customer success story

prodx helps RP Fedder Industrial manage supply chain disruption
A 60-year-old manufacturer of industrial filters digitized business processes & manufacturing operations to increase production amidst supply chain chaos.

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The Latest Supply Chain Disruption: Plastics

Harvard Business Review, March 2021

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Why Are We Continually Surprised By Supply Chain Disruptions?

Which-50 Irregular Insights, April 2021

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How to Strategically Approach the Supply Chain Balancing Act of 2021

Thomas Insights, April 2021

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Five Ways to Weather Supply-Chain Disruptions

Supply Chain Brain, April 2021

a crash course in digitizing

An old-school manufacturer digitizes for growth

RP Fedder Industrial manufactures and distributes premium air filters for industrial and commercial use. Their fabrication customers count on RP Fedder to design and manufacture filters for heavy equipment, power generation, military, medical devices, HVAC, manufacturing, and other applications requiring ultrapure air.  

In The News

81% of supply chain managers consider data analytics to be vital to cost decreases. With real-time information and updates, companies can respond to changes in the supply chain at a moment’s notice. 

Thomas Insights: How to Strategically Approach the Supply Chain Balancing Act of 2021
COVID-related shutdowns in 2020 triggered on-going supply chain disruptions to manufacturers in all industries, and RP Fedder was no exception. Commodities like cardboard cartons, cold-rolled steel parts, and gaskets that historically could be ordered just-in-time suddenly had six- to twenty-week lead times. Safety stock levels needed to increase in all raw material categories to assure RP Fedder could meet their delivery commitments.

RP Fedder had a legacy ERP that they used for order processing, inventory management, and billing, but they weren’t using it to its fullest potential. Manufacturing bills of materials (BOMs) were managed in a separate database for costing; without access to BOM data, the ERP couldn’t forecast raw material demand and supply. As a result, it was not unusual to stock-out of critical materials in the middle of a production run. Instead of basing cost of materials on BOMs and actual procurement costs, Fedder relied on standard costs – which made it difficult to monitor the effect of rising commodity prices on margins.

Testimonial

“prodx helped communicate a vision that was an inspiration for the entire organization.”

Michael Conant
former Director Digital Strategy
Agilent Technologies

Establishing a source of the truth

Processes, platforms, & data enable visibility

prodx designed processes to forecast demand and supply for raw materials, and built a prototype forecasting tool in Microsoft Excel. We transformed BOM data from the legacy costing database and validated the components, quantities, and units of measure for over 400 manufactured products.  This gave us accurate data for forecasting raw materials usage and manufacturing costs.

Given accurate BOM data, we used open sales orders for each manufactured part to forecast the demand for raw materials and components. This guided purchasing decisions to assure we had adequate safety stock, and informed production scheduling to make sure we had all materials on hand before starting production.

With the new forecasting process in place, the management team completed a physical inventory to restore faith in the inventory data. 

Once we had confidence in the data and the Excel-based process, prodx migrated the BOM data into the legacy ERP to use its supply forecasting and production management features. prodx developed training for the staff on the new capabilities, and in-person support until the staff was confident using the new process and system.

Rapid results

Record-breaking results in 120 days

The project began in December 2020 and the new production system went live on March 1,  at which time prodx began “micro-care” support to assure the system and processes were working as planned. The results:

  • Production tickets were automatically generated for each sales order line item and release, triggering PO suggestions for any materials that were short on supply.
  • Production managers could see at a glance if they had material on hand to complete a production ticket before the job was released to the floor.
  • Orders could be invoiced without manually deducting materials from inventory and hand-calculating COGS.
  • The system calculated gross margins based on actual costs, alerting management to margin erosion due to rising materials costs. 
  • Management had reliable real-time data on costs, margins, supply, and demand.

The end result: March 2021 was a record-breaking month for manufacturing output at RP Fedder. Armed with timely and accurate information, the manufacturing team was able to clear a backlog and achieve new levels of productivity.

even small companies can digitize.

Let our proven approach show you the way.
Apply Lean design to your manufacturing process

Digitize BOMs, routings/methods & recipes

develop a rapid prototype to validate the data & prove the benefit

deploy data into manufacturing platforms

Demonstrate measurable results

Testimonial

“Everyone on the prodx team was kind, and motivational, and able to communicate in different ways until everyone at Agilent fully understood the purpose of the program. It wasn’t just helping the digital team manage this transformation, but also digging in to help the business side understand the importance and value.”

Victoria Manassero Maat
former Director, Content Center of Excellence
Agilent Technologies

Lean. Results-oriented. Digital.

6 Steps to Digitizing Manufacturing Processes

U
Lean Process Analysis
Identify steps that don’t create value for customers or the business and eliminate them
Bills of Material (BOMS)
Assemble digital records of materials, subassemblies, quantities & units of measurement
Routings / Methods
Create digital recipes for the manufacturing steps, resources & durations
R
data quality
Design methods to assure the accuracy of materials, costs, quantities & units of measurement
Pilot & Test
Build a rapid prototype to exercise the manufacturing data & prove business value
Deploy & Measure
Load data into ERP, MRP, MES & other systems to drive operations. Measure the business benefits.

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