Manufacturing Software Is Shop Management Software.
Instead of keyboard and mouse, or worse yet punch cards, the E2 Shop System simplifies shop floor management. It uses a nice clean touchscreen interface, has no moving parts, and won’t get full of dirt or debris from your process. It’s a simple matter for an employee working on a particular machine to simply log in while they’re performing work and log out when they’re done.
This Mobile Manufacturing Software automatically records who is working on which machine, and in which process. It’s easy to calculate their efficiency and how productive they are. Furthermore it allows you to see which employee is most skilled with a given process, which will assist in future scheduling.
A handheld laser scanner plugs into the WorkStation terminal via a USB plug (a portable scanner is also available if your plant is Wi-Fi enabled). This means that each completed piece can be scanned and becomes part of the finished inventory in the system. At the same time, raw stock arriving at the WorkStation is recorded.
With a simple calculation, Output – Input = Waste, you can thoroughly understand the ultimate cost of a job. For example, making a 1¾” knurled post from 2 inch stock has 12% waste; if you were obliged to use 4-inch stock to finish an order, your waste on that piece could easily exceed 85%.
On-the-spot decisions may be up to the overseer or foreman based on customer need. The historical data base can ease such decisions in the future (i.e. This customer can tolerate a delay; that customer cannot.)
Waste tracking is certainly an integral part of your overall costing. It doesn’t end there of course. Every single order makes its contribution to the overall expenses of the company.
Every single wage, every single watt of electricity for the machines or the air conditioning or the lighting, every bit of natural gas for heating, rent on the property, insurance, employee benefits – they all take their little piece of the action. After all that’s taken into account, then you know what your profit is.
If you cannot track your costs then you are in financial limbo. Knowing that your material cost $100 and that you billed the customer $600 doesn’t necessarily mean that you made a profit! Facts matter.
Customers fret – it’s part of life and you are not going to change it. When a salesman gets a call from a customer asking anxiously “Is my order done yet? Is it going to get here on time?” it should be a simple matter for them to tap out a query on their screen and know the exact status of the order. “Yes, ma’am” they reply. “Your order will be completed 1:30 PM, and we have a delivery truck scheduled for 2:15 PM. It should arrive at your Chicago plant by 8:30 AM tomorrow.”
At any stage of production, any authorized person should be able to query the process. No one should have to run out to the shop floor, inquire or search, or do a physical count in order to answer a simple question. Trust me on this: customer satisfaction and confidence will skyrocket when you can quickly allay their fears with fast, accurate information.
Accounting, Invoicing, & Profitability
You need to understand which of your customers is generating income. A 5% 10, net 30 account (meaning a 5% savings if the total bill is paid within 10 days, otherwise full payment required within 30 days) is better for you than a 2% 30, net 60 because the debtor is keeping your money for an extra month at practically no cost, and compromising your cash flow.
Broken down even further, you might see that 20 customers are individually responsible for 1% of your business profits. The same report might reveal you have one customer that is responsible for 16% of your business. There’s never any harm in trying to generate new business even with your smallest customers, but it makes the most sense to pursue additional business with your largest customers.
A 100% increase in business volume with a 1% customer still only amounts to 2% of your sales. A mere 25% increase in business volume with a 16% customer now makes them worth 20% of your sales. The E2 Shop System shows you where to focus your efforts.
As important as it is getting customers to order, it’s equally important to get them to pay. When an order is complete invoices are generated automatically to go with the shipping, as well as simultaneous e-mail billing. This is an element of your business you don’t want to overlook.
As mentioned earlier, we have vast computational abilities. Job Shop Software encompasses all the advantages of Manufacturing Software, scheduling software, Accounting Software and inventory control software. It shows us how to be more efficient, save money, and keep customers happy.
What is a point of having all this data if we’re not going to utilize it? It’s a tool like any other, so let’s put it to work.
Materials On Hand
Your inventory can be the most financially significant investment in your business. But with a good shop management system and the advent of JiT (Just In Time) delivery systems you can watch your expensive inventory shrink away to nothing. In a sophisticated system, as soon as an order comes in, an order is placed for the appropriate materials, from the least expensive (or fastest depending on your requirements) supplier.
By the time you’re ready to run the order your materials should be arriving at your Receiving Dock. No muss, no fuss, no bother.
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