LIGHTNIN Mixer

Challenge

LIGHTNIN, a unit of SPX Corporation, provides industrial fluid mixers and agitators for wide range of process applications. Due to the complexity of LIGHTNIN's products, the quotation process relied heavily on in-house product experts to manually select and configure product offerings. Although some automation tools were in place, they were used exclusively by these experts due to the highly technical nature of the products. Capturing, reconciling, and posting sales orders was also an extremely time consuming, serial process involving up to a dozen steps. Orders were routed to as many as six different departments, with minimal automation, high error rates, and weeks of cycle time. LIGHTNIN desired a business solution that would simplify the quote and order processes in order to reduce costs and cycle times and improve transaction quality. In addition, the solution had to be flexible enough to handle a broad range of product/order types from simple repair parts to highly engineered industrial mixers.

Solution

LIGHTNIN engaged eLogic as the industry expert systems integrator to ensure that the business process, configuration design, and systems technologies were properly integrated in order to yield the expected business results. eLogic began the process by performing a thorough evaluation of LIGHTNIN's current business practices. Working closely with LIGHTNIN to determine the most effective course of action, eLogic developed a series of solution alternatives detailing expected benefits, risks, and costs.

LIGHTNIN decided to have eLogic implement a web-enabled eSales platform, that gave sales representatives and application engineers a comprehensive set of tools to streamline the quote and order process. For the new equipment business, users are now able to analyze complex application parameters and evaluate product alternatives, configure products options, price and lead-time, and generate sales proposals that included dynamically generated CAD drawings. Upon acceptance, proposals are automatically converted to orders and transferred directly to the ERP system for production. For the aftermarket parts business, users can search for part information including on-hand inventory levels and enter orders for repair parts.

Results

This project was completed in less than twelve months and under budget. Highlights of the benefits achieved were:

  • Quotation cycle time reduced by 50-80%
  • Proposal quality enhanced through generation of CAD drawings and customer-worthy proposal formats
  • BOM and order errors reduced by 90%
  • Fulfillment and warranty costs reduced
  • Product selection optimized through alternative comparisons
  • Aftermarket competitiveness improved
Front Office Solution

Challenge

A large producer of auxiliary equipment for plastic processing, manufactures a broad range of machinery as both individual components and integrated systems. Numerous acquisitions had extended the company's product range, enabling positioning as a leading single source supplier of auxiliary equipment. As a result of this expansion, the company's sales, product management, and customer support processes became complex, costly and inefficient. Quote and order error rates increased, and the ability to execute a "solution selling" strategy were undermined by over reliance on key product managers for each individual component. In addition, order entry and order changes were too complex, despite the use of the BaaN configurator.

Solution

The company engaged eLogic as the Systems Integrator to streamline the entire business process through a 'Quote-to-Cash' (QTC) Improvement Project. Working with senior management and a cross-functional internal team, eLogic conducted the preliminary strategy analysis, developed the overall program requirements and financial justification, and executed a proof of concept pilot project. Following funding approval for the implementation project, eLogic managed all elements of the project in a close working team environment. The project included a complete front office solution that enables its direct and indirect sales channels to quote and order all of the company's products and system solutions. It offers functionality for the dynamic selection and configuration of all products, automatic generation of high-quality customer proposals with comparative alternatives, and direct ordering of parts and systems. Order entry and changes are directly linked between the automated selling system and the company's ERP system. Sales and Marketing inquiry and reporting capabilities are provided directly from the systems quote and order database.

Results

This project was completed in eight months and within budget. Highlights of the benefits achieved were:

  • 25%+ Productivity Improvement for Inside Sales and Customer Account Reps
  • 80%+ Reduction in Quote and Order Process Cycle (from days/weeks to minutes/hours)
  • 95%+ Reduction in Product Selection and Quotation errors
  • 90%+ Reduction in Bill of Material errors
  • Ability to optimize customer solution selling vs. individual components
  • Ability to penetrate new sales channels and markets
  • Automated, accurate sales and marketing analysis reporting
Gardner Denver

Challenge

Gardner Denver Corporation, a diversified manufacturer of industrial fluid handling equipment, had a well established SAP R/3 implementation and a strong internal SAP support team. The company recognized that opportunities existed at several business units to achieve additional gains in costs, productivity, quality, and cycle times by utilizing sales and order configuration technology. Two divisions decided to incorporate these changes into their program of converting from a legacy system to R/3. A third business unit, that was already utilizing SAP's Variant Configurator (VC), included this work along with other needed improvements to product models and overall configuration capabilities. Gardner Denver's management decided to augment internal support capabilities with outside services in order to optimize configuration capabilities and meet project deadlines.

Solution

Gardner Denver chose to partner with eLogic because of our proven expertise in process improvement and SAP R/3 configuration. The project consisted of three primary components: Process, Data and Technology.

  1. Business Process Improvement

    Using cross functional workshop sessions, the current processes were evaluated and modified to ensure that they were aligned with the technology changes in order to maximize productivity, quality and cycle time improvements.

  2. Product Data Management

    eLogic established the methodology used to create the proper product definitions including naming conventions and nomenclatures, and managed the process to collect and organize the data across a broad range of engineered equipment product lines.

