The Challenge

Proxy’s technical expertise and ability to keep up with technology has allowed them to support today’s technologies yet remain flexible to yesterdays, as well.  Because of this, Proxy had grown. They had even grown to the point that it was very challenging to stay in control of their processes and to have visibility they needed to make informative decisions.  Information was not easily shared across the organization leaving them prone to error and unreliable results.  They had realized that without manufacturing efficiency, they would lose one of the cornerstones to their business plan.

Having no ERP or system in place, Proxy’s data systems and processes were disconnected.   They needed an ERP system that had the ability to tie each step of their process together: pricing, inventory planning, lot tracking, accounting, and shipping.

The Solution

Proxy began an intense search to find a system that came complete with an integrated ERP and MES, allowing all of the components to manage customer’s orders, from start to finish.  They examined solutions that allowed them to easily collect data on labor, machine utilization, jobs, set-up & downtime from a single operator system.  Also, they required a complete financial accounting system.  ProfitKey’s RRM stood above as one of the only ERP products to meet all of these requirements seamlessly and in real-time.

Since implementation, productivity and visibility has grown significantly leading to a 30% increase in sales, due to customer confidence and satisfaction

According to Kathy Dugas, Controller at Proxy,  “We know we’ve only scratched the surface of the power and benefits the RRM system can provide.”

About Proxy Manufacturing

Entering its 25th year in business Proxy is located in a state of the art facility in Methuen, Massachusetts.

Servicing the Commercial, Industrial, and Defense Sectors, Proxy is ISO 9001:2008 certified, received ITAR registration approval, has all of their technicians certified by IPC, and recently added a high speed line to improve quality and throughput, and much more!

There are many different philosophies behind the idea of cycle counting.  First, it allows production managers to ensure inventory will be more accurate throughout the year, rather than waiting until year end.  The cycle count groups are set up with many different criteria (e.g. Wire, purchased only, certain locations).  Counts can be performed on a small scale so the task at counting all the parts at one time can go away.    Each part can be set up to be counted as many times a year, as needed.  Cycle counting can be done monthly, weekly, or even daily.  This makes the task much less daunting than having to count everything at one time.  A cycle counting system keeps track of the number of counts for each tag.  Parts can be counted more or less time based on the type of part.  Using ABC analysis is a popular way of determining how often a part is counted – ‘A’ items (typically the expensive or mission-critical parts) are often counted more frequently than ‘C’ items (like washers, shims) etc.

In ProfitKey’s Rapid Response Manufacturing ERP, cycle counting is made easy, with many risk eliminators. Rapid Response Manufacturing, or RRM, allows you to configure multiple count groups, each with its’ own count list and count frequency.  RRM Cycle Counting automatically flags any variances on a first count and produces a ‘re-count list’ that must be completed before closing the count (as a verification of the first count), and variance reporting is produced on count close.

Don’t risk the biscuit simply because you have a mindset that you don’t have the resources to perform multiple counts per year. Take the time to re-assess and re-assign these major projects based on a set strategy eliminating the risk of one major year-end push and allocate them in smaller chunks throughout the fiscal year.  We have seen many leading manufacturers changing the way they look at their planning, collaboration, and analytics, providing them with more real-time data and, thus, more successful results.  You and your inventory team will be glad that you looked into yours.

PowwowHR is a leading provider of HRMS software and solutions delivered via a SaaS-based integrated platform which eliminates the need to manage multiple vendors.

Founded by principals with over 20 years experience providing HR solutions, they believe it takes a group of people who are HR professionals to develop software that successfully addresses the needs of the HR industry.  PowwowHR’s passion behind the development of these products and solutions is demonstrated in the ease of use and robust functionality.

“Every company, especially in the manufacturing industry, needs a strong HR solution to manage the entire employee life cycle,” said Joe Di Zazzo, ProfitKey President and CEO.  He added, “HR is something our customers have requested for a long time, but we wanted to be sure we had the right partner to deliver the best solution possible.  After extensive customer and market research, PowwowHR’s solution stood head and shoulders above all other systems.”

“The strategic and cultural fit between ProfitKey and PowwowHR is compelling, and will be extremely complementary in terms of services,” said Michael Gregorio, Managing Partner and COO of PowwowHR.  He also added, “Imagine a SaaS-based solution that allows you to manage your HR, payroll, benefits administration, time & attendance, and ProfitKey ERP software all from a single integrated platform.”

