Success Stories

 

 

BUSINESS CHALLENGES

Part Tracking / Inventory

Previously, Automac used a project management system called Workflow Max. However, even though it has an engineering component, it still didn’t match Automacs workflow. Additionally, the software didn’t provide them with much data or room for detail. That made it impossible to track parts, as they had no way of knowing if something had arrived or not. The team started editing purchase orders’ descriptions, adding notes to say where the parts are. While it was a nuisance, this system was manageable when they were small, and it was just one person running parts. As soon as Automac started taking on more than one project at a time, they knew they needed something more sustainable.

 

Inventory also needed improvements. The info was kept in an Excel spreadsheet. It almost always had errors and required manual updating. They also had to track multiple items in multiple areas.

 

Data

With their previous project management software, employees at Automac had only a high-level view of their projects; all they could see were project totals.  They could, for example, see there were 30 hours of assembly on a project but no way of breaking that down further. This caused problems throughout the organization, especially in sales. Without more specific details of a job, it’s hard to estimate similar projects down the road.

 

Project Management

Despite having project management software, Automac still had a tough time planning and scheduling. They tried to incorporate steps in their process for employees to tick off along the way, but it wasn’t consistent enough. Mistakes, while rare, could happen too easily. If they happened at the beginning of a project, it would have a snowball effect and impact the whole organization.

 

Too Many Losses

2021 was a record-breaking year for Automac; they did more business and had more revenue than ever before. However, they also lost more than ever. The lack of data, improper part tracking, mistakes, and other struggles meant Automac was hiring a lot of assembly contractors. Their goal was to finish more projects in less time, and they did, but it wasn’t a long-term solution.

 

 

FINDING TOTAL ETO

Struggling with their processes caused Automac to dive into their current project management tool to make better use of it. Regrettably, they quickly learned that they needed a different tool altogether. A few years before this, before their growth and finding Total ETO, Automac started adding metadata to their part numbers. They knew that info was going to create a more efficient and accurate workflow, but it wasn’t helpful with their project management software.

 

Fortunately, Total ETO is designed to meet the unique workflow of Engineer To Order manufacturers. So, the metadata they previously entered but couldn’t use – became very valuable with our ERP. As David Hoskins, Operations Engineer at Automatic, said, “Without even realizing it, we were prepping for a system just like this.”  That’s why Total ETO is great for Integrators, Panel Shops, and OEMs; it’s a natural fit, a perfect solution.

 

 

IMPLEMENTATION

“Implementation went REALLY well.” Hoskins said, while smiling… “getting things up and running, sorted and loaded into the system was really, really good. I couldn’t fault it. Honestly, couldn’t even think of something to improve upon”.

 

Managers at Automac could see the value in having an ERP that integrates with CAD. In fact, one of the lead implementers at Automac had tried another system that didn’t have a link to SOLIDWORKS; “It was an utter nightmare. Too slow and too many additional steps”. So, the implementation team at Automac knew that their staff would love Total ETO, setting their team up for success. Hoskins and the other lead implementers worked together with Ivo, their Total ETO project manager. They spent a couple of months before implementation developing new systems and procedures. They also developed automated tools inside SOLIDWORKS to help with the transition.

 

These steps, along with showing staff the difference Total ETO would make for every department, helped them come together and start mastering this ERP/MRP. In essence, Automac eliminated all the human barriers to change by providing reasons to adopt the new software.

 

The First Benefit After Implementation

After implementing Total ETO, the engineers and designers at Automac were the first to experience benefits from our ERP. As Director Nelson said, “the first benefit was NOT needing an engineer to purchase parts”. This significantly freed up the design team to continue working on other projects.

 

 

DYNAMIC BENEFITS & RESULTS

Part Tracking and Inventory

Hayden Nelson, Director at Automac is happy to say that their part tracking has improved drastically. Nelson estimated their missing part rate before Total ETO was 1 in 1,000. Now it’s 1 in 10,000. This is mostly due to the team not having to count each individual item when orders come in. Instead, with Total ETO, they can easily see if each individual part has been ordered and received.

 

With Total ETO, procurement and inventory are free of clutter and confusion. In fact, the inventory system was the first thing Automac LOVED during their demo of Total ETO. The line-by-line system is convenient, and they appreciate being able to track every part individually.

 

They also like being able to choose whether the part is coming from inventory or going to inventory. It takes just a few clicks to issue and revise RFQs and POs; you can even create a PO right from the RFQ. Total ETOs part-tracking features save Automac a lot of time, as well. They’re able to route parts between various tasks, tracking both internal and external processes. It’s also easy for the team to continue providing quality solutions to their clients. They can record and follow up on quality issues on the shop floor, from engineering, or for purchased parts with embedded NCRs.

 

Totally Better Data

Automac knew they were missing out on valuable data from each project; information they could learn from to improve efficiency and accuracy. Total ETO provides real-time data and reports, the sort of information that a team needs to make quick, accurate decisions. This has already helped Automac streamline their processes, but they’re also starting to use their data to improve estimating and quoting. Similar project elements from past projects can be copied using budget or actual costs. The team can also capture change order information, including labor, material, and sales price changes, so they aren’t omitted or forgotten.

 

Improved Project Management

With Total ETO, the whole team at Automac will benefit from full project visibility. It’s easy to track your project workflow and see reporting metrics at all stages of a project. Such real-time information speeds up a project while maintaining quality. Automac tried using project management software previously, but it didn’t fit their workflow. They also tried their own system, incorporating steps in their process for employees to check off as they make progress, but the team couldn’t use it consistently enough. Total ETO’s workflow, though, is very similar to that of a Custom Machine Builder. Our ERP automatically does what Automac was trying to do. Now the Automac team can easily set project milestone dates for key events and add notifications for key staff as each department completes its tasks.

 

Increased Production Capacity

When Automac started using Total ETO they noticed an immediate improvement in efficiency. For example, the team had some fabrication tasks that would normally take 300 man-hours.  With Total ETO simplifying their process, it only took about 65 hours. They attributed this improvement to:

• A simplified and accurate procurement system that ensured bidding at the right time.
• Reduced time in fabrication from receiving and processing parts faster.
• More organization in inventory. The team is able to distribute the parts exactly where they need to be based on the info they put into Total ETO.

 

Expenses & Cash Flow

The management team at Automac was expecting their accounts overhead to increase a lot, with the purchase of an ERP. However, they’re finding it’s actually decreased a little (at the time of publication, there wasn’t enough data to quantify how much of a decrease).

 

Before Total ETO, Automac needed to hire contract manufacturers and temporary employees to ensure a project was finished and shipped on time. In many cases, the temps simply found and properly distributed inventory, something Total ETO does for them now.

 

Director Nelson was also happy to tell us about their savings in procurement. Thanks to Total ETO, their team can now bulk order common parts. Automac is already seeing significantly better pricing on many components.

 

As Hoskins said, cash flow was a bit of a black art for them. They understood some of it and were accurate within 15%. That’s why they were excited to see the cash flow report (one of many included in Total ETO). It helps them understand their business better, giving them more confidence improving efficiency, accuracy, and profitability.

 

“We’re finding that from design completion to manufacture start is a lot faster than it ever used to be”.

David Hoskins, Operations Engineer