Category: Machine Shop, Case Studies, Shop Management, Accounting
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Efficient Management at Shickel Machine Shop
Shickel Machine Shop, a machine shop in Bridgewater, Virginia, makes a wide range of metal products including large stainless steel structures and custom-made machines. Founded in 1938, the company started out crafting custom metal products for local customers in the western Virginia region. Using equipment controlled by a single line shaft and a simple 5-horsepower motor, Shickel quickly developed a reputation for quality metal products at a good price.
From these humble beginnings, the company has grown to nearly 100 employees who now supply sophisticated engineering, design, project management, welding, fabrication, precision machining, finishing, and installation services to customers throughout the United States. Global Shop Solutions’ ERP Software has helped Shickel simplify their job costing processes and control their labor costs.
Job Costing Improvement
When Shickel first purchased Global Shop Solutions, the company had a total of 50 employees, all of whom manually punched time cards to track their hours for payroll. With Global Shop Solutions, workers now record their hours electronically, and accounting personnel pull in the data straight from the system, creating huge time savings in payroll processing.
Payroll was the first real payoff for us with Global Shop Solutions…but we use the whole accounting package—including accounts receivable, accounts payable and auto purchasing—to manage that area of the business. Global Shop Solutions ties all the data together and sends it directly into the general ledger. This increase in efficiency has allowed us to grow the business without adding additional accounting staff or overhead expenses.
–Mark Shickel, Vice President of Engineering & Sales, Shickel Machine Shop
Controlling Labor Costs
At Shickel Machine Shop, there are many different various jobs and hours of manual labor are required to complete these tasks on time and efficiently. This leads to issues like balancing and managing labor costs. Global Shop Solutions helps Shickel manage their employee’s hours. Everything is automatically calculated using Global Shop Solutions’ ERP Software. Shickel explains, “We only pay employees when they’re logged onto something, whether direct or indirect. Of course, they make sure they’re logged onto something. But with Global Shop Solutions we can see where their time is going. And project managers can look at the work orders to see what got charged to their project. It’s a great management tool!”
Overall, Global Shop Solutions is more than just a way to simplify costs or improve operating efficiencies. It enables companies to grow and operate smarter than ever before. From its ability to accurately determine costs in a timely manner to enabling the company to bid on and manage jobs ten times larger than a decade ago, Shickel Machine Shop considers Global Shop Solutions to be an indispensable management tool.