 TrailTech
Inc.
ERP creates measurable improvement within a month on the shop floor
for Trailer manufacturer
Overview
Since 1985, TrailTech Inc. (www.trailtech.com)
has provided the agriculture, construction and transportation industries
with state-of-the-art trailer equipment. Manufacturing approximately
2,500 units a year, TrailTech’s 90 employees were experiencing growing
pains. BOM inaccuracies created inventory discrepancies, material
shortages, manufacturing bottlenecks, missed delivery dates and
substandard productivity. Employee frustration over BOM inaccuracies
created a tense working environment.
The Challenge
TrailTech needed an ERP package that provided accurate real-time
information to keep up with the rapid sales growth. Previous
manufacturing software did not provide TrailTech’s engineers with an
efficient method to create BOMs, resulting in engineering short cuts.
Inaccurately engineered BOMs negatively affected the entire
manufacturing process.
Inventory inaccuracy due to bad BOMs led to material shortages and
panic purchasing. Inefficient use of machinery caused unnecessary shop
floor bottlenecks. Finished goods were not coming off the production
line on time, creating consistent delinquent delivery dates. Resulting
financial statements did not accurately reflect a true picture of the
company.
As the company grew, without an adequate business system, TrailTech’s
problems were growing with them.
The Solution
After three months of system evaluation the selection committee opted
for Intuitive’s 100 percent Microsoft technology-based solution. The
fully integrated functionality along with the layout of the user
interface assured TrailTech of a quick and easy learning curve. A
diligent reference review provided additional assurance of system
reliability and support.
It was imperative for TrailTech to implement a system capable of
accurate and timely BOM creation. With accurate BOM information
available, dramatic improvements in inventory levels and production on
the shop floor were possible.
TrailTech's Results
After implementing Intuitive ERP, TrailTech immediately enjoyed a
reduction in the manufacturing cycle. Intuitive ERP provided TrailTech’s
engineers with the ability to create BOMs quickly and accurately. This
allowed TrailTech to install an orderly release of work orders to the
shop floor, making production more consistent. “Within a month we could
see considerable improvements on shop floor flow,” said Gerald Geoffrion,
TrailTech’s general manager. The production bottlenecks of the past have
been eliminated.
TrailTech’s delivery dates are now shorter and more reliable. “Our
book-to-bill cycle, based on a constant order book value, has been
reduced by 30 percent,” said Geoffrion. “Intuitive has given us the
tools to improve shop floor efficiency to that extent.”
Additionally, customer complaints of delinquent deliveries have been
dramatically reduced, improving stress levels throughout the plant.
Improved inventory accuracy resulted in reduced inventory shortages
and the elimination of panic purchasing.
Financial Statements now reflect a more accurate view of sales growth
and the resulting bottom-line improvement.
TrailTech's Reaction
With Intuitive ERP in place, both TrailTech’s customers and employees
have felt its impact. “We were experiencing a lot of frustration prior
to implementation. Delivery promises to our customers were not being
met. This created a tense work environment,” said Geoffrion. “All of our
customers appreciate the increased reliability of delivery dates.
Employee morale has improved. Stress levels throughout the plant are
much lower.”
The impact has also been felt at the higher levels of the
organization. “Senior management is appreciative of the stability of
production, the reliability of delivery dates and the increased accuracy
of the financials,” said Geoffrion. “They often comment that the
operation now runs itself.”
In addition to the operational benefits, TrailTech’s management is
now able to accurately track the health of their company with Intuitive
ERP’s reporting and Business Intelligence tools. Geoffrion states that “the
reports that the system can generate are excellent. The ease at which
queries can be created and converted into Pivot tables or OLAP cubes is
also a great feature.”
For TrailTech, implementing Intuitive ERP has helped them stabilize
and prosper from their growth. Now, they can focus on enabling new
business and growth strategies. “TrailTech is now in the process of
beginning a ‘lean initiative’ in the plant,” explained Geoffrion.
“Without the information and structure that Intuitive ERP provides us,
this would be almost impossible to do.” |
Challenges