Case Study: Adams Automatic
Location: Olmsted, Ohio
Industry: Metal Fabrication of Precision Parts
About The Company
When you've been around manufacturing as long as Adams Automatic, you learn a few things along the way. You learn that the consistent production of quality products bodes well for the long term retention of good customers. You also learn that you can't have quality output instead of dependable on time delivery the two are mutually inclusive requirements for doing business and one simply can't be sacrificed for the benefit of the other. Finally, over the decades you come to understand that focusing resources in a manufacturing niche can build a positive and well-known reputation in that area of specialization. All three are lessons very much taken to heart by the family ownership of Adams Automatic, and their practice has improved shop floor performance and given a solid sense of direction for the company. Founded in 1952, Adams Automatic is now in its second generation of family leadership in Edward Bond as president and CEO. Since he took over management reigns from his father in 1971, Bond has overseen the transition of Adams Automatic into the full-scale manufacturing and service operation it is today. Adams Automatic specializes in the production of custom screw machine items, with one of the most highly regarded parts portfolios in the industry. "We make component parts as a short run CNC turning house," observes Bond. "A big reason of our success lately has been what Global Shop has been able to do for us out in the shop. It's made life easier for everyone around here, and that's really made us more productive." A corporate fixture and source of community pride in Olmsted, the Northern Ohio town in which they operate, Adams Automatic is one of the many Global Shop customers that takes advantage every day of the full range of features found in the enterprise resource planning (ERP) software system. From estimating to shipping, the Global Shop One-System ERP Solutions™ software has contributed to the sustained growth approach employed by Adams Automatic. This growth has meant the expansion of their workforce and CNC machine work centers, and it testifies to the synergy that can exist between a job shop and its operational ERP software system.
As they say, big things often come in small packages. This could not be truer than at Adams Automatic, where they pack a whole lot of production processes into their 10,000 ft. facility. Much of this is due to the streamlining they've been able to introduce through the use of their ERP software. Global Shop Solutions leans the Adams Automatic shop in numerous ways, especially through the significant reduction of complexity in their CRM system. According to Bond, things used to look a little different in the Adams Automatic shop. "Before bringing in Global Shop, we had a custom made ERP software
program and it was starting to give us problem after problem. It was too complex and not very user friendly. Then, we attended a seminar where Global Shop was showing their software, and their package looked like it would give us exactly what we needed to make a change to our shop software. So, after researching it a bit, we discovered that it was the one best suited for us." Bond adds, "I could see that, for us, it was very userfriendly." That was nearly ten years ago, and since then Adams Automatic has been running smoothly with Global Shop Solutions. Adams Automatic is a precision parts manufacturer for a variety of industries including electronics, valve, medical, oil and gas, adhesives, defense, and air tool.
Results & Benefits
In this capacity as a vital member in several supply chains, and specializing in close tolerance jobs, they take their mandate for quality output seriously. This means bringing a sense of accountability to everything they do, and with Global Shop Solutions they are able to do this quickly and accurately from a centralized point of real time information. It is one reason why the on-time delivery rate at Adams Automatic is consistently over 99%. "We're in a materials driven industry, and a short-run CNC turning shop, so it's important to stay on top of our inventory," states Bond. "For example, we use Global Shop for automated purchasing. The Automated Purchasing module in Global Shop is, in fact, one of the main reasons we've been able to improve on our on-time delivery so much. I think the software's done a fine job." The Global Shop ERP effect permeates throughout the Adams Automatic production area in many ways. As a customer and employee-centered company, Adams Automatic builds relationships by getting the work done right the first time, and with consistently high levels of quality products. This attitude has contributed to realizing a quality rating that also exceeds 99%. As Bond puts it, "By having Global Shop, we have much more consistency in our production operations, and this helps tremendously with quality. When we run a job, we put it in the Global Shop Routing System so the operators know exactly how we're going to make the job, and how to make it with the consistent quality that's always our goal."
Adams Automatic is approaching nearly four decades of service to the manufacturing industries, and they've seen many shop management systems come and go. "We've been in business for over 37 years, and now we've finally got something to help us streamline the front office," exclaims Bond regarding other cost management areas found in the Global Shop system. In fact, according to Bond, Adams Automatic uses Global Shop Solutions in every aspect of their shop operation, "We use the full package
of modules: Estimating, Quoting, Shipping and Receiving, Invoicing, Work Order History and Inventory. We also do Job Costing off of it and we track all of our jobs through the system from start to finish."
Global Shop has also made it easier for Adams Automatic to do monthly cost accounting and other front office administration requiring computer stations working both independently and with each other. Bond observes that, "Global Shop helps streamline things in the front office. We print all of our checks off of Global, we print all of our purchase orders, we print all of our work orders. It all boils down to the fact that where a lot of the front office work was done by hand before we got Global, now that kind of administration labor has been completely eliminated. So, generally speaking, from front office to shop floor I see Global Shop as helpful in terms of monitoring and even reducing both our direct and indirect costs." Cost reductions such as these are the name of game in manufacturing today. The key is making everything in the operation function with the greatest possible efficiency, understanding at the same time that efficiency is a continuously improving action. Like Global Shop, Adams Automatic is still a family-owned and operated business, and it is the intimate connection with the functions of the business that helps them monitor the pulse of their successes. An encompassing accountability for the product and service is what makes both Adams Automatic and Global Shop Solutions the long lasting, quality conscious companies they are. It is also what has made them work so well together for the past decade. "When we set up Global, we didn't know what to expect in terms of service," Bond recalls. "I remember that it was nice that their consultant who came to help us implement was located in our region. He came over and got us up and going in a few days, and then a year later he came back and helped us add a few more things to make us come along even further in our use of the system." Bond finishes by adding, "Global Shop has definitely helped us be more successful. I think it's done a very nice job for us over the last ten years or so, and I can only say that we are thoroughly pleased with it. For the future, as we see Global Shop's software growing into an even more powerful tool, we see our own shop growing right along with it."