Problem:
Un-complicating Order Processing while increasing accuracy, control, scheduling
and delivery thru-put for Make to Order Upholstered Home Furnishings
Among the most challenging “To-Order” manufacturing environments is
upholstered furniture …especially in the Home Furnishings Industry.
Upholstered furniture is an easy product to visualize because we all have
some combination of upholstered chairs, sofas, love seats, with matching pillows
and perhaps an ottoman or two. Picture
for a minute how you would manufacture these pieces to customer selected
specifications, including milling the raw hardwood to make the Frames …and
picture a two week end-item deliver time. There may be more than a
one-and-a-half billion combinations to manage when planning the frames, fabrics,
components and accessory choices across product lines.
The normal concerns of departmental production scheduling and reporting of
a multi-level non-stock build-to-order product are just the beginning. The
Upholstered Furniture Industry adds the complexity of a multitude of fabric
offerings: grades of fabric, combinations, various colors for the body, back,
welt, or seat cushions plus sleeper/non-sleeper considerations. Toss in
accessory features and options, such as button choices, matching pillows,
footings, pattern centerline considerations and mutually exclusive offerings.
Only with a high-tech solution can we cut into the lead-time and “build
accuracy” factors required …remember the two week total lead time.
At this point of the order-process we knew what the customer wanted and
when they wanted it. First we needed to price and cost the product. Next we
needed to coordinate the shop schedule with the delivery requirements, plan and
control the labor and material, plus of course, schedule the delivery truck
routes.
The
“old way” would include engineering and costing “hard” bills-of-material
for each piece before the order was entered. Custom parts would have to be
created. This in itself was an unmanageable task …a compromise at best. Next,
a product routing would need to have been established to cost the end-item and
document the labor and processing instructions. By this time we would have
probably invested more than a week, leaving less than one week for production,
and on a weekly basis we were “reckoning” with the problems associated with
a “new” product.
Of course, we hadn’t yet considered material availability nor shop
capacity.. with one week to deliver
the product… it was time to call the customer, apologize, and to hope they
would accept a reschedule …we often lost the order …and sometimes the
customer!
If this is the way we were still doing things we would have had to extend
lead times*, and rethought the future of our business.(*note that as lead time
increases, requirements are compounded causing more planning and more problems
…another subject for “Focus”.)
Sad to say, the above is true for most short lead-time “To-Order”
manufacturers that do not use a Rules-Based Product Configurator.
Solution
Xdata solutions’ Rules-Based Product Configurator is designed with both
ease of order entry, accuracy in product selection and timeliness of
manufacture. From the beginning we felt Customer Order-Entry must be an
easy-to-use system. It is designed for clerical level data-entry that is
inherently coupled with intricate Engineering considerations (rules).
Our Customer Order-Entry selection process balances easy order-entry with the
complexity of mutually exclusive “custom built” product considerations.
Factors like pattern, color, grade, and fabric selections are established by
Product Engineers as Segments and Options that are subordinate to a Product
Family. Segments and Options may have established “Rules” that eliminate an
otherwise logical selection from view. Inclusion and Exclusion rules may cross
segment/ option bounds;
Example:
If segment “Fabric” has option “Leather” selected,
Segment “Pattern” may be ruled out and will not appear.
If segment “Fabric” and option other than Leather is
selected, “Pattern” may be ruled in, meaning a logical choice must be made,
(and option Centerline must be selected, etc.)
A selection may also call an “external” custom routine or
a procedure that is unique to this customer only, such as pre-loading a CNC
machine, or simply running a custom pick list.
We have incorporated Product Costing, Work-center routing,
General Ledger, Inventory Accounting, flexible
“truck/route/loading-sequence” scheduling on the shop floor, and detailed
product/serialized/lot numbered product/order tracking into the Rules-Based
Configurator design. A uniquely identified costed “final product” part
number, a Bill of Material, and a Routing is built for each unique custom
product. Piece Parts, Non-Parts, and Standard Stock/Non-Stock Sub-Assemblies may
be used, along with “take-a-ways”. Routing steps and labor time may be
established and/or diminished by using the Product Configurator.
By-products may be stocked as part of the final assembly.
This feature allows a secondary or incidental part to be created (with the
otherwise scrap) as a result of building the custom end item. Wood byproducts
may be cost effective, where as some commodities dictate that scrap is more cost
effective, especially when space is a consideration.
