production 3 / 2010 Journal for Logistics & Production manager Contents

► Title story

Mobile data collection: Special solution for the Through the desert with VW HP & PSI bytes P. 1

► User reports

PSIpenta ERP system in action at Simon Transparency at the press of a button P. 5

► Products & solutions

New release of the PSIglobal planning and control system Key figures for globally successful logistic networks P. 8 VW Motorsport PSImetals in action The benefits of simultaneous Mobile data collection: special solution for the Dakar Rally slab connection during hot rolling programme planning P.10 Through the desert with VW HP & PSI bytes ► An interview with The Dakar Rally is seen as one of the last remaining great adventures of the modern Dr. Andrew Zoryk about cooperation day and as the toughest rally in the world. In 2010, it ended with a historic treble between SAP and PSI Metals victory for . Three Race Touaregs on the winner's podium meant not An unrivalled turnkey solution only that they defended their title but that they went one better than the double for the steel industry P.12 success of the previous year. The fact that the success was achieved by diesel , as in the previous year, also makes it a truly historic win. This success was not ► Events just down to engine size and horse power – bits and bytes in the form of a software PSI Logistics gets involved solution also played their part. in Hamburg school project Successful packaging P. 13 On New Year's Day 2010, the Dakar Everything was asked of both man and Rally started in South America for the machine: The race covered 14 stages Training courses about PSImetals second time. 360 teams with motorbikes, through the world's driest desert, the Successful start to PSImetals quads, trucks and 132 cars set out on the Atacama, and the Andes, with altitudes University 9000-kilometre route through up to 4700 metres. Competitors also had ► Company News P.14 and . ► Page 3 pproduction 2 manager

News ticker Editorial

+++ PSI Awarded Contract by Dear readers, SMS Siemag for Planning Module for Russian Steel Producer OMK – The pressure of competition is bread and butter to Delivery of the solution PSImetals both companies and athletes. It impels us to deliver top 5 Planning for the new heavy plate performances and reminds us to continually develop rolling mill at the Vyksa site +++ our products and consultation services further and to PSI Awarded to Deliver Operations adapt them to the conditions and demands prevalent Control System to the Rhein-Sieg in our markets. For PSIPENTA Software Systems Verkehrsgesellschaft mbH – Inter- GmbH this means not forcing ready-made software modal Transport Control System packages on companies, but instead finding solutions that meet their specific needs. That is precisely what we have done in the projects with (ITCS) covers central functions VW Motorsport and the Simon Group. +++ PSI Awarded Major Contract During the Dakar Rally, a mobile solution helps VW Motorsport transport all data and by Swiss Federal Railway SBB – processes to exactly where they are needed. This solution features mobile registration, New network control system for a which ensures that the service life times of the different components and the storage secure railway electrical supply +++ locations of the spare parts are always known, and preventive exchange can be performed PSI Awarded Contract by Cologne- – before there is a failure. Bonn Airport and Lufthansa – At Simon too, individually adapted software ensures transparency across all plants and Volume-dependent invoicing of sites at the press of a button and, among other things, enables preventive maintenance on the machinery. luggage handling with PSIairport/ See for yourself in this edition the benefits that tailored IT support can bring and how our BRS +++PSI Delivers New Net- customers become champions in their markets. work Control System for the City of Vienna – Wien Energie decides Yours faithfully, in favour of PSIcontrol +++ PSI Alfred M. Keseberg Awarded Contract from Arcelor- Managing Director Mittal in France – Production con- PSIPENTA Software Systems GmbH trol and material tracking for the rod and bar mill at the Gandrange SCHEDULE plant +++ 06/10–08/10 2010 Internationale Zuliefererbörse PSIPENTA/PSI (International Suppliers Fair), Wolfsburg, Germany Logistics Imprint www.izb-online.de Stand 3/310 Publisher: PSI AG 20/10–22/10 2010 27. Deutscher Logistik-Kongress PSI Logistics Dircksenstraße 42–44 (German Logistics Convention), Berlin, Germany Havanna Lounge/ 10178 Berlin (Mitte), Germany www.bvl.de Tiergarten 1 room Telephone: +49 30 2801-2029 26/10–28/10 2010 it&business, Stuttgart, Germany PSIPENTA www.itandbusiness.de Stand 5D56 Fax: +49 30 2801-1042 [email protected] 11/11–12/11 2010 STAHL 2010, Düsseldorf, Germany PSI Metals www.stahl2010.de www.psi.de Editorial team: Ulrike Fuchs, Anja Malzer, 11/11–13/11 2010 IPA – Kunden-Jahrestagung PSIPENTA Bozana Matejcek, Annett Pöhl (Annual Customers Conference), Munich, Germany www.psipenta.de Design: Ulrike Fuchs 30/11–01/12 2010 PSImetals User Group Conference, PSI Metals Printed by: Repro- & Druck-Werkstatt Krefeld, Germany

