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Success Stories
ERP FUELS GROWTH An auto parts manufacturer wanted to re-profile its sales channels to concentrate on large retail outlets. Management recognized that without substantial improvements in THEIR customer service and product delivery capability, this initiative would never succeed. We led a project team that identified the key business processes that would have to be improved, worked with management and staff to re-engineer those processes, selected an ERP package best suited to support them and deployed the system in less than 24 months. The new production planning and inventory management techniques allowed this company to increase their revenues by nearly 50% without an increase in the cost of labor or materials. And, the information provided by the new order management functionality allowed service reps to complete customer transactions with a single phone call without follow up communications.
SUPPLY CHAIN SYSTEM BOOSTS CUSTOMER SERVICE A very large pharmaceuticals company had a consumer products subsidiary that produced and distributed 8 brands and 48 products, each with multiple pack sizes, though a national network of distribution warehouses. Their antiquated min-max inventory replenishment system resulted in excessive stock levels and unsatisfactory order fulfillment rates. We recommended and cost-justified a distribution requirements planning (DRP) system to reduce inventory investment and improve customer service. For every warehouse and each SKU we customized a sales forecast model and safety stock calculation that sent pull orders for stock replenishment to the two manufacturing plants. The replenishment system selected the appropriate transport method and vehicle size needed to ship the order and, where required, increased the time supply of inventory to take full advantage of the transportation cost. This system was so successful that it was also adopted by and implemented in their specialty chemicals division.
MRP REDO REALIZES ROI A mid-sized ($40 million) manufacturer of chemical pumps successfully implemented the basic functionality of their new ERP system but not the advanced manufacturing functions that contribute the most to ROI. We worked with management and their staff in re-engineering the manufacturing planning and scheduling processes and implementing the material requirements planning (MRP) and capacity requirements planning (CRP) software. With this added capability they were able to improve on time customer deliveries by 23%, decrease work-in-process inventory by 35% and shrink raw material inventory by 18%.
JIT TUNE-UP CAPTURES BENEFITS After spending $68 million to convert their production facilities to a Just-in-Time (JIT) operation, this manufacturer of earth moving equipment found that their productivity and customer service had actually decreased. Our review of their operations confirmed that the old system of scheduling components and sub-assemblies which used hard copy work orders could not keep in synch with last minute changes to the production schedule that JIT now allowed. We designed and built the prototype of an assembly broadcast system that sent pull signals to down stream work cells for the components corresponding to the features and options needed to complete the vehicle that had just been "set" on the assembly line. This system was accepted and approved by divisional management and staff as well as the unionized work force. Ultimately, it was incorporated in their parent company's world-wide manufacturing system.
SUPPLY CHAIN CAPABILITY BUILDS MARKET SHARE We provided advice and counsel to the executive management of Australia’s largest food ingredients manufacturer to develop an IT strategy that positioned the company as a viable supply chain partner in the NAFTA region. Then, we helped select the ERP and Supply Chain Management software that supported and enabled that strategy. Subsequently we provided direction and guidance in the implementation phase.
PRESIDENT'S INTEREST LEADS TO CONFUSION The president, and one of the founders, of a mid-sized electronics manufacturer would periodically walk though the shop floor to get a feel for what was going on because the company's reporting systems didn't do the job. Unfortunately, his innocent questions often had unintended consequences such as expediting certain jobs, gold plating others, etc. We worked with the president and his staff to develop a set of metrics that were key indicators of the health and well being of the operations. Each metric was broken down into sub-components that indicated how well functional areas and departments were doing. This decomposition extended all the way down to the shop floor, so collectively there was a consistent set of measurements that were all directed towards achieving the company's goals and objectives.
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