Improved scheduling, cost estimating, accurate and timely data collection, are key to most manufacturing processes.
By Thomas R. Cutler
hat do stamped parts, machine tool, knife, and equipment manufacturers have in common? Other than their Ohio location these four distinct companies faced challenges to growth and used the same solution to overcome a wide variety of obstacles.
Morgal Machines of Springfield, Ohio serves the automotive, lawn and garden, bicycle, and agricultural industries. They employ more than 350 employees with annual revenues near $40 million. The firm provides metal stamped parts such as sprockets for bicycles and split pulleys for lawn mowers. The firm also supplies sub-assemblies to the automotive industry. Recently Morgal Machines selected Encompix ERP (based in Cincinnati) to provide an integrated system to support the rapidly growing business. There are now bar code data collection systems for shop-floor and inventory reporting which have reduced the time it takes to complete a stock check by two-thirds. The timesavings experienced by Morgal Machines translated into direct cost savings.
The next Ohio manufacturer faced a different set of issues. Monarch Lathes of Sidney, Ohio used to manufacture machine tools. The $10 million annual revenue company now repairs and services older machines that involve spare parts and considerable manufacture of old parts. This firm also selected Encompix ERP software systems and achieved more accurate estimates, control over costs, and on-time performance benchmarks. Again the net results were tremendous cost savings and satisfied customers. Another Ohio manufacturer also had estimating issues to consider as well as an integration issue.
Crescent Manufacturing of Fremont, Ohio manufactures knives for surgical purposes as well as meat processors. Knives and saws are also made for electrical cutters. This firm also chose Encompix ERP due to the ability to integrate their accounting functions. Month-end closing now takes a week versus more than a month before the installation. Additionally, scheduling and cost estimating became highly effective.
One progressive Ohio manufacturer was developing strategies to improve scheduling issues. Process Equipment of Tipp City, Ohio has seven divisions and $40 million in annual sales. This firm uses Theory of Constraints (TOC) to improve the scheduling of their shop, which is now fully integrated into standard technique implemented in Encompix ERP software.
The issues of improved scheduling, cost estimating, accurate and timely data collection, are key to most manufacturing processes. Elimination of duplicative data entry from non-integrated systems is essential. Time expended is reduced and so are costs; the frequency of human error is reduced as well. Roger Meloy, director of marketing for Encompix suggested that job-based or engineered-to-order manufacturers face a special set of issues and concerns often overlooked by other companies. Meloy suggested that his product and people are geared to consider these unique issues facing job-based manufacturing versus repetitive manufacturing. While each of the four Ohio manufacturing firms profiled is quite unique in their manufacturing process and products, the common thread to growth and profitability has been Encompix software.
Thomas R. Cutler is president & CEO of marketing firm TR Cutler, Inc. and the founder of the Manufacturing Media Consortium working with more than a thousand journalists writing about trends in manufacturing.