The client:
An ASX listed organisation manufacturing recreational vehicles for both sale and to service their own hire business.
Challenge:
The company was questioning whether they had the right ERP system because they were struggling with the supply chain disruptions occurring in 2021, resulting in the operations team having to perform a significant amount of manual work rescheduling production based on what vehicle chassis were available to them. The team was overwhelmed in the amount of manual work they had to complete.
Product Used:
- ERP Restoration™
Intervention:
Utilised my ERP Restoration™ methodology to review the current use of the system and configuration settings. Tasks undertaken included:
- Discovered they had implemented significant manual workarounds to cater for the team’s lack of knowledge of how to use the system. For example, they were using their BI tool to undertake MRP and purchase order recommendations.
- Renegotiated arrangements with the ERP support vendor and set up knowledge transfer sessions to build capability within the business.
- Set up real-time data capture processes at individual work centres on the production floor to provide real-time inventory consumption information. Allowing purchasing to understand the real status of inventory when procurement activities were undertaken. The company already had the equipment but had not been able to make them work previously.
- Undertook a review of all MRP settings and made adjustments to; lead times, minimum order quantities, min/max levels,
- Reviewed inventory transfer triggers to improve the timeliness of inventory movements to ensure supply to the product line while levelling the work demands on the warehouse workers
Result:
The staff in the company are now fully capable of operating the system on their own without assistance from the vendor.
MRP system is being used as designed and the team have a deep understanding of the process and is now constantly tweaking settings to resolve issues rather than building workarounds.
Production scheduling is now a much simpler process and fewer adjustments are being made because the reliability of inventory status is not reliable. Necessary changes to the production schedule are now being picked up by MRP and handled appropriately in action messages being delivered by the system.
The confidence level in the system’s capability has completely changed and the workload to manage production and inventory is significantly lower, resulting in a more productive operation and the improvements in profitability and capital utilisation and now starting to show in corporate reports.
CEO stated the work we did was instrumental in the business growing from $74 mil to $140 Mil.