About ProfitKey International

For over 30 years, ProfitKey International has been a leader in providing Manufacturing Planning, Manufacturing Operations, Financial Management software and Customer Service. Today, that tradition continues with new technology, new innovations, and new services. ProfitKey directly implements and supports Rapid Response Manufacturing ® Software from seven offices nationwide. Over 1,200 customers with over 21,000 users have implemented ProfitKey software in the United States, Canada, Europe and the Far East.

About PowowHR

PowwowHR is a leading provider of HR, Payroll, Benefits Administration, and Time & Attendance software and solutions delivered via a SaaS-based integrated platform.

PowwowHR’s goal is to offer the most comprehensive set of HRMS capabilities available at the lowest possible price to compete with major market players. With an expanding line of innovative online solutions, PowwowHR helps you attract talented employees, and keep them engaged, educated, and empowered, while significantly streamlining the way you’re managing the business of human resources.

With that said, here is a set of guidelines and good practices that you can take to maintain and ensure a smooth month end in your financial application.

1. Always review subordinate ledger journals prior updating the information to the General Ledger (or G/L). This will help the user find any discrepancies before they are posted and no longer accessible to be changed. This will allow the user to make adjustments prior to final posting. In systems that automatically post transactions to the G/L as completed, be sure to review those same sub ledgers for accuracy and make any appropriate adjusting entries.

2. Be sure ALL entries are posted in the General Ledger. Control logs are a good way to be sure this is happening monthly.

3. Reconcile/Balance Customer Aged Receivables Report to the General Ledger Accounts Receivable account at month end.

4. Reconcile/Balance Vendor Aged Payables Report to the General Ledger Accounts Payable account at month end.

5. Reconcile Bank Statements – Simply Put

6. Print financial reports and review for any possible adjustments prior to rolling the General Ledger period forward. a. Balance Sheet b. Profit & Loss Statement

7. Make any changes/adjustments needed through Journal Entries and Post Entries.

8. When all is in balance run final reports – Roll the General Ledger Period forward.

Profitkey’s Rapid Response Manufacturing ERP has a strength and focus in all of these processes. The financials are fully integrated with the core ERP components and allow users the flexibility to post daily, weekly or monthly based on preference. System generated reports provide all the detail needed to ensure accurate and timely financial reporting.

We spoke in a previous blog, ‘How Do You Find the Right Fit For YOU?’,   about the different routes and research options to get this process started and how overwhelming the issue of an ERP system search can be.  However you, personally, battled through the opening stages, you’ve sat through an overview, perhaps even a technical demo, and you’re now at a stage in the ERP selection process that you should be requesting references to perform site visits and see the ERP systems in place.  To get the full sense of what the system is capable of and how it might work best for you, you’ll want to see it in action.

Each manufacturer is unique from one another.  One strategy might not work as well as another, and vice-versa.  With that said, there have been occasions where a prospect will request to see the solution in action.  Now, this may seem like a lot of extra work and time, but this just might be exactly what you need to get you past the wall you’re facing to make that final decision.

We typically recommend asking the vendor to show you mission critical functionality using your data so you can see how the system will work for you out of box.  We then recommend the reference process.  Start by asking for references in your industry that are roughly the same size as your business.  Also ask for a larger account so you can feel comfortable that the software you are buying is scalable.  Some solutions may be a great fit for your company today, but any growth could make it obsolete before you know it.  If at all possible try to set up at least one site visit to see the software in action.  This may have to be to a site that is not in the same industry as you due to competitive reasons, but visiting a company using the software in a production environment is important.

I would also recommend taking a look at our most popular article, “Top Five Reasons Why ERP Implementations Fail”.

Most companies won’t mind a referral visit or a phone call as your feedback could potentially lead them to unlocking new ideas.  If doing a site visit look to send a 2-3 person evaluation team, made up of each of your core departments to see and discuss the system in action within the various disciplines.  Try to visit a company that has been on the ERP system for 3-5 years.  They have been through the implementation process and should be reaping the benefits and excelling within the new system/structure.  Learn their strategies and how they got the most of the system.  If the ERP is a longstanding company, they should be able to provide you with at least one company of similar size, type of manufacturing (ETO, customer mfg, MTO, MTS, etc.), and (if possible) within the same industry.

Before the visits request the ERP to submit a summary list that identifies:

• Name of company
• # of ERP users
• Type of (manufacturer) business
• Physical Location
• Time on the ERP solution after full implementation

It may be common sense, but this will assure you that you will get the most of your time and can align you to prepare certain questions to ask upon your visit.  If the company provides you a few options to choose from in each category, even better.

