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Case Study:Lear Automotive Electronics and Electrical Products (Shanghai) Co., Ltd.

How one automotive electronics company is

improving manufacturing processes by using

Aegis MES software.

TBP’s BackgroundIn the case study that follows, find out how Lear Shanghai’s

deployment of Aegis Manufacturing Execution System (MES)

software has resulted in improved quality and traceability, increased

production control, a significant decrease in rework, and the

successful completion of audits from all of their customers.

Introduction

2 | Case Study: Lear Shanghai

Introduction ........................................................................................................................................... 2

Lear Shanghai’s Background ....................................................................................... 5

The Challenge ..................................................................................................................... 7

The Decision-Making Process ..................................................................................... 9

The Solution ........................................................................................................................11

Faster New Products Introduction (NPI) .................................................................. 11

Improved Management and Control in Production .......................................... 11

Increased Visibility for Manufacturing Data ............................................................ 12

The Results and Benefits ..............................................................................................14

Conclusion ............................................................................................................................16

Contact Us .......................................................................................................................................... 17

3 | Case Study: Lear Shanghai

Table of Contents

Background

In 2008, Lear Automotive Electronics and Electrical Products in Shanghai, China, was looking to eliminate rework and shorten new product introduction (NPI) time to improve their overall manufacturing process. As one of the world’s leading suppliers of automotive seating and electrical distribution systems, their customers’ expectations for product quality and traceability were a key priority.

In the case study that follows, find out how Lear Shanghai’s deployment of Aegis Manufacturing Execution System (MES) software has resulted in an increase in production control, a significant decrease in rework, and the successful completion of quality and traceability audits from all of their customers.

5 | Case Study: Lear Shanghai

Lear Shanghai’s Background “ Today, Lear’s customers

span some of the top automotive

manufacturers in the world,

including BMW, General Motors,

Volkswagen, Geely, and Ford. ”

The Challenge

That is the control aspect of the challenge. Once identified, resulting recalls must be limited only to at-risk products to reduce costs and liability. Perhaps more importantly, gaps in the traceability records cannot exist because they would result in an overly narrow recall, leaving safety risks in the field. At Lear, as a supplier of automotive electrical distribution systems for traditional electrical architectures and emerging high-power and hybrid systems, the manufacturing process is quite complex. The company’s main products include central control boxes, tire pressure monitoring systems, remote keyless entry units, and door sensor systems. Decision makers at the management level must balance their customers’ needs for product

quality, on-time delivery, and traceability while minimizing their own production costs and increasing throughput.

In 2008, Lear Shanghai was a newly formed subsidiary of the global Lear Corporation (NYSE: LEA). As a new facility, it was crucial that decision makers choose an MES software that could be quickly and easily deployed throughout the facility to minimize the time it took to run as a fully functioning operation. In addition to meeting their customers’ specifications, the company also needed to establish one unified internal system to gather real-time data from their factory floor.

7 | Case Study: Lear Shanghai

The Challenge

Automotive-level traceability requires a process control system to ensure safety-related product problems are identified.

Visualized line, process, and quality performance is accessed on Aegis real-time dashboards

throughout the factory.

The Decision-Making Process

A key consideration in Lear Shanghai’s MES vendor selection was the software’s ability to function as a complete out-of-the-box solution requiring a minimum amount of customization. Aegis software’s 95% out-of-the-box configurability required only a small amount of integration to achieve its full potential in operations at Lear. This simplified deployment compared to the other options considered, and it would allow for Lear to achieve a fully functional Shanghai operation in just one month.

Lear’s need for total manufacturing traceability could only be achieved by collecting and linking assembly data back to the computer-aided design (CAD) data and the bill of materials (BOM) data. Since the unique data

model with which Aegis software drives operations is built upon a fundamental understanding of the CAD design of the product being built, all information gathered from the process is intelligently related back to the product design. This enhances traceability and analysis beyond any solution not built on CAD-design awareness.

A third benefit to Lear selecting Aegis’ MES system selection is the ability to support enterprise accounts around the world. Lear Corporation spans over 240 sites in 36 countries around the world, so global reach was an important element. Aegis software’s ability to work in multiple languages has added large-scale adaptability to Lear’s multi-site operations. Lear Corporation currently

has future plans for a global consolidation of platform management, database and report format, data transactions across plants, and global license sharing and transfer.

