Reimplementation: Changing the Way We Do Business

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Reimplementation: Changing the Way We Do Business. David Petzel IT Director A.J. Antunes. The Promise in Our Abstract : We promised to tell you how the QAD + Eagle Solution made A.J. Antunes a data-driven company. Keeping the Promise: 3 Questions. About A.J. Antunes & Co. - PowerPoint PPT Presentation

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QAD MMUG User Group Fall, 2010

Reimplementation:Changing the Way We Do BusinessDavid PetzelIT DirectorA.J. Antunes

The Promise inOur Abstract :We promised to tell you how the QAD + Eagle Solution made A.J. Antunes a data-driven company.Keeping the Promise: 3 Questions

About A.J. Antunes & Co.Manufacturing company based in Carol Stream, ILFacility in Suzhou, ChinaProduct Lines:

Roundup Food Vizion WaterCustomService Equipment FiltrationControls

About A.J. Antunes & QADQAD customer since 1996May 2009 - Upgrade from eB 2.1 to QAD 2008SE with .Net 2.6.1March 2010 - .Net Upgrade from .Net 2.7.1 to .Net 2.8.1QAD Modules in use at AJA:Using most of the standard QAD modulesQPSCSSDRP5Why a Reimplementation of QAD?May, 2008 - AJA CEO questioned the current QAD implementation:Why is it so hard to gather good data?Need more than historical reporting at our fingertipsCEOs from other companies brag about their systemsJune, 2008 - Contracted Liberty Technology Advisors to evaluate AJAs current ERP implementationAugust, 2008 LTA recommended that AJA:Re-engineer all business processesUpgrade QAD to 2008SE and the .Net UIQAD is right for our business.Net UI brings a whole new level of functionalityBad News/Good News.14 years of experience using QAD

AJA Process Re-engineering4 months (Nov 15 to March 15)25 to 35 hours per weekKey decision to use Liberty Technology Advisors (LTA) for all process mappingRCM Technologies to provide expertise to blend our future state process maps with the functionality available in QAD2008SE & .Net UIChina Team brought in to participate in process mapping on key intercompany processes

Key Decisions After Re-engineeringKey Decisions After Re-engineeringHow AJA has become a data driven companyHow AJA has become a data driven companyWhy Eagle: Technical ConsiderationsSeamless plug-and-play integration with QADOnline, real-time, Progress-basedNo side databases, separate server or middlewareCalls QAD edit and update routines to provide real-time data checkingSupports a wide array of devices, including Intermec CK3 RF terminalsALL Eagle installations are also QAD installationsNot a canned solution; over 2,000 configurable RFvalues

Why Eagle: Cost ConsiderationsLess hardware and software are required because RF Express for QAD Enterprise Applications uses the existing database and existing serverReduced database/server ongoing maintenanceSimplified database control: QAD and Eagle work together

How AJA has become a data driven company

3.2 - Inventory Detail by Item BrowseUsed to monitor SO locations (daily)How AJA has become a data driven company

AJA Process Map

How AJA has become a data driven company

Operational Metrics

Example of a browsebehind the metric275 Custom ProgramsTOTALREPORTSMAINTEXTRACTUTILITYDATACOLLECTIONBEFORE Reimplementation27516535323310AFTER Reimplementation13471336240Reduction inCustom Code51%57%6%81%27%100%Success Story #1 Advanced Repetitive

Problem: Repetitive work cell activity is not transacted in real-time, causing material issues and handwritten hot sheets.

Goal: Use the future state Process Map to eliminate time delays and to empower Line Leaders to effectively manage their cells.Success Story #1 Advanced RepetitiveHow we did it:Process Change: Add Operations to Routings to improve work cell visibility:Assembly (90% of BOM is backflushed here)Testing (up to 24 hours)PackagingStaging (after completion)Process Change: Specify timing and parameters for Repetitive Picklists so that material for tomorrows production shows up before 1st shift beginsTechnology:Eagle backflush transactions (handheld & PCs)Eagle label printing (on wireless printers) so that all material would be identified with a Part Number/Bar CodeProduction Line Schedule Browse (custom browse)Empowers Line Leaders to prioritize daily productionPaperless interaction w/SchedulingAuto Refresh Live browse for anyone viewing it

Success Story #1 Advanced RepetitiveResult:Line Leaders rely on QAD browsesWith timely backflushing, all Team Members rely on Inventory accuracy within the Work Cells Handwritten sheets are goneProduct identification is not an issue any moreLine Leaders are quick to identify BOM issuesExpedited orders are handled very easily without the burdensome paperworkLine Leaders are expected to be proactive for maintaining their Work Cell inventorySuccess Story #2 Service Parts

Problem: Service Agencies supporting key accounts are complaining about late deliveries and shipping errors

Goal: Improve on-time and overall Shipping performance in the Service Parts Division