Remember, whether it’s a demo or a company visit, let your goals dictate the direction of questioning, not the other way around.  Many ERP companies will give you a fire hose sale with eye candy.  The most important thing you can do is dive deep into your own processes and MAKE the vendor show you, specifically, how their solution would handle that item.

Aerospace Dynamics international (ADI) based in the Santa Clarita Valley of Southern California, supplies complex components and mechanical assemblies to the global aeronautics and aerospace industries.  Our corporate goal is to be an industry benchmark and offer our customers the latest engineering and manufacturing technologies.  At ADI, we are confident that our focus on continuous improvement and advanced technologies will enable the success of all of our customers’ programs.

For more than 20 years, we have been using a software program called Rapid Response Manufacturing (RRM) to serve our enterprise resource planning (ERP) needs.  Developed by ProfitKey international, the RRM software is used throughout our manufacturing processes.  We begin with a production plan that details each operation required to make and deliver to our customers.  We use the software’s capacity management feature for resource planning and its variance analysis functions to evaluate our performance between planned and actual hours and report the costs incurred.  As ADI is in the aerospace field, we are held to the highest standards in quality management; thus, we record and process all of our inspection demands using RRM.

ADI employs a large sub-tier base to support our manufacturing processes, and this group generates its orders and tracks all costs through the ProfitKey system.  Additionally, our supplier base is managed through requirements generated by the software.  We perform all of our accounts receivable within our ERP system, with the exception of payroll.  (While payroll originally was performed through RRM, it now is handled through ABRA, a partner of ProfitKey.)

For over 30 years, ProfitKey International has been a leader in providing manufacturing Enterprise Resource Planning (“ERP”) software for small to mid-sized companies who are looking to increase efficiency; specifically, in the areas of shop floor scheduling, communications, inventory management, labor reporting, cost tracking, and more.  ProfitKey’s Rapid Response Manufacturing ® (“RRM”) solution is the industry’s only fully integrated product suite that provides real time all the time capability from the front office to the shop floor. 

By listening to our customers, like Aerospace Dynamics, Inc. (“ADI”) we have enhanced RRM with features and functions that users really need.  Its scheduler is seamlessly integrated to our user friendly Manufacturing Execution System (MES), providing two-way, real-time communication of dispatching and labor data.  This gives the confidence to know they are working on the right job at the right time. 

ProfitKey’s Quality Management System was designed with the input of several customers over several months of intense discussion.  ADI was heavily involved in this process and, as a result, was able to meet customer-first article documentation requirements with our solution out of the box.  The solution is an easy-to-use module that works from the first article through final inspection with complete vendor performance ratings.  With the cause and corrective action component, users can set their own defect listings and track where a problem occurred and what was done to keep it from happening again.  Using RRM’s quality module, ADI reduced first-article audit for a large aerospace customer from five days to one.

ProfitKey continues to expand and enhance its product, and the company is creating additional partnerships in other areas of manufacturing.  We are currently reviewing third-party software through ProfitKey partners for functions including preventative maintenance, better estimation capacity, and enhanced reporting through dashboard delivery.

Program Installation

RRM is loaded on a Microsfot Windows server and individual clients, and all communications occur through ADI’s internal network.  Although we have at times struggled with the reliability of our network infrastructure, the ProfitKey server has remained a reliable system throughout the organizations 20-plus-year history.

The original installation occurred prior to my time with ADI, but all subsequent upgrades and implementations were done by in-house personnel, with the assistance of ProfitKey technicians when needed. During our last major upgrade, we purchased on-site assistance ProfitKey, but ended up using less than half the time projected.  We experienced few interruptions or incidents.

Usability

RRM uses a Windows-based interface and provides users with immediate access to information and simple reporting (See figures 1 & 2.)  An online help and tutorial system is available, which facilitates users becoming familiar with the program’s functions.  For issues that cannot be resolved through the help system, an incident can be created and resolved with a ProfitKey technician (provided that a current maintenance plan is in place).  In non-emergency situations, these incidents are responded to within 24 hours – but if we have note the system is down, an immediate response has always been received.  Additionally, there are online groups and forums where users can further enhance their knowledge of the system and view other users’ thoughts on how the software can better serve its clientele.

Customization

The system employs user-defined fields throughout.  This means ADI has been able to customize standards, off-the-shelf software without paying for the customization.  ProfitKey’s user-defined fields are searchable and reportable, and they are tied to the proper records.  They even have enabled us to migrate some functions previously kept outside the ERP system into the system, which has been valuable to us.

