1-page Solution Brief - Posted 1/6/2007
Views: 163
Rate This Evidence:
Manufacturing Employees Cut Order Process by Four Days with Automated Solution
Business Needs
Based in the Australian state of Victoria, UR Machinery specializes in machinery that harvest grapes for wine makers. A global leader with 49 employees, it exports to the United States, Chile, and South Africa. In the past three years its industry has become increasingly tough, with many new and second-hand machines becoming available on the market.
 |
Before, ordering parts for one machine could take one week. Now, with computerized purchasing through Microsoft Dynamics NAV, purchase orders can be managed, processed, and sent in one day. |
 |
|
Les Kadziela, Financial Controller, UR Machinery |
|
|
In addition, a lack of automated processes meant that employees spent a full working week ordering the components required for new machines. They had to manually produce an order and then send it via e-mail, phone, or fax. Because each machine needs approximately 15,000 parts, it was common for certain components to be missed, causing a delayed and more expensive manufacturing process.
For the machines to be competitive, pricing is incredibly important. Given the fact there was no way of accurately monitoring the costs at each stage of production, it was hard to know exactly what price to charge to maintain sales margins.
Les Kadziela, Financial Controller, UR Machinery, says: “Employees were using a manual costing system that made it difficult to track prices on a process-by-process basis. We didn’t know how cost efficient a machine was until it was completed. By that time, it’s too late to make any material decisions regarding its manufacture.”
Kadziela says: “Our company faced a bleak future if we didn’t find a business management solution that would automate operations and integrate with our existing design systems.”
Solution
Once it had researched possible solutions, and conducted a competitive tender process, UR Machinery invested AUS$150,000 (U.S.$133,000) into Microsoft Dynamics™ NAV—a solution that offers advanced financial management and easy integration into manufacturing systems.
To achieve the most successful solution, the company worked with Microsoft® Gold Certified Partner Fenwick Software. Kadziela says: “With more than 30 years’ experience implementing solutions for manufacturers, it provided the clearest understanding of our needs.”
Employees at UR Machinery worked closely with the Fenwick Software team that created the ability to access data from a computer-aided design (CAD) system through Microsoft Dynamics NAV. Employees provided feedback throughout this process to make sure that the solution met their needs, and helped them adjust to an automated system with minimal training.
Added to the solution is a customized, time-clock option that automatically captures attendance and job costing data. This information is extracted by Microsoft Dynamics NAV, which then produces the postings to production orders and payroll.
Fenwick Software phased the implementation process to accommodate the company’s peak activity during harvest season. Steve Lanmaid, Project Manager, Fenwick Software, says: “We went live with stage one, the core system, and finance module in September, before the busy vintage time of January to May. Deployment was relatively straightforward because Microsoft Dynamics NAV closely fitted the requirements of UR Machinery.”
Kadziela says: “When employees complete drawings for new machines in the CAD system, information on the parts required is exported to Microsoft Dynamics NAV. This then creates a new order for materials. With 15,000 different parts covering items from nuts and bolts to sub-assemblies, engines, and hydraulic components, I am impressed with the access and processing speed the solution offers.”
Benefits
Employees at UR Machinery have found Microsoft Dynamics NAV to be invaluable in terms of time and resource gains. Kadziela says: “Before, ordering parts for one machine could take one week. Now with computerized purchasing through Microsoft Dynamics NAV, purchase orders can be managed, processed, and sent in one day. This includes ordering for all of our machines, and managing current stock levels across the board.”
- Employees can now fax or e-mail an order automatically through Microsoft Dynamics NAV, which creates the order through the server and generates a PDF file.
- Employees can manage purchase orders in one day, instead of five.
- Microsoft Dynamics NAV has helped employees renew the company’s competitive advantage.
- Electronic ordering eliminates paper-based processes.
- Employees improve purchasing accuracy with automation.
- Employees can access data from their existing CAD system through Microsoft Dynamics NAV.
- A small investment has helped save the company—worth AUS$10 million (U.S.$8.8 million) annually.
- The company can integrate Microsoft Dynamics NAV easily with its CAD application, helping employees save time by using one interface.
- Microsoft Dynamics NAV has helped renew the company’s competitive advantage in the marketplace.
Software and Services
Microsoft Dynamics NAV
© 2007 Microsoft Corporation. All rights reserved. This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.
Document first published August, 2006
