Site hosted by Angelfire.com: Build your free website today!

Excursion Report

to


by Jan Zizka



Table of content

  1. Introduction
  2. History
  3. Basic facts
  4. Management system
  5. SAP R/3 being inplemented
  6. Documentation system
  7. Conclusion


1. Introduction

(content)
This report is written as a part of assignment to the course Enterprice Systems Integration. We have visited KONE corporation branch in Hyvinka on 27.12.1998. We have heard a presentation about the structure and funcion of the KONE management system. After the presentation we were shown factory itself.


2. History

(content)
I didn't want to rewrite what is alreary written and moreover I think that the original is always better than any copy, so I recomend you to read about history of KONE at its site if you are interested.


3. Basic facts

(content)
Employees as of 31/12/97: 22,500
Revenues in 1997: US $2,250 million
Service Base as of 31/12/97: 440,000 elevators & escalators

Kone about itself:

"KONE, one of the three leading companies in the global elevator and escalator business, consists of KONE Corporation (its Finnish parent company) and over 150 subsidiaries around the world. The parent company was established in 1910, and its shares are quoted on the Helsinki Stock Exchange."

Again I heavily recomend to visit KONE site for more information.


4. Management system

(content)
Management system of KONE is quiet complicated due to the nature of their products - elevators & escalators.
KONE has three types to products divided into three groups:
  • Type A. product
    These are common products, which follow the product list. It means, that there are no custom chooseable options.
  • Type B. product
    This type of product suits for elevators, which are not in type A, but which can be described by selecting components offered by KONE (like a doors, cars etc). No special design work is needed
  • Type C. product
    Products belonging to this type are pure custom. Therefore special design work is needed.
And because of the delivery chain is quiet long. The delivery times ranges from cuple of weeks (for type A products) to, even, cuouple of years (for some of type C products).
Therefore whole management system has to be highly integrated to be able satisfy all customer needs in proper times.
The structure of delivery chain which KONE uses is integrated and even such a thing like a supplier integration is taken into account. Anyway it's really needed.


5. SAP R/3 being inplemented

(content)
In 1995 KONE started implementing SAP R/3 system together with some others for special needs. They started with implementing it in Australia and Germany. KONE is planning to fully implement SAP R/3 in a 5 years. Next year will be implemented for example in the USA.
Implementing of such a system is always non trivial. Therefore also KONE allready met many problems. One of them was the product configurationg which had to be changed in original SAP R/3. KONE is really optimistic about SAP R/3 full implementation.


6. Documentation system

(content)
KONE is in reality NOT running any real PDM system. Now days they are using an electronic documentation system, where the files (or documents) are avialable threugh the Internert. They have proper revision control, so the old revision is automaticaly replaced by the old one. They have also the prioryty checking for reading and changing the documents.


7. Conclusion

(content)
KONE is NOT a small company. It is worldwide at therefore this causes many dificulties. But KONE has 80 years of experience and is developing every day due to its Research and Developmant Teams. Just to conclude I would like to wish KONE to continue in the way it is going now and which it wants to go.


Last updated: 29.11.1998
E-mail: zizkaj@automaatio.hut.fi