Success Story #2 Service PartsOverview of Service Parts:Replacement component partsKits that are assembled within the Service Parts assembly area; kitting area set up as a repetitive w/cHigh/growing volumeDaily demand for Next Day Air shipments domestically and internationallySame components that are used by Work Cells for finished goods assembly

Success Story #2 Service PartsHow we did it:Process Change: Get inventory under control in SP locationsDelineate Service Parts Kitting work cell from Service Parts stock roomOperate the SP Kitting as a lean repetitive work cell; maintain inventory only on exclusive itemsDefine a schedule for QPS planning and repetitive picklist printing for the Kitting areaDefine a schedule for Picklist printing for SP componentsDevelop a weekly Cycle Count schedule to cover stocking and staging locations

Process Change: Develop policy that any rush order for a replacement part or kit received by 3:00pm CST will be shipped Next Day Air (6:00pm pickup)Success Story #2 Service Parts ShippingHow we did it:

Process Change: Create locations, locations, locations to manage the flow of material to and from the Service Parts area:

SERVICEPARTSSTAGING 7(To China)STAGING 8(Completed Kits) STAGING 5(From Gen Warehouse)Success Story #2 Service Parts ShippingHow we did it:Technology:Eagle backflushes kits (PCs)Eagle transfers product to/from Staging locationsEagle picks product to an SO location (handheld device)Eagle performs weekly Cycle Counts of Service Parts locations (handheld device)SP Open Line Items (custom browse)Empowers order processors to prioritize picking/packing activityNext Day Air rush orders are quickly identifiedTakes advantage of Auto RefreshInventory Detail By Item Browse (custom browse)Production Line Schedule Browse (custom browse)

Success Story #2 Service PartsResults: Satisfaction of Service Agencies has improved tremendouslyOwnership is in the hands of Line LeadersAdjustments to schedules are immediately visible to Line LeadersStill requires communication for rush ordersWith improved efficiencies, SP is no longer overwhelmed by spikes in volumeService Parts continues to grow at a solid paceOn-Time Shipping has improved from 82% (July 2009) to 99.3% (August 2010)AJA Service Parts On-Time ShippingSuccess Story #3 Shipping

Problem: Frequent cases of incomplete shipments, incorrect shipments, duplicate shipments, or duplicate serial numbers

Goal: To provide Shipping with tools to improve Shipping performance measurements and to proactively manage outbound Staging locations

Success Story #3 Shipping

Responsibilities of AJAs Shipping TeamPicking and shipping for food equipment FGsPicking and shipping for water filtration FGsShipping for ControlsShipping for Service PartsShipping consolidation for China container shipmentsManage various Staging locations

Success Story #3 ShippingHow we did it:Process Change: Separate and identify product coming into Shipping

Process Change: Implement controls for Picklist and Packing List management

Process Change: Authorize Shipping to proactively pull FGs coming out of work cellsSuccess Story #3 ShippingHow we did it:Technology:Eagle PIC transaction; creates a virtual SO location and once a serialized item is picked, it cannot be picked to another Sales Order. Allocating without formal SO AllocationsPIC transaction provides option for printing a Post-Pick Packing ListEagle DO Shipment/DO Receipts for all DRP orders To/From China (handheld device)Eagle transfers; scan the Serial # and scan the To: location (handheld device)Eagle used to perform Cycle Counts of Finished Goods bin locations (handheld device)Eagle IBL (Inventory By Location) used to locate product (handheld device)Open Sales Order Browse (custom browse)Inventory Detail By Item Browse (custom browse)Check/verify inventory availabilityManage Staging locationsSuccess Story #3 ShippingResults: Eagle PIC program provides a tracking tool for virtual SO locationsInventory is not getting mixed up within the Shipping area because Staging locations are helpingReal-time picking or shipping available to all users via browsesPhone calls between Shipping and Customer Service have dropped by 50%Shipping is clean and organized

3.2 - Inventory Detail by Item BrowseUsed to monitor STAGING location (daily)

3.2 - Inventory Detail by Item BrowseUsed to monitor STAGING location (daily)Lessons LearnedBrowse Control Maintain code control; browses can easily get out of hand; think about a performance monitoring tool to identify any misbehaving browses.Net UpgradeUsers love their Favorites and moving them to a new version is very tediousProcess Map ControlProcess Map Editor In Chief oversees all process map updatesOperational MetricsTake a Team approach to maintain consistency and to get approval on thresholdsQuestionsContact Information:

David PetzelIT DirectorA.J. Antunes & Co.Ph: (630) 784-3435E: david.petzel@ajantunes.comW: www.ajantunes.com Jim MiceliSenior ConsultantEagle Consulting & DevelopmentPhone: (973) 838-5006 ext 120Email: jmiceli@eaglecondev.com Web: www.eaglecondev.com

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