September 2014 MWUG Conference Visteon Maquila Solution QAD 20071SE Visteon at a Glance One of the worlds most recognized automotive suppliers Provides products to virtually every vehicle manufacturer around the world ID: 815252
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Slide1
John Pearson & Satish PachpandeSeptember 2014 MWUG Conference
Visteon Maquila Solution – QAD 2007.1SE
Slide2Visteon at a Glance
One of the world’s most recognized automotive suppliers
Provides products to virtually every vehicle manufacturer around the world
Product portfolio: climate, electronics and interiorsFocused on, and well-positioned in, high-growth automotive thermal management and cockpit electronics markets Sales of $7.4 billion (2013)29,000 employeesFacilities in 32 countries
Page 2
Slide3Visteon’s Core Businesses
Page
3
Halla Visteon Climate Control, majority-owned by Visteon and the world’s second largest global supplier of automotive thermal energy management solutions.Visteon Electronics, a top global cockpit electronics supplier of connectivity, infotainment, driver information and controls products.
2014 Sales$5.1 Billion2014 Sales$3 Billion(1)Thermal ManagementCockpit Electronics
(1) Adjusted to include a full year of Johnson Controls electronics
sales
Heating, ventilation and air conditioning (HVAC)
Compressors
Powertrain cooling
Fluid transport
Electric, hybrid and fuel cell vehicle thermal systems
Audio
and
infotainment
Audio head units
Infotainment
Audio components
Information and controls
Instrument clusters
Displays
Climate controls
Decorative control panels
Slide4A Strong and Growing Customer Base
Page
4
Slide5Global Manufacturing Footprint
5
Gebze
Turkey
DaejeonPyeongtaek,UlsanKorea
Beijing
Changchun
Chengdu
Chongqing
Dalian
Foshan
Jinan
Nanchang
Nanjing
Wuhu
Shanghai
China
Novy Jicin
Hluk
Czech Rep
llava
Slovakia
Alba
Hungary
Van Buren Township
Michigan
Belleville
Canada
Global Technical
Centers:
Daejeon,
Korea
Kerpen, GermanyNovy Jicin, Czech RepublicVan Buren Twp., Mich., U.S.Manufacturing and Engineering LocationsKerpenGermany
ChelmsfordUKPalmela (2)PortugalCharlevilleFranceHiroshimaHofuJapanRayongThailand
BhiwadiPune
ChennaiIndia
Juarez (3)
Mexico
Shorter
Alabama
Atibaia
Brazil
Market
Countries
# of MFG
(%)
EmergingChina
10
South Asia
4
Eastern Europe/Russia
7Mexico/South
America
5Subtotal
26
74%
Togliatti
Russia
35 Manufacturing Facilities and Four Technical Centers
Headquarters: Daejeon, Korea
Slide6Visteon Electronics – Fast Facts
Page
6
~
10,500EMPLOYEES
8
GLOBAL
TECH CENTERS
15
REGIONAL TECH
CENTERS
MANUFACTURING
LOCATIONS
24
3.1B
CONSOLIDATED
SALES
$
20
OPERATING IN
COUNTRIES
BRAZIL, BULGARIA, CHINA, FRANCE, GERMANY, HUNGARY, INDIA, INDONESIA, JAPAN, KOREA, MEXICO, MACEDONIA, PORTUGAL, RUSSIA, SLOVAKIA, SPAIN, THAILAND, TUNISIA, U.S., UK
Slide7Global Footprint
Page
7
Americas
EuropeChina
Asia Pacific
Japan
Technical
Centers
Holland, MI, U.S.
Van Buren Township, U.S.
