Reliable stock control raises turnover

A precision engineering company was struggling to meet its targets until it installed stock control and procurement software that has since increased turnover by over GBP 600,000.

A precision engineering company was struggling to meet its targets until it installed stock control and procurement software that has since increased turnover by over GBP 600,000.

To a precision engineering facility, manufacturing a large quantity of small batch components, complete traceability is of critical importance.

The company is a sub-division of a large, multi-national, employs 70 and last year had a turnover of GBP 10m.

Four main problems were preventing the company from achieving its targets without a struggle.

Problem 1: Stock control was shared between three separate systems, none of which were comprehensive or reliable.

It was estimated that upwards of 30 hours were wasted every week just searching for bought in components amongst the 7000 stock items which the company carries at any one time.

Problem 2: The poor stock control processes exacerbated the difficulties experienced by the Purchasing Department.

Whilst the company had grown, the systems were still geared towards the operation of a small firm.

Information was not readily available across all departments and consequently mistakes were frequent.

Problem 3: Production Control invariably launched jobs late.

Disorganised ordering of components and materials by the Purchasing department and poor forward visibility of work and customer requirements were all attributable.

Problem 4: As was evident from the various stock control systems which co-existed, the company required a certain amount of flexibility in whichever system it was to apply.

Rigidity was partly blamed for previous implementation failures.

The solution: aly in installing FactoryMaster software that features a fully integrated purchasing and stock control system, maintaining full batch-traceability and providing live information to the right people.

Stock movements are facilitated by FactoryMaster Kitting Lists (for picking the requisite components of a Works Order for assembly/manufacture), Picking LIsts (for ensuring that goods are shipped to customers at the right time) and Picking Labels (which identify the goods to be shipped to Stock Controllers and customers).

FactoryMaster features MRP (Material Requirements Planning) capability.

At the touch of a button, Production Control and Purchasing departments can have complete visibility of Works Orders and P/Os which need creating.

If lead times have been set up for each component, these can be applied to the report to ensure that starting late becomes a thing of the past.

Senior management are delighted with FactoryMaster." The Implementation Manager explains, "Until we put FactoryMaster in, the company was struggling to meet its targets.

Five months into implementation of the system and the management acknowledge that the improvements brought directly by FactoryMaster have been responsible for GBP 600,000 of additional turnover.

I look at the downward trend six months ago, and the way in which we are now exceeding our targets by GBP 1m and would personally estimate the turnover figure attributable to FactoryMaster to be nearer the GBP 1.2m mark." Just some of the benefits brought by FM2000: a.

Well controlled bills of material that can easily be copied and modified for variants.

b.

Extensive Stock Control functions including kitting, picking and label production.

c.

Quick and simple production of purchase orders.

d.

MRP based on sales orders, assembly details, stock levels, works orders, purchase orders and lead times, giving a complete overview of requirements.

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