Tying Erp to Shop Floor

7/27/2019 Tying Erp to Shop Floor

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www.plex.com | 1.888.454.PLEX

No. 1 Rated ERP Solution for Manufacturers

Plex Online

White Paper This paper describes the evolution of IT strategies

and the advantages of using an ERP system focused

on linking shop oor and top oor operations.

ERP systems shed light on manufacturing processes,

enabling improved decision-making.

A case study highlights how Plex Online dramatically

decreases training expenses, freight costs, and

scrap, while enabling business growth without

additional resources.

At a Glance

Tying the Shop Floor to the ERP System


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Plex OnlineWhite Paper | page


ERP and the Shop Floor

Enterprise Resource Planning (ERP) on the shop oor is as critical to

the viability of the enterprise as any component in the execution of

manufacturing.

High-performing manufacturers have found that full integration of real-

time operational data collected from the shop oor to the top oor is key to

reducing costs, streamlining operations and improving customer satisfaction.

Integrated ERP on the shop oor brings manufacturers improved quality,

increased production throughput, less scrap, and many more benets.

A History of IT StrategyIn the years leading to 2000, many manufacturers focused on preparing for a

potentially disruptive transition in IT functions at the turn of the century.

Most IT leaders strategic focus was on making sure that internal systems

would continue to function, and operations would not come to a screeching

halt, on Y2K.

After Year 2000, many enterprises

began deploying on-site ERP

systems that were rooted inaccounting and HR functions.

For these applications, the

manufacturing processes are an

afterthought. The systems were

designed with an activity which

starts on the top oor and lters

down to the shop oor, which is

where, in the manufacturers world,

the rubber meets the road.

It soon became apparent that if the manufacturing process wasnt ecient, it

didnt matter how well the top oor functioned.

It wasnt until after companies successfully traversed the dawning of the 21st

century that they realized the best ERP solutions actually start on the shop

oor and are rened and improved there before accounting and HR functions

are introduced.


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Today, tying the machines on the plant oor to management on the top oor

for a real-time glimpse of manufacturing status isnt just convenient, its

critical for a company seeking to remain viable in a competitive market.

Primary Drivers for ERP on the Shop Floor

Thanks to todays ERP systems, companies apply the same lean quality

improvements to data, a highly valued product, as they apply to the rest of

the products they manufacture. This includes the highest levels of data quality,

accuracy, delivery and storage. Incorrect, untimely, or unavailable data about

your plant oor can be more dangerous than no data at all. Quality data helps

expose plant oor deciencies and anomalies of OEE, quality and traceability.

Allowing an ERP system toeectively automate a process not

only results in a nearly perfect

production process, it also frees an

operator to focus on other, value-

added activities. When additional

data is captured, the shop oor is

integrated with the top oor for a

real-time snapshot of traceability

and machine output.

Tony Kaczmarek, president

of Kors Engineering, has seen

dramatic transformations occur when ERP ties the shop oor to the top

oor. Integrated ERP systems make plant oor activities more visible to all

employees. In fact, Kors Engineering has found that most companies learn

more about their systems the rst day they bring their equipment online than

theyve known after decades of operation.

Plex Online has the industrys most comprehensive quality management andsupply chain management functionalities. It has the capabilities needed by

medical device manufacturers to manage problem controls, cost recoveries,

traceability, statistical process controls, issues management, and more.

Its compliance monitoring functionality has additional features that enable

comprehensive internal and supplier auditing.

Plex Online brings

manufacturers

improved quality,

increased production

throughput, and

less scrap.


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Plex Online in Action

ERP on the shop oor brings many opportunities for improvement. Better

quality, increased production throughput, and reduced scrap are a few of the

many benets.

Ralco Industries was one of the rst companies to implement Plex Online, the

industrys #1 ERP Software-as-a-Service (SaaS) solution for manufacturers.

Our inventory accuracy was, at one time, only about 50 percent, says Jim

Piper, president of Ralco Industries. We were conducting grueling physical

inventories every month, and they would be o by the next week. We never

knew if we had enough parts to

build a set-up. Every time we dida set-up, we followed dierent

steps and processes. Each

worker had his own method.

This resulted in lost time,

inconsistent product quality,

scrap, expedited shipments, and

more issues. We knew we had to

x our system.

A diligent search for an ERP provider that could meet its stringent

requirements brought Ralco to Plex Systems, provider of Plex Online.

Ralco started its implementation with the Plex Online Purchasing function,

one of 350 functions available. It was great, says Piper. We found we

could now easily match receipts to our internal purchase orders, and match

purchase orders to invoices. We had more control and security over purchase

orders, and actually reduced the number of POs. The improved eciency

saved us about $100 per purchase order processed.

Results for Ralco were immediate and signicant:

Training costs were reduced by over 50 percent because all functions in

Plex Online were available from a consistent interface.

Premium freight costs were down by 20 percent in the rst year.

Scrap rates declined by 60 percent.


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Weve signicantly grown our business in a down economy, which says a lot,

said Piper. We couldnt have done that without Plex Online. We wanted to

dierentiate ourselves from our competition, and weve done that.

Shop Floor Benets

Plex Online is easy to use. Any person working on the shop oor can leverage

the ERP system to set up and run his machine. This knowledge empowers

management and helps drive informed decision-making to x deciencies in

manufacturing processes.

Plex Online enables machine recipes. Settings for specic parts are

automatically entered for tolerances, speed and other critical requirements

which enable a controlled strategy for production. The system can ensure thatno machine operation is underway until settings are met.

Traceability from station to station allows management to tie into

environmental systems, hydraulics and manage energy systems.

Once the shop oor machines are online, its easy to focus resources,

eliminate waste, improve quality and work more eciently. Today, there

is no reason to be unaware of what is transpiring on the plant oor,

regardless of where you are.

Global Implications for the Single Source of the Truth

The world is getting smaller and your enterprise isnt only across the street or

in the neighboring state. It may be on the other side of the globe. Plex Online

allows companies to review all manufacturing entities through the same lens,

allowing the easy distillation of data using common data points.

We easily match receipts to our internal

purchase orders, and match purchase

orders to invoices saving $100 per

PO processed.


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About Plex Online

Plex Online, built on a Software as a Service (SaaS) model, offers more than 0 functional modules, providing

manufacturers instant access to vital information and management functions using a simple Web browser. The

on-demand solution features product lifecycle management (PLM) functions such as program and change

management, enterprise resource planning (ERP) functions such as accounting and nance modules, customerrelationship management (CRM) features such as order entry and tracking, manufacturing execution systems

(MES) functions such as production scheduling and machine integration and supply chain management (SCM)

functions such as supplier quality and traceability.

www.plex.com



No. 1 Rated ERP Solution for Manufacturers

Global companies quickly deploy Plex Online with new acquisitions so

they can easily compare results in dierent facilities and strategically

determine product design and order fulllment.

They also extend Plex Online to their suppliers. Because the system is

integrated, suppliers can directly ship products to OEMs on behalf of the

producer. Using the Plex Online EDI module, they can send advanced

shipping notices (ASNs), submit electronic notications, create POs, and

initiate shipping. Customers receive the ASNs before the products arrive.

ERP Success

Plex Online is a system that integrates all manufacturing processes,

from the shop oor to the top oor, to make certain all facilities,regardless of location, work together to synchronize and maximize the

eciency of the manufacturing processes.

There is a community of Plex Online users eager to share specics

about how their choice of system has paid o and helped them

maintain a competitive edge and allowed them to thrive in a competitive

environment.

Tying Erp to Shop Floor

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