Cergy, FR
Chelmsford, GB
Karlsruhe,
DE
Sofia, BG
Shanghai *
Chennai, IN
Regional Customer &
Technical Centers
Chihuahua, MX
São Paolo, BR
Binley, GB
Kerpen, DE
Monheim, DE
Palmela, PR
Paris, FR
Sophia
Antipolis, FR
Changchun *Xuzhou *Pune, INSeoul, KRHiroshimaNagoyaYokohama
Manufacturing SitesChihuahua, MX x2Gravatai, BRManaus, BRReynosa, MXBir El Bey, TNLa Ferté Bernard, FRNamestovo, SKPalmela, PRSkopje, MKVladimir, RU *Changchun x2 * Chongqing x3 *Shaoxing *Shanghai x2 *Xuzhou *Bogor, ID *Chennai, INCheonan, KRRayong, TLHiroshimaCorporate HeadquartersGrace Lake Corporate Center, Van Buren Township, Michigan, U.S.* Joint Venture
Slide8QAD at VisteonGlobal launch initiative 2008-2013
Objective: Replace mainframe legacy ERP system inherited from
Ford
“Core Model” definition with regional customizations for legal/statutory/customerExtensive Finance customization (prior to EE rollout)2007.1SE (eB2.1 SP5)Bolt-on applications: Eagle, CyberQueryIntegration middleware, extensive use of Qxtend Inbound & Outbound
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Slide9Visteon Maquiladora ProjectMaquiladora – A Mexican manufacturing operation, where raw material is imported and finished goods are exported without tariffs. This incentivizes the use of local labor in Mexico as an alternative to high cost labor.
Logistics:
Purchased material is ordered and shipped to a border warehouse in Texas (El Paso for Visteon, other cities along the border serve this need)
Purchased material is consolidated and shipped to Mexico manufacturing facilitiesFinished goods are shipped back from Mexico to the US border warehouseUS border warehouse fills customer shipments for non-Mexican customersMexican customers are shipped directly from plant in MexicoPage 9
Slide10Material and Legal Title Flow (Sales to US Customers)
Supplier
Visteon US
Visteon Maquiladora
US Customer
USA – MEXICO BORDER
El Paso Warehouse
El Paso Warehouse
Legal title flow
Material flow
Temporary
Import
Material
Return
Slide11Material and Legal Title Flow (Sales to MX Customers –
Trading Company)
Supplier
Visteon US
Visteon Maquiladora
Visteon Trading
MX Customer
USA – MEXICO BORDER
El Paso Warehouse
El Paso Warehouse
Legal title flow
Material flow
Temporary
Import
Return (Export) & Import
(Buy/Sell across domains)
Slide12Transactional Flow - Sales to US Customers
Backflush and Receive Finished Goods
Shipper Confirm
Receive FG in Laredo
Shipper (US Customer)Shipper Confirm
US Customer
A
Shipper print
Mexican Export
US Import
Transportation Manifest (2TS)
Flat file for 2TS
Shipper print
US Invoice
ASN
Shipper to
El Paso (intransit)
B
End
B
Sale Price, Transfer Price N/A
MEX USA
18.22.13 / BKF
7.9.2*
7.9.5*
5.13.20*
7.9.2
7.9.5
MQ0600
MQ0600
MQ0600
Slide13Mexican Invoice
Transactional Flow - Sales to MX Customers (Trading)
Backflush and Receive Finished Goods
Shipper Confirm
Trading: Purchase Order Maintenance
PO Receipt
Pending Invoice
MX Customer
A
Shipper print
Invoice US-Trading
ASN to Mexican Customer (on behalf of Trading)
Flat file for 2TS
2TS will create all Customs documentation
2TS Will Process all Customs Transactions
Virtual Export for Material return (V5) – 2TS
Virtual Import on Finished Good (V5) – 2TS
Definitive V5 Importation
Assumption
: Transfer Price in 7.9.5 is the same of 5.13.1
Shipper
Sold-to: Customer
Ship-to: Customer
Bill-to: Trading
B
End
B
Transfer Price = Customer Price - Markdown
Sale Price
Transfer Price = Customer Price - Markdown
CUSTOM PROGRAM
USA MEX 18.22.13 / BKF7.9.27.9.5*5.7
5.13.17.13.1Invoice Post7.13.47.13.3*MQ0800MQ0800MQ0800MQ0800MQ0800MQ0800MQ0800
Slide14Customization Technique
Customization is done either using user
i
nterface triggers in a wrapper program or custom tags thereby avoiding making any changes to QAD Applications source codeExample: In cxcustom.i following line is added. &GLOBAL-DEFINE RCSOIS1-P-TAG16 ~{xxcx9577.i~}xxcx9577.i has the user interface trigger to start the Maquila process when Shipper confirm is finished and prompt is returned to Ship From. on entry of frame a do:
if frame-name = "a“ and frame-field = "abs_shipfrom" then /* Start Maquila Process if the invoice is Maquila */ Page 14
Slide15Master Data Synchronization
Discrete
Purchase orders and Sales Order
processing in MX domainsAdvantage Synchronization of master data between domains was kept at minimum. Only Customers, Part master data needed in Mexican domains to be synchronized. Pricing was sent to MX domain during transaction processing itself Result Data elements such as Pricing, scheduled orders were kept in only US COP domain thereby reducing the overhead of keeping it in sync between the domains and databases.
