Thai Summit Auto Parts Industry CO.,LTD. - Intermec

Case study<br />

<strong>Thai</strong> <strong>Summit</strong><br />

<strong>Auto</strong> <strong>Parts</strong><br />

<strong>Industry</strong> <strong>CO</strong>.,<strong>LTD</strong>.<br />

At a glance<br />

<strong>Industry</strong>: <strong>Auto</strong>mobile/parts manufacturing<br />

Market:<br />

Application: Finished Goods Barcode<br />

and Raw Material Barcode<br />

<strong>Thai</strong> <strong>Summit</strong> <strong>Auto</strong> <strong>Parts</strong> <strong>Industry</strong><br />

Co., Ltd. and group of companies are<br />

one of the major part manufacturers<br />

in <strong>Thai</strong>land for the automotive,<br />

motorcycle, electrical appliance and<br />

agricultural engine industries.<br />

With the leadership of President Pattana<br />

Juangroongruangkit, <strong>Thai</strong> <strong>Summit</strong> Group<br />

grew continuously since its establishment<br />

on March 16, 1977. Today, the group<br />

comprises of 30 companies in parts<br />

manufacturing, including press parts,<br />

assembly parts, plastic injection parts,<br />

plastic blow molding parts, aluminum diecasting,<br />

wiring harness, chassis, stamping<br />

dies, assembly jigs and tooling. The group<br />

has production facilities in Samutprakarn,<br />

Laem Chabang, Rayong, Ayudhya,<br />

Nakornnayok and Malaysia. Total sales of<br />

the group exceeds 20,000 Million Baht for<br />

2005. <strong>Thai</strong> <strong>Summit</strong> <strong>Auto</strong> <strong>Parts</strong> <strong>Industry</strong> has<br />

sales of 6,000 Million baht for 2005 with a<br />

current staff strength of 4,000 employees.<br />

Through partnership with its foreign<br />

partners, <strong>Thai</strong> <strong>Summit</strong> Group is able to<br />

increase production capacity to the fullest<br />

as well as achieving higher quality for<br />

its new parts through new technology.<br />

Through technical assistance agreements<br />

with its foreign partners, the <strong>Thai</strong> <strong>Summit</strong><br />

Group has gained technical knowledge<br />

expertise, which in turn benefited the<br />

Group in forging many joint-venture<br />

businesses to further meet the demands<br />

of the market, as well as fulfilling<br />

customer satisfaction and requirements.<br />

With its rapidly expanding business, the<br />

<strong>Thai</strong> <strong>Summit</strong> Group needed an impeccable<br />

tracking system to manage inventory and<br />

raw materials with complete visibility.<br />

After comprehensive research and<br />

evaluation, the Group determined that<br />

a new barcode system would be ideal in<br />

helping to trace, track and collect data from<br />

the large quantities of finished goods and<br />

raw materials from its suppliers daily.<br />

Prior to implementing the <strong>Intermec</strong> barcode<br />

system, <strong>Thai</strong> <strong>Summit</strong> Group relied on<br />

its employees to track and collect data<br />

manually, as high as 95% of the work.<br />

This was due in part to the Group having<br />

used another competing barcode system<br />

which met with much resistance from<br />

the employees, resulting in its disuse.<br />

However, after many rounds of reviews<br />

with <strong>Intermec</strong> barcode system, <strong>Thai</strong><br />

<strong>Summit</strong> Group felt confident enough to<br />

pilot the <strong>Intermec</strong> barcode system. The trial<br />

has turned out to be a wonderful experience<br />

for the company and the employees who<br />

put the <strong>Intermec</strong> barcode system through<br />

its paces on the shop floor. The <strong>Intermec</strong><br />

barcode system has rectified many shop<br />

floor problems (e.g. mistakes when entering<br />

data manually) and most importantly,<br />

helped employees increase productivity and<br />

in turn, improved the speed of operations.

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The Group developed and implemented<br />

