C a s e S t u d y S A P ® E R o l u t i n Thai Stanley Electric Public Co., Ltd.

Thai Stanley is a manufacturer of world-class based in Thailand. In late 2006, two core employees of Thai Stanley, Mr. Boriboon Samrejphol and Mr. Watchara Sathapornpiboon, realized that Thai Stanley’s legacy system needed to be improved, and that in order to succeed in an increasingly competitive world the company needed to introduce an ERP system. These two conveyed their concerns to the head office, and the company, along with its principle shareholder Stanley Electric, decided that it was time for Thai Stanley as well to introduce SAP. This is the story of a company taking the initiative to safeguard its future and provide better services to its customers. ABeam Consulting is proud to have been selected to support Thai Stanley in helping its employees make their dream for a coordinated approach to integrated business processes a reality.

Challenges • Thai Stanley needed an integrated and multifaceted global standard that could be used in local factories • Data collection needed to be done in real-time, with greater accuracy and visibility, to help Stanley Electric get a better grasp on data for management purposes and realize its global strategy • There was an overdependence on individual efforts, and disunity among various code types, leading to waste • It was important that there be thorough, multilingual communication between all parties at each level of the information chain in and Thailand throughout the SAP implementation process

Solutions • Promote complete standardization through the first international installation of SAP in the Stanley Electric Group • Improve business processes and workflow to establish clear roles and responsibilities • Work to facilitate knowledge transfers throughout Thai Stanley factories • Establish Key Performance Indicators (KPI) to gauge waste and performance • Construct a system for cost accounting

Success Factors • The new ERP system was implemented in three phases: first within Accounting, then for Sales and Purchases, and finally for Production Management processes • ABeam worked to ensure thorough communication, holding weekly meetings with all stakeholders to link tactical responses to issues and problems • ABeam drew on their wealth of knowledge in the automotive parts industry and for SAP implementation to help Thai Stanley avoid foreseeable problems • Commitment on the part of ABeam to matching the needs of Thai Stanley with effective solutions • ABeam ensured that the SAP system implemented was reconciled with Thai Stanley’s corporate culture and the Stanley New Approach for higher Productivity (SNAP) • ABeam carried out tests using data gathered from the field C a s e S Thai Stanley Electric Public Co., Ltd. t u d y

S A P ® E R First international SAP implementation Coordinated with global standardization o l u t i n Striking a balance with local business practices

legacy system to SAP wouldn’t be easy. It would require a rev- “We knew we needed change” olution in the way business was done. In order to make the transition easier, it was decided that the project would be “It was at the end of 2006 when they first approached me split into three phases. In Phase One, SAP would be imple- about implementing an ERP solution” began Mr. Hiroyuki mented for accounting processes. This would be followed by Nakano, President of Thai Stanley. Pointing to Mr. Boriboon an implementation for sales/procurement processes in Phase Samrejphol, Department Manager of the System Develop- Two and production/cost processes in Phase Three. ment Department, and Mr. Watchara Sathapornpiboon, “We completed Phase One with a local provider,” said Mr. Manager of the Office of Corporate Plan, he continued, “This Nakano, looking back. “When it came time to implement project belongs to the local employees.” Phase Two, we decided to consider what other companies Visit any workplace of Thai Stanley and you notice were available. For Phase Two and Phase Three, since we were something remarkable. You will see it in the actions and hear dealing with business processes that affect our customers, we it in the words of every employee. It is a supreme sense of re- knew it was absolutely important that implementation pro- sponsibility. The employees of the company feel total owner- ceed smoothly. We needed a partner who could provide us ship of their jobs. It is this sense of responsibility that first led with total support for any issues we faced, and who would Mr. Boriboon and Mr. Watchara to propose the implementa- stay with us in the long run. Finally, since we are a Thai com- tion of an ERP system at Thai Stanley. pany, we knew we needed a partner that could facilitate effec- “We knew we needed change,” said Mr. Boriboon. “The tive communication between all the involved parties in Thai- legacy system needed to be improved. We needed a more in- land and Japan.” tegrated system that could provide us with a centralized ap- For Phase Two and Phase Three of the project, Thai Stanley proach to data management. We needed greater transparency decided to call for bids from many consulting agencies. Al- in all of our business practices.” though the company received numerous proposals, for Thai The decision to upgrade from Thai Stanley’s legacy system Stanley, the clear choice was ABeam Consulting. Mr. Nakano was not lightly made. All relevant players at each level of the explained why: information chain were included in the discussion every step “More than anything, it was important to us that we find a of the way, from the workers in the factories to management. company that could offer total support, including after-ser- “The Thai people recognized the need to implement better vice support. Cost-competitiveness was of course also a factor systems,” commented Mr. Nakano. “This process started in in our decision, but what we really wanted was a partner who the workplaces and proceeded with the consent of employees. could give us peace of mind about the operation of the new We in management recognize the importance of giving each system after it was in place. Ultimately, we wanted a compa- workplace tools they can be happy with. They are the ones ny who would be committed to this project. Beyond that, the using the system, so they must be comfortable with it. They Thai people trusted them. We knew that they could commu- must feel they have ownership of any system we put in place.” nicate effectively and work with our Thai employees. Finally, After months of real communication, it was decided that we were impressed by the extent of their knowledge not just SAP was the best choice for Thai Stanley. in implementing ERP systems, but also with regard to our Mr. Hiroshi Taruki, Team Manager of the Integrated Sys- industry. They seemed capable of giving us advice tailored to tems Solution Department of Stanley Electric gave his im- our needs. That gave us peace of mind about the implemen- pression when he first heard that Thai Stanley wanted to im- tation process.” plement SAP: “We at Stanley Electric have already Client passion; professional excellence; power of diversity; implemented SAP R/3 in , and we recognize the need collaboration and collegiality; global perspective – the core to begin rolling out coordinated standardization systems values of ABeam Consulting. It was these core values that around the world. Of course, this was our first international won over Thai Stanley and convinced them that they had implementation of SAP, so we had our doubts, but since found a real partner. there was such a strong call for this from Thailand we offered “I could really feel that the commitment was there on our full support. We also believed that in Thai Stanley there all levels” was a good opportunity to establish a model for ERP imple- mentation overseas.” Once ABeam Consulting had been chosen as Thai Stanley’s real partner for Phase Two and Phase Three of the SAP im- The Thai Stanley approach to standardization plementation, ABeam consultants immediately got to work formulating phase-specific plans and a work statement. 8 The people of Thai Stanley knew that the shift from their Mr. Boriboon described his first impression of the team C a s e S t u d y S A P ® E R o l u t i n

