SITUATION

A Fortune 50 client with a test lab facility located on the East coast of the United States demanded a change in the performance of the lab testing operations area. Costs were above target with only a small fraction fully recoverable by the client through billings. Productivity of the workforce was below standard and critical test schedules were missed as a result of poor execution of day-to-day facility operations.

APPROACH

Our Asset Productivity Services approached the opportunity to dramatically improve cost position and productivity of operations and maintenance areas by establishing a work control system complete with standard work assignments and resource planning and integrated scheduling with lab operations. The team in partnership with a client time established Z score tracking for improvements   implemented the most relevant best practices in process management and workforce productivity.

SCOPE OF WORK

The process design and planning stage was completed in three months. It involved a process utilization study to establish the best and most cost effective transition plan. The implementation phase was implemented with continuous monitoring and coaching of personnel affected by the changes. The continuous support by our experts assured transition risks were fully managed.

OUTCOMES

• Reduced O&M costs by 42%
• Improved documented productivity from 5% to 53%
• Greater portion of lab costs recoverable from lab clients.
• Schedule compliance improved from a 33% baseline to over 75%
• Generated $1.5 million in reduced spend for O&M services
• Recovered $2.0 million in billable testing fees

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Brief Overview:

 Working knowledge of where, when and how to make the measurements is essential for accurate repeatable results. Once the measurements are collected, the appropriate algorithms must be applied to reduce the raw data and make sense of it. The level of experience required from the engineers is at the senior expertise level, that is, at least 10 to 20 years for the different areas; mechanics, software and electronics being applied to the specific industry of dynamic weighing while lifting. The problems associated with weighing metrology are very broad. You need accurate instrumentation operating in very hostile environments, electrically, mechanically and chemically. You need user-friendly software backed up by scientific algorithms to allow common operators to get accurate results easily from a very deliberately transparent data acquisition system.

 Flexibility of system:

 This system is basically a data acquisition system. It can be utilized numerous ways to collect analog data and digitally control a process.  Because it has all the basic configuration of a data acquisition machine, it can be used for other applications where any type of acquisition and control is needed in a hostile environment.  In addition, it can be used as a networked controller in industrial or vehicular settings.  The unit is an open-ended design that allows immense flexibility to adapt to other applications. By designing additional modules specific to the application and properly changing the software program, allows the design to become a different product depending on the application and the industry it will be used in.

Functional description of System products developed:

 Weighing Indicator – This is the main controller for the network.  This unit manages all aspects of our network and gathers all the appropriate information from the modules.  It is the brains of our system.  Once all this data is obtained it displays the appropriate information for the user and stores the data on the memory card.

Power Supply – The power supply powers the entire network and all modules connected to the network, including the Orion controller.  Our new controller allows automatic switching from 12 and 24-volt truck systems.

Smart Sensor, standard – This is the main module used in our system.  It interfaces with the load cells, inclinometers and hydraulic pressures transducers. The Smart Sensor receives the analog signals and then communicates this information digitally to the Orion controller.

Smart Sensor, certified – This Smart Sensor is the same as the standard except that a thermistor has been added to the circuit and it has been temperature calibrated to fine tune any signal discrepancies due to temperature fluctuations.

General Sensor – The general sensor modules accepts digital inputs from the truck’s digital speedometer.  These pulses are translated into speed and distance and sent to the Orion controller.

Remote Display – The remote display is used to show the pertinent information to the driver in a remote location other than inside the cab.  Usually this is located external in the back of the truck.

Remote Pushbutton – The remote pushbutton allows the driver to accept the weight given without having to be inside the cab.  This button is usually located near the lifting mechanism.

Crane Proximity Pushbutton – The crane push button module simulates the proximity line when pressed. The LED is controlled by a signal sent from the Orion controller to give the operator positive feedback that a weight has been completed.

Inclinometer, required for our certified system – The inclinometer measures the amount of truck inclination in the X and Y-axis.  This information is sent to the Orion head to calculate sensor-reading variations due to this inclination.

RF Chip Reader – The RF reader is a Radio Identification reader that identifies a particular bin or container.  The ID number is then used by the Orion controller to display and correlate the lifter weight data collected to the proper clients for billing purposes.

Summation Module – The summation module allows for the signal summation of two load cells to minimize the number of Smart Sensors.  This allows two load cells to be connected to one Smart Sensor.

Volvo Tachograph Module – This is a special module to interface our general sensor to the signal output of Volvo trucks.

Load Link wireless Interface Module – This module talks to the Load Link weighing cell via radio frequencies and outputs into our Smart Sensor module.

