Mar-Bal, Inc. Implementation of EnterpriseIQ from IQMS Presented by: Aaron Bable Mar-Bal, Inc. Director of Business Processes
Overview of Mar-Bal, Inc. Mar-Bal, Inc. is a privately-held manufacturing company with 350 employees producing stateof-the-art products o Four facilities in North America Mar-Bal, Inc. is a one-source solution provider of thermoset composite products From product design and formulation to compounding, molding and finishing Markets include Appliance, Construction, Transportation, Energy and Marine
ERP Challenges Mar-Bal, Inc. had been experiencing challenges in its day-to-day operations Mar-Bal, Inc. s customized AS400-based ERP software was outdated, preventing necessary increases in manufacturing activity required to keep Mar-Bal, Inc. competitive System became more expensive to operate due to the specialized support required to maintain and upgrade it
ERP Challenges Mar-Bal, Inc. had been experiencing challenges in its day-to-day operations Mar-Bal, Inc. s customized AS400-based ERP software was outdated, preventing necessary increases in manufacturing activity required to keep Mar-Bal, Inc. competitive System became more expensive to operate due to the specialized support required to maintain and upgrade it
ERP Challenges Absence of a strong Electronic Data Interchange (EDI) program o Inbound EDI limited to a time-consuming interface with customer portals to retrieve customer product demand o Outbound EDI capability was non-existent o Lacked of essential services (automatic transmission of ASNs and electronic invoices) necessary to conduct business with key clients
ERP Challenges Inventory control sorely deficient o Inability to scan inventory from shop floor o Inventory management completely manual and extremely time-consuming process o Redundant data entry and numerous data entry errors o Employees spending an average of six hours a day verifying inventory o Lack of inventory visibility required full physical inventory once per month Included machine downtime, wasting valuable production time while all employees manually checked inventory levels.
ERP Challenges Consigned inventory required by major customer was difficult to manage o Not able to keep track of inventory on hand at the customer o No way to add or reduce vendor managed inventory (VMI) based on shipments and consumption Very limited reporting tools and forecasting abilities No way to easily segregate the separate plants costs and sales
ERP Challenges Month-end activities required nearly two weeks to wrap up and close books Problems with internal system communication and access to information resulting in poor customer service Sales people on the road could not access necessary order status information resulting in longer response times to customers
An Extensive Search Begins Desired an industry-specific software solution that could handle all manufacturing operations o Mar-Bal, Inc. differentiates itself by being a onesource solution provider and required a system that could differentiate cleanly between its multiple manufacturing types Multiple software suppliers were researched List narrowed to systems that could process more transactions in less time while still allowing sales growth without expanding staff for data management
An Extensive Search Begins Software functionality investigated from the user s point of view via on-site and web-based demonstrations Industry references contacted and manufacturing site visits were conducted IQMS comprehensive, industry-specific ERP solution rose to the head of the pack
Implementation Reveals Immediate Results! EnterpriseIQ was installed at the Chagrin Falls, Ohio, headquarters Implemented at all four facilities on time and on budget Implementation time frame for all four facilities was 12 months Following implementation, Mar-Bal, Inc. saw immediate results
EDI Module Mar-Bal, Inc. now completely connected to its customers demand planning systems Real-time order updates from customers are electronically entered directly into EnterpriseIQ Employees process orders in significantly less time with information entering the system within minutes of customers releasing it
EDI Module Outbound EDI functionality embedded with the auto-invoicing feature allows more than 100 invoices to be transmitted within minutes, all by one employee Mar-Bal, Inc. has experienced more effective billing and reduced average invoice aging because price or quantity discrepancies are resolved immediately, rather than discovered weeks later
Warehouse Management System (WMS) Now track the movement of all inventory, every single box, throughout its plants using hand-held scanners Full physical inventories no longer necessary on a monthly basis saving considerable amounts of time and labor Utilize IQAlert feature to automatically flag any predefined occurrences that need investigation o Such as negative inventory
