Synergy’s Director of Business Development, Andy Pratico, was interviewed by Michael J. Kessler, CPA on the news radio program Business Profits In The Real World. Please listen as Andy shares his insight on the success of Synergy and his strategy on how you too can bring your business to among the most profitable in your industry!
Tune in to listen to Michael J. Kessler hosting Business Profits In The Real World on Saturday afternoons at 4 PM on LI News Radio 103.9FM.
Click below to listen to the interview.
Written by Andy Pratico of Synergy
There are many theories and concepts about manufacturing control systems. One such concept is the immortal MRP method of planning. A mathematical calculation for time phased purchase orders and work orders, based on inventory quantity on hand, lead time to replenish and future demand.
This concept was originally designed for manufacturing facilities that value material as their most precious resource.
The mathematical equation is quantity on hand x lead time x demand = suggested PO’s and WO’s. Being a mathematical calculation, the resulting planning forecast can only be as accurate as the data input. Most companies boast of having inventory accuracy of 95%. If the input to MRP is only 95% accurate, how accurate can the results be once it goes through its numerous computations? Besides the fact that inventory will only be accurate immediately after running the MRP formula, because it is a batch transaction.
An article in APICS magazine written by Jeff South stated, “Typical MRP systems are structured around certain assumptions imbedded in the logic of the planning program. MRP assumes that every item is an inventory item which goes into and out of stock. MRP also requires every item to be started and completed on it’s own and not to be contingent on the existence or progress of some other activity.” It further stated “An ODS creates a master schedule as a function of actual and planned backlogs …”.
This leads into a second manufacturing concept named Order Driven Systems (ODS). ODS were developed specifically for manufacturers whose demand was generated from specific orders (actual demand). ODS recognizes the resource interdependencies of material and labor throughout each work order and value each simultaneously. There isn’t much sense scheduling a piece of material to the shop if the resource (work center) isn’t available.
Another article in APICS magazine stated, “If both capacity and material are critical in making planning and scheduling decisions, make sure that the planning and scheduling systems you are considering can handle both simultaneously.”
In conclusion, as industries are forced by market and competition to become more responsive, their systems will need to change as well. MRP based systems are typically incapable of scheduling demands within the confines of capacity-constrained environments. Whereas ODS’ are designed for constraint based manufacturers where a majority of the demand is derived from actual customer orders, not a forecast. Want to learn more? Please contact us.
Synergy Resources is excited to announce that S.I. Howard Glass has just been certified to the ISO 9001 standard! A third generation family owned business in Massachusetts, Howard Glass specializes in the manufacturing of custom made flat glass parts for the industrial, scientific, and medical industries. A visual customer since 2011, Howard Glass undertook an ISO 9001 implementation, in conjunction with a series of Continuous Improvement and Lean Manufacturing programs including Kaizen, 5S, and TPM Events, beginning in October of 2013.
This project was made possible with the assistance of a Massachusetts Workforce Training Fund Grant. Synergy Resources worked with Howard Glass through the Grant Preparation and Application Process, as well as facilitating the ISO 9001 program implementation in conjunction with the Continuous Improvement program events.
During this time Howard Glass has improved to 90 – 95% On Time Delivery from less than 70% over the last year and a half. They have continued to meet their growth goals, and expect to increase their revenue based on the recent certification. The unique blending of the Quality Management System requirements with Continuous Improvement events helped to create a system that is embedded within the structure of day to day operations.
“The consultants of Synergy Resources have been invaluable to us. Their comprehensive knowledge of industry standards and best practices, combined with their tireless efforts of training our people, enabled us to achieve our goals in such a short amount of time. We are by far a better company than we were one year ago.” – Elizabeth Keefe, VP of Operations at S.I. Howard Glass Co., Inc.
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