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Slide16Intercompany Trading Control Maintenance
┌──────────────────────────────────────────────────────────────────────────────┐
│ Ship-From: Bill To: Type: │
└──────────────────────────────────────────────────────────────────────────────┘
┌──────────────────────────────────────────────────────────────────────────────┐│ Active: No Exchange Type: ││ ││ Cost Domain From: C/Set From: ││ Cost Domain To: C/Set To: ││ C/Set Markup%: │
│
Internal
Markup%:
External
Markup%: │
│ │
│ 2TS Transmission of PO MBOL: No │
│ │
│ Price Domain To: Discount%: │
│ │
│
Invoice
Format:
Invoice Sequence:
│
│
PO
Currency:
Invoice
Currency: │
│Credit
Memo
Sequence:
│
│ Printer: │
└──────────────────────────────────────────────────────────────────────────────┘Page 16
Slide17PO Master Bill Of Lading
PO
Master BOL
Consolidate the Supplier shipments (ASNs) to transfer across the border into Mexico Screen layout similar to Customer Shipper workbench to make it easy to manage multiple PO shippers into a PO Master BOL.PO Master BOL Receipt receives all child PO ASNs into the system Data sent to 2TS (Customs System)Page 17
Slide18Item Cost Update
A
Custom
process to update the standard cost in the MX Domain every time the standard cost changes in the US domain Material cost = standard cost in Maquila, converted to MXN using budget exchange rate. Developed using Wrapper program that replicated the cost during data entry itself
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Slide19Pricing EnhancementsTrading (T) Price
– Final Sale price – Markup % defined in the control setup
Maquila
(M) Price for Mexican sale- Calculated based on BOM components Pricing Control Table ──────────────────────────────────────────────────────────────────────────────
Price List Type: T T-Price Partner: 1565 LGSHIP-2849A Site: 142A Highland Park, MI Price List: T1000081 Source Price List: C1000266
Source Cost Set: Standard
Source Cost Element:
Material
Markup/Discount%: -
5
──────────────────────────────────────────────────────────────────────────────
Visteon customized all pricing in QAD to create Price Lists by Type with effective dates and reason codes (customer, supplier, intercompany, etc.)