Warehouse Management System (WMS) Consignment inventory maintenance dramatically improved o VMI module allows for automatic increases to consigned locations upon packing slip creation as well as an easy to use consumption menu that is tied directly to invoicing Footer Text 15
RealTime Machine Monitoring System System visibility and communication improved dramatically with direct connection of ERP to plant production equipment Remote access capabilities allow a sales person on the road to look at the EnterpriseIQ application on their Smartphone or tablet and see if a job is running or determine stock on hand without making a call
RealTime Machine Monitoring System Customer service representatives and operations personnel focus on their other responsibilities and the sales people can get their answers immediately
Month End Close New reporting tools allow for the clean output of a month s activities for financial reporting Month end close decreased from eight to 12 days to only four days
Monetary Benefits Overall Corporation Mar-Bal, Inc. experienced both immediate and long-term savings with IQMS manufacturing ERP solution Annually, Mar-Bal, Inc. s total savings were $270,000/year across its four plants Nearly 5,000 potential machine hours were no longer lost to downtime for monthly physical inventory checks
Monetary Benefits - RealTime Machine Monitoring System Manufacturing performance is optimized as we monitor work center performance in real-time and proactively address potential problems Now see graphical presentation of all work centers during a shift o How jobs are running, how much scrap is being generated, if cycle time is slow and if there was a problem that required attention With RealTime system, Mar-Bal, Inc. saved 12 hours a day or $62,000/year
Monetary Benefits - EnterpriseIQ s EDI Program EDI program is a huge asset to Mar-Bal, Inc. Reduces order entry time and increases customer service. Previously, manual entry into each customer portal delayed daily release changes by up to half a day Now 100 orders can be processed in 10 minutes Inbound order processing through EDI saves eight hours a day or $40,000/year Outbound EDI automatically sends invoices and ASNs, saves four hours per day or $20,000/year
Monetary Benefits - Improved Warehouse Management and Inventory Control Now look at the system and see exactly what is on hand and where it is Time spent verifying inventory locations at all 4 plants is six hours less per day or $30,000/year Full physical inventories no longer needed on a monthly basis; moving them to once a year, saves 2,750 hours of labor or $53,000/year Monthly inventory check required plant shut down, resulting in lost production time for 90 work centers or nearly 5,000 potential machine hours
Monetary Benefits - Improved Month-end Close Process Month-end was previously a two-week process but now is down to only four days, a savings of $23,000/year Hundreds of customizable reports improved ability to measure areas previously inaccessible Advanced forecasting and budgeting tools allow more accurate planning for sales and costs Accurate reporting of global raw material purchases delivered more negotiating power with volume purchasing, saving $30,000/year
Gaining the Critical Edge Mar-Bal, Inc. Gains a Competitive Edge Over Competitors By Having a Better Understanding of Costing and Profitability at Both Micro and Macro Levels EnterpriseIQ Allows for Mar-Bal, Inc. to See Precise Production and Labor Costs to Quickly and Accurately Quotes to Customers Corporate Procurement Department Now Negotiates Volume Purchase Price Breaks Which Translates Into Better Price for Our Customers Footer Text 24
Gaining the Critical Edge RealTime Machine Monitoring Gives Mar-Bal a Competitive Edge by Immediate, Real-Time Relay of Information Allowing Employees to Quickly Respond to Customers When Delivery Dates Needs to be Changed and/or Items Can Ship Sooner Than Expected Scheduling Module Integrated with RealTime Machine Monitoring Very Easy to Use and Can Provide Updates to Hundreds of Users in Minutes
Unexpected Bonus Benefits Cross Functional Awareness Developed Among Plant Users Shortly After Launch. Previously, Departments Often Operated in Department Silos Due to Old System s Lack of Visibility With EnterpriseIQ, Seamless Flow of Information Between Modules and Complete System Visibility Allows Users to See the Whole Picture
Summary Quote from Aaron: o We saw our employees not waiting for the conflict to occur, but taking proactive steps well before the conflict became a serious issue. A culture of continuous improvement, coupled with the capabilities EnterpriseIQ offers, gives us a distinct advantage over our competitors. We are able to process an order at less cost, more accurately and without increasing headcount. Aaron Apologizes for Not Being Here in Person But Here!