Manufacturing Digital Maturity for Small Business Digital...Increasing Digital maturity: The more skills the workforce needs to support (Training) The more accurate the data needs

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A Partner Connect Webinar

Manufacturing Digital Maturity for Small BusinessPaul Whiteman / Annette Grotz

May 27, 2020

A Partner Connect Webinar

Speakers

Paul WhitemanPartner & Costpoint Materials Consultant

Annette GrotzManager, Product Strategy and Management

Lexell Blue Services

CONFIDENTIAL © Deltek, Inc. All Rights Reserved. 4

Costpoint/TESS Implementations and Re-Implementations

Costpoint Materials/Manufacturing

Data Migration, Restructures, M&A Integration and Divestitures

Cognos Report development

Product Installations, Upgrades & O&M

Costpoint Health Check/Product Usage Assessments

Project Management

Agenda Introduction

Why increase Manufacturing digital maturity?

Benefits of increasing digital maturity

How to adopt new Manufacturing capability

Summary

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Why increase Manufacturing digital maturity?


Manufacturing is complex

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Project Manufacturing Life Cycle Business Processes

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Manufacturing Maturity

9Manufacturing Solution Capability

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Procurement

Product Definition

InventoryManagement

Bills of Materials

Production WIP Control

Sales Orders

Routings

BarcodingECN

MRP

MPS

APSCapacity Planning

MES

Shop Floor Labor

QMS

Integration & Automation

PLM

Why increase Manufacturing Maturity?

Product lifecycle stages

R&D Research & Development

LRIP Low Rate Initial Production

FRP Full Rate Production

Rapid growth in GovCon space from contract awards and/or acquisition

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Why increase Manufacturing Maturity?

Product Quality / Compliance requirements

Increased competition in GovCon marketplace drives cost reduction efforts

Minimize loss of ‘tribal knowledge’ from staff / resource turnover

Management / Leadership

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Benefits: Increasing workforce efficiency Doing more with less (some examples)

Importing data from files (Parts, BOM’s)

Streamline Inventory Picking for assemblies

Generating supply orders from BOMs, Sales Orders, Reorder Points

Eliminating duplicate entry of data to outside tools (Excel)

Barcode scan data entry (Warehouse, Production, Time Entry)

Reducing time needed to create Management Reports

Workflows streamlining processes (Approvals, Releasing Orders etc)

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Benefits: Minimize materials risks and costs

Production and MRP modules minimize risks of materials shortages

Reduce inventory holding costs

Improve customer on-time deliveries

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Benefits: Improved data accuracy Eliminating duplicate data entry improves data accuracy System controls and workflows improve data accuracy Purchase Requisition approvals Receiving Inspection BOM controls / Engineering Change Notices Inventory counting

Capturing actual production costs (Materials, Labor, OSP, Indirect Costs) – use for future estimating

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Benefits: Compliance

MMAS – Materials Management Accounting System

CPSR – Contractor Purchasing System Review

Government Property

Quality / Product Traceability

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Implementing new manufacturing capability


Should we use a separate MRP?

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Materials Requirements

Planning (MRP)

Project Financials (ERP)

» Your Supply Chain and MRP needs to be tightly connected to your financial/billing system – compliance risks

» MRP systems integrated to Financial Systems is not typical or recommended

» Difficulties tracing costs from source through to financial reporting and billing

» Choose a system that will provide project financial compliance and project based MRP

PO’sReceiptsJournal Entries

ERP / MRP - Project Financials- Procurement- Inventory- Production Control- MRP

ProjectsSuppliers

Parts

Key concepts for implementation

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Increasing Digital maturity: The more skills the workforce needs to support (Training) The more accurate the data needs to be The more defined and documented Business Processes needed Needs to be instep with increasing Organizational maturity

Be realistic on how much new capability your organization can absorb Materials / Manufacturing is modular so it is typical to implement new

modules/capability in logical stepping stones

Implementation stepping stones


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Procurement

Product Definition

• Streamlining Procure to Pay• PR Approvals• Part purchase history• RFQ’s / Quote creation• Vendor Performance • Part quality requirements• PO commitments reporting



Man

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Procurement

Product Definition

InventoryManagement

• Project based inventory tracking/reporting• ABC Cycle Counting• Part Serial/Lot/UID traceability• Shelf Life management• Inventory costing and GL impacts



Man

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turin

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Procurement

Product Definition

InventoryManagement

Bills of Materials


• EBOM and MBOM maintenance• Importing BOMs• Creation of supply orders• Manufacturing Order scheduling• Materials shortage reporting and picking• Assembly cost rollup (Mat, Lab, OSP)



Man

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turin

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Procurement

Product Definition

InventoryManagement

Bills of Materials


Sales Orders

• Routing operation definition and completions• Standard v Actuals run times reporting• Customer deliverable/demand management• Shipping / DD250 documentation• Invoicing for Fixed Price / Units Delivered Routings



Man

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turin

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Procurement

Product Definition

InventoryManagement

Bills of Materials


• Engineering Change control of Parts/BOM/Routings• Project based MRP planning• Auto-generation of supply orders • MRP exceptions – Cancel, Decrease, Reschedule• Substitute Part Planning

ECN

MRP

Sales Orders

Routings



Man

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Procurement

Product Definition

InventoryManagement

Bills of Materials


• Shop floor labor time and attendance• Implementing best-in-breed Manufacturing systems

• PLM, MES, QMS, APS• Automating data capture via barcode scanning

ECN

MRP

Sales Orders

Routings

Barcoding


MES

Shop Floor Labor

QMS

PLM



Man

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Procurement

Product Definition

InventoryManagement

Bills of Materials


• Integrating best of breed Manufacturing systems• Web Service or Imports• Real-Time or scheduled batches

• Developing automations/extensions and workflow

ECN

MRP

Sales Orders

Routings

Barcoding


MES

Shop Floor Labor

QMS


PLM

Best practices for Solution Design

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Make sure the setup of the new capability matches your current maturity You don’t have to use all ‘bells and whistles’ initially Design the solution to be scalable Assume you will be adopting more capability down the road as you

mature – think 5 years out Ensure your security access setup is tailored to your company size Key users may hold multiple responsibilities Observe important segregation of duties boundaries

When to deploy new capability?

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Small businesses don’t typically have the resources to ‘add’ to these types of software projects

Be prepared - Ideally new capability is deployed before the wave of new work/contracts arrives

Make use of production downtimes / cycles

Leverage ‘Virtual’ consulting which can be provided effectively and efficiently

Summary

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Common drivers to increase Manufacturing digital maturity


How to adopt new Manufacturing capability

Where is your MFG Digital Maturity?


Man

ufac

turin

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Procurement

Product Definition

InventoryManagement

Bills of Materials


Sales Orders

Routings

BarcodingECN

MRP

MPS


MES

Shop Floor Labor

QMS


PLM

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Questions?

CONFIDENTIAL © Deltek, Inc. All Rights Reserved.31

Paul Whiteman

Partner – Lexell Blue

Ph: 571-214-9613

[email protected]

www.lexellblue.com

Documents

Manufacturing Digital Maturity for Small Business Digital...Increasing Digital maturity: The more skills the workforce needs to support (Training) The more accurate the data needs