Oilfield Equipment Manufacturer Halves Inventory, Lead Times with Lean Solution

UPCO mines capacity for more business from gains provided by Infor scheduling and planning solution

UPCO mines capacity for more business from gains provided by Infor scheduling and planning solution

Atlanta, GA — January 9, 2006 — Oilfield equipment manufacturer UPCO has cut inventory and lead times while doubling productivity in its facility by taking advantage of new scheduling and planning capabilities in an enterprise resource planning (ERP) solution from Infor.

Based in Claremore, Okla., UPCO recently added Infor's Easy Lean solution to its Infor VISUAL Enterprise resource planning system and within just a few weeks was able to uncover significant capacity for new business as a result of simple changes in its business processes.

UPCO President Bill Ridenour reported that the newly added Infor technology had enabled the company to reduce both work in progress and manufacturing lead time by 50 percent. Simultaneously, productivity rose from the previous $65-$70 per man hour to $130 per man hour, and then to $147 per man hour a month later.

Increasing Sales While Cutting Costs

Lean techniques made possible by Infor not only have cut UPCO's costs but also increased its sales, according to the solution provider. With the productivity gains and so much less work-in-progress inventory, UPCO was able to take on 35 percent more business because it now had the capacity to handle the additional work. Previously the company had been held back by its long manufacturing lead times, excessive work-in-progress inventory and less-than-desirable productivity.

Ridenour decided to implement Infor's Easy Lean scheduling and planning solution after he attended an executive session presented by the Infor PSO Throughput Improvement Group during the Infor 2005 User Conference.

Following a two-day Infor assessment of his company's processes and the subsequent implementation of Infor's Easy Lean scheduling and planning software, Ridenour said, "In just two days, the experts from Infor helped us understand where we could quickly improve our work flow. We realized significant benefits from their recommendations even before we installed Easy Lean."

Following the Right Priorities

With Easy Lean in place, UPCO has found that the scheduling and work flow processes have become more manageable and routine. "Now, I can allow my plant manager and vice president of sales to be out of the plant at the same time," Ridenour said. "It gives Infor's Easy Lean the ultimate test, and it works great. Every operator in the factory now can see and follow the right priorities."

Infor said that the Easy Lean scheduling software, an element of Infor's Manufacturing Essentials suite of solutions, supports lean manufacturing and often can deliver results in as few as 30 days after implementation by incorporating pull-oriented scheduling techniques to enable better decision-making on releasing inventory at optimal times. The solution automatically creates work orders when quantities dip below replenishment levels and provides reports and performance measurements on value added and throughput.


Additional Articles of Interest

— Successful supply chain executives differentiate themselves — and their companies — from the competition. Here are the skill sets you need to focus on. Read "Critical Skills for Effective Supply Chain Leaders" in the December 2005/January 2006 issue of Supply & Demand Chain Executive.

— Forecasting is not an isolated activity but must become part of an overall set of demand management practices. Supply chain thought-leader Ann Grackin describes the practices that your firm should be developing to improve business performance in "Sensing the Future: Next-generation Practices in Demand Management," in the December 2005/January 2006 issue of Supply & Demand Chain Executive.

— Supply chain executives can drive profitability ahead if they closely align their supply chain strategies to five universal business plan challenges. Read more in "Collaborate to Innovate," in the December 2005/January 2006 issue of Supply & Demand Chain Executive.


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