I plan to discuss this great little company's situation a bit more later today when I have some more time. But in the meantime, here is something for everyone to chew on . . . <ggg>
SUBJECT: Replacement of Time Clocks with Computer Automated System Scheduled for DaimlerChrysler Corporation Manufacturing Plants by the Year 2001
Timekeeper Overtime Reduced by 700-800 Hours Per Month for Initial Installations
Southfield, MI -July 13, 1999- DaimlerChrysler's 33 manufacturing plants in
the U.S. and Canada are in the process of replacing the traditional Time
Clock system with a new paperless, computer-automated, time, attendance, and
labor allocation system-- an industry first. By the end of next year, the
Company anticipates that the work-time logged in by approximately 70,000
workers will be accounted for by using a new C-ATS system known as Corporate
Automated Time System.
The C-ATS system was jointly developed by DaimlerChrysler, Advanced Systems
International ("ASI") (NQB: ADSN), Southfield, MI, and Perot Systems,
Dallas, TX (NYSE: PER), and has been installed in one-third of
DaimlerChrysler's plants since it first pilot tested last August in the
company's Sterling Heights, MI, stamping plant. The system is currently
being installed in the remaining plants at the rate of about a plant a
month.
Advanced Systems International originally developed the application in the
early '90's as a Windows(tm)-based Client/Server program to address
multi-dimensional labor data collection and distribution requirements for
large manufacturing companies. The application, called ATServer*, provides
real time data to key supervisors throughout the enterprise, allowing
supervisors to make informed labor allocation decisions based on current
information.
When workers arrive at the plant, they are able to enter via the most
convenient gate, rather than the one nearest a specifically assigned time
clock, which frequently is located at a great distance from where employees
actually work. Electronically encoded security gate badges or cards
automatically log workers in and out of the system as they enter and leave
the plant.
If employees have overtime, vacation, sick leave or personal time, this time
and attendance information is quickly reconciled by their supervisor on a
Windows(tm)*-based computer screen with a user-friendly GUI (graphical user
interface). If employees have any questions about their pay, these can
generally be resolved quickly between worker and supervisor by reviewing and
updating information that is readily available at the terminal. (In the rare
incidence of a grievance, the same information is available to the union
steward.)
"The bottom line for our workers," said Gary Rocheleau, DaimlerChrysler
Plant and Payroll Accounting Manager "is that this system has the potential
to reduce payroll errors to zero. At present, where this system has been
installed at our larger plants (2,500-3,500 workers) payroll shortages (i.e.
errors) have been reduced from about 50 a week to around 15. We can do even
better as we get accustomed to the system. This system has improved employee
morale at payday and reduced the overall time lost due to fixing payroll
errors from about 70 to 20 hours a week."
Rocheleau also reports that the number of timekeepers on his staff has been
already reduced, by attrition only, from 108 to 95. In addition, timekeeper
overtime required to meet payroll deadlines has been reduced by 700 - 800
hours a month. These numbers alone indicate that the system has more than
paid for itself in less than a year.
According to Linda Savage, C-ATS Project Manager, the former Chrysler began
evaluating off-the-shelf time and attendance software solutions in 1995.
"Our mandate from the MIS department was that we should base our system on
commercially available, open, client server software that supported Sybase.
In addition, we needed a solution that would automate complex labor
allocation functions performed by supervisors using paper crew sheets.
This is why we are getting a high level of buy-in for the new system from
our Plant Managers and Supervisors," Savage continued. "To them it's a tool
for forecasting labor requirements and efficiently moving sets of skills to
where they are most needed."
"Advanced Systems International, a very small company at the time, had laid
considerable groundwork in developing exactly the kind of system we were
looking for. By partnering with them, we were able to get all of the
features that were important to us, including a user-friendly crew-based
graphical user interface on a single screen. Perot Systems was asked to join
the partnership to lend project management and programming support."
Savage said that DaimlerChrysler manufacturing plants have extremely complex
work rules which govern pay schedules and the allocation of overtime.
Developing the C-ATS system involved an enormous team effort on the part of
the vendors and especially by numerous people at DaimlerChrysler who
established product requirements and tested numerous modifications. The
challenge was to develop a product in which all the variations of the rules
were embedded in the software so that there would be little need to write
additional software code as the system evolves.
Once the system was piloted, DaimlerChrysler MIS assumed ownership of the
application and has been adding functionality to it ever since. As of June
1999, the C-ATS system was in version 6.8. Savage said that because the
product is based on widely-accepted industry-standards (GUI, RDBMS, ODBC,
SQL, ActiveX/OLE), it has been possible for the MIS person supporting the
software to implement changes suggested at the plant level in days or weeks
instead of months. These changes are typically piloted at the plant
suggesting the change and then distributed to all user plants with the next
release of the software.
Today, ASI and DaimlerChrysler frequently exchange information, but there
has been no need for ASI to become involved in maintaining the product for
DaimlerChrysler. Rapid transfer of ownership to the customer was, in fact,
one of ASI's stated goals in developing the software and one of the reasons
the company chose to base its products on widely accepted industry
standards.
ASI markets a commercial version of its ATServer* open, Client/Server time,
attendance and labor allocation software. ASI customers, such as Welch's
Foods, Johnson Controls, Cold Spring Farms, Sara Lee, ITT Automotive, The
Budd Company, Heinz Canada and Dana Corporation, have all realized similar
savings from reduced payroll processing time and errors.
This summer DaimlerChrysler will be reviewing the C-ATS solution for
potential implementation at other DaimlerChrysler manufacturing plants
worldwide.
Advanced Systems International ("ASI") (NQB: ADSN), is a leading supplier of
time and attendance and labor allocation applications as well as data
distribution and access (DDA) solutions for the Enterprise Resource Planning
(ERP) environment. ASI's cost effective, comprehensive product offering
includes the application software, hardware, implementation services and
on-going support necessary for rapid deployment of enterprise-wide
distributed processing. Key markets include automotive, automotive supply,
packaged goods, pharmaceuticals, food processing and other manufacturing
industries. The company markets its products through direct sales and in
conjunction with strategic partners.
*Windows is a trademark of Microsoft Corporation. ATServer is a registered
trademark of Advanced Systems International.
Investor Relations:
Quentin Mai
Telephone: (248) 263-0000
Toll Free: (888) 399-7000
Email: qmai@advsysintl.com
Web Site: www.advsysintl.com |
