| The
Company
NSW, LLC has been operating in Roanoke for almost 20 years. The
company manufactures plastic mesh bags for supermarket and industrial
applications. In addition, NSW provides design services and plastic
media for wastewater and cooling tower industries. Approximately
100 workers are employed at this location.
The Situation
NSW had grown in size to a point that they were unable to effectively
provide the sales and customer service departments with accurate
lead times. The problem was compounded by an inventory system that
was generally inaccurate. NSW’s president approached James
Tate, GENEDGE ALLIANCE project manager, to assist in their efforts
to improve customer service, reduce delivery lead-time, and improve
the utilization of production resources. Any solutions would involve
changes to the company’s accounting and manufacturing information
system, which operates from a central computer system.
The Response
GENEDGE ALLIANCE proposed development of a Master Production Scheduling
(MPS) system to gather and display the appropriate information for
management decisions and control. This system would coordinate the
information on customer demand with the production capacity to make
these products. The system information had to be timely and accurate.
Integral to the success of the MPS system was the elimination of
delays in entering inventory and production transactions. The project
began with a review of the current methods for accepting and processing
customer orders. The path order from the customer service department
to shipment was traced and recorded in a flow chart. Analysis revealed
that the slow input of inventory and production data was causing
serious issues with information validity. The information displayed
by the current computer system was out-of-date and inaccurate, therefore
making it unreliable. Staff resorted to informal, time-consuming,
and often contradictory information channels to make decisions.
It was recommended that data entry activities for inventory transactions
and production activities be transferred from the accounting department
to warehouse and production personnel. This adjustment would speed
up data entry and allow the computer records to reflect more accurately
the actual movement of materials. By improving the timeliness of
the inventory record data, customer service and sales personnel
would then come to rely on the new computer records in lieu of old
recording procedures. As a result of this study, ten recommendations
were formulated to improve the order entry/production scheduling
process. The implementation sequence of these recommendations was
established in a presentation to management.
The Results
The company is experiencing faster, more accurate input of customer
orders; better response to customer inquiries; improved utilization
of production resources; and reduced delivery lead-time. In addition,
the enhanced visibility and accuracy of information afforded by
the system is giving senior management the ability to identify critical
situations far enough in advance to implement economical remedies.
Cash flow and resource utilization visibility also enables management
to deploy resources to the best advantage.
Management’s Comment
"We’re convinced that the true goal of GENEDGE ALLIANCE
is to benefit manufacturers."
- Larry Ptaschek, President
View
Their Site! |