We are preparing for new SaaS based service for Small and Medium Manufacturing Companies. This is just a draft of the advanced planning document. Any recommendations and comments are welcome.

1. Service? Hatio, Lab.? Innovative platform for small & medium enterprise -HatioThings
Why

2. Catalog
The crisis and challenges faced by SMEs
Why do manufacturing enterprises need IT system?
Why should be Cloud based SaaS?
How many benefits do companies enjoy by using SaaS?
Company Profile -Hatio, Lab.
Value added services provided by Hatio, Lab.
Things System-The core business information management services for manufacturing enterprises
(Appendix) Architecture

3. The crisis and challenges faced by SMEs
Only by relying on low human cost, SMEs have been unable to challenge major enterprises –Utilization of Robot and 3D printer
Growing to be an hidden champion, who ensures the technical superiority of core value for products, is the ultimate vision.
The ability to respond flexibly to personalized customer demand, has become the core competitiveness of enterprises.
SMEs also need to have a global mindset, and IT technology is the important factor which can help them to grow to be an international enterprise.
Source. http://global.sap.com/corporate-en/news.epx?PressID=21195
Source.Designing for Manufacturing’s ‘Internet Of Things’ -Cognizant

4. The crisis and challenges faced by SMEs
The direction of change needed for manufacturing industry in IoT(Internet of Things) Era
Visible cases in an integrated environment, which connected process, equipment, products, logistics and customers
Source.Designing for Manufacturing’s ‘Internet Of Things’ -Cognizant

5. The crisis and challenges faced by SMEs
The World Is Flat
Popularization of Cloud and SaaStechnology, has provided SMEs a low cost and high performance IT environment in which can challenge major enterprises.
Not only in the ERP, MES, SCM, WMS, CRM systems, also can be in the big data and electronic commerce, SMEs can achieve the same level of competition by using the low cost of outsourcing service.
Innovative IT system, is the most powerful tool to improve the competitiveness of SMEs’.
The development of inexpensive network, sensor technology and IT service technology, is pulling an innovation era of manufacturing which is dominated by IoT, and this phenomenon is just to provide a challenge for SMEs.
Source. The world is Flat by Thomas L. Friedman 2005

6. Why do manufacturing enterprises need IT system?
Improvement effect on the main index of the enterprise, which gained after using IT system
Source. MESA 2014 -Manufacturing Metrics That Really Matter
Production costs
net profit rate
on-time delivery
OI : Operations Intelligence
EMI : Enterprise Manufacturing Intelligence
MES : Manufacturing Execution System
MES : Manufacturing Execution System
PLM : Product Lifecycle Management
QM : Quality Management

7. Why do manufacturing enterprises need IT system?
Excess inventory
Shortages of parts
Unable to control the production plan
Supplier performance
Issues for
Manufacturing
companies
Issues for
Logistics
companies
Not having the right finished goods
inventory
lack of visualization of supply chain
Excessive inventory
SME required
Establish an End-to-end pull process to gain 100% visibility across the supply chain
Optimize inventory for Finished Goods , Work In Process and Raw Materials
Execute electronic Kanbanreplenishment with customers, distribution centers and suppliers
Increase inventory velocity to improve turns and service levels

8. The IT level of SMEs is not high, so most of them do not have an methodical IT management system such as ITIL.
However, in order to improve the competitiveness of enterprises, SMEs must have a powerful IT system.
Why should be Cloud based SaaS?
Source : Cisco, 2013 ; AMR Research/Gartner
Figure 1. Fundamental Nature of the Business Drives Each Segment’s IT Behavior

9. Why should be Cloud based SaaS?
Comparing with mounting type systems, SaaScan be used by half of the costs and a minimum of IT resources.
Source. MESA 2011 North American Conference

10. How many benefits do companies enjoy by using SaaS?
Figure 1. Cloud Adoption Over Time
Figure 2. Cloud Adoption by Region
Case: In US, EMEA (Europe, the Middle East and Africa) and other regions, the adoption ratio of Cloud is keeping on increasing.
Source. State of SMB IT 1H 2013 -JDL Technologies

11. How many benefits do companies enjoy by using SaaS?
The main fields of Cloud services
Figure 1. Mapping Key capabilities to the Cloud
Source : IDC
Collaborative Applications
Content Applications
Enterprise Resource Management Application
Supply Chain Management Applications
Operations and Manufacturing Applications
Engineering Applications
Customer Relationship Management Application

12. Company Profile –Hatio, Lab.
“To provide an IT system which can help SMEs gain competitiveness”, is the mission of Hatio, Lab.
We try our best to provide IT services which are really needed by SMEs
We pursue fast, rugged and easy to use IT Technology
Our professional field
The core process of Small and medium-sized manufacturing enterprises
:Sales, Procurement, Engineering, Production, Quality
Cloud based SaaS
Big Data (Real-time data stream analysis)
Management System for Small and medium- sized logistics enterprises
: Warehouse management, vehicle management etc.

