dimension CADs/EDAs

l   Extracts BOM details from the drawing automaticallyHandles one material with multiple codes effectively and efficiently

l   Manages change workflows and versions and ensures synchronizationof associated data

Extraordinary Features

l   Outstanding project management while handling Product Lifecycle

l   Integrates collaborative R&D business workflow with marketing,purchase, manufacturing, and maintenance

l   B/S application architecture supports inter-region development collaboration

l   Constraint configuration management supports modular design

l   Integrates leading management solutions: ISO, IPD, TS16949, baselinemanagement, and requirement management

l   Integrated with ERP at the maximum depth

How K/3 PLM Can Address R&D Collaboration Issues?

Increase Personnel Productivity:Within an organization it is often difficult toassess performance of the R&D personnel accurately. Not only is it difficult, it canalso alienate team members by applying impersonal indexes, lower team motivationand reduce talent cultivation. K/3 PLM supports users to be more responsive bystrengthening your organizations collaboration in and across departments.

Streamline R&D Information Management:When striving to meet corporatedeadlines, engineers and managers often spend needless time searching through ahuge pile of redundant information that could be better applied to designing theproduct or planning production requirements. On the other hand, when modifyingproducts, personnel frequently fail to propagate documentation changes that resultin rework and losses. K/3 PLM supply workflow automation is specifically tailoredfor R&D communities to keep your people productive and development flowing.

Harmonize R&D Information Standards:Multiple parties often representdocuments and materials in different ways. Yet those differences can createconfusion when conflicting material management information is left unaddressed. Iferrors in documentation occur during the product design, these issues can be carriedthroughoutthe product lifecycle incurring a snowballing effect. For example,errors in BOM preparation translate into real losses in time and in capital that implies

further investment of time and effort to correct these. K/3 PLM coordinates andharmonizes data so your organization can focus on value-added work.

Extend and Coordinate Interdepartmental R&D Communication:Whensystems and departments are divided, experience does not accumulate, solutionscannot be effectively optimized and workflows remain disconnected. K/3 PLMcaptures, structures, manages and propagates R&D based experience, so yourbusiness can learn more efficiently.

Document Control and Security:It is not easy to prevent loss or illegaltampering of electronic data. Even though a solution is ISO certified, it cannot guaranteecomplete security. If modular products can be developed, the enterprise canbetter rein the market in various aspects such as cost, quality, and delivery period.K/3 PLM provides a repository for managing your sensitive R&D data.

Main Functionality

R&D Project Management

K/3 PLM supports organization-wide R&D workflow. The system encourages result-orientedbehavior through resource management issues related to manpower,material, and time. For each task, task owners are prompted to work according toa schedule, and task output is delivered to the appropriate approval workflow. Inaddition, K/3 PLM equips managers with tools to monitor project progress, activatealarms and notices against a schedule, and route issues through escalation andexception handling to management for prompt resolution. K/3 PLM assists R&Dorganization to compress delays and reduce response time according to theapplied business rules.

Workflow Management and Control

K/3 PLM offers comprehensive, flexible workflow throughout the organizationwhile maintaining data integrity. During R&D projects, personnel often submitengineering documents for review, comments or approval. K/3 PLM allowsworkflow routing throughout the organization through predefined or ad-hocreview chains. Electronic comments, signatures, and approvals are fullymaintained and archived to record development history. This ensures that onlyrelevant, valid versions of engineering documents are propagated throughout theworkflow. As a result, only those “up to date” documents are presented as activedocuments and only those are released to the business for action.

Diagram and Document Management

K/3 PLM enables efficient management of engineering diagrams and documents.Enterprises often struggle with the issues of version control when sharing complexdocuments, such as electronic drawings, technical specification, and changecontrols. K/3 PLM ensures the data integrity of documents across departmentsthroughout the whole product lifecycle by maintaining status for documents. Activitieslike document creation, approval, archiving and publishing are all recorded andmanaged through version control. As a result, R&D personnel can be confident thatdiagrams and drawings are current and management can be assured that proper controlsand release mechanisms are protecting corporate information based assets.

Form Data Management

K/3 PLM offers a unique form management function to manage structured data.Its uniqueness lies in that the form format can be customized and saved astemplate while data inputs are automatically stored in a database in a structuredway. Multiple levels of permission can be set for different data units in a singleform, and approval workflow can be embedded with the e-forms. In this way,departments like market research, R&D and finance could collaborate in datasharing in a more organized way than using traditional forms.

Engineering Design Tools Integration

K/3 PLM allows tight integration with engineering design tools that is needed inthe R&D process. The K/3 PLM system offers interfaces for common packages tosupporttwo-dimension/three-dimension mechanical design CAD, circuit designEDA, analysis software CAE, and processing software CAM. Engineers can searchand invoke drawings in the K/3 PLM library directly through the interface of thedesign system. For example: when a drawing is imported, the system automaticallyextracts the new material information (such as the material name, No., specification,composition, installation location, and quantity) from the drawing, and generatesa BOM and a material record. Subsequently, when an engineer edits a drawing,the system automatically assesses the affected drawing (and the related materialrecord) in the PLM library for modifications. When modifications are identified, K/3PLM edits the drawing and material record synchronously to ensure data consistency.

Engineering Master Data Association Management

K/3 PLM assists organization to better manage associations between differentengineering design data. The K/3 PLM system equips users with better control ofengineering documents by implementing and managing material-centered dataassociations. For example, by managing associations for drawings, processes,specifications and other documents such as tooling molds, K/3 PLM can establishmaterial BOMs for products and can easily render product holograms so engineerscan rapidly, conveniently and accurately identify required product data.