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19
Slide20Pricing Enhancements
Automatic Price Updates
This
is set to run in a batch to update the Inter Company Prices based on Price Control Setting. This will update the Maquila prices based on the Material standard cost + Markup% and Trading Prices with Customer price – Discount%.Markup% for Maquila prices is different for external suppliers and internal suppliers. The supplier for a part is determined by 5.5.1.17 Scheduled Order MRP %. The PO’s which has the highest MRP% defined in 5.5.1.17 will determine the supplier. If supplier type is “INTR” is internal supplier otherwise it is taken as external supplier. Example:
Page 20 Customer
Source
Source
Markup/
Type
ShipFrom
Ship-To
List
Part
Price
List
Price
Discount%
T
1105
T100003
95
C100003
100
-5%
M1105 M100004 35.475PartA107.50%
PartB115.00% PartC127.50% M 1105 M100005
T - Trading M- Maquila
Slide21Pricing Enhancements
Customer Price Maintenance
The Customer Price entry program changed to allow automatically
update the derivative Inter Company Trading transfer prices which are dependent on customer prices according to the setup in Price Control Maintenance. This screen has no change on the user interface. Example: When we update customer price C1000266, Transfer price T1000081 will get updated with defined discount% in the control setup.Page
21
Slide22Scheduled Order Maintenance
The
scheduled order maintenance
change to allow the trading price list “T” and Maquila price list “M” to be added in the customer scheduled order maintenance. The “T” and “M” price lists allowed only if following condition is met. Scheduled order bill-to has an Inter Company Trading Control Maintenance set up. This will ensure that the scheduled order is an inter company trading scheduled order (either Maquila IAP or Trading). Advantage - Minimize data entry errorsPage 22
Slide23Invoice Print
QAD
Application Invoice
print program Application processing (data fetch) is intermingled with printing. Results in longer time to customize if output format needs to be changed Customized New Invoice PrintAs a part of the development, separated the data fetch and Printing Data fetch is actual building of Invoice document data elements into temp table
Printing is exclusively done from the temp tables AdvantagesAllowed the use of the same programs for different invoice formats. Changes for any specific printing done relatively effortlessPage 23
Slide24Invoice Print
Fiscal
Invoice Print
Fiscal Invoices use pre-printed, pre-numbered forms.Since the Mexican government audits the forms, we need to be able to identify form numbers that have been consumed due to printing continued on the next page.Digital invoicing Digital Invoices require third-party software. Invoices are stored in an electronic format and the files transmitted to tax authorities and customers. Digital Invoice print used CyberQuery using XML document. Page 24
Slide252TS (Custom Systems) Interface
Flat
Bill of Material Data extraction to 2TS – Mexican Customs Software
2TS needs the components at last level for top level (Finished) parts. No subassemblies included.Total quantity used within each BOMUnit of measure is necessary in the extract Transfer cost is current material cost of the components Page 25
Slide26Maquila Processing
Shipper
Confirm
is used to trigger Maquila processing based on the control setup Qxtend used to processing remote transactions like discrete PO, PO Receipt, Pending Invoice Maintenance and Invoice Post in Maquila and Trading Domains from US central domain. Error Handling If process didn’t finish completely, users were notified exactly where it was broken due to any reason and users had an option to start re-processing from where it failed. Re-processing was a separate menu option that users can run after resolving issues if any. Page 26
Slide27Maquila Processing
Sale to MX customers By US Trading
Company
Invoice from Visteon US to Visteon TradingPurchase order creation in MX COP Domain. The transfer price is assigned to the order.The Transfer price applied automatically in the Mexican domain for the purchase order; there is no need to have a price list in the MX domain, since the price is applied in a transactional basis during Maquila Processing.Purchase order receipt in MX Local DomainPending Invoice in the MX COP Domain. The Sale price is assigned to the order.Invoice from Visteon Trading to the Mexican customerMexican Invoice PostFlat file for 2TS (Customs system) for the virtual shipper
ASN to Mexican Customer (On behalf of Trading from the US shipment)Page 27
Slide28Maquila Processing
Sale to MX customer By
Maquiladora
When raw material is transformed into finished goods, a standard backflush is processed in the US local domain.For sales to a Mexican customer, Visteon US sell the components material to the Maquiladora and then Maquiladora will sell finished goods directly to the Mexican customer, but the finished goods will be shipped in the QAD system directly from the US domain. When selling to Visteon Maquiladora, a transfer price must be applied. The rule for the transfer price is that the transfer price is equal to the Material portion of the US standard cost + markup%.Invoice from Visteon US to Visteon Maquiladora. (Components exploded)Page
28
Slide29Maquila Processing
Sale to MX customer By
Maquiladora
The custom process is similar to Sale by Trading company except in following areas. Purchase order creation in MX COP Domain for Components instead of Finished Goods. Mexican Fiscal Invoice Print Invoice from Visteon Maquiladora to the Mexican customerVirtual Export for Components Material return (V5) – 2TS Transportation Manifest – 2TSNationalization of Finished GoodsVirtual Import of Finished GoodsDefinitive V5 importation
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Slide30At a Glance
Page
30
Slide31Questions?
Satish
Pachpande: spachpande@gmail.com
John Pearson: jpearso2@visteon.com
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Slide32Page
32
www.visteon.com