Borrowed Inventory Impacts ETO Incremental Billing According to Trakware CEO Richel
According to Randy Richel, P.Eng., CEO and General Manager of Canadian-based Trakware, “Engineer-to-order manufacturers appreciate the ability to borrow inventory allocated to another project to maintain the benchmark deliverables to receive incremental billing. In few MES (manufacturing execution systems) solutions does the software technology allow the users to do what they are already doing on the shop floor, namely borrowing available inventory from projects that have not been started to help complete projects when purchase orders have been delayed. This critical documentation allows for an audit trail covering the transaction, something that never happens when someone grabs something off the plant floor.”
The ability to issue materials in an available Unit of Measure is quite often different than the UOM on the requisition form for a complex or engineer-to-order (ETO) build instruction. The ability for one-of-a-kind production manufacturers to deplete inventory of appropriate materials, even in a different UOM than originally specified, has bottom-line profitability impact.
Similarly the ability to select specific receipts to allocate or issue to projects is vital particularly if there are multiple receipts of the same material, the manufacturers can select the “Select Inventory for Selected Item(s)” choosing from a list of receipts.
Trakware’s newest version includes the ability to serialize Inventory allows users to break up a large lot of inventory into smaller lots (each with its own serial number) and this can be done when someone wants to break out a small amount of inventory from a larger receipt, or when someone is receiving a large order. It is also possible to serialize manufactured parts when they are entered into inventory on the completion of a work order. Using the serialized inventory in combination with the “Select Inventory for Selected Item(s)” function, a user can break the FIFO or LIFO cycle and select specific receipts from a serialized lot for work orders.
Ultimately rapid response to changes that impact contract planning, costing, scheduling, and execution show up as the bottom-line profitability of ETO manufacturers’ who often operate on thin margins; a small error can make an ETO product highly unprofitable clearly articulating the need for effective technology solutions is even more critical than in the repetitive manufacturing environment.
Trakware Systems is the worldwide leader in manufacturing execution system (MES) solutions for engineer-to-order (ETO) and project-based manufacturers maximizing both profitability and productivity. Trakware specializes in lean business-critical functions such as estimating, advanced scheduling, job costing, production management and labor as well as material shop floor data collection. TRAKware software fully integrates with existing ERP systems, as well as major software providers for financials, engineering design, optimization, payroll and wireless interaction for mobile workers. Trakware recognizes ETO manufacturing as a process and includes a wide range of industry sectors including Architectural Woodworking, Cabinets, Store Fixtures, Doors and Windows, Furniture, Oil and Gas Fabrication, Solid Surface, Metal Fabrication, Yacht-building, and Custom Electronics.
TRAKware Systems Inc.
www.trakware.com
Randy Richel, CEO
info@trakware.com
800-370-1849
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