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► Continued from page 1 to cope with fog, rain and sunshine, and temperatures up to 50° C in the shade. It will therefore come as no surprise that Director Kris Nissen commented that the Dakar is no walk in the park – but instead poses a new challenge everyday that is enough to make you tremble. Anybody wanting to pass this test should make excellent and thorough preparations. Fitness alone is not enough to overcome the strains – the Race Touareg's engineering is also exposed to extreme demands. Issues such as material quality and quality management with mileage recording are therefore put under increased scrutiny on the part of those responsible.

A mobile solution

By 2002/2003, Volkswagen Motorsport had developed so far within the group that it had to stand on its own "stable system feet" in order to best support the Polo Cup, for example. At that time, software modules developed by the Berlin company PSIPENTA Software Systems GmbH were being used, which During the rally, the service team gets precise information about the service life of al the components and is implemented the core business processes able to keep a constant eye on the mobile spare parts store on the service trucks. Source: VW Motorsport such as procurement and production and tracked the costs of projects like the drawn up in 2007/2008. By means of logistics processes. The mobile system Polo Cup and the Dakar Rally. The PSI a feasibility study, the joint project sits on top of it and transfers data and solution has since then been introduced ultimately led to the creation of a mobile processes to where they occur, in other as ERP software and supports commercial solution, which was specially designed words straight to the race track or the processes such as order administration for use during a race and directly on site. Volkswagen tent, and uses them there and materials management. It also led to the introduction of the two- without a connection to the headquarters The use of software intensified as the dimensional data matrix code, which as an asynchronous solution. All the benefits became ever clearer. When it is used in production, in automotive information and processes, that can came to problems with material quality, manufacturing and in mail delivery, for normally be accessed online or via a it made sense to combine quality example. WLAN, must be appropriately defined management and material management and stored on the mobile devices, such processes. As a consequence, the Independent of the headquarters as handhelds or laptops. motorsport managers around team During the Dakar Rally, VW Motorsport director Rainer Fleischmann looked The PSIpenta ERP system from the uses so-called 'service trucks' as escort for solutions together with the Berlin parent company forms the basis, with vehicles, which transport the tools, tyres software supplier. The first plans were all stored master data and the optimised and spare parts for the Race Touaregs.

