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Fairway_Products_-_Revised_-_April_26_2013
- 1. SUCCESS STORY: FAIRWAY PRODUCTS Since 1970, Fairway Products (Fairway), located in Hillsdale, Michigan, serves the automotive, marine, furniture, industrial and consumer markets through the production of unique non-apparel products. Fairway works with woven fabrics, non-woven, vinyl, leather, foam, laminates, molded plastic, metal stampings and even wood 鍖ber components in their modern cut, sew and assemble facilities. With a diverse range of customers they build protoypes, 鍖nished products, sub- assemblies and components to customer speci鍖cations and are equipped to produce small runs for start-up companies and mass production for larger clients. Fairway is a modern facility utilizing programmable machines and customized equipment enabling them to operate ef鍖ciently but they looked to INDUSTRIOS to improve cost effectiveness and streamline their processes. The need for INDUSTRIOS For Ray Lambert, CFO at Fairway Products, having a system in place to allow them to streamline their processes, improve inventory control and data capture, as well as gain access to much needed analytical product perfomance data was vital to the companys success. They needed better information to make decisions around product pro鍖tablity, information that only a fully integrated system could provide. With INDUSTRIOS, Fairway would be able to improve processes throughout their entire facility allowing them to spend more time analyzing and less time on non-value added activities. FAIRWAY PRODUCTS: During training, we gained alot of insight into the system and learned how to structure our data and processes to get the information and results we needed. The education provided by the INDUSTRIOS implementation team was key to our success. Ray Lambert, CFO Company Fairway Products Website fairway-products.com Industry Fabric Market focus Automotive, marine, furniture, 鍖ltration, industrial, consumer goods, prototyping, entrepreneurs. The challenge Gaining ef鍖ciencies and improved inventory and cost control The solution INDUSTRIOS The Results 1. Saved 128 days by automating time cards and calculations. 2. Gained 29 days through elimination of year end counts. 3. Improved inventory processes and mobile transactions yield better control. and accuracy. 4. Shop 鍖oor tracking allows production costs to be captured. 5. Gross Pro鍖t Report provides detailed breakdown of manufacturing costs for better analysis and decision making. 1 SAVED 124 DAYS ON PAYROLL PROCESSING 5 IMPROVED MARGINS 1 REDUCED PROCESSING TIME 2 25 MAN DAYS SAVED ON YEAR END COUNTS 4 IMPROVED COST TRACKING 3 IMPROVED INVENTORY ACCURACY SOFTWARE, INC.
- 2. SOFTWARE, INC. 2150 Winston Park Drive, Suite 214 Oakville, ON L6H 5V1 T 905.829.2525 F 905.829.3349 1.866.275.9028 sales@industrios.com www.industrios.com Maintaining inventory control Tight inventory control is essential to Fairways ability to ensure timely delivery to their diverse customer base. They use material planning to manage their requirements and streamline the purchasing process but once material arrives the inventory control process becomes critical. Fairway utilizes bar coding and mobile transactions to record all inventory movement including receipts, shipments, moves and pulls to jobs. The INDUSTRIOS team helped establish secured and non-secured inventory areas as well as identi鍖ed the data collection points to support Fairways manufacturing process 鍖ow. Darrell Derr, Buyer, said, Im impressed with the level of inventory control and the easy access to information. I especially like the cycle count process as it allows us to quickly verify our on hands and identify any process issues that are impacting the on hands and take corrective action; our accuracy has never been better. Mobile units are used for cycle counting to eliminate data entry errors and enable a quick ef鍖cient count. Previously, Fairway only performed a year end inventory which took six people 鍖ve days to complete and resulted in signi鍖cant write up/downs. Now they spend half an hour each week counting a segment of their inventory and only have discrepancies that fall within their acceptable tolerance range, and typically those occur in the unsecured area where material is staged for jobs in production. As a result of their effective inventory processes and cycle counts, Fairway has reliable on hands, meets deadlines and has put an end to costly write ups/downs. Capturing costs on the shop 鍖oor With Shop Floor Tracking, Fairway captures all manufacturing costs at the source. One feature they particularly like is the ability to see quantities completed and rejected at each production sequence. With so many custom jobs they needed to be aware of any yield loss during the production process before it became a ful鍖llment issue. Accurate costs and up-to-the-minute visibility to production status and any issues proved invaluable to Fairways success. Getting control of manufacturing costs For Ray Lambert, CFO, it was important to understand the cost breakdown of their manufactured items. With the features in INDUSTRIOS they are able to accurately capture all manufacturing costs including: material, labor, labor overhead, work centre, direct purchases, and subcontract costs. More importantly, they can see the cost breakdown on their gross pro鍖t report. The report enables Fairway to evaluate their product offerings and determine whether they should discontinue a product or if cost reductions could be achieved to improve pro鍖tability. Ray found the training and piloting provided by the INDUSTRIOS team invaluable in helping them de鍖ne their processes, production plans, and data collection points that enable them to capture the costs necessary to the analysis. Saving time while tracking time Fairway implemented INDUSTRIOS Time Card Management to reduce the time it took to produce payroll and to get better accuracy. On average Fairway invested 25 hours each week correcting time card records, calculating overtime, maintaining holiday calendars in two places, and double checking hours to ensure all employees hours were accounted for. Fairway implemented a feature called Time Card Adjustments that automatically adjusts clock in or out times based on the grace periods established in the system. Time cards records are now consistent across the company. They also leveraged the Overtime Calculation to calculate overtime and double time. Fairway de鍖ned their calculation rules in the system and now runs the calculation at the end of each pay period. It eliminated an intensive manual process and the potential for errors that went along with it. With the calculation automatically generating the applicable transactions for each eligible employee they now have a complete payroll record in one place. According to Kathleen Ellis, Human Resources Manufacturing, ...the entire payroll process is much more ef鍖cient and its easier to visualize employees hours and ensure all hours are accounted for. Time Card Management has lightened my payroll work load by 80% and I expect further reductions when I implement the Holiday Calculation. With the total integration INDUSTRIOS provided, Fairway Products was able to reduce their costs, gain better inventory and cost control, and now have the data and time they need to analyze their business to improve pro鍖tability. By capturing all costs associated with our manufacturing processes, including overhead and labor burden with INDUSTRIOS, we now have con鍖dence in our cost of goods sold and can do a better job of evaluating our costs. Ray Lambert, CFO MANUFACTURE INTELLIGENTLY