Saturday, December 12, 2009

Benefits of a Single Database Solution: Improved Enterprise Quality Management from IQMS

Embedded third-party solutions in enterprise applications often deter small and medium enterprise (SME) customers. However, enterprise resource planning vendor, IQMS (www.iqms.com) has a value proposition that differentiates itself by gladly touting the benefits of a single database/single vendor software solution. Here, the one database rule creates ease of use, implementation, and maintenance, and real-time transactions because there are no unwieldy batch interfaces from third-party software. Reports also become easier to write in a cohesive environment.
To illustrate, let us try to understand the typical flow of information through EnterpriseIQ. It may start with the creation of a bill of material (BOM), which defines how items are manufactured, and includes prescribed raw materials, tools, production times, packaging, work center types, instructions, etc. Then, the Quotation module allows users to examine costs and profit margins on new or existing manufacturing configurations. The structure is similar to that of BOM, but users can run unlimited "what-if" scenarios and, when satisfied, they can fairly easily roll over a satisfactory quote to a BOM without reentering the data.

Later, actual sales orders—which are the actual demand that consumes the forecasted, hypothetical demand—will drive the creation of work orders. If parts are already in inventory, they can be shipped immediately. If not, then a work order will be generated through the optional Update Schedule facility. This option analyzes both the demand and supply and then builds work orders that meet demand.

Then, the IQ RealTime Production Monitoring gives users a view of production as happens. The work-in-progress (WIP) information in EnterpriseIQ can be updated as often as every fifteen seconds, and users can see how long a machine has been running, its total cycles, or whether is has gone down during the run. Unnecessary down time can be reduced when job status is identified because operators can be alerted when to prepare material for the next order. Additionally, one can record any bad parts when they occur and the system will automatically recalculate the number of parts left to produce. Consequently, corrective decisions can be made regarding stopping and starting production runs based on the scrap.

In addition to determining quotes and monitoring, users can also automatically create production shift reports. The application fills in the data for total cycles, good parts, and production hours for the user, making both reporting and verification easier. The final step closes the manufacturing loop. Daily production of the work centers is documented and the subsequent reports tell EnterpriseIQ exactly what raw materials were consumed and what was manufactured. This puts finished goods into inventory and can backflush raw materials used to make those parts.

Because work orders are based on how BOMs are setup, precise and near real-time information is important to get work orders right. Also, inventory and open orders play a major role in determining what must be produced, purchased, and inventoried. The IQ Preventative Maintenance module can play a crucial role in this. It is an intrinsic part of the core EnterpriseIQ system that tracks machines, tools, auxiliary equipment, quality inspection gages, building maintenance, maintenance, repair, and overhaul (MRO) inventory, etc., and prevents reliance on schedules based on out of service machines and tools. The module also tracks maintenance intervals based on equipment usage, including the number of cycles on tools, hours or cycles on machines, or daily for other equipment. It also automatically generates work orders for maintenance where necessary, which can be preventive, repair, and emergency work orders. Moreover, IQ Preventative Maintenance has direct links to labor reporting, inventory, accounting, and purchasing applications, and provides up-to-date financial information on maintenance work.

Also helping to achieve real-time information is IQ WebDirect, a Web-based customer and supplier self-service portal technology, which enhances supply chain communications, improves customer and supplier relations, and reduces customer and supplier service costs. It runs on an Apache server (included) with an Oracle database (although IQMS recommends a separate Web server it there are more than five concurrent users of the module). WebDirect also has full security control features and allows 24x7 access to data. The portal allows customers to add, edit, or change orders; to check order status, inventory availability, shipments, invoicing, vendor managed inventory (VMI) entry (based on flexible rules), and to publish reports. On the other hand, suppliers can check purchase order information, inventory, receiving, invoicing, cash payments, and published reports. Similar portal solutions for the user enterprise's internal employees are still in the works, though.

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