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."