20090513
20090646
20090645
49001324
Kim Kyung-Jun
Kim Hyun-Shik
Jung Dong-Young
Wang ling-fei
1
CONTENTS
1. Introduction and History
2. Mando’s adoption background of ERP & SCM
3. Extended ERP & SCM
4. Other success Factors
5. Extra
6. Summary
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
Summary
1. Introduction & History
• The foundation of a company, Hyundai
1962
1980
2002
2006
~2011
Yanghang
• Change the name to Mando
• No.1 Digital management competitiveness
• The foundation of a factory in Beijing
• Product parts of an automobile
3
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
2. Mando’s adoption background of ERP
& SCM
2-1
Need of ERP & SCM
HANRAGROUP’s bankruptcy in December 1997 did not c
over the insured affiliates EVENT OF DEFAULT.
The investment consortium of JP Morgan acquired
management right and launched the Mando.
In this environment, they needed innovation for their
future.
2-2
Global management of Mando
2-3
Digital management : competitiveness of the prime cost
2-4
Ranking
Summary
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
Summary
2. Mando’s adoption background of ERP
& SCM
2-1
Need of ERP & SCM
2-2
Global management of Mando
Global Business
Network
Global management
component
(R&D/ Manufacturing/
Global Standard
(Benchmarking of Best
Practice)
Purchase)
Global
Management
(For global
competitiveness)
2-3
Digital management : competitiveness of the prime cost
2-4
Ranking
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
2. Mando’s adoption background of ERP
& SCM
2-1
Need of ERP & SCM
2-2
Global management of Mando
2-3
Digital management : competitiveness of the prime cost
Innovation
Mind
Apathy / Cynicism
Domestic-oriented p
aradigm
Challenge
2-4
Paradigm
Shift
Change & Reform
Pioneers of
(Innovation)
herald of change
Awareness
of issues
Ranking
Summary
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
2. Mando’s adoption background of ERP
& SCM
2-1
Need of ERP & SCM
2-2
Global management of Mando
2-3
Digital management : competitiveness of the prime cost
2-4
Ranking
Rank
Company
No.1
Mobis
No.2
Mando
No.3
Hyunndai Wia
Summary
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
Summary
3.1. Extended ERP
3-1-1
What is the Extended ERP ?
Extended ERP
(Enterprise Resource Planning)
• the whole application of industry itself as well as the corp
orate strategy which improves value of clients and shareho
lders by optimizing and enabling not only intra-firm but al
so intercorporate collaborative processes, management pr
ocesses, and financial processes
3-1-2
Advent of Extended ERP was based on 4 things
3-1-3
Characters
3-1-4
Effect
88
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
Summary
3.1. Extended ERP
3-1-1
What is the Extended ERP ?
3-1-2
Advent of Extended ERP was based on 4 things
Change in business environment
Demand for pliable integration of processes outside a company
Need for cooperative business transaction
Unconsolidation among existing ERP solutions
3-1-3
Characters
3-1-4
Effect
99
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
3.1. Extended ERP
3-1-1
What is the Extended ERP ?
3-1-2
Advent of Extended ERP was based on 4 things
3-1-3
Characters
First
Second
Third
Fourth
Enhance the ability to prepare for e-business by extending the
Support
Integrate
Support
external
to business-transaction-oriented
more
processes
advanced
using
decision-making
web environment
process
range of corporate management
3-1-4
Effect
Summary
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
3.1. Extended ERP
3-1-1
What is the Extended ERP ?
3-1-2
Advent of Extended ERP was based on 4 things
3-1-3
Characters
3-1-4
Effect
•Enhance customer-service
•Increase the Applicability of Information system
•Secure the flexibility of human resource management
•Construct information infrastructure
•Shorten the business cycle
•Standardize the development tool
Summary
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
Summary
3.2. SCM
3-2-1
What is the SCM ?
Acronym of ‘Supply Chain Management’
• maximize the efficiency by integrating and managing the interbranch interface
in perspective of controlling the flow of information, goods, and capital
Components of SCM
• - SCP(Supply Chain Planning) - E-Procurement - E-Logistics - SCNet
3-2-2
SCP, E-Procurement, E-Logistics, SCNet
3-2-3
Effects
3-2-4
Growth
12
12
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
Summary
3.2. SCM
3-2-1
What is the SCM ?