Non-Items may be selected. Descriptions may be Segments and
Options. In some industries color is not a controllable commodity. These are not
“Items” at all, but simply directions or identifiers. As such they are not
required on the Item Master file. This adds up to a great savings of time and
resources.
Pre-Engineering
Considerations
Of course Engineering needs to plan the possible
configurations. Establishing the “rules” of the acceptable combinations
usually means transferring the product catalog matrix grid exceptions list. This
is usually a “bubble number” or asterisk next to a product feature on the
matrix, with an associated reference at the bottom of the catalog index.
In other words, engineering lays down the product “law”
and the XMAS Rules-Based Product Configurator efficiently and effectively
enforces it. XMAS eliminates production errors and misleading or inaccurate shop
work-order documents.
Scheduling Opportunities
Parallel department scheduling, such as cushion upholstery
departments and frame upholstery departments must be coordinated along with
material sub-assembly mating if production time is to be reduced. This is
accomplished by spawning work-orders in tandem with production expectations.
Other benefits are
natural by-products of employing a Rules-Based configurator. Warehousing and
finished goods inventory are kept to a minimum; upon final assembly of the
product it may be loaded directly into the waiting truck. This is because
productions orders have been automatically scheduled by truckload capacities,
and in reverse of truck-route delivery sequence. That is to say load positioning
of the furniture on the delivery truck is automatically scheduled so that the
last piece of furniture placed onto the truck becomes the first customer
delivered on that truck’s delivery route.
Xdata’s truck route scheduling system matches the customer’s order with
the specific delivery date, “truck-route” and delivery “stop” along the
way. This information is fed to the production schedule in date/truck/route/stop
sequence. Dynamic reschedules are accommodated, including selective picks of
order lines for a new truck route or date.
The end result is a furniture “train” snaking its way through production
and arriving at the shipping docks ready for loading on the waiting delivery
truck.
The savings realized by utilizing XMAS can be measured in many ways.
- Total order-entry to deliver is reduced
- Errors and omissions are dramatically reduced by establishing standard
Configuration Families.
- Eliminates the need to create custom items, custom bills and custom
routings for each new order line.
- The savings realized by reducing warehouse space alone will
pay for the system.
- The reduced production run time (product cycle time) will in effect
increase production capacity.
- Your employee productivity will increase, and morale will improve.
-
Anyway
you look at it, it’s a Win/Win/Win for your company, your employees, and
your customers.
Xdata
solutions, inc.
GXD
Rules-Based Product Configurator
(Upholstered
Furniture Industry Version)
Engineering
Control of Customer Order Entry Environment
Family/Segment/Options/Product
Database links
Established
Rules govern clerical Order Entry
Allows
Cross Bounds Rules
Dependencies/Exclusions may cross Segments/Options
Copy
capability
Base
Price, Quantity, and Description overrides
Control
of Overrides
Standard
Items NOT REQUIRED
Allows
use of custom or standard Items
Optional
CAD Interface
Provides
view of drawing where required
Ease
and Convenience of Clerical Use
Customer
Order Entry Line selectable
Client
overrides
Client
prompts for choices
Displays
only those (rules) allowed
Automatic validation
Multiple
options selectable at once
Item
History Traceability
Configured
Item uniquely linked to Order/Line
Costed
instantly upon selection
Dovetailed
to Inventory and Invoicing
History
recall
Copy Capability
Creates
a Standard Item/Bill of Material/Routing
Uniquely
traceable to Order/Line
Allows
inclusion of common structure/Items
Allows
"take always"
Allows
substitutes
Allows
lead time offsets
Allows
Production Departments lead time Offset
Truck
Route Scheduling
MFG
Receipt to "LIFO" loading
Facilitates
production coordination
Provides
"first stop" delivery loading
Allows
receipt to truck
Reduces floor space requirements of Finished Goods
Customizable
External Program Interface
Custom
Application Program Interface selectable by configured Item
Client
specific database interface provided
Upholstery/Apparel
Industry…fabric master
Fabric
Grade / Color selectable
Xdata solutions, inc. has been marketing their
ERP solutions since 1994 and has a client base on both coasts and
throughout the United States.
For more information contact Xdata solutions, inc.



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