The Bing Group

Automotive Supplier Overcomes Industry Pitfalls with Reliable Manufacturing Platform

The Bing Group provides manufacturing services to original equipment manufacturers and tier-one suppliers in the automotive and office-furniture markets. The company used manufacturing software from CMS Software to manage the logistics, production, and finances of its stamping division, but found that the system was not designed to meet the specific needs of its stamping operations. Microsoft Dynamics GP replaced the old system, increasing supply-chain visibility and streamlining processes. This automated production-planning solution reduced premium-freight costs by 40 percent and inventory-carrying costs by 20 percent and improved delivery performance. The Bing Group proactively meets the stringent demands of the automotive industry and provides key metric data essential to making effective management decisions.

Situation

The Bing Group is a diversified base of manufacturing companies that supply parts and products to customers in the automotive and office-furniture industries. Founded in 1980 by prominent entrepreneur, philanthropist, and former Detroit Pistons member Dave Bing, The Bing Group is a certified minority business dedicated to providing employment opportunities for area residents and improving the quality of life for the Detroit, Michigan, community.

As a supplier to major automotive manufacturers, The Bing Group is subject to strict industry standards for product quality, accuracy, and timeliness of delivery. These standards require the purchasing department to order parts on time to accommodate complicated production assembly schedules. Automotive suppliers, such as The Bing Group, must also provide an electronic advanced shipping notice (ASN) to customers, notifying them when a shipment is coming and what the shipment contains.

“If we don’t supply parts on time to our customers for the final assembly, there are serious penalties,” explains Thomas Lijana, Chief Financial Officer of The Bing Group. As a supplier, The Bing Group could be responsible for paying the customer’s production, labor, material, overhead costs, and even earnings on lost sales associated with the late shipment.

The Bing Group used JBA accounting software to manage the financials for its metals-assembly division, while its value-added stamping division used manufacturing software from CMS Software (now Solarsoft). The manufacturing software from CMS Software was difficult to use and having multiple systems across divisions was costly to maintain. “I wanted everybody on one software package,” says Lijana. “There are some synergies that you gain—from an IT standpoint and a user standpoint—if all divisions operate on the same systems.”

The Bing Group needed a solution with a financial management tool compliant with Generally Acceptable Accounting Principles. It had to provide both automotive-specific manufacturing functionality and financial information that identified actual versus planned data on key operational metrics. In addition, the company sought the following operational benefits:

• Planning production schedules efficiently to improve supply-chain operations
• Aligning accounting with production and materials management to accurately place orders and estimate costs
• Building effective lines of communications with customers and suppliers for order and delivery exchange

Solution

The Bing Group deployed Microsoft Dynamics GP and AIM Vision to manage the supply-chain and financial operations of its value-added stamping division. Microsoft Dynamics GP offers enterprise resource planning capabilities, and AIM Vision performs repetitive automotive-manufacturing tasks and generates production scheduling based on electronic data interchange (EDI) transactions.

The partners deployed Microsoft Dynamics GP and AIM Vision centrally, providing access to more than 100 employees through a remote connection using Citrix with Terminal Services.

“We switched from the manufacturing software from CMS Software to Microsoft Dynamics GP and AIM Vision because Microsoft Dynamics GP fit our business model better and the implementation was straightforward,” says Lijana. In addition to using Microsoft Dynamics GP for its stamping division, The Bing Group uses it to manage business processes for a recently acquired nonautomotive business. The company also plans to switch its metals-assembly division from JBA software to Microsoft Dynamics GP so that all three operating entities will run off a single instance of Microsoft Dynamics GP.

Production Scheduling

To plan production schedules, plant employees manage incoming demand by using AIM Vision. Within the materials-management tool in AIM Vision, each part number is associated with a piece of machinery set up to perform repetitive tasks extended over several weeks. Operations managers can determine a machine’s scheduled workload and make quick changes to accommodate the incoming demand. “If an inbound order that requires 10 hours of work comes through for a specific machine, AIM Vision tells us we’ve only got four hours available on that machine,” explains Lijana. “So, we know we’ll have to work overtime or bring in another shift. AIM Vision provides forward-planning data so that we are no longer reacting.”

Accounting Processes

Within Microsoft Dynamics GP a financial model was created, it extracts data from the purchasing, materials-management, shipping, and receiving components in AIM Vision. For example, AIM Vision captures information on standard costs through production posting, purchasing, inventory, and other general and administrative overhead data. Accountants access this information directly through the General Ledger in Microsoft Dynamics GP.

Likewise, when a shipping transaction is created in AIM Vision, it uses invoicing data stored in the item master to create both the invoice and ASN. AIM Vision then links the invoice and ASN to Microsoft Dynamics GP and posts them to the General Ledger.

“AIM Vision handles the raw data, and Microsoft Dynamics GP interprets the financial data to help management make decisions,” explains Lijana. Microsoft Dynamics GP plays a critical role in providing long-term financial history on accounts receivables, accounts payables, and manufacturing-based general ledger transactions, such as inventory evaluation, inventory variance, scrap values, and other cost and revenue figures. Lijana and his accounting team also export manufacturing and financial data from Microsoft Dynamics GP to Microsoft Office Excel for additional financial analysis.

Benefits

The financial interface of AIM Vision with Microsoft Dynamics GP gives The Bing Group an all-encompassing solution not available with other automotive-manufacturing solutions. The integration increases the company’s visibility into the supply chain so that it can continue to manufacture and ship high-quality products that meet the rigorous demands of its customers.

• Facilitate Strategic Production Planning
  With Microsoft Dynamics GP and AIM Vision, The Bing Group efficiently manages its supply chain and curbs potential cost penalties. “Because we can see the rolling, 12-week demand of an inbound order, we can proactively schedule each plant to ensure that raw materials arrive on time for production and minimize overtime pay,” explains Lijana. The company has seen a 40 percent reduction in premium-freight costs and a 20 percent reduction in inventory-carrying costs due to its ability to plan strategically according to incoming demand. The Bing Group meets outbound-shipment deadlines while avoiding penalties associated with inefficient planning and late delivery to customers.
• Scale and Maintain Solution with Ease
  Various divisions of the company—the value-added stamping division, the metals-assembly division, and a recently acquired nonautomotive business—all benefit from centralizing information in Microsoft Dynamics GP. “Maintaining separate software packages isn’t a good way to operate a company,” explains Lijana. “It’s very costly to do an upgrade for one software package, and then do another upgrade independent of that.”
  The Bing Group avoided the need to replace its existing AS400 hardware system by investing in a single, versatile solution that extends out to multiple business units. Microsoft Dynamics GP provides the flexibility required by each division with the benefit of only having to maintain one software system.
• Support Company Advancement
  Growth is a strategic imperative for Dave Bing, winner of the 2008 Detroit Area Council Distinguished Citizen Award. He aims to position The Bing Group as a company that creates jobs and gives back to the community. With Microsoft Dynamics GP, The Bing Group maintains its competitive advantage over other automotive suppliers to serve both its customers and community needs.

“Microsoft Dynamics GP enhances our industry position and helps us expand into new markets and actively pursue new opportunities,” says Lijana. “It enables us to enhance our core competencies, capitalize on our resources, and expand our business with minimal additional human resources.”