3-2-2
SCP, E-Procurement, E-Logistics, SCNet
SCP - Mando improved the accuracy in production plans via enhanced linkage
E-Procurement - attempt to accomplish a smooth control of supplier pool informati
on and share of international purchase information
E-Logistics - Mando plans to adopt a global integrated distribution system through
systematizing the management
SCNet - could establish local production and sales plans based on information on d
emand acquired from supply chain
3-2-3
Effects
3-2-4
Growth
13
13
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
3.2. SCM
3-2-1
What is the SCM ?
3-2-2
SCP, E-Procurement, E-Logistics, SCNet
3-2-3
Effects
First
Second
Third
Reduction of indirect cost
-Prompt,
-Keep
-Improve
the and
quality
demand
sales
ofreduction
customer
calculate
inthat
balance
service
efficiently
Ablesupply
to accurate
develop
new
products
cantotal
meet
consumers’
Groundbreaking
of
stock
-Traditionally,
Reduce
the
Waiting
time
for
Pay
preferences
upon
purchasing
raw
materials,
numerous
paperwork was involved in
-Efficientmanagement
-Minimize
-Derive
customer,
the
product
store
efficiency
loss
management
with Reasonable
Expand the buying opportunity of High quality
-Minimize
-Improvement
inventorythe running
on Cash out
management
of the hot items
fresh product
-Prompt
-Efficiencies
-Easy
to manage
the of
dispose
Purchase
Human
of checkout
and
resource
Sales with Popularity
Provide convenience for various customer
-Handle
-Reduce
rating of
the
running
product
Pricecost
fluctuations
of the inventory
with dispatch
It
is known
that
SCM can
reduce
supply
chaintime,
period
20 toof25payment,
percentsmaking
and
steps
such as
deciding
supply
price,
delivery
andbyterms
response
timerecognition
by 25 toof50
percents.
As followed
a result, cost
of
inventory
and
inventory
Due
delivery,
to swift
and
checking
of
merchandise,
consumers’
propensity
byto
payment
consume,
in each
it is
possible
step,
which
to
control
can
be
reduced,
thus
lowering
retail
prices
of
commodities
and
raising
developaagreat
wasted
branddeal
which
of time
both and
manufacturers
money. These
andindirect
distributors
costs can
can embrace.
be cut largely
Therefore
by
productin
margin
ofpreviously
a company
at can
the be
same
time.tasks in purchase and sales become
growth
adopting
SCM,
categories
as
and profits
inevitable
manual
expected.
evitable.
3-2-4
Growth
Summary
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
3.2. SCM
3-2-1
What is the SCM ?
3-2-2
SCP, E-Procurement, E-Logistics, SCNet
3-2-3
Effects
3-2-4
Growth
Rate of increase
from 2010 to 2011
Pyeongteak
Wonju
Iksan
37%
49%
34%
Furthermore, total sales of products are
increased 41% in 2011
Summary
Intro
Current
Extended
Other
State
ERP & SCM
Factors
4-1. Other Success Factors
- Domestic Market 4-1-1
Strategy
4P
4-1-2
Digital Management
4-1-3
Local market(Korea)
Extra
Summary
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
Summary
4-1. Other Success Factors
- Domestic Market 4-1-1
Strategy
4-1-2
Digital Management
Reinforcement of among companies’ relationship through establishes SCM, CRM, EP
Maximize the application of business knowledge through vitalization of KMS, BIS
Improvement about security and back-up system for settled information system management
Maximize the system performances and continuous process innovation
4-1-3
Local market(Korea)
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
4-1. Other Success Factors
- Domestic Market 4-1-1
Strategies
4-1-2
Digital Management
4-1-3
Local market(Korea)
• Strength
• Weakness
Has the technology
competitiveness
Knows about consu
ndary and tertiary v
endor to primary ve
mer’s needs
ndor is too strong
Find niche market as
There are too many
the propensity to co
•Opportunity
Dependence of seco
companies in major
nsume going to luxu
market
ry
Cost is not cheap
•
• Threat
Summary
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
Summary
4-2. Other Success Factors
- Localization 4-2-1
Chinese market
City
Capacity
Capital (Millio
n)
Human Resou
Major Custom
Sales(Billion)
rces
ers
• 1st affiliated company in
Suzhou
Site : 90,766m²
Building : 49,89
2m²
$31,9 (Mando :
100%)
462
2002
Beijing
Site : 111,098m²
Building : 43,06
9m²
$28,8 (Mando :
100%)
487
Harbin
Site : 19,133m²
Building : 7,543
m²
$8,5
(Mando : 80% ;
HFMC : 20%)
Tianjin
Site : 44,838m²
Building : 14,97
5m²
$16,6 (Mando :
100%)
2008
147
2010
155
4-2-2
American market
4-2-3
India market
4-2-4
SWOT Analysis
1,820 in 2008
China
1,740 in 2009
KIA, BHMC,
GM, etc.
