|
Unlike many
traditional
manufacturers, Randcor,
an ISO9002-certified
contract manufacturer
that develops cable
harness and
electromechanical
assemblies and
sub-assemblies,
specializes in
low-volume, high-mix
business. As a result
the company has some
special needs not only
in its manufacturing
operations but also in
its financial
department.
Randcor's business
mix means its systems
must be able to
efficiently process high
volumes of orders for
small quantities. As a
contract manufacturer,
the company has short
lead times and must move
highly specialized
products, including
power distribution
assemblies, large
harness, umbilical,
coax, flat ribbon and
discrete wire assemblies
"in and out the door"
quickly.
This requires
manufacturing
capabilities beyond a
traditional MRP, so
programmers at Randcor
set out to develop a
business solution that
could be tailored
specifically to the
company.
Having worked off a
Cobol-based system for
many years, Randcor
Operations Manager Jack
Randall was determined
to find a software
package with a strong
accounting management
foundation,
manufacturing
capabilities and the
flexibility to develop
customized modules based
on the demands of
Randcor's production
line.
After much
investigation, Randall
concluded that "most
MRP's with the desired
functionality were too
complex and inefficient
to use, and the systems
with modest
functionality lacked
powerful and efficient
customization tools."
Finally, with the aid
of Portland-based
Accounting Software
Professionals, Randall
found his answer with
Navision Software.
Randall and his team of
programmers used
Navision as a
springboard to build an
integrated manufacturing
solution.
"A large percentage
of software is tailored
to repetitive
manufacturing, or at
least starts out that
way, and then features
are added in an effort
to meet the needs of
contract manufacturers.
This approach causes the
software to be
cumbersome for the
contract manufacturer.
There are software
packages that are
written specifically for
contract manufactures
but I haven't found any
yet that have robust
functionality and
customizability," said
Randall.
"We needed a solution
that we could customize
so badly that we were
willing to start from
scratch. The
requirements planning
had to be faster (near
perpetual) than many of
the repetitive
manufacturing products
we tested. In
comparison, Navision
with added source code
rights, programming
tools and strong basic
features stood out as
giving more value for
the money."
Having chosen
Navision as its core
product, Accounting
Software Professionals
was recommended as the
best Solution Center for
our needs. Accounting
Software Professionals
had already spent a year
developing the
foundation of a
manufacturing module.
"Although I was willing
to start from scratch,
I'm really glad I didn't
have to. ASP created all
the pieces that make
sure the financial data
goes to the right place
on the General Ledger,
and that's the toughest
part of creating an
integrated manufacturing
and accounting
solution," said Randall.
Founded in 1987,
Accounting Software
Professionals was the
first certified Navision
Solution Center in the
US and was in the key
position to assist
Randcor with its vast
knowledge of accounting
and business management
solutions.
With the goal of
helping Randcor
implement a customizable
business solution, ASP's
first course of action
was to have Randcor
programmers undergo
Navision's extensive
training program. The
programming team first
completed self-study
materials, and then a
two-week developer's
training course at ASP.
The second week of
training is dedicated to
developing a project
that customer needs.
"Writing a program to
work with other programs
is like painting a
picture to fit the style
of home. We knew how to
paint, but ASP taught us
how to make it fit in",
said Randall.
"The programmers at
Randcor were very
involved with the
installation of this
product and their
commitment is apparent
in its success," said
Lewis Gouge, ASP sales
consultant. "We provided
them with the core
product and the proper
training, and they took
the initiative to
develop an outstanding
manufacturing solution."
The development team
was able to create the
following features to
streamline the
manufacturing process:
-
Engineering
Change Orders (ECO):
A system for
tracking changes to
the products and
manufacturing
processes,
streamlining the
engineering changes
-
Quality Data
Collection: The
module allows
tracking of
non-conformances
found during
inspections, and
provides management
with real-time
quality data that
can be analyzed for
trends. Problem
trends can then be
identified and
remedied. This
comprehensive
quality data
collection is
gathered during
inspections at vital
points in the
production process -
Receiving
Inspection, In
Process Inspection,
Test and Final
Quality Control.
-
Resource
Data Collection:
The module allows
manufacturing to
record real-time how
much time is being
spent on each work
order. Employees
clock into the job
when they start, and
clock out of the job
when they are done,
and the system
automatically
deducts break times.
Supervisors are able
to see who is not
working on a job at
any time, and also
make corrections to
the previous day's
data before it is
posted. This data is
then used to
determine resource
cost variances.
-
Cost
Estimating:
This is the most
proprietary of the
modules created by
Randcor. This
functionality allows
the sales
representatives to
give customers the
most accurate
quotation possible.
The price of a
product is based on
costs for labor,
materials and
overhead. Each order
entered is linked to
this cost estimate.
This allows the
requisition system
to inform purchasing
of the exact price
that was used when
the customer was
quoted. It also
allows the resource
planning system to
inform manufacturing
of exactly how long
the work order
should take to
build. With this
system there is no
need for standard
costs or static
routings. Every cost
on every work order
can be traced
instantly back to
the original quotes
provided by
suppliers, and the
original resource
cost estimate.
Finally, the
material and
resource variances
(between actual and
estimated costs)
flow all the way to
the General Ledger
and can be reported
in many different
ways. The process is
streamlined
significantly,
allowing Randcor to
get the best price
for materials, and
has reduced the time
to perform cost
estimating and
material
requisitions by
half.
-
Tooling
database:
This module
establishes a
relationship between
tools and
components. It
creates automatic
pick lists of tools
required for a job.
Before,
manufacturing
personnel had to
reference a
catalogue to
determine which
tools to use. With
the tooling database
in place, a list of
necessary tools is
automatically
created. The form
gives instructions
on what tools to
use, when to
calibrate them and
when to service
them. Additionally,
calibration and
maintenance records
can be kept for each
tool.
-
Corrective
Action:
ISO9000 standards
require that a
company have
effective quality
systems in place,
and this module
allows Randcor to
record, track and
report its internal
corrective actions
in its efforts to
continuously
improve.
These additions have
helped Randcor improve
workflow, enhance
customer service, and
increase cash flow.
"The power of
Navision lies in its
ability to change while
still being incredibly
reliable," said Randall.
"Because there were
so few programming
restrictions on the
software, we were able
to create the best
solution possible for
our business. This is
very important in the
manufacturing industry
because although they
all have the same basic
systems, the variation
in how these systems are
implemented is vast. In
today's competitive
world, manufacturers
cannot afford to change
or compromise their
processes to match the
way a software package
works; they must be able
to change the software
to match the way the
company works most
efficiently."
|
