Automac Engineering

The Company: About Automac

Automac Engineering specializes in the design and manufacture of conveyors and packaging machinery.

The Situation: ETO Workflow

Automac used a project management system that had an engineering component, but it still didn’t match their ETO workflow. It created havoc in receiving, making it difficult to track parts, and often couldn’t tell whether or not a part had arrived. They used a spreadsheet that
needed manual updating and always had errors.

Furthermore, that software didn’t provide them with much project visibility or data. That caused additional errors in inventory and reduced accuracy throughout the organization, especially in estimating new jobs.

The year before discovering Total ETO was a record-breaking year for Automac; they did more business and had more revenue than ever before. However, they also lost more than ever. The lack of data, losing parts, and other struggles meant Automac was hiring assembly contractors to complete projects on time. While it got the job done, it wasn’t a long-term solution.

The Solution: Total ETO ERP

Total ETO immediately improved inventory and part tracking. Automac estimates that their missing part rate has decreased drastically from 1 in 1,000 to 1 in 10,000 since implementing Total ETO ERP.

Project management, a reduced workload throughout, and the ability to track valuable data are already making their bottom line better.

The Results: Total ETO Implementation Benefits

Part Tracking & Inventory

With Total ETO, procurement and inventory are free of clutter and confusion. In fact, the
inventory system was the first thing Automac LOVED during their demo of Total ETO. The line-by-line system is convenient, and they appreciate being able to track every part individually.

They also like being able to choose whether the part is coming from inventory or going to inventory. It takes just a few clicks to issue and revise RFQs and POs; you can even create a PO right from the RFQ.

Increased Production Capacity

When Automac started using Total ETO they noticed an immediate improvement in efficiency. For example, the team had some fabrication tasks that would normally take 300 man-hours. With Total ETO simplifying their process, it only took 65 hours. They attributed this improvement to a simplified and accurate procurement system that ensured bidding at the right time, as well as
reduced time in fabrication, and more organization in inventory.

Totally Better Data

Automac knew they were missing out on valuable data from each project; information they could learn from to improve efficiency and accuracy. Total ETO provides real-time data and reports, the sort of information that a team needs to make quick, accurate decisions. This has already helped Automac streamline their processes, but they’re also starting to use this data to improve
estimating and quoting.

Expenses & Cash Flow

The management team at Automac was expecting their accounts overhead to increase a lot with the purchase of an ERP. However, they’re finding it’s actually decreased. Before Total ETO, Automac had to hire contract manufacturers and temporary employees to ensure that projects were finished and shipped on time. In many cases, the temps simply found and properly distributed inventory, something Total ETO does for them now.