Benefits
of On-Time Orders (OTTO)
The benefits of using OTTO
software are:
- Improved delivery performance
- Improved manufacturing throughput
& efficiency
- More effective use of inventory
- Improved productivity of
planners, schedulers and buyers
- Reduced expediting costs
- Would you like to know what
actions to take NOW to ensure production schedules and customer order
shipments due today, tomorrow, next week are met?
- Would you like to be more
proactive in communicating with customers and vendors?
- Does your firm have no problem
"making" the promise but difficulty "keeping" it?
- Would you like to ensure
resources are being correctly deployed to meet immediate needs; current
production schedules, short cycle orders, customer commitments?
We did a survey of our On-Time
Orders (OTTO) customers in January of 1998 to determine the tangible benefits
they'd realized from using it. The following are typical results. One
company president responded: "If you like completing customer orders
on-time, then you'll like OTTO."
PRODUCT |
PROBLEM |
RESULT |
Abrasives |
Reduce delivery lead-time |
50% of orders produced
same day they're received |
Punch presses |
Production disruptions
because of shortages |
Within 6 mths, doubled
throughput |
Store fixtures |
Meeting delivery schedules
to major customers, orders are received via EDI |
In 2nd month, set single
month shipping record (268 trailers) without a backorder. Delivery
performance +98% for 3 yrs |
Welding equipment |
Reducing lead-time &
meeting ship dates |
Within 6 mths, increased
throughput by 26% & reduced lead-times by 2-4 wks |
Upholstered furniture |
Coordinating multiple
plants to meet truck schedule |
Within 4 mths, eliminated manual check-off sheets & reduced WIP
by 1/3. Produce daily schedules for automated cutters. |
Pumps |
Production shortages leading
to delivery problems |
During 1st year, eliminated
6 trailers that held partially-assembled units. Had record year. Fax
daily output to JIT suppliers |
Lawn sprinklers |
Identifying orders that
could be shipped to major EDI customers |
One OTTO report eliminates
2 previous reports & 1 inquiry. Time spent working on shipments
instead of gathering information. |
Light poles |
Delivery problems &
production disruptions due to shortages |
In 2nd month, produced
& shipped everything scheduled, set single month shipping record. |
Many software products such as enterprise-wide planning systems, supply
chain management and modeling systems claim similar benefits. Unfortunately,
many companies have made the investment but not received the benefits
they anticipated. OTTO isn't an alternative to ERP or planning, it's a
complementary product that's the key to getting the benefits promised
by those systems. OTTO offers an extremely low risk with the potential
for high payback in a short period of time.
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