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VBG

Moving up from IFS Applications 99 to IFS Applications 2003 has given VBG’s subsidiary, VBG Produkter AB, the technology it needed to meet the quality requirements of the very demanding automotive industry. Advanced Kanban capabilities, more efficient order and inventory management and more flexible costing will also help VBG Produkter live up to quality and safety commitments.

Coping with change and growth In the mid-1990s, VBG Produkter AB was using two different systems to run its business—one for manufacturing and one for its sales company, which was then a separate entity. However, changes in the company brought about the need for new IT solutions. Two major issues were the desire to automate order management and to be able to provide more long-term forecasts. The unit in Sweden wanted Windows-based, integrated business applications that were based on standards. It also wanted a component-based solution that would facilitate implementation and allow flexibility.

IFS had a sound automotive background

A number of ERP vendors were checked before  IFS Applications 99 was selected. Stefan Josefsson, IT manager in Sweden, explains why, “IFS offered us the most complete solution to our needs. It was a well-established vendor and had a sound automotive background, having already provided business software to Sweden’s leading automotive manufacturer.” With the potential problems of the turn of the millennium in the offing, the fact that IFS also was the supplier was a crucial factor in its favor. “IFS was able to answer all our questions directly and gave us clear information throughout,” continues Stefan Josefsson. Satisfaction with IFS Applications and IFS’ straight-talking approach were also among the reasons why VBG Produkter AB decided to upgrade from IFS Applications 99 to IFS Applications 2003. “IFS listened to our needs and ideas, and incorporated them into its standard offering.”

Smooth implementation and upgrade

After a successful pre-implementation phase, the implementation proper took just six months and included components for financials, manufacturing and distribution. “Following IFS’ advice, we had allocated the right resources internally. This and the support we got from IFS made for a smooth implementation,” says Stefan Josefsson. “Likewise, the upgrade to IFS Applications 2003 has been relatively easy. With IFS you get more than merely products and services. Our relationship is more like a partnership,” he adds.

Enhanced quality management

Quality assurance is a critical issue for  the VBG Group. With IFS Applications 2003, the company now has the technology platform it requires to meet the stringent standards set by the automotive industry. Quality is so much more than mere product quality. It also includes management, processes, and employee training—in fact, all aspects of the company’s operations. Christina Holgerson, quality manager in Sweden, comments, “The quality management components in IFS Applications will make it easier for us to meet all our quality requirements, including industry standards such as ISO/TS 16949. For example, with IFS Business Modeler™ we can map flows to define and present quality requirements and compliance.” VBG in Sweden has also improved its manufacturing and procurement processes, with traceability, follow-up and evaluating now much easier. IFS Applications also adds control plan, SPC and FMEA capabilities.

Another benefit is the advanced Kanban capabilities offered by IFS Applications 2003, which enable the Swedish plant to better control and optimize production. The Kanban solution gives a better overview of production history and facilitates forecasting. It also makes it easier to introduce other functionality such as configure-to-order manufacturing (CTO) and EDI.
An increasing number of customers demand automatic order management. EDI provides the company with direct links to customers and suppliers and increases the efficiency of the order management and supplier schedule processes. In combination with CTO, efficient order management becomes doubly important. The VBG Group, like IFS, offers a standards-based solution that affords customers the opportunity to choose the components that best suit their requirements. The CTO functionality in IFS Applications 2003 offers customers greater flexibility and freedom of choice.

“The costing component in IFS Applications also adds to our flexibility. In fact, we can use it to shape our costing model the way we want it,” adds Christina Holgerson, who continues, “With the same system at our Swedish sites and in Denmark, we are more streamlined today, and inventory management is much better. IFS Applications is continuously being developed and improved so we know we have a system that grows and changes to meet the demands of our industry. We have plans, for example, to introduce the barcode scanning functionality in IFS Applications for more secure and efficient reporting.”

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