Smart Sensor II:

The new Smart Sensor will allow faster sampling times, which is a requirement for the new generation lifters. Major design criteria included improved weatherproofing, ease of manufacturing, eliminating the epoxy potting material giving the unit the ability to be repaired. It now allows easier installation and better troubleshooting since it will be very closely associated with the “Snooper” installation/troubleshooter device.  This will permit a new level of communications that will speed up all installations and troubleshooting procedures.  With this redesign, we have the ability to control up to three load cell inputs, versus our current single input. This is very important with respect to cost for our absolute body systems using from four to eight smart sensors per installation, thereby increasing efficiency, easing installation and reducing final manufacturing and installation costs by 2/3.

Remote Display II:

The new remote display design takes into account various problems associated with the first remote display.  This redesign specification includes better environmental protection, enhanced components, significant reduction of components for cost reduction, design for assembly techniques for ease of manufacturing, and packaging for ergonomic use.  Electronically this included the ability to use multiple LCD display types.

Multiple Lifter Systems:

The next obvious evolution of the Weighing indicator scale system is to allow multiple weighing of various materials. Everything that is collected on the route will be weighed separately using specific lifters for each material. This would be offered primarily for trucks that pick up multiple materials e.g. paper, cardboard, brown glass, green glass or clear glass. The system would separately track each materials weight per customer in our database. This concept could give a significant advantage to companies in the recycling business.

The general principles of On-board weighing will remain the same. The only two changes required to complete the system are: a different electrical wiring scheme and changes to the software.  The Smart Sensors and load cells will be independently configured and calibrated and will be allowed to run independently. Currently the multiple-lifter Orion system is planned to allow for up to six separate lifters.

GPS Interface Module:

This interface board allows a direct connection to a single-board GPS receiver.  This receiver is mounted in the truck and the Interface Module connects the GPS to our communications network.  The Orion controller then gets the appropriate data from the GPS and does the proper computations to find location and distances.

Low Cost Controller:

Taurus Controller – The Taurus was designed as a low cost alternative to the Weighing Indicator controller. The design specification has a very clear, basic list of functions. This controller’s market is intended for single user applications to display and record weight data. It can be used for numerous weighing purposes other than refuse trucks such as: bucket loaders, fork lifts, platform scales, and all materials weighing applications to display, record and print out weight data.  This unit will be suitable to use all of the existing modules designed for the original weighing indicator including the RS-485 network to process all information.

Snooper:

This unit was developed as a troubleshooting instrument designed to query various modules that are connected to our network system.  The Snooper retrieves all pertinent information from the modules in order to help field personnel initialize and troubleshoot the system.

Numerous Lifting Application Configurations:

 Trade Waste lifters:

Each lifter application has to be carefully evaluated based on the dynamics of the mechanism. It is absolutely necessary to understand the kinematics of the system so that the main load path through the mechanism can be established. Next a choice must be made on the type of load cell to be used, the capacity, and the optimum mounting location to effectively capture the actual weight signal. This requires knowing how to position and mount the load cells in the system in order to be capable of sensing strain gage signals in the microvolt range. Once this is completed, a fixed weigh zone large enough to obtain meaningful data must be established. Evaluation of the weigh zone is critical so that you minimize weighing errors caused by such things as hydraulic shock from valves opening or closing, mechanical shock from linkages and over-center devices, or friction from sliding members, etc.    

Vertical rise lifters:

These lifters are the simplest to adapt to. The amount of weighing data is a function of the lifters kinematics, starting after the container wheels clear the ground. We have found that many lifters start their rotation cycle very shortly after the time that the wheels have left the ground. Although the vertical velocity can cause very small weigh zones due to the speeds, at least the mass center of gravity remains constant during that weigh zone. We have found that lifters of this type can be extremely accurate and moment insensitive when mounted in conjunction with a flexure configuration.

We completed the design, built prototypes and have been OIML certified for a dynamic scale system for this type of lifter. We have taken two approaches for our design. First, we have designed a self-contained scale transition module that bolts between the truck body and the existing lifter for retrofitting. The second approach was to integrate all the weighing components into the lifter structure, which would be built and shipped from the lifter factory. This design approach will accommodate all lifters of this type.

Pure rotation:

These lifters offer additional challenges. When we started the project we thought that we had enough time to capture the weight in the vertical rise part of the cycle. After working on the first prototype system, it became apparent that we had to re-evaluate our system configuration and take data completely in the rotation part of the cycle. This meant that we had to deal with changing velocities and accelerations in the linkages. We changed our approach from a two load cell system to a four load cell system in order to be capable of resolving forces with a continuously changing mass center of gravity while the lifter traveled through its dump cycle. Through experience we have learned how to calibrate and work with the shifts in center of gravity during weighing.

Crane system:

This is a system where many issues are usually unknown. Only with experience we now know the specific questions to ask for each application. On crane systems in general, a full understanding on how the operator will use the lifting system and boom is required.

