MPO Software targets automotive industry.

Press Release Summary:



Offered through enterprise suite of integrated software components, Pelion Automotive MPO synchronizes operations within and outside factory to implement demand-driven manufacturing strategies based on combination of Lean, Six Sigma, and Flow Manufacturing principles, algorithms, and techniques. Complementing existing ERP/MRP and APS systems, suite helps manufacturers visualize, define, design, implement, and sustain manufacturing best practices.



Original Press Release:



Pelion Systems Targets Automotive Industry With Launch of Pelion Automotive MPO



Optimization software drives customer response resulting in successful transformation from push operations to pull operations at tier-one automotive supplier

DETROIT, MI (AutoTech 2005, Booth #814) August 29, 2005 - Pelion Systems, the market leader in Manufacturing Process Optimization (MPO) solutions, today announced the availability of Pelion Automotive MPO, an enterprise application suite designed to enable automotive industry manufacturers to achieve demand-driven, synchronized operations that dramatically improve performance.

Pelion Automotive MPO is based on the company's proven and highly successful Pelion MPO for demand-driven manufacturing, and was defined and implemented in conjunction with a major tier-one automotive supplier. The software was successfully deployed across two large, complex manufacturing facilities to support strategic and tactical decisions while managing daily operations in direct response to customer requirements.

"Based on the success and implementation strategy with one of the largest auto component manufacturers in the world, Pelion Automotive MPO is optimized to meet the unique requirements of demand-pull initiatives across the automotive industry," said Dave Alcala, chairman and CEO of Pelion. "We now have the proven expertise and software tools needed to help auto manufacturers achieve a sustainable competitive market advantage through true demand-driven operations."

Pelion Automotive MPO synchronizes operations within and outside the factory to implement demand-driven manufacturing strategies based on a unique combination of Lean, Six Sigma and Flow Manufacturing principles, algorithms and techniques. The software suite complements existing ERP/MRP and APS systems and helps manufacturers visualize, define, design, implement and sustain manufacturing best practices. With Pelion Automotive MPO, manufacturers can enable and sustain programs to liberate capital, optimize operations and performance, enable rapid response to actual and dynamic customer demand, and increase revenue performance.

"In the automotive environment, Lean is no longer a competitive advantage - it's a competitive must. Those not engaged in Lean will be left behind," said Jamie Flinchbaugh, founder and partner of the Lean Learning Center. "To move forward, you need Lean thinking, skills and tools, and you need to look beyond the traditional toolsets. Enterprise software designed with a Lean mindset is gaining momentum, and Pelion Systems is leading the way in extending technology beyond the tools level to support rapid and sustained enterprise transformation."

Pelion Automotive MPO Offers Proven Results Together with its tier-one automotive client, Pelion has been using its software to leverage benefits from data collected during a variety of Value Stream Mapping initiatives. Using the Pelion Process Optimizer (including VSM), Demand Manager and Factory Manager modules, this data is used to model unique cross functional and inter-departmental operating processes. It creates a consistent view of demand for Lean calculation, kanban sizing and control, daily resource planning for labor and machine resources and "what if" scenario planning and analysis. It also serves as a catalyst for Lean implementation and training efforts resulting in consistent methods, data collection and standardization, and analytic tools.

The successful deployment and implementation of the software has demonstrated significant sustainable cost savings and productivity improvements. The software produced operational improvements to reduce premium freight by enabling on-time shipping performance, decrease unplanned overtime, improve material flow and reduce inventory levels. Some of the benefits realized-to-date includes:

An increase in on-time ship & delivery from 65 percent to greater than 97 percent
A reduction in premium freight by 85 percent
Premium overtime planned and prioritized, resulting in a 75 percent reduction
Build-to-volume increased from 65 percent to more than 98 percent
Build-to-schedule (mix) increased from 51 percent to more than 94 percent
Inventory is controlled and reduced by 27 percent

Pelion Automotive MPO produced a number of indirect benefits, including building the right mix of products at the right time to facilitate accurate delivery, increasing labor efficiencies (unplanned overtime reduction) and increasing operating equipment efficiencies (OEE). These improvements result from the use of Lean Flow level loading and Wait/Work board visual scheduling methods.

Pelion Systems provided the customer with a common approach and software that adapted to a variety of Lean initiatives across all of its departmental value streams. Based on a common Factory KnowledgeBase, the customer was able to improve availability and visibility of demand-pull operations data for a consistent view of demand, day-to-day execution and future "what-if" analysis. In addition, Pelion Automotive MPO is being deployed to support a variety of customer value streams, while consolidating plant information and streamlining production reporting.

About Pelion Automotive MPO
Offered through an enterprise suite of integrated software components, Pelion Automotive MPO is powered by advanced algorithms supplemented with patent pending "drag-and-drop" visual modeling to help manufacturers quickly analyze and design demand-driven network and operating configurations and processes based on each company's unique operating environment. By modeling the unique operating processes of each facility within the network, Pelion implements rapidly without operational disruption or costly software modification across the enterprise supply chain.

Further, it provides ongoing mathematical calculations and techniques to help manufacturers quickly respond to changes and variability in demand, mix or volume while balancing line and load requirements. Pelion Automotive MPO integrates all of the data management tools needed to visualize and immediately analyze and respond to changes in production, supply chain and distribution requirements. This is based on a consistent view of forecasted, scheduled and real-time demand from all planning sources.

The suite consists of modules to support supplier, contract manufacturing, distribution and other external facility linkages. It enables and synchronizes operating processes throughout an enterprise supply chain while integrating to existing enterprise systems and Web-based portal technologies.

About Pelion Systems
Pelion Systems is the market leader in Manufacturing Process Optimization (MPO) software products and services based on Lean, Six Sigma, and Flow Manufacturing principles. With Pelion, leading manufacturers are able to liberate capital, grow profits and sustain breakthrough performance by optimizing and synchronizing operations while extending support to their supply network including suppliers, customers and outsourced service providers in their business operations. Pelion MPO integrates easily with existing ERP, MRP and APS systems and is able to scale from a single facility to an enterprise implementation. Based in Boulder, Colo., Pelion has sales and marketing offices in Chicago, Detroit and Austin. For more information about Pelion's product and service offerings visit www.pelionsystems.com or call 877-669-4324.

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