  3. SAP R/3 Technology Expertise

    eLogic managed the process to architect and construct the configuration models to align with the business process design and product data.

Results

Improvements at all three business units were successfully implemented on schedule and under budget. Each unit gained streamlined quote and order processes that provided dramatic cycle time and productivity improvements. Highlights of specific improvements at each implementation included the following:

Tulsa Pump Group Results:

  • Automated and consistent proposal generation
  • Consistent product nomenclatures
  • Automated and accurate BOM generation
  • Seamless transition to R/3 with Variant Configurator

Quincy Pump Group Results:

  • Eliminated Bill of Material errors
  • Ability to leverage existing and well understood product data templates within the configuration models
  • Maintainable product models at a fraction of prior effort

Princeton Compressor Group Results:

  • Eliminated Bill of Materials errors
  • Reduced the number of configuration models from 300+ to 33
  • Simplified product data maintenance and enabled subject matter experts to directly manage the models (vs. programmers)
Business Process
and Systems Alignment

Challenge

An engineered products manufacturing company with multiple locations and many disparate management information systems was struggling with serious process breakdowns. The causes were primarily due to poor information sharing, data integrity problems, and overly complex business processes with numerous manual handoffs across facilities and business systems. After eLogic had the opportunity to assess the situation, it became apparent that these problems were the result of a myriad of dramatic changes to the business that could not be sufficiently digested by the organization.

THE CHANGES INCLUDED:

  • The introduction of a new ERP system at the headquarters location which is also the company's largest production facility
  • The elimination of obsolete ERP systems at other production locations
  • Product consolidations and production re-organizations at many facilities
  • The introduction of a new production facility in Mexico
  • The acquisition of new companies which introduced new sales channel, business practices and brands/products
  • An attempt to centralize the customer service organization failed due to lack of integration order and fulfillment information
  • High employee turnover and the loss of "tribal" process knowledge

In addition, the new ERP system was not effectively deployed, and employees did not receive proper training. Business processes were not sufficiently standardized for use across functional areas, and in some cases, transactional procedures were so loosely defined that they were routinely circumvented and modified on an ad hoc basis by users trying to get the work done. The situation seriously impeded this company's ability to operate the business effectively, and adversely impacted productivity, quality, profitability and customer service.

Solution

eLogic was engaged to define, upgrade, document and implement business processes, as well as re-configure the new ERP system to align it with the business processes. eLogic started the process by defining a comprehensive list of all business processes that needed to be created, revised, or eliminated. The processes were then prioritized based on criticality, impact on the business and complexity to implement. Those with the highest priorities selected for immediate implementation. This approach enabled quick successes and built momentum for the project throughout the organization. All targeted business processes were properly documented, approved and re-implemented in conjunction with the required ERP set up changes.

Results

This structured and disciplined approach delivered a risk-averse transfer of product, data, processes and manufacturing to new sites, while meeting the challenge of uninterrupted delivery to the customer. This was achieved with a high level of workforce motivation, despite the business obstacles, and allowed key resources to focus on the continued management of the business.

Benefits included, but were not limited to:

  • Developed clearly visible performance metrics as a basis for continuous process improvement
  • Clear definition and simplification of critical business processes resulting in the elimination of transactional errors
  • Elimination of problems caused by functional staff not understanding the impact of process deviations on other processes and functions
  • Improved productivity
  • Improved inventory accuracy
  • Improved order processing cycle times
  • Improved user acceptance through higher quality results and better communication that now takes place in a more orderly and predictable process
Facilities Rationalization

Challenge

A large industrial equipment manufacturer had undergone significant growth through acquisition, which resulted in similar products being produced in each of its four manufacturing facilities. This operational redundancy created inefficiencies that negatively impacted productivity, manufacturing costs and profitability. The company decided to establish manufacturing centers of excellence and relocate products to the appropriate facility. This initiative involved moving eight product lines to a new facility. Clearly this type of change can be very disruptive, and the challenge was to make sure it was seamless to customers. Accomplishing this was going to require significant planning and flawless execution.

Solution

eLogic was engaged to manage the data, systems and process portions of these product moves. We brought a well defined methodology and tool set to manage the entire process. Key elements of this initiative included:

  • Business Process Alignment

    Existing order entry and fulfillment processes were documented and go forward processes were developed and implemented

  • Data Management

    Defined all data requirements and reconciled all discrepancies that existed due to process and system differences

  • Live Order Logistics

    Reconciled and appropriately routed all sales orders and purchase orders

  • Supply Chain Logistics

    Planning for the transfer of shop load from one facility to another involved managing key items such as:
    • Supplier Changes and Consolidations
    • Vendor Managed Inventory
    • Shop loading and capacity expansion
    • Make / Buy component changes

Results

This structured and disciplined approach delivered a risk-averse transfer of product, data, processes and manufacturing to new sites, while meeting the challenge of uninterrupted delivery to the customer. This was achieved with a high level of workforce motivation, despite the business obstacles, and allowed key resources to focus on the continued management of the business.

