Together we achieve more with J.K. Wire Harness
In conjunction with MIDA-P2 (Malaysian Investment Development Authority) Digital Transformation Ecosystem Programme, J.K. Wire Harness Sdn. Bhd. (JKWH) has digitally transformed its business operations and processes. In order to propel to the forefront of IR4 (Industrial Revolution), JKWH needs a complete ERP system that consolidates all their business processes into one single system. With the successful implementation of Monitor G5, JKWH has improved the efficiency of its business processes.
Established in 1979, J.K. Wire Harness grew to become the largest automotive wire harness manufacturer in Malaysia. With an impressive line of clientele — ranging from Honda, Mazda, Mitsubishi, Nissan, Perodua, and Toyota — JKWH has grown to become a key supplier to the biggest automotive assemblers.
With the adoption of the Monitor G5, JKWH can now lead the way in the digitalization of the manufacturing industry and move one step closer to becoming a Smart Factory in 2024.
1. The idea of deploying Monitor ERP system
In order to remain as the leading wire harness manufacturer in Malaysia, operating at the forefront of global standards, JKWH realized the need to leave the old system which had become a barrier that slowed down their operational efficiency.
The main goal was to have one single standard system that can cater to the majority of JKWH’s business processes. The company was looking to consolidate all its interdepartmental processes into one cohesive system — it is something that Monitor G5 can definitely achieve.
The move to a more digitalized ERP system is in line with the goals set forth by the MIDA-P2 Digital Transformation Ecosystem Programme — that is to improve the productivity of local manufacturing companies through real-time data monitoring and to attain a more accurate and efficient data recording system.
Monitor G5 requires little to no customizations, providing the company with a fully integrated system where it can take full control of important business operations like supply chain, inventory, production, and planning.
2. Why did J.K. Wire Harness choose Monitor G5?
Monitor ERP System and JKWH share common grounds in terms of product value. The products we produce are like the central nervous system of the human body to our customers.
For JKWH, the wire harnesses work like the central nervous system of an automobile as it transmits signals and electrical power throughout the entire machine. It is an essential component that affects performance, efficiency, and safety.
Similarly, Monitor G5 functions as the brain of JKWH’s entire business system, allowing all necessary departments to work in unison. G5 helps the company to synchronize its interdepartmental processes through the six core modules with real-time data and take control of all areas in its supply chain. This allows them to gain transparency and enable efficient communication across departments, thus, increasing its operational efficiency.
“The six core modules integrated in the system really help us a lot in making sure that our data is more consistent and also speed up our company processes,” said Wan Mohd Hakimi bin Wan Harun, Factory Innovation Unit Manager at JKWH. “We no longer have to rely on manual data entry as we are now connected to our customers through their portal and EDI. The imported data is then automatically synced into our system, G5.”
3. One complete ERP system to address pain points
One of the biggest challenges that J.K. Wire Harness faced with their previous system was the system version that became obsolete as it was installed twelve years ago and the in-house apps that mainly functioned stand-alone.
The in-house apps were outdated and lacked source code traceability for future upgrades. The apps were not interdepartmentally connected to one cohesive system. They could only perform specific tasks and were not operable with a central software such as an ERP system. Because of this, a lot of key data had to be manually keyed into Excel. The production team had to manually enter data and perform customizations in order to carry out the daily business operations. They also had to constantly take care of and monitor the in-house apps which were tedious and time-consuming.
The previous ERP system also did not have a real-time dashboard/ device for operational performance indicators. This inhibited JKWH’s ability to track shop floor information such as machine and order statuses, output cycle times, and rejects among others. Usage of barcodes was also minimal in the production line where tracking of each individual part was not complete, limiting data traceability such as root cause analysis.
JKWH lacked a smoother delivery between warehouses and customers as their previous ERP system took a long time for communication between departments to travel across.
“Before this, we needed a PIC (person in charge) to create and three PICs as a checker. The production team needed two different sources which were excel cutting schedule and a system,” said Nuremalina binti Mohd Gafar, Production Control Executive, at JKWH. “However, that took a long time”.
With all these factors. JKWH opened its gate to a more efficient and streamlined ERP system - Monitor G5.
The six core modules integrated in the system really help us a lot in ensuring our data is more consistent and also speeds up our company processes.
4. Benefits and improvements of Monitor G5
Monitor G5 combines JKWH’s key business operations into one single source of truth. Instead of relying on their old system, the individual apps that they previously used are now streamlined into a complete integrated system.
G5 features cover the majority of JKWH’s production through its six key modules:
5. Time recording
JKWH no longer has to monitor any of its outdated in-house systems, allowing the company to save both time and money. The real-time data and tracking capabilities of Monitor G5 eliminate the need for JKWH staff to manually key in data into Excel.
“Now, the PC (production control) only needs to create MO (manufacturing order) and the production team could then obtain the MO number directly from G5 and prepare for wiring,” continued Nuremalina. “This process saves time and increases efficiency as it reduces the number of PIC(person in charge) for checkers.”
Key information like order statuses, machine statuses, stop codes, etc. can now be monitored in real-time via devices such as computers, smartphones, tablets, or web browsers.
JKWH has identified the two main elements that needed to be improved in its business operations, namely:
1. Vertical integration on the shop floor
J.K. Wire is now in a better position in improving its processes from planning to delivery. The improved vertical integration with Monitor G5 has allowed JKWH to streamline its operations by taking direct ownership of its various stages of manufacturing process.
Previously, JKWH’s vertical integration was centralized on an ERP system that still required manual entry on Excel files for production planning and WIP tracking. After G5 implementation, the system has the capability to look at current capacities, loading plans, and priority planning.
“We were required to manually calculate each harness in WIP (work in progress) previously,” said Siti Nurhaziqah Azmy from the Quality Assurance (QA) team at JKWH. “Since WIP is a part of G5 now, we can search directly from the system.”
This makes production planning at the ERP level to be more efficient as G5 is integrated with Business Intelligence (BI), which facilitates decision-making processes based on the key performance indicators (KPI) of the company.
2. Horizontal integration
Monitor G5 also incorporates EDI (Electronic Data Interchange), which means JKWH can now transfer business documents such as forecasts, customer orders, dispatch advice, purchase orders, invoices, among others, electronically as structured messages in an internal format. That means that messages between JKWH and its customers and suppliers are then converted from/ to the standard required by the customer or supplier, allowing JKWH to manage manpower and time even more effectively and reduce manual tasks.
EDI standardizes the information communicated in JKWH’s business documents, enabling JKWH to achieve smoother and more seamless communication between its customers and suppliers, and creating a paperless environment overall.
JKWH has now exemplified both Horizontal and Vertical Integration as all modules are integrated within the manufacturing landscape.
Given the importance of wire harnesses and how it connects every key part of their customers’ products, JKWH has invested significantly in the development of its business, not only to meet its customers’ requirements but also their own needs of producing vehicles domestically while adhering to the Global Quality and Design standards that are expected of their brands.
Monitor G5’s flexibility, durability, and strong support have empowered J.K. Wire to enhance its processes and optimize its workflows. With the introduction of the traceability system in the company, JKWH has not only succeeded in improving its internal efficiency and communication but has also identified its core challenges and resolved them effectively.
Collaborations with organizations such as MIDA are monumental to maintain JKWH’s standards as a world-class manufacturing company. What helped them take a giant leap closer to achieving the status of a “Malaysian Smart Factory (MSF)” is JKWH’s relentless commitment to time, effort, talent, process, and technology investment.