2,340
in 2008
KIA, BHMC,
• No.1
after
the world
fina
2,141 in 2009
GM, etc.
291 in 2008
375 in 2009
KIA, BHMC,
GM, etc.
ncial crisis
• 6 affiliated company in
China
297 in 2008
285 in 2009
Mando Beijing,
Korea Frange, e
tc.
19
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
Summary
4-2. Other Success Factors
- Localization 4-2-1
Chinese market
4-2-2
American market
• 1st affiliated company in Detroid
1996
named MCA
• MCA established an automotive parts plant in Ala
2003
bama
4-2-3
India market
4-2-4
SWOT Analysis
20
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
Summary
4-2. Other Success Factors
- Localization 4-2-1
Chinese market
4-2-2
American market
4-2-3
India market
- India has recorded GDP of
over 7% annually.
- India’s automotive industry is
expected to be highly developed
with the conclusion of KoreaIndia CEPA.
- Mando
is
operating
MIS
(Mando Steering India) and MIL
(Mando India Limited) in India.
4-2-4
SWOT Analysis
21
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
Summary
4-2. Other Success Factors
- Localization 4-2-1
Chinese market
4-2-2
American market
4-2-3
India market
4-2-4
SWOT Analysis
• Strength
• Weakness
Oversea markets locate
d in the country where
abundant natural resour
ces have High-quality la
Technology devel
opment
bor
Big market in Chi
na
•Opportunity
Too many competito
rs in this field like ¡°
VALEO¡± in France
•
• Threat
22
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
Summary
5. Extra
4-1-1
Porter’s 5-Force Model
Threat
Substitutive
Suppliers
of
Rivalry
Buyers
newProducts
entrants
among existing firms
: Because
There
Since
Mando
1991,
isestablishing
entry
of SCM
Mando
barrier
system,
->
: Mandocould
Although
accumulating
integrated
Mando
has
there
manufacturing
high-quality
achieve
components
are many
the
digital
companies
of
system
information
digital
management
with
management
making
of
cooperation
customer’s
car’s
what
is achieved
components,
slowly.
companies
demand.
That
Sothrough
recognition
is,
Mando
few
if Mando
SCM.
canby
others.up
companies
gives
Through
know
customer’s
Inthis
this,
this
established
digital
Mando
reason,
Mando
ERP.
management,
could
responses
So,
reduce
has
new
easily
superiority
companies
about
then
andMando
in
digital
are
will
10billion
customer
hard
be management
just
to
won
bargaining
company
jump
per over
year.
like
industry
Mando’s
new
power
entrants.
becomes
management.
strong.
4-1-2
VC(Value Chain)
23
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
Summary
5. Extra
4-1-1
Porter’s 5-Force Model
4-1-2
VC(Value Chain)
Operations
: Mando produces
products through typical
Technological
Development
4 head
of operations
located at Seoul,
: And
R&D they
center
procure
which product
is
located
to in
domestic
Yong-in
is
Pyeongtaek,
Wonju and
always research
companies
such on
as Hyundai
enhanced
motors,
automobile
Kia
Iksan. Each
headquarters
part. By GM
motors,
this Daewoo
efforts, take
Mando
and care
foreign
developed
ABS
of specialized
equipment like
companies
fourth
GM,
time
ford.
in the world.
products.
Through this structure, Mando can get margin and Mando’s
VC will be enhanced by digital management system.
24
Intro
Current
Extended
Other
State
ERP & SCM
Factors
Extra
Summary
6. Summary
Mando is largest company in making part of automobile
Good strategies are used in their company.
Open the door to the world.
We have learnt to analyse a company in using of MIS course.
25
Q&A
Thank you
for your attention!
26