two <strong>Intermec</strong> barcode projects, namely<br />

the Finished Goods Barcode project<br />

and the Raw Material Barcode project.<br />

Both projects utilize the <strong>Intermec</strong><br />

Mobile Computer model 730 and<br />

<strong>Intermec</strong> Scanner model VT1800.<br />

The barcode projects help keep track of<br />

every transaction in the factory involving<br />

the flow of raw materials which can be<br />

divided into three parts, including Input<br />

Process, Work-in Process, and Output<br />

Process. Currently, the Finished Goods<br />

Barcode project which keeps track of the<br />

Output Process for finished products<br />

and the Raw Material Barcode project<br />

which keeps track of the Input Process<br />

for incoming raw materials from over 300<br />

suppliers, have both been successfully<br />

implemented. The Work-in Process<br />

project is still in the phase of process<br />

design and defining controlling points.<br />

The Finished Goods Barcode project<br />

was the first phase of development and<br />

implementation for the <strong>Intermec</strong> Barcode<br />

System because the value of the Output<br />

Process or Finished Goods is ranked the<br />

highest above all other processes. The<br />

products are stationed at inventory stores<br />

divided into seven areas in accordance to<br />

the product types or OEM customers, such<br />

as Isuzu, Mitsubishi, Toyota, or Nissan.<br />

These stores use the barcode reader<br />

<strong>Intermec</strong> Mobile Computer model 730 to<br />

handle incoming and outgoing flows of<br />

materials from the inventory. The PDA<br />

Barcode Reader reads barcodes at the<br />

TAG attached to the containers from<br />

the Production Division, and transmits<br />

material data wirelessly via WiFi Access<br />

Points to the Database Server and<br />

updated to the centralized ERP system.<br />

Product cards are installed on users’<br />

computer terminals, and scanned with<br />

the <strong>Intermec</strong> Scanner Model VT1800.<br />

The Raw Material Barcode project was<br />

then subsequently implemented to track<br />

the incoming raw materials from over<br />

300 suppliers. <strong>Thai</strong> <strong>Summit</strong> <strong>Auto</strong> <strong>Parts</strong><br />

uses <strong>Intermec</strong> Scanner Model VT1800 to<br />

scan barcodes shown in Delivery Barcode<br />

Sheets attached to suppliers’ Tax Invoices<br />

for every shipment, to affirm the data in<br />

populated in previous purchase orders<br />

submitted by the Group’s procurement<br />

division. The correlated data is then<br />

sent to the backend ERP system.<br />

“We needed the barcode readers to be<br />

highly durable and resistant to damage,<br />

that can tolerate our tough factory<br />

environment. For all the competing<br />

offerings we have evaluated and<br />

researched, <strong>Intermec</strong> can fulfill our<br />

demanding requirements with user-friendly<br />

and convenient products. Its Mobile<br />

Computer Model 730 is ideal for nonportable<br />

products and urgent shipments,<br />

while its Scanner Model VT1800 is ideal for<br />

reading the barcodes in Barcode Delivery<br />

Sheets,” said Mr. Preecha Phuasuthi ,<br />

Department Manager, ERP Project, <strong>Thai</strong><br />

<strong>Summit</strong> <strong>Auto</strong> <strong>Parts</strong> <strong>Industry</strong> Co., Ltd.<br />

“The <strong>Intermec</strong> barcode readers help us<br />

minimize human errors, enhance data<br />

integrity and accuracy, while speeding up<br />

our work processes. In fact, if the data<br />

checking program is properly designed, we<br />

can even skip the Visual Check process to<br />

just scanning by automated programs.”<br />

<strong>Thai</strong> <strong>Summit</strong> <strong>Auto</strong> <strong>Parts</strong> is already<br />

planning to expand the barcode system<br />

to 10 companies of <strong>Thai</strong> <strong>Summit</strong> Group<br />

in the near future because the <strong>Intermec</strong>based<br />

barcode system in inventory and<br />

distribution management has dramatically<br />

reduced the human errors in data entry<br />

process while enhancing the working speed<br />

and the data accuracy. With <strong>Intermec</strong> as<br />

a dedicated partner behind <strong>Thai</strong> <strong>Summit</strong><br />

<strong>Auto</strong> <strong>Parts</strong>, it can be envisaged that<br />

<strong>Thai</strong> <strong>Summit</strong> <strong>Auto</strong> <strong>Parts</strong> will continue<br />

to scale new heights in technical and<br />

production excellence, as well as growing<br />

in step with its multitude of highly<br />

successful automotive customers.<br />

North America<br />

Corporate Headquarters<br />

6001 36th Avenue West<br />

Everett, Washington 98203<br />

Phone: (425) 348-2600<br />

Fax: (425) 355-9551<br />

South America & Mexico<br />

Headquarters Office<br />

Newport Beach, California<br />

Phone: (949) 955-0785<br />

Fax: (949) 756-8782<br />

Europe/Middle East &<br />

Africa Headquarters Office<br />

Reading, United Kingdom<br />

Phone: +44 118 923 0800<br />

Fax: +44 118 923 0801<br />

Asia Pacific<br />

Headquarters Office<br />

Singapore<br />

Phone: +65 6303 2100<br />

Fax: +65 6303 2199<br />

Internet<br />

www.intermec.com<br />

Worldwide Locations:<br />

www.intermec.com/locations<br />

Sales<br />

Toll Free NA: (800) 934-3163<br />

Toll in NA: (425) 348-2726<br />

Freephone ROW: 00 800 4488 8844<br />

Toll ROW: +44 134 435 0296<br />

OEM Sales<br />

Phone: (425) 348-2762<br />

Media Sales<br />

Phone: (513) 874-5882<br />

Customer Service and Support<br />

Toll Free NA: (800) 755-5505<br />

Toll in NA: (425) 356-1799<br />

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rights reserved. <strong>Intermec</strong> is a registered trademark of <strong>Intermec</strong><br />

Technologies Corporation. All other trademarks are the<br />

property of their respective owners. Printed in the U.S.A.<br />

611797-01B 01/08<br />

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specifications and features without prior notice.