Best Features

One of the strongest points of RRM is the ease of viewing and exporting data.  (See Figure 3.)  Users can export data to any other program through a CSV (comma-separated values) file, which otherwise might require a special report generated by the database administrator.  This assists in getting our employees timely access to information.

The security functions of the system also are easy to manage and use.  A user’s access restrictions may be as simple or as complicated as the database administrator wishes.  Not only can a user be limited by application, but access also can be limited by form or even by fields on forms on a read-only or a hidden basis.  Through this system, ADI can remove unnecessary information from certain users to facilitate more focused interactions with data.  It also lets us hide sensitive information from some users but allow other critical data in the same location.

Overall, the solution in RRM delivers the information we need in a clear and concise package.  It is a cost-effective product that addresses complex processes, and it is continually improving and engaging its users to be part of the evolutionary process.  Our relationship with ProfitKey has been more than 20 years in the making.  It has benefited both organizations and hopefully will remain strong as we continue to grow within our respective industries.

Monty Peterson is the contracts manager at Aerospace Dynamics International.  He has worked in aerospace manufacturing in the Santa Clarita Valley for more than 14 years.  He may be contacted at montyp@adi-aero.com.

The application should, and most often does, provide the user with quick references, queries, hot keys, etc. , but new software users should spend their time becoming familiar with the navigation of the application first.  With this knowledge the end user can obtain cut down on processing time in the work place.

• Some tools that are commonly found within manufacturing software applications are browsers. The browse is identified on a master key field during data entry. The browse can help a user locate a customer id, vendor id, item id, etc. simply by entering the starting few letters of the id. This will bring the user into the browse listing at that position.
• Another tool for looking up existing data that has already entered is query buttons. Querying on a listing of entered data will allow the user to find the information more quickly to reference to.
• The user should locate the hot keys.  Applications associate a Ctrl key with an Alpha character to obtain a task, such as Ctrl A would add the record to the database.
• You will also find drag and drop features within manufacturing applications especially where product structures need to be built.
• Manufacturing software applications provide multiple levels of menus used in processing.  Some applications will have the capability to right mouse click on selected information or to move onto the next level of the application.

Every software user should look for these tools to help with navigation or contact their software support for training on these tips.

Limited Work Flow Review

The first step in any implementation is a limited work flow review.  This is a process by which an applications engineer (AE) from your ERP software provider will visit your facility to make a detailed study of your procedures and processes.  ProfitKey’s methodology is described here, and will likely differ from those of other ERP software providers.  Substantially, however, all ERP providers offer similar services.

Typically, the AE will spend two days at your site.  During this time, the AE will interview personnel and observe your work flow.  This includes discussing your reports, spreadsheets, off-line databases and other tools you use to run your business.

The work flow review included in your implementation is a limited version.  Its intent is to give the AE an understanding of your business flow, processes and procedures sufficient to allow them to best implement RRM at your facility.

Following the on-site period, the AE will prepare a project plan using Microsoft Project, and deliver it for the team’s review.  The AE will be scheduled to return to your facility about a week after delivery of the plan, giving the team time to digest its details.

During the AE’s return visit, the team and the AE will discuss the plan.  Your team will have questions and will need clarification of some points.  You may also disagree with some of the details.  These disagreements will be resolved.  Ultimately, the result of this meeting will be a plan for your team members to use as they manage the implementation project.

ProfitKey does offer a complete work flow review.  This service is chargeable.  The complete work flow review is not limited to the best implementation of ProfitKey’s ERP software, but looks beyond into all aspects of your manufacturing enterprise.  In addition, to the Microsoft Project plan, the complete review delivers a detailed report containing the AE’s observations and recommendations and can be invaluable as the team moves forward in the implementation and beyond.  These reports are necessarily candid and can often bring to light situations which can be disturbing.

Following is what you can typically expect during the two-day on-site portion of your work flow review:

Individual operators and administrative personnel will be interviewed.  Questions will be asked that are designed not only to discover specific procedures, but also to understand the underlying reasoning that went into developing those procedures.  This helps the AE picture the overall process.  Often times, it also brings to light outdated or counterproductive activities.

These reviews work best when they follow the actual flow of work; beginning with the estimating process, and going through to A/R invoicing.  The AE will ask questions like, “How did you know to do that?  Where does that document come from?  Where do you send the order next?  What information do you log?” and so on.

