Case Study: Pazmac Enterprises
Company: Pazmac Enterprises
Indusry: Mixed Mode Machine Shop
Location: Langley, British Columbia
About The Company
Pazmac Enterprises, a mixed-mode machine shop located in Langley, British Columbia, found Global Shop Solutions the same way many other manufacturers do at a trade show. In 2000, Pazmac’s Controller George Pacheco and others from the company had been through several ERP software package demos, yet they couldn’t find anything close to fitting their search criteria. Then came that fortunate intersection with Global Shop Solutions at the show. As Pacheco remembers it, “When we saw the Global Shop presentation, we knew it was something very different, that it was a product of quality, not just something filled with a bunch of functions we didn’t need. And, what we saw was a lot more user friendly than all the rest. During the demo, we kept throwing scenarios at the Global Shop salespeople, and they were able to duplicate and execute what we needed in the software.” That capacity to perform hasn’t changed with Global Shop Solutions One-System ERP™ in over three decades of customer dedicated research and development. From the start, Global Shop was designed with the customer in mind to be a quick and easy to use shop floor tool to streamline manufacturing operations and improve efficiency. Once they implemented Global Shop, Pazmac started realizing these benefits immediately. The return on investment for Pazmac, the first Canadian customer of Global Shop, has been nothing short of outstanding. Scheduling, on time delivery, cost accounting and cost reduction, purchasing, inventory management.
Scheduling Know How through Global Shop Solutions
“Scheduling was the main reason we chose Global Shop, and it’s very important to our business now,” observes Pacheco. “It’s completely useful for us in telling us what’s going to get done, what needs to be done, and what orders are coming in. Because of Global Shop, we’re able to give honest answers to our customers about what we can get done for them and accurate dates when it’s going to get delivered. This is opposed to a lot of shops where information is simply not there, and everything operates on a wing and prayer.” Throughout the manufacturing world, Global Shop Solutions ERP software is increasingly known for this dependability to deliver multi-tier shop control. For example, with Global Shop Solutions, Pazmac has a much greater sense of their shop capacity than they ever had before. This real-time intelligence has translated into greater profitability through the increase of both shop floor and front office efficiency. According to Pacheco, “Global Shop’s not only helped us in terms of on-time delivery, but it’s helped us in determining what our capacity truly is. Before Global Shop, we had this sort of artificial ceiling when it came to what we could get out of our shop. Once we had Global Shop to refine our scheduling, those prior capacity figures were just blown out of the water. We quickly discovered we could, in fact, do one and half times more than what we thought we could do.”
Taking advantage of Global Shop’s robust backwards scheduling tool and graphic hot/cold spot flow chart, Pazmac has immediate feedback regarding production capacity, throughput rate, and bottleneck identification. What has this redefinition of capacity meant for Pazmac? “We’ve doubled our revenue since we’ve gotten Global Shop, but have only added two office staff to the operation, and that’s the biggest statistic of all for us.” In the simplest of terms, if a manufacturer’s profitability is a function of capacity maximization through efficient production scheduling, then Pazmac has realized the sort of ROI they were originally looking for in an ERP system. “Global Shop has helped Pazmac succeed through the last eight years mostly because they’ve been at the center of our growth as a company. With Global Shop, we’re one and a half times the size we were before acquiring the software, with a profitability increase of about 75% in that time,” states Pacheco.
Pazmac's Cost Accounting, Cost Reduction
In the modern economic climate, where even the smallest reduction in cost can mean significant gains in the bottom line, every aspect of the manufacturing operation is leaned. To this end, manual cost accounting at Pazmac was replaced by Global Shop Solutions’ accounting tools, and with great effect. What used to take several hours to do by hand, now takes only minutes to produce through Global Shop Solutions, again with spot on accuracy. “We’ve always taken a look at the profit of every single job before it headed out the door. Using Global Shop has sped up our cost accounting / cost reduction process and reduced our direct labor costs for the tasks,” Pacheco relates. “If we were to still do costing the old way, it would force us to have more people in payroll and in accounting. Instead, though volume has gone up, we haven’t increased our labor costs for job costing since day one of getting Global Shop.” It is a strength in the robust Global Shop Solutions ERP system that it is able to streamline all aspects of a manufacturing operation. This is an important advantage in the software. When the shop floor doesn’t have to also manage the front office, the shop floor can concentrate on job performance. For example, functions such as Auto Purchasing not only help keep a ceiling on administrative costs, but they also help manage other areas such as inventory and materials scheduling for just in time (and on time) production.