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Instructions:
Discussion about Management Information Systems
I The Company: An ERP Case Study
Polymer Extruded Profiles (PEP’) was founded in 1992 with just one employee and one extrusion machine in a 3,000 square foot factory. Custom Profile now has over 150 people, 13 extrusion lines, extensive secondary operations, a finishing department, and two manufacturing sites that operate 24 hours a day (Tempe, Arizona and Acapulco, Mexico). With an emphasis on design support, quality assurance, and in-house tooling, PEP supplies specialty extruded plastic products to the appliance, furniture, point of purchase, and marine industries.
PEP was on the rise. They’d lately relocated into a freshly constructed building, and the business was growing and hiring more personnel. However, as the company’s extrusion business grew, it became painfully evident that its enterprise software was failing to meet its basic requirements.
If three is a corporation and four is a throng, PEP was surely feeling suffocated while trying to manage a profitable business using four separate software platforms. Several system crashes per day were caused by a combination of handmade software, MS AccessTM databases, Intuit QuickBooksTM, and MS ExcelTM spreadsheets, as well as costly data input errors from duplicate information entered into both Access and QuickBooks.
Customer service was also suffering since sales orders took a long time to produce due to a lack of easy access to reliable production data, and shipping was inconvenient, delayed, or wrong. In short, the jumbled-together old systems couldn’t keep up with the demands of a growing company.
Highly configurable modules that could handle increased business transaction volume, detailed and easily configurable manufacturing Bills of Materials (BOMs) specific to the profile extrusion process, and a business management system that provided an integrated platform with the infrastructure to support continued growth were among PEP’s top requirements in a new system.
The organization was searching for perpetual inventory and BOMs that were efficient, as well as fast access to data to answer client demands for information and requirements. The projected return on investment was calculated as follows:
Using easy links throughout all stages of the process, from packing slips to invoicing, we saved time and avoided errors.
Engineered change order flexibility improved inventory control and tracking.
Forecasting tools simplify budgeting and capacity planning.
Advanced tracking capabilities and improved warehouse management
Improved inventory visibility and transportation efficiency
Manual record-keeping activities were eliminated.
Eliminated duplicate data entry and the inevitable errors that come with patchwork systems.
Beyond the Basics of ERP
Custom Profile deployed IQMS’ Electronic Data Interchange (EDI) solution in addition to EnterpriseIQ’s primary ERP system. The EnterpriseIQ system is complete, requiring no onerous interfaces or costly customisation to access the necessary applications, unlike other ERP systems that require bolted-on third-party programs to acquire expanded capabilities.
Order entry time and data input errors have been greatly reduced because to the ability to instantly and easily translate incoming orders directly into EnterpriseIQ with EDI, as well as produce outgoing files and advanced shipping notices (ASNs). Inbound and outbound communication Custom Profile saves $35,000 per year in data entering time because to EDI. Custom Profile has also been able to achieve their goal of a speedy response from quoting to product delivery thanks to EDI: they run EDI numerous times in the morning before assembling and shipping products the same day.
EnterpriseIQ’s powerful warehouse management solution was also chosen by Custom Profile (WMS). Custom Profile has nearly reduced shipping errors by equipping employees with hand-held scanners and precisely marking inventory goods with barcodes. They minimized the number of people needed to ship product by one, resulting in a 99.99 percent on-time delivery rate and three years of no shipping issues owing to incorrectly sent items or amounts.
Finally, Custom Profile purchased IQMS’ RealTimeTM Production Monitoring system to track real-time work center production on some of its equipment. Custom Profile receives immediate details on all elements of production by talking directly with its equipment, allowing it to take control of the plant floor with greater visibility, precision, and responsibility. Custom Profile has set up its system to deliver exception reports in real time to augment its customer care efforts, allowing it to respond to clients quickly when requests or requirements fall outside of the regular business process or cycle.
Best Practices and Continuous Improvement
Custom Profile can now understand how its entire business is linked, from the launch of a new program to order entry and product distribution. Employees at Custom Profile can’t imagine where the company would be without EnterpriseIQ. Employees use the ERP system as a rallying point for cleaning up corporate operations, and they hold each other accountable for adhering to the company’s defined standards and procedures.
I often say that there are two or three ways to complete a task or target using IQMS, and it is our obligation to choose the option that works best for our current systems and processes, Sweers explained.
At Custom Profile, we’re always striving to improve. Custom Profile adds new EnterpriseIQ capabilities frequently, as well as enhancing their knowledge and application of the ERP system as a tool in their business operations, as part of their continual learning and growth with the EnterpriseIQ software. At the same time, Custom Profile adds new functionality that is frequently proposed by the IQMS user community and keeps the software up to date.
Encouraged by the longevity of the system compared to the industry average (some clients have been with IQMS for more than 20 years), Custom Profile expects continued company growth and expansion in the coming years and is confident that EnterpriseIQ from IQMS will grow with them.
Questions:
1. Will there be a requirement for an IS (Information System) migration? Is it true that PEP used to manage their company with the help of IS? Which platforms are you familiar with? How would you prepare for a successful migration in advance? Which factors should you consider when estimating migration costs? Furthermore, what about the relocation might worry you as a manager?
2. Which modules has PEP deployed in addition to the basic ERP, and how has the additional expenditure benefited PEP?
3. What are the typical challenges faced by a developing business? What is the procedure for ERP deployment and what are the expected benefits?
RUBRIC |
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Excellent Quality 95-100%
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Introduction
45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Literature Support 91-84 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met. |
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Average Score 50-85% |
40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided. |
83-76 points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration. |
52-49 points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met. |
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Poor Quality 0-45% |
37-1 points The background and/or significance are missing. No search history information is provided. |
75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration. |
48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met |
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Discussion about Management Information Systems |
Discussion about Management Information Systems