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Reimplementation: Changing the Way We Do Business. David Petzel IT Director A.J. Antunes. The Promise in Our Abstract : We promised to tell you how the QAD + Eagle Solution made A.J. Antunes a data-driven company. Keeping the Promise: 3 Questions. About A.J. Antunes & Co.

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Reimplementation: Changing the Way We Do Business

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Reimplementation changing the way we do business

Reimplementation:Changing the Way We Do Business

  • David PetzelIT DirectorA.J. Antunes


Reimplementation changing the way we do business

The Promise in

Our Abstract :

We promised to tell you how the QAD + Eagle Solution made A.J. Antunes a data-driven company.


Reimplementation changing the way we do business

Keeping the Promise: 3 Questions


Reimplementation changing the way we do business

About A.J. Antunes & Co.

  • Manufacturing company based in Carol Stream, IL

  • Facility in Suzhou, China

  • Product Lines:

    Roundup Food Vizion WaterCustom

    Service Equipment FiltrationControls


Reimplementation changing the way we do business

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


Why a reimplementation of qad

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:

    • Re-engineer all business processes

    • 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


Aja process re engineering

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


Reimplementation changing the way we do business

Key Decisions After Re-engineering


Reimplementation changing the way we do business

Key Decisions After Re-engineering


Reimplementation changing the way we do business

How AJA has become a data driven company


Reimplementation changing the way we do business

How AJA has become a data driven company


Reimplementation changing the way we do business

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


Reimplementation changing the way we do business

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


Reimplementation changing the way we do business

How AJA has become a data driven company


Reimplementation changing the way we do business

3.2 - Inventory Detail by Item Browse

Used to monitor “SO” locations (daily)


Reimplementation changing the way we do business

How AJA has become a data driven company


Reimplementation changing the way we do business

AJA Process Map


Reimplementation changing the way we do business

How AJA has become a data driven company


Reimplementation changing the way we do business

Operational Metrics


Reimplementation changing the way we do business

Example of a browse

“behind the metric”


Reimplementation changing the way we do business

275 Custom Programs


Reimplementation changing the way we do business

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.


Reimplementation changing the way we do business

Success Story #1 – Advanced Repetitive

How 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


Reimplementation changing the way we do business

Success Story #1 – Advanced Repetitive

Result:

  • 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


Reimplementation changing the way we do business

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


Reimplementation changing the way we do business

Success Story #2 – Service Parts

Overview 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


Reimplementation changing the way we do business

Success Story #2 – Service Parts

How 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)


Reimplementation changing the way we do business

Success Story #2 – Service Parts Shipping

How we did it:

  • Process Change: Create locations, locations, locations to manage the flow of material to and from the Service Parts area:

STAGING 5

(From Gen Warehouse)

SERVICE

PARTS

STAGING 7

(To China)

STAGING 8

(Completed Kits)


Reimplementation changing the way we do business

Success Story #2 – Service Parts Shipping

How 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)


Reimplementation changing the way we do business

Success Story #2 – Service Parts

Results:

  • 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)


Reimplementation changing the way we do business

AJA Service Parts On-Time Shipping


Reimplementation changing the way we do business

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


Reimplementation changing the way we do business

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


Reimplementation changing the way we do business

Success Story #3 – Shipping

How 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


Reimplementation changing the way we do business

Success Story #3 – Shipping

How 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


Reimplementation changing the way we do business

Success Story #3 – Shipping

Results:

  • 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


Reimplementation changing the way we do business

3.2 - Inventory Detail by Item Browse

Used to monitor STAGING location (daily)


Reimplementation changing the way we do business

3.2 - Inventory Detail by Item Browse

Used to monitor STAGING location (daily)


Reimplementation changing the way we do business

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


Reimplementation changing the way we do business

Questions


Reimplementation changing the way we do business

Contact Information:

David Petzel

IT Director

A.J. Antunes & Co.

Ph: (630) 784-3435

E: [email protected]

W: www.ajantunes.com

Jim Miceli

Senior Consultant

Eagle Consulting & Development

Phone: (973) 838-5006 ext 120

Email: [email protected]

Web: www.eaglecondev.com


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