ERP Adaptations in Automotive Sector

Adaptation Stages of ERP Projects start with the standard processes in the company. These are Sales, Purchasing, Planning & Production, Inventory, Quality Finance & Accounting, Cost and Human Resource operations. In support of these processes, secondary processes are put into practice such as CRM, Document Management, Maintenance & Service, and Balanced Scorecards. All these processes are generally independent of the sector and may include some practices specific to the sector. 

The Automotive Sector accommodates various practices of such kind in ERP Adaptations. The underlying reason is that the world giants like Ford, Renault, Toyota, Honda, Mercedes, Volvo, etc. have many suppliers and race against time in the supply of parts. Thus, these companies want to receive the parts they require in a timely and complete in such quality they desire. For this reason, they place Purchasing Orders to suppliers on a monthly or weekly basis subject to "Main Production Schedules (MPS)". As these plans are revised in line with the primary manufacturer's sales figures, Purchasing Orders placed to the by-industry are continually subject to revision. In this sense, instead of opening or updating orders manually, using Electronic Data Interchange (EDI) assures a much faster and much accurate update and monitoring of data. 

Below are examples of some practices specific to Automotive By-industry used during ERP Project Adaptations:


  • Customer orders, lead times and intraday changes are received in via EDI. In particular, it is important to follow the balances of some customers (amount remaining from the previous despatch note, faulty shipment... etc.).
  • Despatch notes issued are delivered to the customer electronically via EDI before the vehicle departs (ASN). Invoices issued are, too, delivered to the customer electronically via EDI after the issuance.
  • In the Automotive Industry, "Sales Prices" specific to by-industries are formed at the end of the respective month; therefore, invoices issued are drawn up over the prices of the previous month, and at the end of the month, it becomes necessary to re-price all invoices, which means 40-50 thousand items in case of heavy productions. Price differences are formed automatically for all these invoicing transactions (refunds, price differences)
  • With reference to the above article, because the by-industry determines sales prices lately, it is likely that prices of the by-industry suppliers may be specified lately; this is the case for most by-industries. Therefore, the prices on purchasing invoices are automatically revised at the end of the month.
  • Monitoring the production leg of modified orders, creating supplier programs are very simple thanks to the control screens developed, and from a single screen, all materials can be evaluated and the schedules of the next six months created.
  • Capacity estimates can be done with Manufacturing Simulation Applications.
  • Through projecting, a detailed monitoring can be conducted in relation to the respective project (materials, moulds related to the project, expenditures, income tracking... etc.)
  • Indicators which customers require monthly from suppliers are calculated via separate applications (QOS)
  • Corrective Action Follow-up (CAF) and Preventive Action Follow-up (PAM) are managed from the system.
  • Actions are taken with respect to Design and Process Failure Mode Effects Analyses (DFMEA and PFMEA), and review dates and documents thereof are monitored from the system.
  • Quality Management System and all other documents are easily followed up and managed thanks to the Document System.
  • Material tractability is managed as required by the automotive giant.