Mr. Hiroyuki Nakano Mr. Hiroshi Taruki Mr. Boriboon Mr. Watchara President, Team Manager of Samrejphol Sathapornpiboon Thai Stanley Electric Integrated system Manager of System Manager of Office of Public Co., Ltd. Solution Department, Development Department, Corporate Plan, Corporate Thai Stanley Electric Thai Stanley Electric Management Center, Public Co., Ltd. Public Co., Ltd. Stanley Electric Co., Ltd.

from ABeam Consulting during this time: “At the beginning, ABeam Thailand Director of Integrated Enterprise Solutions I wasn’t sure about working with them, I didn’t know if they Supreeda Jirawongsri made sure that the Thai Stanley side could be trusted. But after I had the chance to spend more was fully empowered throughout the implementation. time with their consultants, I could really feel that the com- “From the start, we knew communication would be the mitment was there on all levels. Some of our requirements key to the success of this project,” said Ms. Supreeda. “And so were very detailed, or very particular to a Thai workplace, but we supported precise communication by sending constant re- no matter what, they always looked into our requests and re- ports to Stanley Electric and Thai Stanley, by working closely plied back to us in good time. Sometimes the implementa- with the Thai workers in the each workplace and by facilitat- tion process took longer than projected because of all our ing each project Steering Committee meeting in both Thai new requests, but since the ABeam people were so responsive and Japanese to ensure that everyone had a say in the project’s I think in the end we have been given a very flexible system.” direction.” “Thai people are very soft spoken and do not usu- For both Phase Two and Phase Three, the team from ally state their opinions directly,” added Mr. Kawamura. “We ABeam Consulting drew up detailed project timelines and worked hard to make sure that there was effective communi- plans to help Thai Stanley proceed smoothly from the Kick- cation between all involved parties.” off Date to the Go Live. The team made sure that at each For the employees of Thai Stanley, the ease with which they project milestone the Steering Committee in Thai Stanley were able to communicate with the ABeam consultants came was well informed of the project’s status and had total control as a great relief. “We needed to make sure our new system over its evolution. ABeam Principal Takeshi Kawa- was good for each workplace,” stressed Mr. Watchara. “But mura, total coordinator for the Thai Stanley project, flew that doesn’t just mean the factories. In this company, work is back and forth between Japan and Thailand to make sure carried out everywhere. Yes the factories are workplaces, but that Stanley Electric was included as well. In Thailand, so is the President’s Office, accounting, every department.

