Category: Automotive Manufacturing, Truck & Trailer Manufacturing, Case Studies, Shop Management
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98% On-Time Delivery Made Possible with ERP Software
Located in Bedford, Massachusetts, Davico Mfg. is one of the leading producers of diverse exhaust products, including universal converters, pre-bent flex pipes, gaskets, oxygen sensors and flex couplings.
Prior to purchasing Global Shop Solutions ERP software, Davico Mfg. used a first-generation production software program to run the business. While functional, it had no labor tracking capabilities or payroll integration. It also lacked “actual vs. estimate” tracking capabilities, which prevented management from measuring the efficiency of the short-run team against any kind of standards.
98% On-Time Delivery
Upon implementing Global Shop Solutions ERP, Owner Ray Surprenant immediately set about using the software’s robust data tracking capabilities to track open orders. The “Open Order” screen is particularly useful for this task, as it regularly refreshes the data as operators update each work order when they complete their portion of the production process.
At the same time, the “Current Work in Progress (WIP)” screen enables managers to identify any employees that significantly exceed standard so they can check for bottlenecks and quickly resolve them. Recently, Davico
Mfg. took advantage of the ERP software’s unique customization capabilities by having one of the Consultants create a custom display screen that delivers WIP data right into the welding booth.
“All these features allow our operators to track their own performance in real time, which is especially helpful on the same-day delivery jobs.”Ray Surprenant, Owner of Davico Mfg.
“If we don’t visually give operators the data,” continues Surprenant, “they have no way of evaluating their performance. Whether through the Shop Floor Control on the shop floor or the custom screens in the welding booth, the software displays the data in a clear, easy-to-understand format so operators know at all times where they stand.”
Thanks to the open orders tracking and the visibility of real-time production data, Davico Mfg.’s on-time delivery rates, which they track daily, average 98% – including the same-day shipping orders.
Tracking Costs with Precision
As with any manufacturer, accurately identifying the true costs of a job is critical for quoting, pricing, and achieving the desired margins. With its superb labor tracking, inventory management and purchasing capabilities, Global Shop Solutions ERP software gives Davico Mfg. a precise picture of total costs as soon as a job is finished.
“When we build a new prototype, we may create a fixture for a part that we’ll make for 10 years,” explains Surprenant. “Having been in the business for so long, we have an expectation of how much time it will take and what steps will be required, but we need to know for sure. Without Global Shop Solutions tracking, we wouldn’t have the clarity around how long it takes to make a new part, which would make it impossible to correct a problem.”
Quadrupling the Business
Since implementing the ERP software, Surprenant and his team have grown the business four-fold in a little more than a decade. He attributes much of that growth to the ERP software’s ability to generate efficiencies throughout the business.
On the payroll side, the accounting team uses the ERP software to automatically export all the data to Paychex®, which uploads the data, cuts the checks, and sends back reports that Davico Mfg. uses to auto-populate their general ledger.
“The ability to electronically upload customer orders also saves time and eliminates data entry errors,” adds Surprenant. “Our bigger warehouse customers will often order a few pallet loads of varying catalytic converters, all of which have different product numbers and production specs. We no longer have to manually enter the data because we import it directly into Global Shop Solutions, which makes it easier to deliver on our same-day products.”
Using Business Intelligence for Competitive Advantage
While managers and operators use the software to track and manage the production process, Surprenant focuses more on the Business Intelligence application. Here he gets the high-level data he needs to make more informed business decisions regarding customers, product lines, low-margin products and other metrics that directly affect cash flow and the bottom line.
Individual features and capabilities aside, Surprenant considers Global Shop Solutions ERP software’s superb data integration as its primary benefit. Having access to so much real-time and historical data in one centralized system enables everyone in the company to work together from the same page.
To learn more about how ERP software made a difference for Davco Mfg., download the full case study.