Summary:

Logan Consulting helps an electrical component manufacturer successfully implement the Kanban module for QAD MFG/PRO.

The Client:

This company is the world’s leading manufacturer and re-manufacturer of electrical components and power train / drive train components to the automobile, light-duty truck, heavy-duty truck, and industrial equipment marketplace.

The Opportunity:

The client’s manufacturing facilities in Mexico were struggling with shipping releases to suppliers that were MS Excel-based due to the time required to update the releases, and the related inaccuracy of such manual releases. The sheer volume of the releases and their relative inaccuracy was leading to material shortages and stock-outs that negatively impacted production throughout.

The client struggled with inventory accuracy within their production facilities, both at supermarket locations and on the production lines themselves. Finally, due to extended supply chains, the lack of visibility to in-transit inventory made managing overall supply between the supplier and the client difficult, time-consuming, and inaccurate.

The Solution:

Logan Consulting led a detailed review of the client’s current process and the gaps inherent therein. Logan Consulting completed a detailed “To Be” process design that incorporated best practices in terms of process and usage of their ERP solution, QAD’s MFG/PRO version eB2.1.

The “To Be” process was designed to automate shipping releases to Suppliers while overcoming the inventory inaccuracies of the factory. The “To Be” leveraged MFG/PRO’s Kanban module to replace the existing Excel-based solution. The Supermarket for replenishment was re-defined as a third-party warehouse that serves as the main source of purchased inventory. As standard pack quantities are broken in the warehouse, a Kanban consumption transaction is completed, queuing the Kanban for replenishment. Kanban Dispatch reports are generated in batch mode on a periodic basis based on the relationship with the Supplier. As a Supplier ships to the Client, a Kanban Ship transaction is completed to provide the necessary visibility to material in-transit.

The Results:

  • Successful implementation within 3 months. Logan Consulting was subsequently engaged to lead the implementation of the “To Be” process, including software configuration, process and procedure documentation, training, and implementation support.
  • “To Be” process and re-location of Supermarket eliminated negative impact of inventory inaccuracy and ensured replenishment was based on actual consumption.
  • Automation reduced daily effort to generate releases from 5 hours per Planner to 20 minutes.