Project Timeline

2007 2008 2009 2010 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6

SAP Implementation phase I Go-live (FI and MM (Non-stock purchasing)) support phase I Project Preparation Kick-off Project Closure

Business Realization Final Go-Live Blueprint Preparation Support SAP Implementation phase II Go-live support (MM and SD) phase II Project Preparation Knowledge Transfer BP & Design in Phase I Project Closure Kick-off

Business Final Go-Live Blueprint Realization Preparation Support

Start 1st 2nd Final Pre-implementation Data Data Data Phase Prototyping Cut Cut Cut

Pre- Production master data collection and implementation cleansing Phase (BOM, WC, Routing) SAP Implementation phase III Go-Live support (PP and COPC) Phase III Project Preparation Kick-off Project Closure

Business Realization Final Go-Live Blueprint Preparation Support Mar 9 Korea 10 8 5 Feb 6 7 n a 16 J 11 Final Preparation Hong kong c e D v o N Realization t c Hungary O 4 Germany 2008 t e 12 S Business Blueprint 15 g Kick-off u A SAP Implementation phase II (MM and SD) Project Preparation Jul ) y a n n a i p h C m (

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Lumax Industries Limited g 能 n Stanley Electric (Asia Pacific) Ltd. i Suzhou Stanley LED Lighting Technology Co.,Ltd. 機 u q い g n な o SSA し h Stanley Electric GMbH (Germany) Stanley Electric Holding of America, Inc. (USA) Stanley Electric Sales of America, Inc. (USA) Stanley-IDESS S.A. (France) C 供 提 12 13 14 15 16 、 THS CHS SEEU HESA SEAM が る す 在 Hella - Stanley Holding Pty Ltd Molding Products Thai Stanley Electric Public Co.,Ltd. Stanley Electric Holding Europe Co.,Ltd. 存 Stanley Electric Holding of America, Inc. Chongqing Hua-yu Stanley Lighting Co.,Ltd. は に P A S ツ パ SID GSE SSA VNS SEAP It wasn’t just persistent communication that helped ABeam wasn’t It ッ things are done in Thailand,” said Ms.Supreeda, explaining the ABeam approach. “Each ABeam member was well aware of the differences in the implementation process between an implementation in Thailand and one inWeJapan. commu- nicated a lot with the people in each workplace to make sure the process could proceed forward Through smoothly. real communication we gradually gained the understanding of each ThaiStanley employee about the new system and- work flow ABeam improvements.” Thailand Integrated Enterprise Solutions Department Manager add- Montree Tuntithavorn ed, “The goal for this project was not just to implement SAP for management but to introduce KPIs that could - dramati cally improve efficiency for every employee. In order to this achieve goal, knewwe that needed we to foster an under- standing of the importance of the project among the users while working within a budget and timeframe that the man- agement could accept. Communication and collaboration with all parties was crucial to the success of this project.” Consulting win over ThaiStanley employees.It was also the constant efforts of ABeam Consulting to understandthe core values of Thai Stanley and incorporate these values in the are all dedicated Stanley new ERP system. The people ofThai to the Stanley New Approach for higher Productivity (SNAP), a multifaceted approach to eliminating waste and ニ Stanley Idess S.A.S. は Stanley Electric Co.,Ltd. Guangzhou Stanley Electric Co.,Ltd. Stanley Electric Sales of America, Inc. Stanley Electric Holding Asia-Pacific Pte.Ltd. STJ SEK SET ISE TSE SEK SEB SEU SSE SSZ TSE ISE SAP SEZ Lighting Products GSE Stanley Electric do Brasil Ltda Stanley Electric Korea Co.,Ltd. P.T. Indonesia Stanley Electric CHS Tianjin Stanley Electric Co.,Ltd. VNS Stanley Electric (U.K.) Company Limited Guangzhou Vigo Stanley Electric Co.,Ltd. (China) Tianjin Stanley Sakata Components Co.,Ltd. (China) Shanghai Stanley Electric Co.,Ltd. (China) Prokia Technology Co.,Ltd. (Taiwan) Sam Lip Electric Machinery Co.,Ltd. (Korea) Stanley Electric (Asia Pacific) Ltd. (China) 6 7 8 9 10 11 SEAP. SES THS. ASI SEI LUMAX IIS ASI SET SSZ SED II Stanley Co.,Ltd. SAP Taiwan Branch Stanley Electric GmbH Shenzhen Stanley Electric Co.,Ltd. Asian Stanley International Co.,Ltd. Die & Mold Products SEH K SEI R SEZ SES SEH SUS SED O SAP Singapore Branch W SID Stanley Electric U.S. Co.,Inc. Stanley Electric Hungary Kft. Suzhou Stanley Electric Co.,Ltd. T Stanley Electric Engineering PVT. LTD. E SEEU. SEU N