Bucket loader:

Pressure transducer technology is utilized in conjunction with our indicator and Smart Sensor. For this application we have found that it is imperative that we take the weigh signal data by sensing the hydraulic cylinder position that lifts the bucket. The angle developed within the linkage must always be the same to get repeatable, accurate results.

Fixed Body system:

This is the probably the simplest system to understand. The scale system is available in 4, 6 or 8 load bearing configurations to suit different chassis sizes and body strengths. We basically lift the truck body off of the chassis and install upper and lower structural mounting brackets to secure the load cells with a very rigid mounting plane that supports the complete body, making the truck body into a platform scale. The quantity of load cells required to support the body frame with minimal deformation is a function of the body frames stiffness. It does however become very critical when installing the components for a certified system. Load cell alignment, mounting the inclinometer, accurate temperature compensation for critical electronic components and cross coupling within the structure become important issues that must be considered.    

Body system, Roll-on/off:

This system is similar to the fixed body system except that the body frame is required to tip in order for the container to be loaded on. The quantity of load cells required is a function of frame stiffness (deformation). The system is easily retrofitted to existing trucks or can be mounted to a new truck chassis prior to mounting the frame. The shear beam load cells are mounted to the truck utilizing a set of structural brackets. The container rests on the frame thereby having the load cells completely supporting the container and its payload.

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There’s some good news for ERP shoppers, especially first-time shoppers:

The ease of implementation has improved; and  
The total cost of ownership has gotten even more competitive

So companies that have avoided ERP systems thus far (or failed on their first implementation) have two excellent reasons for looking at systems again.  And in this new world, the companies that do implement systems will have a serious competitive advantage over those who don’t.  

A quick piece of advice that took many years to learn: shopping for an ERP system for the first time is usually very different than shopping for one the second time.  Second-time shoppers are usually far wiser; they have learned some expensive lessons from their first time around the block.  First-time shoppers tend to fall into one or more of the following seven deadly sins:

1.    Buying the demo.  They buy the glitz and sexiness that have been shown in the demo, without realizing that the system’s design is actually cumbersome and will slow down their day-to-day operations.  It’s sort of like buying a new machine for its feeds and speeds, without realizing that it will have quality issues.

2.    Buying on price.  They look at the purchase price of the software as the major consideration and negotiate that down as far as possible.  They don’t compute total cost of ownership, which includes the people costs and the maintenance and upgrading costs and the expected life span of the software.

3.    Missing the major point of ERP – integration.  ERP looks to the untrained eye like software that does various business functions – inventory management, customer order promising, accounts payable.  However, the power of an ERP system is not in the individual functions – the real power is in the integration of those functions.  The level of integration is much more subtle than features and functions inside a given department software.

4.    Scrimping on education and training.  They ignore education and treat training as an expense to be minimized, then wonder why people have trouble operating the new system.

5.    Assuming that all technologies are created equal.  Since their desktops run Windows, they choose a system that operates on a Windows server.  And besides that, Windows servers are inexpensive (see #2, above).

6.    Thinking that all ERP packages are basically alike.  Sorry.  Some packages that call themselves “ERP” do not have the required functions, or the required integration.  There is a big difference between “interfaced” and “integrated.”  Interfaced means that the module will accept data from another module if and when it arrives, but was designed to operate in a stand-alone manner.  What that means to the user is that they have to manually enter the data into each separate module.  That increases effort, cost and errors.  Integrated means that each module works hand-in-glove with the others.  For example, in an integrated system, a quality reject in Receiving would automatically trigger replanning of replenishments (and an action message to a Master Scheduler), plus automatic notification of Purchasing so they can start working with the supplier, as well as supporting the quality process (e.g. isolating the parts, tracking the MRB decision process, etc.).  Interfaced systems do not automatically trigger the ancillary processes.

7.    Changing their business processes to meet the software supplier’s model – “best practice.”  While that sounds great in theory, in practice it can cause the implementation to be very difficult, very long, and very expensive.

So what’s the advice I give to first and second time shoppers?  It’s very logical, once you stop to examine it.  Look at ERP as a strategic investment, one which will help the company become more competitive, and then approach the buying decision with that model as the foundation for the decisions.  Your first reaction to that is probably, “Well, duh!”  Mine too.  But… you’d be surprised how many companies give lip service to this idea, then blithely make more and more of the mistakes above.  And the ones that protest the loudest are usually the ones who need the most help later on.

The most successful system selections start by looking at how the company should be running after the software is installed.  Based on that vision, identify those capabilities that your company will be using in the next 5-10 years.  
    
