Actual Costing is the Preferred Costing Method of Manufacturing Companies

Written by Jack Hughes of Synergy

It is no surprise that actual costing is preferred over standard costing or average costing.  The VISUAL help menu explains these choices under costing method.

Actual costing in VISUAL allows analysis not only of the gross profit of each order but the cost components (material/labor/burden/outside service) as well.  This can be seen in the Gross Profit Report under the engineering /manufacturing menu.  This enables throughput analysis as well as contribution analysis.  As you may know, throughput is described as revenue less material and outside service cost.

The Gross Profit Report in an actual cost database provides accurate cost/revenue data (summary or detail) with 6 selection criteria as well as your desired range of ship dates.

Inventory/Cost of Sales is valued at FIFO (First in First out) unless the Customer Order or Purchase Order is linked to the Work Order which then results in specific costing.

The standard costs are always available as a benchmark for variance analysis and reporting.  These can be seen in the Work Order Master Cost report also under the engineering/manufacturing menu.

Tracking your company’s true actual manufacturing cost is a great way to understand the issues and opportunities you have to reduce costs and generate more revenue and throughput.



Two Key Implementation Steps to Avoid

Written by Greg Miller of Synergy Resources

Scheduling Complexity – Less is Better!

Is your current ERP scheduling system not delivering credible results?  Do you find yourself creating the “real schedule” outside of your ERP system?  If so, you’re not alone.  Many companies are currently faced with inaccurate and ineffective ERP system-generated production schedules due to common mistakes made during implementation.  Today’s ERP scheduling engines are built to be flexible and able to handle complex scheduling environments.  As a result, clients are inclined to want to use all of the features designed for complex environments even if their scheduling climate is low-to-moderate complexity.  Overly complex scheduling set-up configurations can be a leading cause of inaccurate and unreliable schedules.  Synergy Resources has proven Scheduling implementation methods to match the demands of your production environments, give us a call today 866-896-6347 to bring credibility back to your production schedules!

 ERP Self-Implementation – What’s the Real Cost?

Are you contemplating implementing a new ERP system?  Does Corporate support the idea but allocate only a fraction of the implementation costs in your annual budget?  If so, proceed with caution.  Your company is investing in new technology, presenting an opportunity to streamline your business processes and expects to see improvement results.  Don’t sell yourself short by trying to “save” the company money by taking on the entire ERP implementation yourself.  As ERP implementation professionals, we see the results of these short-sighted decisions all too often.  We are frequently asked to assist a customer who had gone this route and cannot achieve the desired company results with the new system.   The total cost to engage an ERP professional post-implementation to repair the environment and get results, can far exceed the initial cost of doing it right the first time.  Ask yourself “What’s this decision to self-implement really going to cost us?  What’s the real risk and potential reward?”  Partner with an ERP expert on your upcoming implementation if you are looking for least-cost results!



Synergy is Exhibiting at AeroDef on April 21-22, 2015!

Synergy is exhibiting again this year at AeroDef Manufacturing which is being held on April 21-22, 2015 in Dallas, TX.  You’re invited to attend as our guest.  To gain free Expo-Only admission (a $50 value), register online and use code AERODEFVIP.  Be sure to stop by to visit us at booth 204!  We look forward to seeing you there!

3 Reasons VISUAL ERP is Better Than Legacy ERP Software

In order to truly understand what sets VISUAL ERP apart as the best enterprise resource planning software available today, it’s important to first understand its evolution. Like most modern technology, VISUAL has undergone a dramatic transformation throughout the years—thanks to multiple factors such as evolving technology, consumer demand and the ever-changing regulatory landscape.

When the idea of ERP first came out in the 1970s it was known as MRP—Material Requirements Planning. At the time, MRP was a “push” system in that the software catered to manufacturing companies focused on forecasted demand. The concept of MRP was to help streamline shop performance by forecasting material to buy, keeping up with demand. While it worked perfectly when demand remained steady, the problem with MRP was that it was incredibly inefficient when demand slumped. Manufacturing goods only to have them sitting on a shelf is a waste of time, money and space. Most systems started with the concept of MRP early on, but as you can see, it didn’t take long for its inefficiency and unreliability to shine through.

Fast-forward to today where the concept of MRP has morphed into ERP, but is now overshadowed by the endless benefits of VISUAL ERP. The following are just examples why VISUAL ERP is more efficient than legacy ERP systems:

1. Customized Work Flows

Companies following mix-mode manufacturing methods are known for employing both push and pull processes. Mix-mode means both making to order and making to stock. It typically involves making stock assembly of a particular project, while the final project itself is scheduled to order.

When you’re building to stock, you’re attaching a single part # to many pieces that may end up sitting on a shelf until they are needed. If you’re building to order in a legacy ERP, you must create a part # for everything you make—which in turn can clutter up your part master. Another way to seriously clutter up your part master involves buying material you’ve never bought before or don’t intend on ever buying again. Most systems would require you introduce the information for this non-stock item into your parts master; a process many will agree is a giant pain in the rear.
VISUAL ERP, however, allows you to purchase these non-stock items and create custom work orders without having to input all of the information in to the parts master. VISUAL was originally designed for custom manufacturing, whereas almost all other ERP systems are designed with MRP as their roots.

2. Total Transparency

Every ERP system will claim the ability to shorten lead times. Don’t buy into all the brouhaha. VISUAL ERP does what no other does—it offers complete and total transparency into your shop performance. VISUAL allows for simulations and what-if scenarios, in order to garner useful information on how to shorten on-time deliveries, as well as understand how tweaks to your scheduling can increase profitability and therefore impact your bottom line.