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abbr. abbr. abbr. abbr. abbr. E Proper Name Proper Name Proper Name Proper Name Proper Name L N II Stanley Co.,Inc. (USA) Stanley Electric U.S. Co.,Inc. Stanley Electric US Co.,Ltd. (USA) Stanley Electric Hungary KFT. (Hungary) Tianjin Stanley Electric Co.,Ltd. (China) A EU “We “We believed it was vital that our work for this project be Mr. Mr. Boriboon reported that in the beginning, he also felt “When we implemented SAP R/3 in Stanley Electric in As is so often the case when anything new is introduced in China Automotive T Americas 3 1 2 4 5 Asia/Pacific based on an understanding of Thai culture and the way uneasy about some of the changes recommended by ABeam Consulting, and was unsure if the company had been the right choice. “I was not certain at first, butover timewe be- gan to see results. The consultants from ABeam showedreal commitment. They dealt with our issues. They always saw ev- erything to the end.” through Tokyo, there Tokyo, was also resistance. We in management under- stood the of apprehension the Thai peoplewell, butwe want- Nakano. explained Mr. succeed,” ed to see this project A real partner for Thai Stanley partner for A real a the company, project Steering Committee in Thai Stanley and the team from ABeam Consulting came up against a lot of resistance. Each andrequirements, weworkplace has needed different to put in place a system that met needs. everyone’s The system needed to be optimized to ensure complete engagement in every location. needed We total communication, and we are ABeam.” got from pleased with what we Thai Stanley Electric Public Co., Ltd. Co., Public Electric Stanley Thai S

Case Study SAP® ERP Solution C a s e S t u d y S A P ® E R o l u t i n

Takeshi Kawamura Supreeda Jirawongsri Montree Tuntithavorn Principal, Director of Integrated Manager of Integrated ABeam Consulting Enterprise Solutions, Enteprise Solutions, (Shanghai) Ltd. ABeam Consulting ABeam Consulting (Thailand) Ltd. (Thailand) Ltd.

maximizing output. people are starting to use it to enter data in real-time,” com- “For us, ERP systems are just tools. SNAP is our culture, mented Mr. Watchara. “We are no longer forced to key in our bible,” explained Mr. Taruki. It became clear early on in data over and over again. All of our processes have been cen- the project that the new SAP system would not succeed in tralized online, increasing transparency and allowing us to Thai Stanley unless it was tailored for full integration with track projects and orders better. The efficiencies we have SNAP. The team from ABeam Consulting took this issue se- achieved thanks to the SAP applications have allowed us to riously. save on labor costs and processing times.” “Our objective from the start was to implement a new ERP In the end, for Thai Stanley, success is all about customer system based on SNAP,” said Mr. Boriboon. “When ABeam satisfaction. This is yet another point of shared values be- discussed the software solutions available to us, they always tween Thai Stanley and ABeam Consulting. Mr. Nakano of- explained how each solution would be compatible with fered his thoughts on the results of the project: “As a parts SNAP. They focused on the business processes rather than on manufacturer, our focus is always on our relationship with just the software. This meant a lot to all of us.” Mr. Kawamu- our customers. We want to ensure the smooth supply of ra explained, “The SAP Global Template wasn’t necessarily parts, stable quality, and low costs. If our customers don’t feel designed to work absolutely everywhere. We made sure to these effects because of the implementation of this system, move forward with the rollout while integrating any special there has been no point. But I have a feeling that people are requests from Thai Stanley.” beginning to use the system more and more and that our cus- tomers as well will see positive results.” A new day for Thai Stanley From Stanley Electric, Mr. Taruki added his opinion: “From my perspective, I believe that ABeam did a thorough With the closing of Phase Three, the SAP applications have job on this. It was clear that they managed communications now been integrated into SNAP and fully implemented well and were committed to a successful outcome. They de- throughout Thai Stanley. The company is beginning to see livered on their promises, and they didn’t do anything we measurable results. didn’t want. In Japan, it is common for solution providers to “Now that we have an integrated system in place and since try and bundle in extra services the customer doesn’t really C a s e S t u d y want because the salesperson thinks it will make the customer just for Thai Stanley but for the Stanley Group as a whole, he

S A P ® E R happy. But the work statement we received from ABeam had exclaimed, “Proof that this project has been a success will a clearly defined range of implementation, and they stuck to come when people from Thai Stanley are working with those it. There was excellent transparency throughout the whole in other Stanley Group companies across the globe to help

o l u t i n process.” them implement standardization systems. I look forward to that day. That is our goal now.” It is a goal which ABeam A world standard for Thailand, a Thai standard for the world Consulting will certainly help Thai Stanley achieve.