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The service team uses the PSI software to determine where each part is stored in the truck even before it is loaded and stores the part and storage location on the mobile devices. For identification purposes, the parts are labelled with serial numbers on fixed tags using data matrix codes. The software therefore exactly depicts the contents of the truck, thus making the service team autonomous for the duration of the race; in other words, independent from the central system. All bookings that are normally directed through headquarters now take place exclusively on site. Once the team's last passes the finish line, the data can be extracted and immediately sent via an Internet connection to the headquarters' system, which automatically analyses With the help of a barcode scanner, each replacement of a part is recorded. Source: VW Motorsport it. In the case of the Volkswagen team, compared with previously, this database of target service lives, which in decentralised storage organisations improvement alone results in a time shows in advance which parts will through to implementing "counter saving of four to six weeks when working probably not survive the planned operations" in the spare parts business. on the material planning data for the distance of 9000 kilometres. The team is In these cases, all data is collected in the next race. thereby able to specifically monitor every mobile solution, whilst the commercial vehicle, both on test drives and during booking is done in the central system. Knowledge database for mileage- race breaks, and dismantle and replace As a result, data is reliably collected related parts parts as part of preventive maintenance. where it occurs, in order to then process it As part of this process, each part is in real time together with the stationary The quality assurance system, however, booked with a serial number. Defects systems. benefits above all from the new software and failures can largely be prevented Volkswagen has now agreed to take part development. Every part dismantled using this method. The exact analysis in the 2011 Dakar Rally. Volkswagen or installed carries information about of the data then provides the basis for Motorsport Director Kris Nissen would how long or how many kilometres it preparations for the next rally. like to write motorsport history one has already run in this or any other car. more time and score a "diesel hat trick" The factory specifies a limit of how long Quality assurance and time saving in 2011. If this is achieved, fitness bits a part can run (based on experience) and bytes will have played their part under different conditions in a Race The joint development by Volkswagen alongside horse power. The prospects for Touareg without failing. 132 sensors Motorsport and PSIPENTA led to a this project look excellent. on the vehicle provide additional mobile software solution that makes ► Information information for the service team at the an effective contribution to quality end of each stage. assurance and quality management. Contact: Ulrike Fuchs, However, the advantages are already This solution is now relied upon – PSIPENTA Software Systems GmbH apparent before the start of the race. and not just by Volkswagen. Other Telephone: +49 30 2801-2029 Booking all the mileage-related parts companies have now also started to use Fax: +49 30 2801-1042 Email: [email protected] on the car and in the spare parts store the mobile solution in various fields of Internet: www.psipenta.de generates a comprehensive knowledge business, from different booking methods

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User report: PSIpenta ERP system in action at Simon Transparency at the press of a button

If capital is not working and is instead tied up in the warehouse, or if quick Matthias Buchholz management decisions are made harder Controlling manager at Simon due to key figures not being up-to- date, then the company's information technology is usually not up to the "There was a great requirements. The machine builders need for action." at the Simon group of companies confronted this problem by introducing a new ERP system.

Aichhalden in the heart of the Black Core processes and multisite required a long time. In addition, excess stocks Forest, Germany, is the home of the Simon built up in the warehouse, which included group of companies, which belongs to If you wanted to find out the status of a rarely used parts, thus tying up a lot of Indus Holding AG. The Simon group project, you had to contact several people. capital. Bernhardt and Buchholz both of companies includes the legally There was no up-to-date overview. The agree: "There was a great need for action" independent companies Karl Simon, quality of data was on the poor side and Goals were therefore formulated with BETEK Bergbau- und Hartmetalltechnik evaluating it was painstaking and time- management, and it was anticipated that and SITEK-Spikes. Karl Simon in turn consuming, which meant that putting these goals would be achieved using new is divided into the sectors of fittings, key figures together always took rather ERP software. Right at the top of their sintering and electroplating. The company SIKU, which produces plastic injection moulded parts in the Swiss canton of Lucerne, also belongs to the group of companies. Simon has 450 employees and generated a turnover of over 130 million euro in 2009. In 2008, the group's IT consisted of a mixed environment with Basic Suite, a Windows portation by Nixdorf-COMET, combined with numerous MS Office files and island solutions. There was no adequate support for the production control system. "Back then we were only using a few tools, and even those were not in all parts of the business," recalls Ralf Bernhardt, IT manager at the Simon Group. Matthias Buchholz, controlling manager, adds, "In the background was a mishmash of Excel and Access applications"; this did not exactly make the job any easier. High acceptance for the new ERP system by the key users puts a seal on its success. Source: Simon

