The Cutting Edge

Spring 2009

Engineer-to-Order (ETO) industry news—plus current happenings at Encompix, a Consona ERP solution.


Spotlight: Linda Montfort

"Under Pressure," a hit song in 1981 by Queen and David Bowie, could be the theme song for the machine tool industry in 2009. The Association for Manufacturing Technology (AMT) represents and promotes the interests of American providers of manufacturing technologies.

In this month's Spotlight interview, we talk with Linda Montfort, AMT's vice president of Finance & Human Resources, about the current economic situation and the problems facing its members.

Read full interview.

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Going Live

Dacro Industries

Since 1974, Dacro Industries Inc., has been manufacturing equipment for the resource-based industries of North America, including oil and gas, refining, petrochemical, and pulp and paper. Located in Edmonton, Alberta, Canada, Dacro has the largest fabrication facility in North America, with over 144,000 sq. ft. under one roof, housing unique capabilities for mechanical design and fabrication of large, complex pressure vessels and related equipment.

Dacro's management realized that their old legacy system could no longer support the needs of a growing ETO company. Another catalyst for change was the fact that the software vendor no longer supported the system.

Dacro selected Encompix because of its focus on engineer-to-order (ETO) companies. "We evaluated a number of software products, and we concluded that Encompix was the best fit for our business," said Brian Purnell, Dacro controller.

Dacro went live with Encompix ERP on January 5, 2009. Although they are in the early stages of post implementation, Purnell expects the company to realize benefits soon from using an integrated system. "We hope to increase efficiency by eliminating the islands of information. For example, production scheduling used to be a separate system, now it's an integral part of Encompix."


Northfield Automation

Located in Northfield, Minn., Northfield Automation Systems (NAS) provides general automation and custom equipment solutions for web-based high-precision, roll-to-roll processing for a wide range of thin-material applications. These applications include flexible electronics, solar, display, flexible battery and organic electronics. Initially founded in 1995, NAS has grown into one of the country's most knowledgeable firms specializing in the automation of thin materials.

Like many growing companies, NAS's disparate business systems resulted in data being stored in many different applications such as accounting software, spreadsheets, Microsoft® Word documents and e-mail. As a result, getting accurate management information to run the business proved very difficult. In addition, NAS wanted to improve its BOM accuracy, enhance the management of raw materials and components, and provide accurate delivery dates to customers.

Mike Scheuerman joined NAS in September 2008 as project manager to lead their ERP project, which included the implementation of Encompix software. "The first step was to assemble an internal core team with representatives from every department," said Scheuerman. "We then mapped out all of our businesses processes and developed detailed requirements of what we wanted out of the system. Encompix ERP was an essential part of our business process improvement project. It’s the glue that underpins the whole business process."

Northfield started the implementation September 15, 2008 and went live January 1, 2009. "After just a few months we have seen efficiency gains," said Scheuerman. "Our purchasing process is much more streamlined and accurate. Our spare parts sales program is much more organized, and we can manage project costs much more efficiently."

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Customer News

Welcome Rotating Machinery Services
Located in Bethlehem, Penn.,
Rotating Machinery Services, Inc. is an engineering firm that re-rates, repairs, overhauls, and services Turbo machinery used in the petrochemical industries, such as gas turbines, compressors, and expanders.

As is common with many companies their size, Rotating Machinery ran the business using QuickBooks® for accounting and a host of spreadsheets. "We are a growing company," said Frank Marrone, Rotating Machinery's purchasing manager. "As an ETO company, we needed faster access to accurate information. We were looking for an integrated solution that covered every department."

Rotating Machinery signed a contract with Encompix in December 2008 and plans to go live in
July 2009. "Of all the software products we evaluated, Encompix ERP was the best fit to our requirements and the ETO business model," said Marrone.

According to Marrone, Rotating Machinery expects to realize some immediate benefits after going live on Encompix ERP. "Keeping the multitude of spreadsheets up-to-date currently requires a lot of duplicate data entry. That is something we can eliminate immediately. In addition, as our order history grows, we will be able to access marketing information much faster."

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Product Update
Throughout the year, we will be launching new optional products designed to add value and enhance the core Encompix system. We are currently in the design stage for a new data collection system that will allow the use of wired or wireless devices to record Encompix material movement transactions. Look for more information on availability to come in the next few months.

We have started development on the next release of Encompix version 9.50. This will include many customer requested enhancements. Version 9.50 will incorporate a number of new reports using Crystal Reports®. Although version 9.50 is scheduled for release in 2010, some of the new inventory reports, using Crystal Reports, are expected be available to 9.40 customers by the end of the second quarter.

The Product Manager's Blog is a good way to keep up-to-date with product developments. The blog is available via a link on the Expert support web site. This blog is regularly updated, and provides information on new products and progress on new devolvement.

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Consultant's Corner: Jonathan Scott

Engineer-to-order businesses face a number of challenges, but unmanageable design and change processes do not need to be counted among them. Product Lifecycle Management (PLM) software can help small businesses proactively manage their mission-critical intellectual property and control their product definitions.

In this article, Jonathan Scott, principal consultant at Razorleaf Corporation (a Consona partner), explains the different technologies behind PLM and the benefits they can bring to an engineer-to-order company. Razorleaf deploys leading technologies for engineering and manufacturing organizations to optimize business processes. The group works across a wide range of industries deploying solutions for PLM (Product Lifecycle Management), DA (Design Automation), and enterprise portals (like Microsoft SharePoint).

Jonathan is currently a PLM evangelist and solution architect, promoting the use of PLM concepts and methodologies for discrete manufacturers. Jonathan can be reached at jonathan.scott@razorleaf.com.

Read the full article.

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Encompix Analyzer
The Analyzer is a quick test to determine if Encompix is right for your company. Answer a few simple questions and the Analyzer will help identify critical weaknesses in your current system, and propose the types of solutions you need.

The test only takes a few minutes, and at the end you may download the white paper, "10 Secrets Every Software Buyer Should Know."

At the conclusion of the checkup, you will be provided with recommendations that you can print out or e-mail to yourself or a colleague. Take the Analyzer now.

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