The history of Sunil Dyfas dates back to 1976. Sunil Dyfas started its business as Sunkyung Machinery Co., Ltd., which the Sunkyung Group founded in 1978 to produce and supply nuts and bolts for vehicles. In 1983, it changed its name to Sunil Dyfas and ever since it has been maintaining its traditions and well-earned reputation. In this sense, the growth of Sunil Dyfas aligns with the history of Korean vehicles.
Sunil Dyfas accomplished production technology independence for nuts and bolts for vehicles that had been import-dependent until the early 1990s and localized the facilities. Through this, the company could lower sales prices to the level of a third of the existing import price. Currently, it is growing into a global company expanding its supply to major overseas car makers such as GM and Ford.
Addresses the issue of customers’ irregular demands by establishing an APS MP system!
Although the company had been growing as a nuts & bolts and cold forged products company for about 40 years, it still had difficulty due to customers’ irregular demands. It performed a mixed production due to the nature of products, and it was not easy to establish production plans unless customers placed a fixed order. Sunil Dyfas had supplied parts to customers based on the stock they predicted would be ordered but sometimes they had to simply fill the order like filling in the blanks. That’s why it was more difficult to make production plans. In 2020, the demands decreased by nearly 90% until June due to COVID-19, but since July, orders suddenly and dramatically increased by two or three times previous levels. Such abnormal demands became the cause of an increase in production cost such as overtime allowances and transport. Such problems from special external environmental factors like this year were also faced by the company in the past.
Sunil Dyfas first established a weekly demand plan operation system by introducing APS
APS(Advanced Planning Scheduling)
An automated production plan system A production plan system
in which raw materials and production capacity are optimally allocated
to respond to customers’ irregular demands. Based on the weekly demand plan, the company established weekly/daily production plans and promoted the project of advancing production plan as a second step. Then, they had remarkable achievements and could respond quickly to any changes in customers’ demands.
We could establish an optimal production and supply system in which inventory and work in process were minimized yet delivery could be optimized.
Kim Ji-hoon, CEO of Sunil Dyfas
Not being complacent, Sunil Dyfas will produce higher-quality products by further introducing a thermal process monitoring system.
Before and after implementation of the smart factory at a glance
Sunil Dyfas made production planning possible by a system, not by humans, by introducing APS MP2
A format where manufacturing plans of products
and materials are written in detail
system. In turn, inactive stock was reduced and efficiency of production planning was increased. And since customers’ demands could be predicted through the system, flexible and quick responses to the changes in customers’ demand became possible. Also, problems of overstock or stock shortages caused by difficulties in managing inventory could be prevented through a production planning system.
Automatic production planning through the implementation of APS MP system
Production plans were made by the judgment of skilled experts in the past. However, when such skilled employees were absent, it was difficult to make production plans and a lot of inactive stock was accumulated. However, after implementing APS MP system, production planning was possible by calculating production quantity by process facility in the field based on customers’ demands. In turn, inactive stock was reduced and the efficiency of production planning increased.
Prediction of customers’ demands through a system and quick response
The previous process involved monthly production planning using the production amount of the previous month. So, it was inevitably difficult to respond to sudden demands. However, quick response became possible since the APS system predicted customers’ demands. And as monthly production planning was changed to weekly/daily production planning, an optimal production and supply system became firmly established.
Prevention of stock-related problems and efficient distribution of stock
It was difficult to identify the amount of stock in the past as humans established production plans and carried out the process. Problems occurred, such as stock shortages for urgent production request or the generation of inactive stock, and the response system for such problems was not robust. However, after establishing the production planning program, the production team could visualize its current stock status as well as future stock needs. In turn, not only were stock-related problems prevented but also resource distribution became more efficient.
CEO Kim Ji-hoon says this about Sunil Dyfas, “We will make a smart factory which operates 100% perfectly not 95%.”
QWe wonder what made you introduce the smart process.
AIt was because production planning was basically difficult. The causes include both internal and external factors. Internally, due to the nature of manufacturing bolts for vehicles, a variety of kinds of products were manufactured in different quantities in many cases and such work was complicated. And externally, customers did not place fixed orders. Generally, orders are placed in a way to ask a certain quantity of a product to be supplied by a certain time. However, our company has produced in a way that we identified how much stock customers needed in advance and then filled the order with the optimal amount of stock. That is why if a customer company increased the manufacturing amount to 350 tons, which was usually 300 tons, our company’s production plan for the month had a problem. It is difficult to meet the delivery time requested by customers and make optimal production costs. To improve these, we introduced a smart factory APS (Advanced Planning Scheduling) in 2019.
QWhat efforts were made to optimize the system to your company?
AFirst, we established an optimal production and supply system that quickly responds to the changes in customers’ demands by introducing the APS MP system. And we made prompt information sharing possible by minimizing the time consumption for manual work done on planners’ PC. As for the smart factory system, it’s important how well you use the system. In digital, 95% is not possible. Applying 95% is actually the same as applying 0% in digital. So, we have to accept the challenge of producing 100% from the first. Currently, we hold APS meetings on a weekly basis and share the problems of APS and carry out continuous improvement activities to find solutions. We investigate the market and logistics flow on a weekly basis because we think it is important to optimize even a small part perfectly rather than introducing additional things.
QWhat is your future plan?
A Currently we are establishing a thermal process monitoring system with a government subsidy. Thermal process is a tricky process that determines the strength of products and the product composition may differ depending on what temperature is maintained in production process. So, if we check and monitor the process in real time, we can reduce defects and mistakes. And Sunil Dyfas has used POP well, in which MES is reflected to a certain degree, for about 13 years. In the future, we want to establish an integrated MES and monitor all processes from raw materials to shipment. So, we ultimately want to seek optimization of production planning based on the APS system along with optimized automation of logistics.
Effect of the introduction of a smart factory at a glance
It was said Sunil Dyfas had effects in three aspects through the introduction of the smart factory. First, the process defect rate was decreased by about 31.8% from 830PPM to 566PPM. Also, stock and work in process were reduced by 6.2%. Along with this, delivery emergency response was reduced by 8.6%, thereby reducing the occurrence of transport and overtime allowances that was major cause of production cost increase.
Field personnel reports on Sunil Dyfas, "Work environment convenient thanks to the smart system."
What are the differences after introducing the smart system?
Since machines replaced humans for planning, production loss has been significantly reduced.
Most of all, productivity in the field has been improved since emergency input has been dramatically reduced!
Kim Yeong-ho, Manager of Production 3 Team of Production Division
What is the biggest improvement after the introduction of the smart system?
The biggest benefit is that we can establish and distribute production plans by field process facility based on customers’ demands!
We can now take preemptive action since we can identify the problems in advance.
Yoon Yeo-beon, Director
What was the most difficult aspect you encountered
when introducing the smart system and how did you solve it?
Since we tried APS for the first time in the same industry, we had to start as a blank slate.
This was the hardest because we suffered through losses at the beginning. But, we had lots of discussions with employees and improved this point thanks to many trials and errors.
Park Gye-chan, Manager of Smart Factory Promotion TFT