Category: Defense Manufacturing, Government Contract Manufacturing, Case Studies, Shop Management
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Defense Manufacturer is More Competitive Than Ever Thanks to ERP Software
MaTech is a leading fabricator of precision parts and assemblies for the defense and commercial industries. The firm serves the U.S. and foreign governments, government contractors, and commercial manufacturers. Its customers include defense agencies, commercial telecommunication companies, agricultural conglomerates, gun makers and more.
MaTech managed production for years using a project management software, Excel spreadsheets and manual processes. As the company continued to grow, ownership recognized the need for an integrated production management system, and selected Global Shop Solutions as their ERP software.
Improving Inventory Accuracy
Inventory accuracy is critical for any manufacturer, but especially for those whose products undergo close scrutiny from industry and government inspectors. Prior to Global Shop Solutions, MaTech struggled to track work in progress, making it difficult to reconcile inventory costs with materials on hand. And with no cycle counting, finished goods and raw materials inventories were always off.
Using Global Shop Solutions ERP software to perform monthly cycle counting, MaTech has averaged near-perfect inventory counts and costs for the last four years. Cycle counting has also eliminated the need for a physical inventory, so the company no longer has to shut down twice a year to perform a physical count.
“We’ve been carrying 99% accurate inventory counts and costs for the last four years. We still make mistakes from time to time. But when we do inventory counts on dollar value and quantity, they’re almost perfect.Mary Bly, Inventory Accountant at MaTech
As a defense contractor, MaTech must maintain strict levels of traceability with its inventory. They have to be able to document everything that happens to a raw material from the time it arrives in receiving to when it leaves as part of a finished product. MaTech also has to control inventory on the accounting side as well.
“We are regularly audited on our inventory control processes to ensure everything is accounted for,” says Bly. “Without Global Shop Solutions, that process would be next to impossible.”
Handling Large Projects with ERP Software
According to Dorie Simpler, Planning Manager for MaTech, the Advanced Planning & Scheduling (APS) module has greatly simplified the scheduling process. Features like forward/backward and finite scheduling, capacity planning, and tool and material scheduling make it easier for Simpler to pull jobs forward or move them out when material requirements don’t fall in line with the scheduled jobs.
Even more valuable to Simpler is the Project Management module. Designed to track and manage the production of lengthy and/or highly complex projects, this robust module offers many important features.
“The visibility of data in Project Management is superb,” adds Simpler. “From one screen I can see all the work orders on any project and quickly drill down for more information about that project. I can access APS to see where we stand with any project, how it’s flowing, and whether we’re going to be late or even have the potential to be late on.”
Facilitating Intercompany Transactions
To keep tabs on what’s happening on the shop floor, Simpler uses the ever-popular Supply & Demand screen and Shop Floor Control module to create new orders, track work in progress, make sure products are shipping on time, and review the quality inspection reports.
“The engineering control process in the Quality Control module has also been invaluable,” says Simpler. “If someone puts an ECN on a part, Global Shop Solutions automatically inactivates the part. You can’t make a purchase order or sales order for it. You can’t build a work order for it. You can’t do anything until the ECN is removed. Having these kinds of fail-safe features in place has been a real life-saver for us.”
Stronger Competitive Position
Ultimately, the ERP software enables MaTech to compete more effectively in the marketplace. By accurately tracking cost of goods sold, MaTech can bid on jobs more effectively. They can also trust the lead times they give customers when making a bid.
“Global Shop Solutions is a very robust ERP system, but once you figure it out, it’s intuitive and easy to use. Between our improved inventory accuracy, reliable lead times, better scheduling, and accurate job costing, it definitely makes us more competitive.”
Download MaTech’s full case study and discover all of the ways ERP software improved their business.