9 | Case Study: Lear Shanghai

The Decision-Making Process

Aegis software’s 95% out-of-the-box configurability required only a small amount of integration to achieve its full potential.

Total manufacturing traceability is achieved by collecting and linking assembly data back to the computer-aided design (CAD) data and the bill of materials (BOM) data.

The Solution

Faster New Product Introduction (NPI)Aegis software uniquely imports, cleans, and merges BOM data with the product CAD design data. This intelligent data set then enables engineers to compare product versions instantly. They can detect errors and changes that would require hours to do manually. This data is then used to rapidly create machine programs, build visual work instructions for operators automatically, and visually design an entire process flow/routing for production. The visuals designed by engineering are then digitally presented paperlessly in production at the right time, right place, and fully automatically.

Improved Management and Control in Production The facility has achieved process interlocking by leveraging the process flow operators created in the Aegis NPI module. If a process station is skipped, or a defect is found that requires redirection of a product to rework, the Aegis system will force a re-route of the product to the proper location. The CAD-based visual rework stations enable operators to conduct repair and rework rapidly and accurately by visually mapping defects and repairs directly to actual product elements on the screen via the CAD drawings.

11 | Case Study: Lear Shanghai

The Solution

After selecting Aegis as their MES provider, Lear Shanghai has realized the following benefits today:

Line operator using Aegis Interface to conduct Quality Control.

Increased Visibility for Manufacturing Data The Lear Shanghai facility now has more than sixteen real-time analytics dashboards in use on their shop floor and factory offices, each updated immediately as data changes occur. These dashboards allow the engineers to create their own view with simple drag-and-drop functionality that does not require IT support. Employees have instant access to key metrics including line performance, production output, defect information, and first pass yield.

Rody Wang, MES Engineer at Lear Shanghai says, “We have been using the Aegis MES system for the past eight years, and the greatest benefit we have found is an increased efficiency in defect collection. Being able to

quickly locate the defective batch allows us to minimize loss. This has helped us ensure that our customers receive the highest-quality products, and recalls are minimized.”

12 | Case Study: Lear Shanghai

The Solution

Operator views defects and records repair operations on a CAD rendering of the assembly in a panel board.

“ We have been using the Aegis MES system for the past eight years, and the

greatest benefit we have found is an increased efficiency in defect collection.

Being able to quickly locate the defective batch allows us to minimize loss.

This has helped us ensure that our customers receive the highest-quality

products, and recalls are minimized. ”— Rody Wang

MES Engineer at Lear Shanghai

The Results

14 | Case Study: Lear Shanghai

The Results and Benefits

Since implementing Aegis software, some of the measurable improvements seen at Lear Shanghai include the following:

Automotive electronics products manufactured by Lear Shanghai.

• Average new product introduction time has been shortened from 24 hours to 6 hours

• Rework and debug time have been reduced by 50%

• Average assembly rework time has dropped 28%

• OEE and average productivity has increased by 10%

Conclusion

Today, Lear’s customers span some of the top automotive manufacturers in the world, including BMW, General Motors, Volkswagen, Geely, and Ford. As the company continues its mission to “consistently be recognized as the supplier of choice,” product quality and traceability remain key parts of the manufacturing enterprise that drive differentiation and success.

16 | Case Study: Lear Shanghai

Conclusion

Over the past eight years, with the help of the Aegis MES solution, Lear Shanghai has passed final audits from all of its customers.

Key Aegis MES functions that benefit Lear Shanghai most:

• New Production Introduction

• Real Time WIP Tracking

• Material Controls

• Deviation Management

• Full System Box Build & Genealogy

• User-Designed Real-time Dashboards

• User-Designed Reports

• SPC

Lear Shanghai’s achievements since 2008 after implementing

Aegis MES system.

Speed, Control and Visibility for Manufacturing Operations

For more information or to schedule a live demonstration of FactoryLogix.

www.aiscorp.com

Aegis Industrial Software

5 Walnut Grove Drive, Suite 320

Horsham, PA 19044

www.aiscorp.com

Contact UsConclusion