reimplementation: changing the way we do business david petzel it director a.j. antunes
TRANSCRIPT
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Reimplementation:Changing the Way We Do Business
David PetzelIT Director
A.J. Antunes
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The Promise inOur Abstract :We promised to tell you how the QAD + Eagle Solution made A.J. Antunes a data-driven company.
A Data-Driven A.J. Antunes
A.J. Antunes
QAD Eagle
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Keeping the Promise: 3 Questions
1.
•How did a re-implementation of QAD Enterprise Applications reveal the potential for changing the way the company measures its business and makes decisions?
2.
•What were the systems, processes or solutions that made that potential a reality?
3.
•How do we know it worked?
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About A.J. Antunes & Co.• Manufacturing company based in Carol Stream, IL• Facility in Suzhou, China• Product Lines:
Roundup Food Vizion Water CustomService Equipment Filtration Controls
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About A.J. Antunes & QAD• QAD customer since 1996• May 2009 - Upgrade from eB 2.1 to QAD 2008SE with .Net 2.6.1• March 2010 - .Net Upgrade from .Net 2.7.1 to .Net 2.8.1• QAD Modules in use at AJA:
– Using most of the standard QAD modules– QPS– CSS– DRP
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Why 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 fingertips– CEOs from other companies brag about their systems
• June, 2008 - Contracted Liberty Technology Advisors to evaluate AJA’s current ERP implementation
• August, 2008 – LTA recommended that AJA:1. Re-engineer all business processes2. Upgrade QAD to 2008SE and the .Net UI
QAD is right for our business .Net UI brings a whole new level of functionality Bad News/Good News………….14 years of experience using QAD
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AJA Process Re-engineering• 4 months (Nov 15 to March 15)• 25 to 35 hours per week• Key decision to use Liberty Technology Advisors (LTA) for all
process mapping– RCM Technologies to provide expertise to blend our future state
process maps with the functionality available in QAD2008SE & .Net UI
• China Team brought in to participate in process mapping on key intercompany processes
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1) Inventory Control is top priority• Implement discrete inventory locations• Eliminate handwritten “hot” sheets• Implement cycle counting
2) Real-time transaction processing required• Selected Eagle’s RF Express™ for QAD Enterprise Applications
3) Implement DRP module to manage orders with China
4) Consolidate China db
5) Manage Service Parts as a Profit Center
Key Decisions After Re-engineering
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6) Adv Repetitive Backflush Analysis Required• Are we backflushing components at the right time at the
right place?
7) Point of Use Analysis for inventory items required• Which items belong in a Work Cell? Eliminate unnecessary
transfers.
8) Begin work on custom browses required by new processes
Key Decisions After Re-engineering
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How AJA has become a data driven company
QAD tools to view/analyze data
Daily ActivitiesREAL-TIME BROWSES
Snapshot ReportingBROWSES FROM PROCESS MAPS Performance Metrics
BROWSES FROM OPERATIONAL METRICS
Eagle to execute transaction processing
New processes to streamline procedures
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How AJA has become a data driven company
QAD tools to view/analyze data
Daily ActivitiesREAL-TIME BROWSES
Snapshot ReportingBROWSES FROM PROCESS MAPS Performance Metrics
BROWSES FROM OPERATIONAL METRICS
Eagle to execute transaction processing
New processes to streamline procedures
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Why Eagle: Technical Considerations• Seamless plug-and-play integration with QAD• Online, real-time, Progress-based• No side databases, separate server or middleware• Calls QAD edit and update routines to provide real-time data
checking• Supports a wide array of devices, including Intermec CK3 RF
terminals• ALL Eagle installations are also QAD installations• Not a canned solution; over 2,000 configurable RFvalues
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Why Eagle: Cost Considerations• Less hardware and software are required because RF
Express™ for QAD Enterprise Applications uses the existing database and existing server
• Reduced database/server ongoing maintenance• Simplified database control: QAD and Eagle work together
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How AJA has become a data driven company
QAD tools to view/analyze data
Daily ActivitiesREAL-TIME BROWSES
Snapshot ReportingBROWSES FROM PROCESS MAPS Performance Metrics
BROWSES FROM OPERATIONAL METRICS
Eagle to execute transaction processing
New processes to streamline procedures
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3.2 - Inventory Detail by Item BrowseUsed to monitor “SO” locations (daily)
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How AJA has become a data driven company
QAD tools to view/analyze data
Daily ActivitiesREAL-TIME BROWSES
Snapshot ReportingBROWSES FROM PROCESS MAPS Performance Metrics
BROWSES FROM OPERATIONAL METRICS
Eagle to execute transaction processing
New processes to streamline procedures
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AJA Process Map
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How AJA has become a data driven company
QAD tools to view/analyze data
Daily ActivitiesREAL-TIME BROWSES
Snapshot ReportingBROWSES FROM PROCESS MAPS Performance Metrics
BROWSES FROM OPERATIONAL METRICS
Eagle to execute transaction processing
New processes to streamline procedures
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Operational Metrics
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Example of a browse“behind the metric”
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275 Custom Programs
TOTAL REPORTS MAINT EXTRACT UTILITY DATACOLLECTION
BEFORE Reimplementation
275 165 35 32 33 10
AFTER Reimplementation
134 71 33 6 24 0
Reduction inCustom Code
51% 57% 6% 81% 27% 100%
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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.