13. Value added services provided by Hatio, Lab.
Based on our abundant experience in manufacturing enterprise computer system, we are pleased to provide you a high value services at lower costs.
Low cost, but high value service
We provide a system which is easy to be learned and used.
Even a new user to the system, he is also able to know what can and should be done.
Because it is an easy-to-use system, the utilization rate will be very high.
High utilization of system, will make the enterprise and their products gain more and more values.
We offer rich customized features for our clients.
Any enterprise has his own value in the process.
Forcing to usea flat and unilateral process,will damage the real value of clients.
We will try to realize a system which is containing the unique idea from clients.
Important data from our clients will be protected safely.

14. Things System -The core business information management services for manufacturing enterprises
Things System provides the end-to-end supply chain based procurement, production, sales, engineering, quality and other information system at the lowest cost.
Information management system
of manufacturing enterprises
MES
ERP
Project management
operation
control
생산
Production
Engineering
Quality
Procurement
Sales
Supply Chain
Operation
Engineer
Staff
Manager
Customer
Supplier

15. Characteristics and advantages of Things System
To install the system and function modules according to customer demand
Can selectively install required modules according to the characteristics and requirements of many enterprises
Can extend easily according to the scale, respond flexibly to customer demand
The functions of system is designed based on manufacturing environment.
Product drawings, technical specifications and standard management
Design and print documents and labels
Report based on the data from production, quality, sales, procurement, etc
Simple and easy-to-use user interface
Web based user interface, easy to adapt and use
Managers and staff both can use, the user screen distinguished by authority
Manage user authority by job titles
The menu and the user interface can be reset according to the customer demand
Support multi languages, time, user code
Shorten the system implementation cycle
Advanced system structure, technology and project grouphas speeded up the cycle of system construction and implementation.

16. Sales Module
Process
Product development request
Project change request
Faulty information, customer complaints
Faulty reception
Treatment action
Product development invitation
Project change invitation
Submit PPAP
Submit change invitation
Input faulty information
Customer complaints
PPAP approval request
Project change request
Submit CAR, 8D Report
Treatment action, remedial action
Production
Production plan
Organize production
Quality
Faulty tracking and related measures
8D analysis
Engineering
Product and process design
PPAP, change management
PPAP approval
PPAP approvalannouncement
Mass Production
PO
Receiving PO
Finished product storage
Shipping
Invoice
Sales
Customer

17. Sales Module
Quotation management
Estimatemanagement –tracking the content of number, type, duration, status etc.
Process management -relevant departments or responsible persons input quotation contents by sequence according to the internal process
Quotation record
Customer and order management
The classification management of customer information
PO & Release –connecting EDI and system
PO vs. Shipping–comparing records
Get connected with the inventory and production plan
Generate, print invoices (Invoice)
Customer satisfaction -recording self-assessment or customer rating to the company prices, timely delivery rate, quality performance index, etc
Customer complaint -managing complaint information, tracking the corresponding process (CAR, 8D)
Shipment
Finished goods inventory confirmation
Shipping: PO No. –input corresponding Lot No.
System reflects physical delivery in real time
Print documents
Finished goods inventory
Finished product registration
Finished goods inventory management
first-in first-out (FIFO)
Warehouse location management

18. ProcurementModule
Process
Inbound inspection
Production Demand
Procurement plan, procurement orders
Raw materials, parts specification
Technical specification
Supply raw materials
Supply products
Quality
Engineering
Production
Procurement
Supplier quality management
Technical support
Vendor

19. Procurement Module
Supplier information
Supplier list -profile, products, review records etc.
Supplier rating -regular review plan, contents, scoring record
Potential supplier assessment -establish assessment contents, record and manage the results of assessment
Procurement management
Purchasing list -product, drawing No., suppliers, customer corresponding products, price, minimum order quantity etc.
Payment information –manage payment status, date, the amount etc.
Quotation management –Release and track supplier quotation on the system
Publish and release PO -send by mail or EDI
Record procurement performance -based on the warehouse handling
Returns management -track returned goods, integrating with inventory management, supplier rating etc.
Raw materials, outsourcing parts inventory management
Raw materials inventory management
Registration of raw materials ins and outs
Raw material FIFO
Raw material storage management
Inventory report
Supplier portal
Publish RFQ on the System
Suppliers login system to complete the quotation
Suppliers search for rating by themselves
Suppliers submit PPAP online
Portal connected with internal QMS, SCM, to synchronize information

20. Engineering Module
Process
technical specifications of
raw materials, purchased parts
Product development request
Process definition
Work instructions
Product development, change management
PPAP submission
Production
Procurement
Engineering
Sales
Supplier engineering audit
Product design
Manufacturing process design

21. Engineering Module
Engineering data and change management
Change management -tracking change process and the latest status
Products (model, version) management -make sure the latest version consistency
Drawings, standards and other technical data management -easy to obtain normative documents
EBOM parts and components list
Set characteristics of the product -special characteristics, important characteristics
Control plan–define control parameters of various process
Process Flow Chart-define process
FMEA-Failure mode analysis
Maintain relevance and synchronization of CP/PFC/FMEA
PPAP process tracing
Project management (PMS)
Project management based on the product development process
Milestone -node tracking, remind
Task management -task assignment, tracking
WBS (Work Breakdown Structure)management
Process management -the Gantt chart

