ERP Manufacturing Software for Engineer-to-Order Metalformers
The October issue of Metalforming Magazine
(www.metalformingmagazine.com) profiles the challenges faced by
Engineer-to-order (ETO) and project-based metalforming
manufacturers that cannot be resolved by traditional
manufacturing systems. Designing and building complex products
to exact customer specifications frequently involve long lead
times and heavy engineering content. To win business, ETO
metalforming manufacturers must provide accurate estimates and
quotations to a demanding customer base. Often, payment for a
project is only received after it is installed and operating on
a customer's site. Following the sale, these firms must provide
warranty tracking and aftermarket services, including the sale
of spare parts, which may constitute a significant share of the
company's business. Harry Major Machine & Tool Co. (HMM),
Clinton Township, MI, an automation and washer manufacturer and
maker of conveyor equipment, extensively researched better ways
to bring its products to the marketplace, mainly for automotive
and Tier One suppliers, including metalforming companies. To
that end, the company recently implemented ETO
enterprise-resource-planning software from Encompix, Cincinnati,
OH, and is beginning to see substantial internal process
improvements related to the implementation, according to Bill
Jurek, HMM materials manager. "This ETO ERP system has assisted
in analyzing in detail the material costs, schedules and
releases to the floor," he says. That has allowed the company to
build products on time and to the budgeted requirements,
bringing improved timing on deliveries to customers. The
institute (www.etoinstitute.org) provides resources, discussion
boards and tools to assist ETO metalforming companies in
overcoming their unique challenges. Quantifiable results for a
metalforming conveying manufacturer such as HMM, following an
ETO ERP system implementation, should include reduction in costs
by 30 percent; increase in margin by 10 to 25 percent;
100-percent revenue growth with little additional indirect cost;
improved change control resulting in $250,000 in additional
revenue; reduced delivery cycle times by 40 percent; greater
visibility and control over project costs; reduced costs in one
department by 50 percent; reduced accounting month-end closing
time; and elimination of non-value-added activities resulting in
savings of more than $100,000 annually.
Encompix www.encompix.com Roger Meloy 513-733-0066
# # #