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Reimplementation: Changing the Way We Do Business

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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  1. Reimplementation:Changing the Way We Do Business • David PetzelIT DirectorA.J. Antunes

  2. The Promise in Our Abstract : We promised to tell you how the QAD + Eagle Solution made A.J. Antunes a data-driven company.

  3. Keeping the Promise: 3 Questions

  4. About A.J. Antunes & Co. • Manufacturing company based in Carol Stream, IL • Facility in Suzhou, China • Product Lines: Roundup Food Vizion Water Custom Service Equipment Filtration Controls

  5. 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

  6. 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

  7. 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

  8. Key Decisions After Re-engineering

  9. Key Decisions After Re-engineering

  10. How AJA has become a data driven company

  11. How AJA has become a data driven company

  12. 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

  13. 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

  14. How AJA has become a data driven company

  15. 3.2 - Inventory Detail by Item Browse Used to monitor “SO” locations (daily)

  16. How AJA has become a data driven company

  17. AJA Process Map

  18. How AJA has become a data driven company

  19. Operational Metrics

  20. Example of a browse “behind the metric”

  21. 275 Custom Programs

  22. 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.

  23. 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

  24. 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

  25. 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

  26. 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

  27. 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)

  28. 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)

  29. 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)

  30. 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)

  31. AJA Service Parts On-Time Shipping

  32. 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

  33. 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

  34. 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

  35. 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

  36. 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

  37. 3.2 - Inventory Detail by Item Browse Used to monitor STAGING location (daily)

  38. 3.2 - Inventory Detail by Item Browse Used to monitor STAGING location (daily)

  39. 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

  40. Questions

  41. Contact Information: David Petzel IT Director A.J. Antunes & Co. Ph: (630) 784-3435 E: david.petzel@ajantunes.com W: www.ajantunes.com Jim Miceli Senior Consultant Eagle Consulting & Development Phone: (973) 838-5006 ext 120 Email: jmiceli@eaglecondev.com Web: www.eaglecondev.com

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