Product Structure Management

K/3 PLM rapidly develops product structures through importing engineeringdiagram data. K/3 PLM can extract material and BOM information directly fromthe mechanical CAD drawings and electronic EDA drawings to generate theproduct structure rapidly. In addition, application views of a BOM can begenerated automatically based on requirements of different users. These ”userspecific” details can be generated to fulfill a wide variety of uses such as: productsummary details, BOM hierarchy, purchase details, subcontract details, orprocessing details. For example, when editing a BOM manually, an engineer canuse the query search tool to locate a material (component) in the PLM librarydirectly on the CAD interface. When a material is borrowed from one system toanother, the full set of data related to it will be borrowed together.

Development Process Management

K/3 PLM assists with process design. Process developers can use K/3 PLM to designthe manufacturing process by referencing the product data model (such as thedesign BOM and drawing) designed by the product development department.With this reference, the process data is automatically associated with the productdesign BOM. K/3 PLM can also handle process information and process cards on therouting. In addition, K/3 PLM generates the manufacturing BOM that meets theproduction management requirements. Once validated, K/3 PLM can reduce manualentry requirements by transferring the process information to an integrated ERP system.

Quotation Management

K/3 PLM seamlessly supports quotation management under the supervision ofpredefined organizational workflow. The quotation management module can setup a quotation BOM rapidly based on the customer’s requirement. For existingmaterials, K/3 PLM automatically retrieves relevant product cost data from theintegrated ERP system. Next, the engineer inputs product and cost data for newmaterials and submits these for workflow approval. K/3 PLM supports developing

customized formulas to assist with calculating costs for custom materials. Formuladevelopment may account for issues such as: unit price, usage, and shrinkage ofmaterial. K/3 PLM quotation management is also able to account for costs such asdie, transportation and labor expenses.

Product Code Management

K/3 PLM encourages product data integrity and consistency through product codecontrol. K/3 PLM can manage the creation of materials to implement effectivecontrol over one material with multiple codes while preserving material creationrights and approval workflow. When a material is represented in differentdepartments in different product codes, K/3 PLM can effectively manage

workflow and material product properties. In addition, K/3 PLM can enforce thestandardization of input properties through values maintained in the datadictionary, thus preventing different operators from entering contradictoryproperty descriptions for the same material.

Product Constraint Configuration Management

K/3 PLM assists to manage product configuration constraints. K/3 PLM supportsmanagement on the complicated constraint such as 1) products and parts, 2) partswith mutual dependence, 3) parts with mutual exclusion, 4) custom formulations, and5) relations between constraints and custom features. Based on these configurationrules, engineers can set up product constraint configurations to better support businessrepresentative quick configure solutions to meet customer’s requirement. As a result,the enterprise can well manage and develop platform-based and modular product seriesthrough this platform, and rapidly configure and deliver customized products.

Baseline Management

K/3 PLM offers baseline management for complex R&D projects. K/3 PLM allowsviewing phase results of a project at each milestone during project development.This provides users with the opportunity to obtain “point-to-point” status of theprojects for better visibility; and to control each object in a project. Subsequently,K/3 PLM records the project status (project baseline) or product developmentstatus (product baseline). In the event that R&D progress deviates from a requirement,the engineer can return to the baseline point and proceed with the R&D processeasily, thus reducing error correction costs and saving considerable time. In addition,a new project can use a baseline point as the starting point of project development.This significantly benefits the development cycle, development quality, anddevelopment cost. Finally, K/3 PLM enables better management decision makingby allowing managers analyze, report and compare different baselines.

Design Change and Version Management

With K/3 PLM, version management can be implemented to ensure tight controlof design changes. For example, changes to data, such as drawings and BOMs,are controlled according to the engineering design change workflow. The K/3PLM system automatically evaluates the affected object based on the requestedchange and submits this change to the appropriate approval control.Subsequently, duplicate documents can be used to track andrecord the evolution history of every change for the drawing in working statuswhen necessary.K/3 PLM is able to manage synchronous changes and it supports major and minorversion management. After the version of the drawing is confirmed, the evolutionprocess of the drawing can be tracked. For example, each phase can be trackedthrough major version management and each drawing change can be trackedthrough minor version management. K/3 PLM also supports management of dieversion upgrades, old material processing mode, release of new version data, andrecycling of old version data.

Data Security Management

The K/3 PLM security structure ensures that only users with the appropriatepermissions can read, write, view or modify data. All modifications are record andcan be accessed during auditing. The entire product data in the K/3 PLM system ismanaged, controlled, and backed up in a centralized way. Therefore, data will notbe lost due to equipment failure or employee resignation.

Requirement Management

K/3 PLM supports effective requirement management. K/3 PLM can organizerecords, analyzes, and tracks market/customer requirements to balancedevelopment with regulation, quality, cost, and capacity. In addition, K/3 PLMassists in assessing the degree to which an R&D product can adapt at variousnodal stages in the product lifecycle to meet market requirements.

Issue Management

Issue management ensures timely recording, delegation and management ofidentified issues. K/3 PLM supports issues assignment and provides anorganization with the automation to record, track, and query issues. The systemcreates an issue library for the user to query issues and solutions by category. Theissue library can assist an organization to draw lessons through issuemanagement, so it can complete R&D activities more quickly with fewer issues.

ERP Integration

K/3 PLM can easily integrate with a number of ERP solutions. K/3 PLM exposesapplication interfaces to provide tight integration with popular ERP solutions suchas SAP, ORACLE, QAD, DigiWin ERP, UFIDA ERP, Taiwan Attention ERP, and TaiwanDSC ERP. K/3 PLM is also seamlessly integrated with Kingdee’s K/3 ERP and EAS.


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