by Tom Ingraham
President
Realtrac Division
Irvine, CA

Time well-managed is a shop well-managed
ERP software makes the most of every second

Job shops have to be fast paced, which often means shop managers need continuous, up-to-the-minute information at their fingertips regarding the status of machines, employees, and jobs. Because of ISO requirements and the immediacy of the Internet and e-commerce, customers have become more demanding about knowing the progress of their orders--where they are and when they will be filled.

To meet customer expectations regarding on-time delivery, job schedules need to be monitored and modified as events occur. Potential bottlenecks on the shopfloor must be identified and corrected immediately before it is too late to do anything about them. Material purchases, outside sub-contract services and inventory must be continuously tracked to avoid costly delays. In order to make sure that every job earns the optimum profit, companies must check labor, material, and outside costs regularly as jobs progress.

Using Windows and Internet technology, software vendors have been able to respond to these needs with integrated, real-time, shop management systems. Data is collected on the shopfloor using special bar code microterminals or touch screen monitors. With true real-time systems, every aspect of the system is updated as activities occur. Managers know the immediate status of machine loads, job schedules, and costs. The status of customer shipments, inventory, and open purchase orders can be checked instantly.

All aspects of a business are interrelated and may affect the bottom line. As a result, shop management software systems have evolved into total, real-time Enterprise Resource Planning (ERP) systems. Inexpensive, integrated accounting is offered, allowing immediate updating of customer and vendor balances and general ledger accounts. Links to Windows spreadsheet and database software provide sophisticated financial planning and analysis and custom reporting. Vendor websites continually update customers with the latest information, and the ability for a shop's customers to access their own data online is becoming available.

The development of digital camera and advanced scanning technologies have permitted shop management systems to include low-cost multi-media shopfloor documentation. For example, Realtrac users can enhance ISO 9002 tracking by linking digital camera pictures, CAD drawings, sketches, SPC control graphs, and sound to job router operations for viewing or printing.

Even the smallest job shop can take advantage of the trend toward real-time ERP systems. Whereas only recently a complete system for the average job shop might cost $25,00 to $30,000, more versatile and complete systems can be purchased today for $12,000 to $15,000. Basic starter systems are considerably less, with the ability to add capabilities as a company grows and it becomes financially practical.