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June 1997 Volume 7 Number 6 Acquisition And Growth: The Fast Track To Problems Span Instruments, a Plano, Texas-based manufacturer of electronic displays for the semiconductor industry, pressure gauges, transducers and other instruments, doubled its revenue within one year. Not only did the company grow rapidly, it also acquired a Florida-based fire equipment manufacturing firm, Class 1. Rapid growth and acquisitions are two factors that can lead to MIS headaches at any company, and Span was no exception. The company discovered that many of its operational procedures were inefficient. For example, due to the lack of information system integration, users often had to process information manually a tedious and time-consuming process. It was impossible for departments to communicate and, with Span's goal to further expand through acquisition, the company needed an information system that could link up multiple plants to provide real-time information on-line. Management realized that having an integrated ERP (enterprise resource planning) system would assist them in making Span more efficient. To make this move, however, they needed to integrate the company's three existing networks: sales, manufacturing and engineering. To further complicate things, the three networks were operating in different environments UNIX, Novell and Windows NT. With the assistance of networking consultants and DataFlo manufacturing software, both from DataWorks Corporation of San Diego, the company was able to integrate its existing operations and add future subsidiaries. In addition to integration, Span's management found that using the DataFlo baseline system allowed the company to perform business functions in a more efficient manner that streamlined work flow. Inventory management was another area where Span needed to become more efficient. Since inventory control was key to more efficient planning and monitoring of cash flow, Span began using DataFlo's material requirements planning (MRP) module to optimize purchase and production requirements to support the master schedule. Operations gets reports on available inventory, costed excess and obsolete material inventory, costed MRP, and the material requirements plan by part number, planner and buyer. These reports are geared to present material and cost information as well as specific data for the purchase planning, inventory demand management and product data control functions. Span also required an extremely flexible information system. Standard functions, such as bills of material (BOMs) and bills of operation (BOOs), were key to managing Span's rapid expansion. Class 1, the firetruck electronic instrumentation manufacturer Span acquired, is constantly adding new BOMs and BOOs to keep up with new product demands. Class 1 needed the ability to do data entry for these procedures as quickly and efficiently as possible without consuming a lot of resources. Since DataFlo has the ability to transfer engineering files directly into a BOM or BOO, as well as to update entries automatically, the system provides Span with greater efficiency. Reporting tools such as the Executive Information System connects management to DataFlo from their Macintosh desktop computers, giving them real-time sales and financial information required for critical business decisions. Information on the company's bookings, cash and shipments is readily available, and this information can also be integrated with word processing and spreadsheets such as Microsoft Word and Excel. "Our philosophy in business is to go out and solve the customer's problems," says Kyle Pitts, materials manager. "This means we aren't always looking for their high-volume business. Instead, we want to know what hard-to-complete jobs they have and take care of those for them. Our system can easily handle low volumes, and that ability helps differentiate us from our competitors." Span's information system automatically catalogues and monitors all modifications, especially when it has changed from "baseline" to "custom" in a particular functional or design area. For example, when Span upgrades its information system, the live customer account is automatically compared with all the changes that have been made to determine potential conflicts. At Span, the engineering, quality control and the job shop departments can all pull up and rotate the same, most current prints on their workstation screens. This information is available through the ERP system, eliminating problems that previously occurred when employees were working on the same part but from different plans or older designs. This also significantly decreases the amount of paper blueprints they use. For more information about this article, input the number 9 in the appropriate place on the June Reader Service Form Industrial PC Passes Chrysler's TestChrysler Corporation needed a quick turnaround on the develop-ment, engineering and production of a new computerized module tester that would withstand the high stress of the line-side environment at its Jeep Truck assembly plants. Jeep required a new, reliable and durable airbag circuit tester for its XJ-Cherokee vehicles. The module test is critical, as the release and shipment of each vehicle depends on passing this inspection, while ensuring the safety of the operators and the quality of the product. The auto manufacturer turned to PCS to solve the problem. Industrial PCs are becoming increasingly common in the automotive community, but not all are required to hang on and move along a 23-foot rail, receive repeated shock during continuous testing cycles, move with each vehicle, and be dragged back to its starting point by an assembly worker. Chrysler had to meet the above challenge. They knew how the computer must perform but did not have the time to build the system internally. "Chrysler provided us the basic information about the test and the environment the computer would perform in," said Robert Mangin, director of sales for PCS. "But they left all of the research and engineering to us." To compound the design challenge, Chrysler decided that the computer must run five tests instead of one, including the testing of the trip computer, immobilizer, smart key and cluster programming. Additionally, the most important aspect of the computer was its ability to withstand repeated shock. The computer would have to track alongside the vehicle, hang from the overhead rail, conduct five critical tests and return for the next vehicle. The 46-foot round-trip would be repeated every 60 seconds, traveling five miles and conducting 3,000 tests per day, every day while receiving regular abuse from the operator. Another important design consideration was space. PCS had to engineer a completely new system capable of running the five tests in a limited space within a specified travel envelope. Because it would hang and be moved by an operator, the unit would also need handles and a durable enclosure. "The industrial rack-mounted PC required would represent a specific solution to a unique problem," Mangin said. "Because the criteria was so stringent and durability was such a critical factor, we had to conduct extensive research, both line-side and on the components, to make sure that our recommended system would work." The final, approved production design featured an infrared touch screen to make the computer easier to operate, even while wearing gloves. The tester was also built with RF (radio frequency) network capability, thus eliminating the need and cost associated with hardwiring a cable to connect it to a main computer located elsewhere in the plant. Data collected from the PC can now be checked directly from the main system regardless of location. The software was also a custom solution for Chrysler. The PC was configured to check for fault messages, clear the codes if necessary, and report whether the car passed and was shippable, or failed and considered unsafe. PCS produced a beta system in only eight weeks and tested it online. Four units have been built for Chrysler and all have survived the environment. Combined, the PCs have traveled more than 1,300 miles on their tracks and have conducted more than 750,000 tests without failure. The perfect record means the PCs are not contributing to any downtime, which ultimately costs Chrysler. For more information about this article, input the number 10 in the appropriate place on the June Reader Service Form Copyright © 2020 by APICS The Educational Society for Resource Management. All rights reserved. All rights reserved. Lionheart Publishing, Inc. 2555 Cumberland Parkway, Suite 299, Atlanta, GA 30339 USA Phone: +44 23 8110 3411 | br> E-mail: Web: www.lionheartpub.com Web Design by Premier Web Designs E-mail: [email protected] |