Author: Paul Van Metre
How many times has it happened in your shop that you go to set-up a job, only to realize that you’re missing a special tap? Or maybe a thread gage, or a custom ground tool? Or anything else you might not normally need. Or even the material - which you definitely normally need!?!
For many shops this is a weekly or even daily occurrence. It wreaks havoc on your schedule, your on-time delivery score with your customers, and the profitability of your jobs. You may need to pull the setup off the machine and put on a different job. Or you overnight a special tool for early AM delivery so you can get back on the job as soon as possible. And the machine sits and waits for hours, waiting for that $20 tap which costs $60 to ship overnight. The downtime on your spindle will never be recovered, the $60 shipping fee is straight out of your profit margin, and you’re now a day behind schedule which means you might be late to your customer. Or you’ll have to pay a $100 expedite fee to your anodizer to make up the difference. In short, it’s a bad situation.
This situation is a prime example of a shop that doesn’t have the systems in place to eliminate this problem from happening. And it results in a frequent reactive situation, rather than being proactive. But it’s very common because it’s a complicated process to manage and ERP software tools don’t help with this level of detail. But, with ProShop, it’s entirely avoidable.
ProShop ERP was designed and built on the shop floor of a job shop for 17 years. We dealt with these types of problems every day. We processed thousands of jobs per year and every one of them had the potential to go sideways, be late, and lose money. So we built software solutions to help eliminate those potential problems. One critical tool we call the Pre-Processing Checklist. This is a checklist that helps employees make sure they’re doing the things they need to do, and allows everyone else to know what the status is of the checklist. It’s designed to be checked off, at various stages, by different people, before a job is ready to be processed on a manufacturing workstation.
The checklist is made of several color-coded sections:
As the work gets completed and checked off, the color codes on each job update, as does the schedule for those jobs. It’s easy for people to see the latest status and make good decisions about job scheduling. In the image below, the fact that the job circled in red is scheduled to go on the machine tomorrow, but the bar is pink, is a major problem. It indicates that the CNC programming process isn’t done yet, nor is the job prepped for the machine. The setup is not likely to go well, and it’s plainly visible to anyone looking at the schedule so action can be taken.
Just as importantly, the items on the checklist are customizable, based on the type of job you’re processing. For example, a repeat production job should have a much smaller list of items to do, than a brand new production job you’re running for the first time. There is no program to be done or fixtures to be made.
Here is an example checklist for a first run job:
Here is an example checklist for a repeat job:
We don’t want to introduce items to be checked off, just for the sake of checking boxes. The objective is to just do the minimum amount that is necessary and prudent to ensure success and efficiency for the type of job being processed. In addition to the customization by work order type, the entire checklist is configurable for any type of job that can be imagined.
By getting into the habit of using this Pre-Processing Checklist, and becoming more proactive rather than reactive with job preparation, ProShop customers see dramatic improvements in setup time, as well as reductions in those fees needed to respond to last-minute changes. Customers have reported reductions in setup of 25-50% and reductions in UPS Red charges and outside process expedite fees of over 90%. Often more than covering the entire subscription costs for ProShop. With the cost savings typically realized, as well as the reduction in stress from eliminating last-minute fire drills, the Pre-Processing Checklist becomes a beloved feature that shops rely on every day to make their jobs easier and more profitable.
Author: Paul Van Metre
As I write this post, the Coronavirus is sweeping the world. Schools, borders, events, gatherings and workplaces are being closed at a rapid pace. It’s an uncertain and ever changing situation. Some of the concerns I’ve heard shop owners share this week include how to best keep their employees safe, and mitigate the risks to their business as this pandemic unfolds.
For companies who primarily do “digital” work, like Microsoft, who recently asked employees to work from home, the impact is significant, but manageable. For manufacturing companies, this is a less feasible scenario. In a machine shop for example, you still need people to run the machines, inspect parts and ship product. You need to quote new jobs, and keep your business running.
For companies with a traditional installed client/server ERP system, this is particularly difficult. For some, it may be possible to have office workers work from home and connect remotely using VPN and RDP (Remote Desktop Protocol). But that isn’t typically practical as most don’t have the IT infrastructure in place, or installed software on remote computers from home. There is also the issue of the paper-based workflow being an obstacle. Job travelers need to be printed, and people within the office often don’t know they have something to work on until the traveler is placed on their desk. Hardly compatible with a work-from-home situation. And managing the on-premise infrastructure is another obstacle. If your server goes down or needs maintenance, it will require your IT staff, or remote IT provider to address it.
I have the unique vantage point to see many different shops before they implement ProShop ERP. I spoke with a shop owner last week who uses an installed ERP system. His estimator had been home sick with a common cold, so they had not been estimating jobs for nearly a week since the estimator could not connect to their ERP system. This will lead to a drop off of new orders within the next week or two, and a drop off of shipments and revenue several weeks later.
Fortunately, users of ProShop ERP, with its built-in digital workflows, have the added benefit of minimizing negative impact from a “social distancing” event, or any need for remote work, for that matter. Here are just a few ways ProShop makes a difference.
When trying to contain the spread of diseases like COVID-19, or even just the common seasonal flu, the advice from experts says, more social distancing that is implemented, the better off your company will be. If office workers can get their jobs done from home, the company is better off. Out in the shop, there are greater distances between employees, and there is likely less of a chance of spreading an illness from one employee to another. And because there is no job traveler to contend with in ProShop, the only thing moving around the shop is the parts themselves and using gloves and other precautions to keep parts washed and clean is easy. Even last-minute customer changes, triggered by a remote office employee, will instantly propagate throughout the system without a need to reprint any job information.
One of the biggest unknowns with this new situation is how it will affect the economy, and your order book. It’s entirely possible that a recession will follow and shops will be looking to cut costs, get more work done with fewer staff, and ultimately look to find new customers to replace those who have canceled orders or are just ordering less in general. ProShop can help here too. Our clients report an average throughput improvement of 20-35% on the factory floor, with the same number of staff. And they can often reduce overhead hours by a significant percentage as well. We’ve had customers with just as little as 4-10 office staff be able to reduce overhead functions by 1-2 full time people by either redirecting them to more value added roles, or allowing attrition to reduce overhead costs. Here is a case study of a 35 person shop who freed up 3 full time overhead staff with a move to ProShop.
When it comes to adding new customers to backfill work, ProShop becomes one of the most effective sales tools a shop has. Watch this short video of a shop in Chicago who has to pry their customers away from the conference room after giving them a ProShop demo. Buyers and audit teams are “blown away” by the capability in ProShop.
This article from Modern Machine Shop outlines another ProShop customer who won a considerable statement of work with a customer as a result of their ProShop implementation. And consider how much more confidence a customer will have in your company when you show them how you can manage their work when your team can work remotely during unusual times like this.
With our proven 9 step implementation process being entirely performed remotely, you and your team don’t need to travel, or have our team visit to be up and running on ProShop in just a few short weeks. Watch this video to see how a client discusses just how fast and easy the implementation process was.
Can an ERP system like ProShop help give your shop a competitive edge over your competitor in the best of times? Absolutely. And it can become a crucial tool during challenging times like the one we face today. If your company is considering how to handle this current situation while still maintaining a high level of efficiency, we’d love to discuss how ProShop can help. Contact us or book a demo today. Thank you. Be safe. And good luck out there!