The implantation of SAP behind them, what’s next for Beyond Phase Three Thai Stanley, Stanley Electric and ABeam Consulting? “The success from Thailand will serve as a reference for It took five years, but commitment and communication other implementations, as will our experience with ABeam in among all stakeholders along with the support of ABeam implementing SAP R/3 in Japan,” explained Mr. Taruki. “We Consulting as a real partner that understands Thai Stanley’s look forward to proactive proposals from ABeam about the core values has turned what was once the dream of a few im- challenges we face in the 21 countries we operate in around portant Thai Stanley employees into a new ERP system fully the world. We have divided each of our partner companies integrated with existing business practices for greater efficien- into rankings. We intend to implement SAP R/3 or an equiv- cy. ABeam Consulting’s dedication to the needs of Thai Stan- alent system in the most advanced territories. The next rank ley and understanding of Thai Stanley’s unique corporate cul- territories will get an equivalent to SAP Business One. For ture helped it find solutions for its partner that effectively the smallest companies we will probably just pursue work- eliminated waste. place development measures and basic workflow improve- Things are changing at Thai Stanley. The project is not yet a ments. We look forward to appropriate proposals from complete success. There is still work to be done. But no matter ABeam for each location.” what problems Thai Stanley faces in the future, they know they Mr. Nakano at Thai Stanley is also looking forward to the can turn to their real partners at ABeam Consulting for support. future. Stressing the positive outcome the project has had not

● Voice – Customer Evaluation ● Client Data Company overview “The complete implementation of time management and proper work Company name: Thai Stanley Electric Public processes required us to go so far as to change the mindsets of individual Co., Ltd. employees. We couldn’t think outside the box of our conventional (HQ:Stanley Electric Co.,Ltd.) training methods within the company and had run up against a wall, but it Location: 29/3 Moo1, Bangpoon- was at that point that the professionals at ABeam provided us with a Rangsit Rd., Banklang, A. solution. Their wealth of experience was particularly helpful to us in Muang, Pathumthanee 12000, revolutionizing the way out employees thought. I hope that we can rely HQ: 2-9-13, Nakameguro - on them for periodic follow-up work in the future as well.” ku Tokyo, 153-8636, Japan Estd.: May 1980 Mr. Hiroyuki Nakano, Business: Manufacturing & sales of auto President of Thai Stanley Electric Public Company Limited bulb, lighting equipment, plastic injection mold, etc. “ABeam completed this job exactly as promised. They were Total sales: 7286.37 mil. THB (FY 2010) professional and efficient.” JPY 238,888,000,000 (FY2010, consolidated) Mr. Hiroshi Taruki, Employees: 2675 (as of 1 September 2010) Team Manager of Integrated System Solution Department, Corporate Management Center, Stanley Electric Co., Ltd. (worldwide 12,898, as of 31 March 2010) “The ABeam consultants established relationships of trust as real partners through their dealings with everyone in each workplace. I Project overview felt that they were committed to this project on all levels, and was Summary: Thai business improvement impressed with the way they flexibly responded to the unique support for global conditions of Thailand.” standardization, centering on SAP® ECC6.0 implementation Mr. Boriboon Samrejphol, Department Manager of System Development Department, Thai Stanley Electric Public Company Limited Timeframe: Phase 1: July 2007 to March 2008* Phase 2: August 2008 “ Whenever we ran up against any problems, the team from ABeam to May 2009 helped us to investigate the cause of the problems and solve them. I Phase 3: September 2009 am extremely pleased with the end results of this project.” to May 2010 Member count: THS: 68 (Project Manager: 2, Mr. Watchara Sathapornpiboon, Project Advisor: 3, Project Team Manager of Office of Corporate Plan, Thai Stanley Electric Public Company Limited Members: 63), ABeam: 12 (Project Manager: 1, Project Advisor: 1, Project Partner: 1, Consultant: 9) Software: SAP® ECC 6.0 *:implemented by a local consulting company ABeam Consulting (Thailand) Ltd. Tel : +66.2.689.6020 Fax : +66.2.689.6021 ABeam Consulting Ltd. (HQ, Japan) Marketing Tel: +81-3-3501-8355 2010. 12 Copyright©2010 by ABeam Consulting Ltd., All rights reserved. www.abeam.com