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RZ_IT&B10_Anz_InfWeek5|10_134x190_Angesagt_engl_Layout 1 08.09.10 10:16 Seite 1 priorities was the ability of the new system – Advert – to offer a multisite function, offering the possibility of centrally controlling and managing all the group's companies. There was also a need to optimise warehouse stocks, shorten throughput times, support production control and data analysis, and make operations and data more transparent. The aim was to incorporate Visit PSIPENTA everything into a universal system without on stand 5D56. having to make multiple entries. IT FOR SMALL AND MEDIUM-SIZED COMPANIES

Core processes and multisite required

For the selection procedure, 56 core THE IDEAL EVENT processes from the Simon Group were defined from the areas of organisation, controlling, sales, order processing, purchasing, materials management, job preparation and production. This Because IT & Business in the autumn is the IT trade fair in Germany. Because all important business-related catalogue of requirements went to a range IT topics will be represented: ERP, ECM, DMS, BPM, BI, of ERP providers. A team made up of CRM, MES, security and infrastructure. Because 5 spe- cialist forums will attract many visitors to around 200 management and key users selected three presentations, pavilions and PPS events. Because companies. These companies were then Messe Stuttgart is the meeting place for IT providers and decision-makers. Because the location provides able to present their solutions at a two-day ideal transport connections. workshop. 20 key users then weighted the core processes in a special procedure and evaluated them one by one for each ERP system.

Motivated key users www.itandbusiness.de 26 – 28 Oct. 2010 | MESSE STUTTGART The award was given to the ERP standard version of PSIpenta from the Berlin company PSIPENTA Software After the evaluation in 2008, the users were much more specific because Systems GmbH. As reasons for the choice, introductory project started in February all those involved were right at home Bernhardt cites the well-integrated control 2009 with a pilot project lasting until May, with the processes. "In the end I was fully station, the excellent scalability from in which the business processes for all convinced by the PSI concept," says the one-off to large scale production and the areas of the entire group were formulated. IT boss happily. integrated analysis using cognos tools. The online launch took place in June "Above all, the effective mapping of the 2009. The key users were trained first, who Rapid concrete benefits corporate group structure, with its many then instructed the end users according business relationships with individual to the PSIPENTA introductory concept. The concrete benefits became apparent companies, was an important aspect," IT manager Bernhardt was quite sceptical soon after introducing the new ERP adds Buchholz, mentioning functions at first, but he found that his key users system. For example, the maintenance such as central purchasing, subcontracting were highly motivated, and he realised module is already planning preventive of subassemblies and processes as well as that the instructions given to the end maintenance work. Stored maintenance redistribution between factories.

3/2010 ∙ production manager 7 pproduction manager schedules use service lives or intervals to control service work, the placing of orders Ralf Bernhardt in case of failures and the procurement IT manager at Simon and administration of spare parts. Parts lists can be filed for the spare parts, so there are no more Excel lists tucked away "In the end I was fully convinced in drawers. The whole maintenance system by the PSI concept." is therefore set out transparently and there are cost savings. What is also remarkable is invoice checking using the so-called iCenter also eliminated; the data quality also example, the plant data collection system module. It converts scanned invoices improves. provides an exact allocation of employees into a digital format and compares them to the individual orders. The status of an with existing supplier and order details A true success story order or project can also be shown updated in PSIpenta. When a match is found, to the latest minute. In addition, the it transfers the invoice straight to the Besides faster throughput times, optimisation of warehouse stocks has led financial accounting system, where transparency at the press of a button is to a tangibly lower capital commitment. payment approvals are controlled by also created in production: data that used Just the standard version of the ERP system workflow. The manual workload is thereby to take several people to compile is now covered a good 90% of requirements in considerably reduced and errors, which available on request in a comprehensive, most areas. Only extremely specialist always happen with manual entries, are reliable and up-to-date manner. For sectors like the electroplating division required a somewhat more extensive level of customisation. Bernhardt praises the software provider for this advantage and credits it with having implemented the Simon-specific adaptations well and providing impeccable support through the PSI advisors. All these new developments do not merely bring time and hence capacity benefits; costs and the potential for errors have also gone down. The quality of data has increased and the fact that it is transparent and up to date enables the management to make quick and flexible