22. Production Module
Process
Quality inspection
Process definition
Work instructions
Receiving PO
Inventory of raw materials
Finished product storage
Production plan
Organization of production
Input materials
Tooling equipment
Management and maintenance
Procurement
Sales
Production
Quality
Engineering

23. Production Module
Equipment management
Equipment list, account -the equipment information, including the name, code, types, equipment capacity, service time, current status, etc.
Equipment BOM –list of assembly parts
Spare parts inventory management, associated with the device
Equipment repair -failure and repair history
Equipment maintenance -maintenance plan, time, level, content, curriculum vitae, maintenance reminders
Tool management
General list -tool fixture, mold, consumables, and other list etc. Number, description, version, material, manufacturer, minimum stock quantity, size, condition, etc.
Tooling, fixture, mold maintenance -plan, content, implementing state definition record
Tool BOM–components of mold and fixture, to distinguish the special tool and general tool
Tool inventory -Real time tracking for quantity, storage, use, current status
Production plan
Search sales, delivery plan
Search raw materials and finished goods inventory
Make production plan
Plans according to the product, process, timeand the team
Production performance
Production performance of each process
Production performance of finished goods
Inventory registration -consumption of raw materials and finished products storage
Lot Tracking -batch tracking
Bar Coding label
Design and print of label-mark products, packaging, turnover box, tray, storehouse position using barcode, identify and input into system using mobile terminal scanners etc.

24. Quality Module
Process
Incoming inspection
Faulty information
customer complaints
quality inspection
Analyzing cause of faulty
Inspection instruction
Outgoing inspection
CAR, 8D
Gage management
Procurement
Production
Sales
Supplier quality management
Quality

25. Quality Module
Quality data
IQC (Incoming Quality Control), OQC (Outgoing Quality Control) test data management
Test procedure based on Control Plan
Faulty type definition, separate management for faulty data
Bad product traceability and confirmation -trace lot, inspection data
CAR, 8D -rectification report, measures
Analysis and calculation of process capability
Generate test report and quality report
Quality plan
APQP –plan quality tasks based on advance quality planning principles
Internal audit –plan and record internal audit, process audit
Continuous Improvement-Tracking such as cost savings, best practices, poka-yoke (anti error correction) and other continuous improvement projects
GageManagement
Gage information management based on code and barcode
Management and implementation on Gage calibrationand maintenance plan
Gage R&R-analysis of gage repeatability and reproducibility
Supplier quality management
Potential supplier quality assessment
Supplier PPAP approval
Supplier faulty record, rectification records
Supplier quality rating
Periodically review the planand record

26. WMS (Warehouse Management System) Module
Incoming management
Physical inspection -visual statistic management of storage process
Accounting treatment –support ERP accounts verification by I/F information
Product data –collect, verify and record real data information
Finished goods check –automatically send and analyze
inspection hints and information
Inventory management
FIFO –establish and obey delivery rule
Status management –distinguish inventory availability by
inventory status management
Warehouse location management –Optimize inventory space
Inspection management –Keep data consistency by inspection management
Outgoing management
Picking packaging –visualization of picking and packing process
Label publication –print relevant information and label when outbound packaging
Expiration date management –isolate inventory by inventory cycle
Outgoing confirmation –statement, loading, preparation of vehicle before outbound
Inventory management
Incoming management
Outgoing management

27. WMS (Warehouse Management System) Module
WMS construction effect
Improvement factor
Up(%)
Reductionfactor
Down(%)
Labourproductivity
5~20%
The necessity of logistics equipment
10~30%
Inventory accuracy
99.9%
Warehouse inventory reduction
25~50%
Picking accuracy
98%
Direct labor cost savings
40%
Space efficiency
30%
Inventory cost reduction
50%
Customer service
30~40%
Indirect labor cost saving
15%
Products processing capacity
10~25%
Return reduction
80%
Location browse time
5~25%
* Source: Gartner Research Group

28. Label modeling and image service including 83 kinds of barcode
Support laser printers, barcode printers
Basic service -tag service

29. Label modeling and image service including 83 kinds of barcode
Support laser printers, barcode printers
Basic service -tag service

30. Basic service –tag service
Barcode and RFID tag technology is the core technology of IoTsolutions
Source : A commissioned study conducted by Forrester Consulting on behalf of Zebra Technologies, June 2012

31. Drawing object modeling serves of multipurpose
Including real-time monitoring, instrument panel, graphics and other multiple use
Basic service -monitoring service

32. (Appendix) Architecture
Web standard HTML5
NoSQLDB
Cloud based SaaS

33. Do you Things?
Innovative platform for small & medium enterprises -HatioThings

34. Thank you!
Innovative platform for small & medium enterprises -HatioThings