Guided Selling

Challenge

One of the largest manufacturers of hospital products in North America was poised to introduce a radical innovation in medication infusion equipment. Hospital pharmacies would be able to set up electronic libraries to define the constraints for the controlled delivery of patient medication. These libraries would then be downloaded to infusion pumps stationed at the patient's bedside. When caregivers connected medication IV bags to the pumps, the information from the libraries would ensure that one or more medications would be given to the patient in a safe and controlled fashion, all in accordance with the boundaries established by the pharmacy. This solution would be available to Hospitals and alternative care facilities in several variations, from a simple entry-level solution to a fully wireless network based platform capable of handling thousands of patients and pumps.

The company's sales force was faced with the daunting task of selling a new and highly sophisticated system solution, available in a number of different configurations capable of addressing a wide variety of customer needs and facility circumstances in order to win a multi-year, multi-million dollar contract. The company's Sales management wanted to deploy a comprehensive eSales application on tablet PC's to assist the selling process. The business requirements were:

  • Guide the salesperson through an interactive sales process to match the customer's current requirements and future plans against the optimal system solution
  • Configure the proper components of the system solution, including selection of an appropriate combination of accessories and disposable products
  • Develop accurate pricing for the system components. Pricing would need to be broken down into two important categories: up-front, one time costs; and recurring annual costs calculated over a five year time frame.
  • Apply appropriate commercial information, including taking into account that many health care facilities belong to Group Purchasing Organizations (GPO's) and therefore are entitled to special, across-the-board discounts that differ by product class
  • Generate professionally formatted PDF Customer Quotation documents
  • Provide full application functionality when no internet connection or central server is available, but also be able to synchronize quotation data, master data, and product configuration rules with a central server located at a 3rd party hosting facility
  • Develop custom graphical user displays to meet strict federal government guidelines that dictate exactly what information can and cannot be shown about medical products
  • Support collaboration with factory Contract Analysts to arrive at proposals that meet customer needs while protecting product margins and company product liabilities

Solution

Based on our track record of success, cost-effectiveness, experience with eCommerce tools, and depth of project management skills, eLogic was selected to provide professional services work. The first phase of the project was to conduct a vendor evaluation. Working with senior management and a cross-functional internal team, eLogic developed the process, data, and systems requirements. Five viable vendors were identified to provide the base software. These vendors responded to an RFP containing roughly 200 questions used to rank the software in various categories. eLogic's vendor evaluation process, refined through numerous engagements, allowed the team to accurately identify software strengths and weaknesses, and guide the client in selecting the one that best fit the business requirements.

The second phase of the project was implementation of the eSales application. The eLogic team defined the detailed process, data, and technology requirements; designed the overall solution; developed configuration models, developed customizations to the vendor's commerce functions; branded the entire site; conducted unit and systems testing; migrated the solution to the hosting environment; and assisted in the initial roll-out to 160 Tablet PC users in the sales force. Key eLogic implementation highlights were:

  • Designed and developed a sophisticated, user-friendly tool for customer Needs Analysis that enables salespeople to discuss current needs and future plans while at the health care facility. The tool reacts to customer answers by classifying products into time-based recommendation categories. Users can obtain comprehensive explanations as to why certain products are, or are not, recommended at this time. The tool is designed to accommodate the customer dialog by allowing the user to start on any question on any page, moving back and forth as needed until a complete analysis is developed.
  • Designed and developed a medication delivery product configurator capable of handling all medication delivery devices at the same time, leveraging data from the Needs Analysis sessions and the Customer Master database. The configurator determines recommended quantities for devices, disposables, and accessories while allowing overrides that will in turn drive calculations on other elements of the configuration. The configurator is highly specialized in its ability to present disposables and accessories in a Catalog pop-up page that meets all government oversight requirements.
  • Designed and developed a fully automated pricing model that: derives prices based on ceiling and max functions; accommodates four classes of prices (min, max, floor, open); organizes costs into one-time and recurring; provides unit and extended prices; supports GPO price lists; and, allows for manual overrides based on user authorizations.
  • Built Document Generation capability that allows users to create rich, high quality proposals with just a few mouse clicks. The document generation mechanism organizes all of the device configuration data, product disposable and accessory data, and price data into one easy-to-read format while maintaining the necessary level of flexibility in presentation to the customer.
  • Rationalized and simplified the Customer Master and Contact data for use in developing and tracking quotations and proposals
  • Identified and developed customizations to the eCommerce functions to support custom search techniques on quotes, customers, contacts, contract analysts, and sales team members
  • Incorporated links into sales/marketing collateral and links to help pop-ups to assist in the customer/salesperson dialog

Results

This project was completed in 11 weeks, within budget. Highlights of the benefits achieved were:

  • Salespeople use Tablet PC's to conduct a needs analysis in the customer's office with 100% of product recommendations, including alternatives for the future, being derived by the application
  • Immediate access to electronic marketing collateral, including product drawings, sketches, and photos
  • Over 90% of customer quotes are priced directly by the sales force, including GPO contract pricing
  • Over 90% reduction in field sales pricing errors
  • Elimination of product compatibility errors
  • 100% inclusion of mandatory or essential accessories and disposables
  • 100% automation of Quote Document Generation