Plastic Molder Gets a Handle on
Operations with WinMAGI
This plastic molder to the auto
industry is a privately held company with about 400
employees. It
is the largest employer in a small town in northern
Michigan. Depending
on the car you drive, you may use their products every
day. They
mold plastic parts for those levers, on a cars steering
column, that controls the windshield wipers and headlamp
dimmer switch. Their
largest customer is Borg Warner.
Several years ago, when their growth required a
manufacturing control system, they purchased a software
package developed exclusively for the plastics molding
industry. The
management team, being new to software, was unaware that
industry specific software has been less successful than
general manufacturing software configured to the
idiosyncrasies of a specific industry.
They
were not able to make the software work.
The vendors people spent so much time at the
factory that a separate work area had to be set up for
them. Change
the software and struggle with itover and over.
And the vendor invoiced them for it.
The software was supposed to be developed for their
industry but the development was neverending and all at
their expense.
But
the ongoing expense was not the critical issue. The automotive industry is unforgiving of late shipments and
the company was getting too largeand the product line
too complexto manage without software.
The Vice President began looking for replacement
software.
Her
search resulted in the selection of WinMAGI ERP software.
The initial requirements were very basic.
She needed a handle on inventory.
There was plenty of it but exactly how many of each
part number was on hand and where it was stored was
something that could only be answered after a thorough
search of the factory by a few veterans who knew all the
out of the way places to look.
When a customer order was received, the factory was
scoured for inventory and orders were placed for parts
they could not find.
This was error prone and resulted in expensive
expediting. Run
quantities were undisciplined and tended to be in excess
of immediate requirements.
These were not well thought out lot sizes as much
as ad hoc quantities to keep the machines running until
the next expedited orders interrupted them. The extra quantities were stored wherever there was room and
the whole inefficient process would begin again.
In addition, customer orders needed to be
interfaced with the on hand balances in order to automate
the replenishment process.
WinMAGI performed all these functions that the
earlier software promised to perform but could not.
And it was stable. After the initial training of a few key employees, inventory
was brought under control.
They now know how many they have and where it was.
The where it is part was made easier because
they had less of it. WinMAGIs MRP was configured to
react only to actual customer orders.
Production was initiated if there was not enough
inventory to satisfy the customer order and, just as
important, no production was initiated if inventory was
sufficient to satisfy the customer order.
This reduced the inventory until it could be stored
in the areas intended instead of anywhere there was a bare
spot on the floor. MAGI
employee visits were rare and occurred only when the
company wanted help installing another module of the
software.
The
VP discovered that, even tho WinMAGI was not developed
exclusively for the plastic molding industry, it had more
plastic molding features than their old software.
Both packages could express material requirements
in tiny fractions. Both
could accommodate flash, runners, and regrind.
And both could report scrap by mold.
But only WinMAGI could report scrap by cavity
within the mold and explain
to factory people why that is important. It became obvious
to the Vice President that there were many years of hands
on manufacturing experience behind the development of
WinMAGI. And
WinMAGI can handle the general business issues, common to
all manufacturers, much better than their old industry
specific package. Costing
is much more flexible.
With WinMAGI, costs can be calculated as standard,
actual, add-on or hybrid.
Hybrid allows certain parts to use standard costing
and others to use actual or add-on costing.
The factory scheduling is simple and
straightforward. Crisis
expediting now occurs rarely and when it does, the
customer more likely generates it than internally.
Their
industry specific software could only generate a packing
list and bill of lading within the shipping process.
But the plastic molder needed to create various
material certifications for certain shipments.
WinMAGI allows them to define for themselves what
constitutes shipping paper, create and store custom forms,
and identify when they need to print and when they
dont.
The
Purchasing function honors price breaks and payment terms.
Blanket orders can be used, and inventory can be
sorted by the responsible Planner or Buyer. In every way, WinMAGI software is superior to the industry
specific software they abandoned.
Management
is getting comfortable using software something they
were convinced would never happen.
The value of getting the data into WinMAGI has
replaced the old value of keeping tons of production
related trivia in their heads.
New employees now have access to information
formally buried deep in Old Joes memory.
The company is poised for even more growth.
And, this time, the only limitation is their
ability to sell more product.

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