Category: Energy, Oil & Gas Manufacturing, Job Shop Manufacturing, Case Studies, Shop Management
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ERP Software Brings Oil and Gas Manufacturer Out of the Dark Ages and Into the Light
Frederick’s Machine & Tool Shop, Inc. is a second-generation, family-owned business that manufactures and repairs a variety of parts for the oil and gas industry. Founded in 1965, Frederick’s Machine & Tool Shop operates four separate divisions – job shop, sub-sea machining and fabrication, waterjet cutting, and wireline tools.
Headquartered in New Iberia, Louisiana, Frederick’s Machine & Tool Shop makes everything from packer parts and downhole tools to hydraulic cylinders and shafts. The sub-sea division specializes in pipe clamps, mud mat assemblies, tanks, baskets, and other below-water drilling parts.
When Controller Ovide Mercure joined Frederick’s Machine & Tool Shop several years ago, the company was already using Global Shop Solutions ERP software, but only to create work orders and process inventory. Recognizing the system’s unutilized potential, he brought in a senior Global Shop Solutions consultant for several weeks of on-site training. Since then, Frederick’s Machine & Tool Shop has evolved into a lean, efficient manufacturer with complete visibility of data throughout the business.
“To say that Global Shop Solutions transformed our company would be an understatement. Going from a clunky DOS-based program to a fully integrated system with accurate accounting, time management, job costing, quoting, scheduling, inventory management and all the rest changed the way we do just about everything on and off the shop floor.”– Daniel Dore, Co-Owner of Frederick’s Machine & Tool Shop, Inc.
Getting the True Cost of Every Job
After the onsite training, Mercure installed barcode stations and scanners on the shop floor to capture labor time more accurately. This enabled the company to eliminate their manual time cards by having operators electronically log into workcenters. For the first time, managers could see exactly how much time people had on each job and whether the quote aligned with actual performance.
WIPing Inventory Into Shape
Previously, Frederick’s Machine & Tool Shop managed all inventories by hand, using various spreadsheets. When people took material out of inventory, they relayed the information by word of mouth, and the material was removed from the appropriate spreadsheet.
“The spreadsheets were always tough to keep up to date,” Mercure recalls. “People would forget to mark down what they took out of the yard, so we were always chasing down shortages. Now we issue material directly to the work order, which automatically keeps us up to date. We also use Global Shop Solutions to assign WIP numbers, which makes it easy to manage finished goods inventory. Between the WIP report and issuing material directly to the job, I know we have accurate inventory counts.”
From Darkness Into Light
Ask Mercure to identify where Global Shop Solutions has made the biggest difference and he ticks off a long list of improvements:
- Knowing the exact cost for every part as soon as it’s finished.
- Accurately computing WIP to ensure inventory accuracy.
- The ability to track jobs in real time from anywhere in the plant.
- Electronic processing of engineering change requests for improved quality.
“I like to say that we used to be in the dark ages, and Global Shop Solutions brought us into the light,” says Mercure, “In my estimation, it offers the best value in ERP systems on the market.”
Download the full case study to discover all the ways that ERP software has helped Frederick’s Machine & Tool Shop improve their business.