From the list above, there is a subset of functionality that any package must have to call itself ERP:

1.    Full customer information and support, including:

o    Customer information management,
o    Order entry, tracking and fulfillment,
o    Customer billing, and
o    Material allocation

2.    Production and materials, (not just inventory management), including:

o    Shop floor management (work orders and/or Lean releases)
o    Bill of Materials and Routings management
o    Inventory management, both raw materials and WIP

3.    Supply chain, including:

o    Finished goods inventory control,
o    Shipping,
o    Purchasing,
o    E-commerce,

4.    Accounting, including:

o    General ledger
o    Accounts payable
o    Accounts receivable
o    Costing

5.    Executive decision support, including:

o    Business Intelligence – measuring the health of your business
o    Dashboard,
o    Report writer (easy to use!)
o    Spreadsheet integration

The systems selection process below will avoid the seven deadly sins.

1.    Scrutinize the demo.  It’s nice to be entertained, and good demo professionals are truly expert at their craft.  But watch the number of screens and the number of keystrokes to accomplish routine tasks, like entering an order, or running a report, or making a decision.  During one demo, I had the audacity to count, aloud, the number of screens required to enter a routine order.  How many?  6!  And this was for a client that received many, many orders, almost all of which were very simple.  Ask where the data on the screen comes from and how it gets maintained.
Realize that demo staff will disappear; you’ll have to make the system work yourselves.  So call references; find out from other companies how the package really works.  Find out how well the system operates in real companies, and how closely the demo fits actual operation.  Find out how responsive and how capable the technical support people are.  

2.    Compute total cost of ownership.  That includes

a.    purchase price of the software,
b.    purchase price of servers and other hardware,
c.    software and hardware maintenance and upgrades over 5-10 years,
d.    education and training,
e.    implementation, including consulting, data conversion, etc., etc.

Once that is done, compute the ROI on your entire investment.  If package “A” has a lower initial purchase price, but takes six months longer to implement (and therefore forgoes 6 months of the financial benefits of the new system), that should be plain for everyone to see.

3.    Scrutinize the level of integration in the packages.  The “magic” of ERP, the place where it adds value to a company, is not as much in the strength of its individual functions, but in the integration of those functions, so that the business ramifications of all data anywhere in the company are promptly and accurately reflected throughout the company.  For example, when an inbound shipment gets delayed, an ERP system will let you know which customer orders will be affected.  It will not, however, call the customers – that’s still up to the sales team.  And as those customer orders get rescheduled, an ERP system can let you see the impact on your financials for the month.

4.    Determine the optimum investment in education and training and support for the company to use the system effectively.  The old saying, “If you think education is expensive, try ignorance,” applies here.  One of the most common causes that ERP systems fail to achieve their potential ROI is underinvestment in education and training, especially in first-time users.  The intent here should be to invest the amount in education and training which will maximize the ROI on your total investment, rather than looking at education and training as an expense to me minimized.  First-time users need both education and training.  Education helps people throughout the company understand how ERP works and how it will integrate their information and support superior decision-making.  Training shows each individual user how to use the functions and screens and reports that pertain to their particular job.  All people should be educated on the system overview and fundamentals, then each person should be trained on their specific function.

5.    Investigate the reliability, ease of use, and total cost of ownership of the server platform.  Not all systems are created equal.  Windows-based servers are the most common platform for small manufacturers.  And they have their strengths, including affordability, and the thousands of applications available for them.  However, they also have several drawbacks, including downtime (frequently due to software), complexity, security, threat of viruses, and potential cost and difficulty of expansion.  Windows-based systems lack a built-in database, companies typically deploy an additional server for each additional workload in a Windows environment, but the actual utilization of those servers is a paltry 4%.  By contrast, utilization of UNIX servers is 19%, and utilization of IBM System i-series servers is 41% (and that’s important – that means lower server cost).  And only the IBM solution includes database, workload balancing, and web server software.

6.    Insure that the package has the capability to support your business operation for the next 5-10 years.  This point was covered in the ellipse diagram, above.  Flexibility and ease of changing business models is the key, because businesses themselves must change or face extinction.  The supporting software must likewise change (and do so gracefully and easily), or it becomes a competitive disadvantage!

7.    Select “Best-of-Breed” software which adapts to your company’s traditions, rather than forcing you to change your processes to fit the software design.  Most software is designed around “best practice”, and while that’s good, at least in theory, it can become a major stumbling block during implementation.  Look for “plug-and-go” software.  Look for software that improves your people’s efficiency and effectiveness, that helps them do their job better and make better decisions.  That’s what ERP is all about – that’s where the money actually comes from in the ROI.  

There are several packages that meet these criteria.  One supplier that has stood the test of time and is still nimble, innovative, and agile is Xperia Solutions, based in Allentown, Pennsylvania.  It runs on the IBM i-series server.  And it is highly competitive financially: one manufacturer acquired a 10-seat license for Xperia Solutions’ full ERP system and an IBM i-series server for less than $1900 per month for 36 months.  When compared to the improvement in operating effectiveness that the company should achieve, that is a very modest investment indeed.

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