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One of the Biggest Transformation Programs in Chinese Auto Industry

“Navigator Project” – the largest SAP implementation ever in China – is helping automaker DFL establish a management information platform for improved efficiency

Dongfeng Motor Co., Ltd

Industry
Automotive
Country
Asia Pacific
China
Alliance partner
SAP
Solution
Application Development & Integration
Finance & Employee Transformation
Rightshore®
SAP
Transformation Consulting

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  • Published on:
    2006-08-08 04:56 PM

 “An SAP implementation across such a large business span, within such a short period of time is rare in China as well as in the world. Its success will undoubtedly be written into the DFL history.”

Mr. Atsushi Komatsu, Vice President - Finance and IT, Dongfeng Motor Co., Ltd.

The Situation

Dongfeng Motor Co., Ltd. (DFL) was established in June 2003 through joint investments from Dongfeng Motor Corporation and Nissan Motor Co., Ltd. DFL is one of the largest car manufacturers in the People’s Republic of China.

The company had set goals to double its sales and revenues over a four-year period, increase its operating profit and make the most of its joint venture partnership. To achieve these objectives, DFL felt the need to transform and streamline its business operations.

The Solution

The “Navigator Project” was developed to help DFL establish a management information platform that could obtain timely, consistent, accurate and transparent information.

The program, implemented with the help of Capgemini, consisted of a number of streams, including Policies and Procedures, Organization Alignment, Close Cycle Reduction and a large-scale SAP implementation.

 

“The SAP system was successfully implemented in the commercial vehicle companies and the passenger vehicle companies. Such a big transformation completed within such a short period of time is a significant achievement.”

Mr. Katsumi Nakamura, CEO, Dongfeng Motor Co., Ltd.

 

The Result

The successful implementation of the Navigator Project, with SAP as the core, is an important milestone in the implementation of fundamental management improvements and company transformation at DFL. Along with QCD (Quality Cost Delivery), KPI (Key Performance Index), CMS (Cash Management System) and CFT (Cross Function Team), the program has been established as the “Dongfeng management methodology” and has:

  • Upgraded the mindset and behavior of staff.
  • Improved and standardized business and operational processes.
  • Enhanced basic data maintenance management.
  • Established a consistent business operations platform for 12 plants and eight departments.
  • Significantly changed and improved the corporate culture.

 

“Through the implementation of this world-class enterprise management software, DFL will be able to obtain timely, accurate and transparent information. More importantly, it promoted positive changes to the mindset and behavior of our 70,000 staff and further improved management in the entire DFL operation.”

Mr. Qiao Yang, Senior General Manager -Finance and Accounting, Dongfeng Motor Co., Ltd.