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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)– Packaging– Staging (after completion)
• Process Change: Specify timing and parameters for Repetitive Picklists so that material for tomorrow’s production shows up before 1st shift begins
• Technology:– Eagle backflush transactions (handheld & PC’s)– Eagle label printing (on wireless printers) so that all material would be identified
with a Part Number/Bar Code– Production Line Schedule Browse (custom browse)
• Empowers Line Leaders to prioritize daily production• Paperless interaction w/Scheduling• Auto Refresh “Live” browse for anyone viewing it
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Success Story #1 – Advanced RepetitiveResult:• Line Leaders rely on QAD browses• With timely backflushing, all Team Members rely on Inventory accuracy
within the Work Cells • Handwritten sheets are gone• Product identification is not an issue any more• Line Leaders are quick to identify BOM issues• Expedited orders are handled very easily without the burdensome
paperwork• Line Leaders are expected to be proactive for maintaining their Work Cell
inventory
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Success 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
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Success Story #2 – Service PartsOverview of Service Parts:• Replacement component parts• Kits that are assembled within the Service Parts assembly area; kitting
area set up as a repetitive w/c• High/growing volume• Daily demand for Next Day Air shipments domestically and internationally• Same components that are used by Work Cells for finished goods
assembly
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Success Story #2 – Service PartsHow we did it:• Process Change: Get inventory under control in SP locations
– Delineate Service Parts Kitting work cell from Service Parts stock room– Operate the SP Kitting as a lean repetitive work cell; maintain inventory only
on exclusive items– Define a schedule for QPS planning and repetitive picklist printing for the
Kitting area– Define a schedule for Picklist printing for SP components– Develop 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)
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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:
SERVICEPARTS
STAGING 7(To China)
STAGING 8(Completed
Kits)
STAGING 5(From Gen
Warehouse)
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Success Story #2 – Service Parts ShippingHow we did it:• Technology:
– Eagle backflushes kits (PC’s)– Eagle transfers product to/from Staging locations– Eagle 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 activity• Next Day Air “rush” orders are quickly identified• Takes advantage of Auto Refresh
– Inventory Detail By Item Browse (custom browse)– Production Line Schedule Browse (custom browse)
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Success Story #2 – Service PartsResults: • Satisfaction of Service Agencies has improved tremendously
– Ownership is in the hands of Line Leaders– Adjustments to schedules are immediately visible to Line Leaders– Still requires communication for “rush” orders
• With improved efficiencies, SP is no longer overwhelmed by spikes in volume
• Service Parts continues to grow at a solid pace• On-Time Shipping has improved from 82% (July 2009) to 99.3% (August
2010)
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AJA Service Parts On-Time Shipping
January February March April May June July August
SP 0.984 0.99 0.998 0.992 0.991 0.993 0.981 0.993
AJA 0.926 0.984 0.949 0.899 0.959 0.912 0.94 0.966
85.0%
87.0%
89.0%
91.0%
93.0%
95.0%
97.0%
99.0%
SPAJA
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Success 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
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Success Story #3 – Shipping
Responsibilities of AJA’s Shipping Team• Picking and shipping for food equipment FG’s• Picking and shipping for water filtration FG’s• Shipping for Controls• Shipping for Service Parts• Shipping consolidation for China container shipments• Manage various Staging locations
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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 FG’s coming out of work cells
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Success 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 Allocations
– PIC transaction provides option for printing a Post-Pick Packing List– Eagle 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 availability• Manage Staging locations
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Success Story #3 – ShippingResults: • Eagle PIC program provides a tracking tool for virtual “SO” locations• Inventory is not getting mixed up within the Shipping area because Staging
locations are helping• Real-time picking or shipping available to all users via browses• Phone calls between Shipping and Customer Service have dropped by 50%• Shipping is clean and organized
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3.2 - Inventory Detail by Item BrowseUsed to monitor STAGING location (daily)
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3.2 - Inventory Detail by Item BrowseUsed to monitor STAGING location (daily)
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Lessons Learned• Browse Control
– Maintain code control; browses can easily get out of hand; think about a performance monitoring tool to identify any misbehaving browses
• .Net Upgrade– Users love their Favorites and moving them to a new version is very
tedious
• Process Map Control– Process Map Editor In Chief oversees all process map updates
• Operational Metrics– Take a Team approach to maintain consistency and to get approval on
thresholds
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Questions
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Contact Information:
David PetzelIT DirectorA.J. Antunes & Co.Ph: (630) 784-3435E: [email protected]: www.ajantunes.com
Jim MiceliSenior ConsultantEagle Consulting & DevelopmentPhone: (973) 838-5006 ext 120Email: [email protected] Web: www.eaglecondev.com