MISys Manufacturing > Case Studies > Inventory Management Transformation at North Texas Pressure Vessels, Inc.

Inventory Management Transformation at North Texas Pressure Vessels, Inc.

Technology Category

Functional Applications - Inventory Management Systems
Functional Applications - Warehouse Management Systems (WMS)

Applicable Industries

Education
Life Sciences

Applicable Functions

Procurement
Warehouse & Inventory Management

Use Cases

Inventory Management
Picking, Sorting & Positioning

Services

System Integration
Training

The Customer

North Texas Pressure Vessels, Inc.

About The Customer

North Texas Pressure Vessels, Inc. is a Texas-based manufacturer. The company was facing significant challenges with their inventory management, with no system in place and inaccurate values and quantities of inventory. This led to difficulties in pricing jobs accurately and high costs of processing Purchase Orders. The company's existing system, Sage 50, did not have the necessary functionality to address these issues. The team at NTPV had considerable experience working with other MRP systems such as Symix and Oracle.

The Challenge

North Texas Pressure Vessels, Inc. (NTPV) was facing a significant challenge with their inventory management. The company had no inventory management system in place, leading to inaccurate values and quantities of inventory. There were no item numbers, and purchasing relied on multiple spreadsheets to determine if there was enough inventory on hand for the production schedule. Inventory costs were not accurate and not up to date, which led to difficulties in pricing jobs accurately due to the lack of true costing of the inventory. The company's existing system, Sage 50, did not have the necessary functionality. Furthermore, the cost of processing Purchase Orders was extremely high, indicating inefficiencies in the purchasing activities.

The Solution

NTPV decided to implement the MISys Manufacturing Software to address their inventory management issues. The team at NTPV, who had considerable experience working with other MRP systems such as Symix and Oracle, found that MISys had the functionality they needed. They worked with a SureStart coach to set up MISys properly and train their personnel. The coach provided excel templates that made it easy to organize the data for uploading into MISys. They loaded 19,000 inventory items into the system. The implementation process involved getting all the players involved and conducting system training before going live. They also had to get some customer reports written for them and spend some money on it. The implementation was successful and they went live on January 1st to start a new year with the new system.

Operational Impact

The implementation of MISys Manufacturing Software transformed the operations at NTPV. It enabled them to manage their Purchase Order processing in much less time and gave them total visibility into the process to identify late POs and what still needed to be issued. This allowed the purchasing agent to take on other roles, such as negotiating better terms with suppliers and proactively managing the supply chain. The new system also transformed the weekly production meetings, making them more effective by displaying the production schedule, purchasing activities, and related reports on a large TV screen. The sales department was able to more easily and accurately quote jobs by revising existing BOMs of a similar product to reflect the specifications of the new job, using current raw material costs. As a result, they could negotiate prices with greater confidence and accuracy.

Quantitative Benefit

Reduced inventory levels from $800k to $400k inside of 14 months from going live.
Freed up cash has been critical to the operations of the company.
Enabled them to manage their PO processing in much less time.