It is difficult to specify which personnel the AE will need to see.  Generally, the AE works with people from Estimating, Order Entry/Customer Service, Planning, Scheduling, Purchasing, Receiving, Inventory Control, Production, Quality Assurance, Shipping, Information Technology and to a limited extent, Accounting (Accounts Receivable).  The process works best if the AE interviews people at their work stations when possible.  They should have any routinely-used reports, spreadsheets, databases and such available to illustrate their procedures.

You know your people and processes, so it is best if the team decides if the AE will see one person or several from each discipline.  Consider there are some instances where having more than one representative simply muddies the water, while in other cases the group feeds off each other and provides more useful information than would have come from any one person.

Also, there are sometimes people who either cannot or will not cooperate in this type of venture, and the team should keep this in mind when selecting representatives for interviews.  Remember, too, that some personnel are intimidated by this kind of activity.  It is therefore vital that these people be assured that this review will not result in anyone losing their job or having their function curtailed.  On the contrary, they should be made to realize that this project will likely make their job easier and the company more productive and profitable.  These concepts should be communicated by the various supervisors.

The work flow review usually begins with a meeting of managers and supervisors.  In the meeting the AE will discuss the upcoming interview process and stress the importance of open communication.  This is an excellent time to discuss intricacies of the company’s various products and for personnel to point out issues of major concern.  A tour is helpful following the meeting so the AE can develop a feel for the overall process.  After the tour, the AE will begin their interviews.

It is also important to have an escort throughout the interviews – someone who is knowledgeable enough to know when an interviewee is missing a pertinent matter, and respected enough to coax out the missing information.  The right escort is also vital for calming any anxiety, and facilitating open communication.

Installation and Training

The installation and training methods vary dramatically from one ERP software provider to another.  The variances are so great that any attempt to include details here would only lead to confusion.

Suffice it to say that the initial training of key personnel is the single most important step you can take toward ensuring a successful implementation.  This is not the area to address when you start looking to trim your implementation budget.

Keep your eyes open for installations 3&4 within the next few weeks.

For more information on ERP software, implementation, and what it can do for you specific challenges and goals, visit the ProfitKey website and feel free to contact our team directly.

The first step in your implementation should be the formation of an implementation team.  In all likelihood, such a team has already been formed, and was instrumental in choosing your ERP software solution.

Now, the team will work with your ERP provider’s personnel throughout the implementation process.  Most of the time will be spent with one or several of your provider’s applications engineers or AEs (they often work together), but there will also be interactions with your provider’s IT personnel, account managers and technical support staff.

If the team is not already so constructed, effort should be made to ensure the team is made up of representatives of all major disciplines or departments.  The personnel chosen for the team, while not necessarily supervisors, should be respected by their peers, supervisors and subordinates.   They should be unwavering proponents of your ERP system, and not only be able to digest and apply the training they receive, but also be able to effectively communicate that training to others.

While the CEO or similar officer is often included in the implementation team, this is not always the best practice.  Depending on the personalities involved, the team members may naturally defer to the CEO, thus changing the team into a task force.  In many cases it is preferable to keep the CEO in an advisory position where the team apprises the CEO of its decisions and intentions – possibly soliciting input – but is still able to implement the software as the team sees best.

Team members should be able to adapt any generic training they receive regarding the ERP software to specific applications within your organization.  There should also be a willingness to challenge any standing methodology, especially when the software seems to be consistently leading away from current procedures.

There must be allowances made for the possibility of changes at the most fundamental level.  Many of your company’s systems, processes, procedures and even certain terms used in your everyday communication may be out of sync with the best practices designed into your ERP software.

Finally, team members should have a clear enough understanding of your company’s processes, products and goals to allow them to be effective in assisting your provider’s AEs in helping the team to adapt the software to your environment.

Personnel

Personnel at every level of the organization must have the unambiguous and unwavering perception that the implementation of the new software and any resulting procedural changes are not only supported by the highest levels of management, but are absolutely mandated.

Personnel must know they are being held accountable for the timely and successful completion of any assignments as well as the application of their training and ultimately their proper use of the software within the parameters of the company’s procedures.  Without this knowledge, even though intentions will likely be in the best vein, there can be backsliding and corner cutting during periods of pressure.

PART 2 will look to discuss the review of limited work flow and installation and training.

For more information on ERP software, implementation, and what it can do for you specific challenges and goals, visit the ProfitKey website and feel free to contact our team directly.

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