Introduced Microsoft Dynamics ® AX discrete manufacturing management template

―Production and sales management systems (Japan)―

Background and aims of introduction

Respond flexibly and quickly to changes in the environment, including globalization

HOYA CANDEO OPTRONICS Corporation (hereinafter referred to as "HCO") was considering restructuring its core system (business package for production and sales management) as the expiration of its maintenance contract was nearing. The existing system had accumulated business know-how and was easy to use, but many add-on functions developed for it made it difficult for simple package upgrade to work. HCO decided to rebuild the system using the latest version of the existing system or another business package software.

After reviewing the changes in the environment surrounding the core system, the following requirements were identified for the new core system: support for multiple languages and currencies in line with the globalization of business, enhancement of import/export management functions in line with the trading patterns of each country, alignment with internal control, and ensuring cost competitiveness through grasping costs highly accurately amid the shift to high-mix low-volume production. In addition, flexibility was required as well to respond to unexpected changes in the business environment including business consolidation.

Implementation of Microsoft Dynamics ® AX

HOYA Digital Solutions proposed to HCO to implement Microsoft Dynamics AX. One of the reasons was that it comes with the ERP functions for globalization and can be properly supported by vendors almost anywhere in the world. Its user interface similar to other Microsoft products was also a good reason to select it as it brings familiarlity to users. The need to keep implementation and operation costs down to match the scale of HCO's business was also taken into consideration.
Meanwhile, HOYA's head office had just announced a policy to standardize core applications, which had been disparate for each business unit and region within the group, into a single ERP, strengthen IT governance, and reduce costs by consolidating operations and maintenance. Microsoft Dynamics AX was selected as the group's standard ERP, and a decision was made to link it with SAP's ERP, which handles HOYA's global accounting operations, in a hub-and-spoke fashion.

HCO engages in both assembly and process manufacturing that HOYA Digital Solutions decided to develop add-ons and templates for highly versatile functions, such as order control and actual cost management, and make them available to HCO and other business units within the HOYA Group that were set to introduce Microsoft Dynamics AX.

Looking back at the time of the system introduction, the project manager of HOYA Digital Solutions says:
"The biggest hurdle in this project was the fact that the implementation period was only less than a year, even though the scope of the project was the entire value chain (the HOYA Group SAP accounting system was used for accounting). Our SEs had built experience with the field users and were equipped with ERP know-how through SAP implementation, but to be honest, we had a hard time implementing the system for HCO's hybrid management of assembly and process productions.
It was wonderful to have Mr. Uchino, General Manager of the Information System Promotion Office at HCO, participate in the project full-time. He had a thorough understanding of all the existing field operations, applications, and HW, that the direction of the design was determined quickly without wavering.
Young members grew rapidly over the course of the project, contributing greatly to the success of the project. In all my years of experience as a PM for larger and more complex projects, this was the first case where the team could address all the delays at once around the end of the project. I think it was a result of every member not giving up until the very end."

HCO's new core system went live in May 2012 after a 10 month implementation period. Since then, it has been operating stably, and is expected to be further utilized for operations in China and future business development.

System scope


Mr. Uchino, the head of HCO's Information Systems Promotion Office, says, It has only been a short while since HCO's new system went live, and yet, we already and clearly see the following benefits."

  • The system has been well received by the management as it enables them to easily grasp the "order, shipping, and sales performance trend" with the same operability as Microsoft Office products.
  • The increasing workload of import/export management (preparation of import/export documents such as invoices and packing lists, and monitoring of customs clearance warehouses) has been systemized, resulting in labor saving.
  • The new system enabled close to real time analysis as it feeds "order, shipping, and sales data" to the DWH (database for analysis) during the day time, whereas it used to be a single feed at night under the previous system.
  • Information from DWH (database for analysis) can now be freely extracted and processed, and desired information can now be analyzed from a variety of perspectives
  • The new system offers enhanced capabilities for inventory management in the destination warehouses and management of paid/unpaid supplies, enabling cost calculation in line with actual operations.
  • Enhanced external interfaces, such as importing Excel files containing order EDI and production plans, also contribute to labor savings.

In the long run, Mr. Uchino says, "We will benefit more from the features such as multi-currency and multi-language support, enhanced internal control through security functions, and the shift from monthly to daily accounting processing (linkage with the accounting system)."

Future outlook

Based on the positive outcomes of this project, HCO is considering the following plans to expand the scope of application and use of the system in its operations.

  1. Horizontal expansion to subsidiaries in China and other countries
  2. Additional functions such as workflow implementation
  3. Active use of management information by expanding the scope of DWH use

[Corporate Profile]
HOYA CANDEO OPTRONICS Co., Ltd. is a company that applies the optical technology that HOYA has cultivated over many years to the FPD (Flat Panel Display) manufacturing process, laser oscillator used for defect correction, UV optical equipment used in the adhesion process of optical components (Optical pickups, camera modules, etc.) using ultraviolet (UV) curing resin, color filters used in optical equipment and industrial equipment, and electronic glass products.