VISUAL will tell you realistically when a product can be shipped for delivery because it has the ability to see constraints before they happen. VISUAL signals where the bottleneck is—and then gives you suggestions on how to fix it. Other ERP systems allow for drag and drop on a Gantt Chart, but offer ZERO information as to why and how your scheduling impacts your overall shop performance and profitability. VISUAL will tell you if problems will occur, what the problem is, how you should fix it and then gives you the results well before you execute to the shop floor.

3. Real-Time Material Planning

The olden days of MRP leaned heavily on pre-determined formulae that took into account quantity of material on hand, how much you need to meet forecasted demand, and how long it would take to buy or make more. MRP would also tell you when you should purchase or make more material. This would, as a result, help you determine your purchase orders and work order flow. The problem with this method is that you’d have to run this MRP formula each and every time before you know how it impacts your plan. And if the formula isn’t run each and every hour, the end result is a shop making material planning decisions based on stale information.

VISUAL updates material plans in real time—meaning you’ll have an accurate portrayal of your shop needs as soon as a purchase order is received, as soon as material is scrapped, as soon as anything happens. Other ERPs can lead you to buy materials you needed yesterday. VISUAL knows your needs right now!

At Synergy, we believe Visual ERP possess the following unique attributes:

  • Ease of Use
  • Flexible
  • Functionally Rich and Robust

Together, these three characteristics can help give you full visibility of your actual costs and potential throughput—which in turn allows you to price your products aggressively, as well as make promises of on-time delivery you can keep to new and existing customers. If you’re interested in improving the performance of your business, contact us today to see what Visual ERP can do for you.

Synergy’s Mark Lilly presented at the Mantec Business Growth Conference!

Synergy’s Partner and Director of Sales & Marketing, Mark Lilly, presented at the Mantec Business Growth Conference in Harrisburg, PA today.  His presentation topic was “Using LEAN and ERP Software for World Class Performance” which was very well received by the audience.  In addition, Synergy sponsored an exhibit table which was staffed by Synergy team members to meet with conference attendees.

For more information on Mantec, please click here.

Experience Infor VISUAL 8!


Tuesday, March 31, 2015
11 AM ET*

Register now

Virtual Town Hall

The next release of Infor VISUAL, version 8, continues to harness the Infor 10x technology stack and places key decision-making information at your fingertips in an easy-to-understand, “visual” format. Join us for this interactive meeting where Richard Lagoy, Director of Product Management, and Frank Maglio, Director of Development, will provide a live, detailed look at the new features and functionality of Infor VISUAL 8, including innovative new capabilities in the area of data views and analytics, enhanced SoHo navigation, mobile automation, and solution integration.

Topics will include VISUAL Splash screen URL links, VISUAL Analytics, VISUAL Views, enhanced navigation, enhanced document lifecycle, VISUAL AutoRun, APIs, Activities and Alerts, user- sponsored enhancements, and much more. In addition, see what exciting new enhancements are currently on the drawing board for future version 8 release updates.

Don’t miss your chance to see how this new release will continue to help your company increase productivity and drive quality into every aspect of your manufacturing operation. We look forward to spending some quality time with you!

* Webinar duration is 60 minutes

Synergy to Exhibit at HOUSTEX 2015

Synergy is exhibiting at HOUSTEX 2015.  We will be located in booth 2167.  Please stop by to visit us.

As a valued client we are pleased to provide you with free exhibits only admission to HOUSTEX 2015.

BUT DON’T DELAY! Register today and take advantage of this offer. This offer is only valid by using the link below.

Registration is quick & easy!

  • Click this special link to register with your free expo pass.
  • Register as many team members as you like using this link above

Manufacturing is experiencing a tremendous expansion of growth and innovation. HOUSTEX 2015 provides the means to fuel and strengthen that expansion.

HOUSTEX 2015 is an immersive experience, featuring hundreds of exhibitors highlighting the latest manufacturing technologies, and new interactive opportunities. Attendees will enjoy scores of new product demonstrations, hear experts share insights on industry trends, and make connections that can take their company to the next level.

From hands-on demonstrations to thought-provoking special events, HOUSTEX 2015 is at “The Heart of Manufacturing.”

Synergy Awarded Infor Manufacturing Partner of the Year for FY 2014

Advanced Interconnections Customer Announcement

Advanced Interconnections Corp. President, Michael J. Murphy, made the following customer announcement on January 26, 2015.

Advanced Interconnections Corp. is excited to announce the launch of our new Enterprise Resource Planning (ERP) system, powered by Infor VISUAL, on March 1, 2015. Selected for its lean scheduling and focus on manufacturers who specialize in engineer-to-order (custom) and adjust-to-order (customized) products, VISUAL will replace our current ERP software and many separate databases with one integrated system that will dramatically improve efficiency and response time throughout the company.

The implementation represents the culmination of a year-long business process improvement project which has already achieved a significant increase in on-time delivery and a comprehensive overhaul of our internal data and systems. We look forward to moving into a new project phase in March, leveraging the proven results of more than 5,000 VISUAL implementations across North America, to focus on lead time reduction and continuous improvement.

Andy Pratico Presented at the North Shore Chapter of APICS Meeting on November 11, 2014

The North Shore Chapter of APICS welcomed Andy Pratico on November 11th to present “How to Select ERP Without Losing Your Mind (or your job)”.  Andy’s energetic presentation kept the crowd actively engaged in discussions while his wit kept them laughing.  Comments at the end of the presentation were all very positive and the APICS leadership team has requested Andy to present at future meetings and events.

For more information on How to Select ERP, you can visit our website, Click Here

For more information on the North Shore Chapter of APICS, you can visit their website, Click Here