OEM Sees Profitable Growth with ERP Software

Phase Technologies, Rapid City, S.D., is an original equipment manufacturer of power electronics equipment for irrigation, water pumping, HVAC, CNC/machine shop, oil and gas, and other industrial applications. The company formed in the garage of an electrical engineering professor, developing the world’s first digital phase converter. The company has expanded into producing a complete line of variable frequency drives (VFDs).

Company owners realized that a rapidly growing manufacturer of complex assemblies for rugged outdoor environments required enterprise resource planning (ERP) software, and in 2010 implemented software from Global Shop Solutions (The Woodlands, TX). The company is a leading developer of ERP software, simplifying the manufacturing industry. Global Shop Solutions believes the successful completion of every order relies on accurate information and detailed scheduling of material, processing, and man hours, and that its ERP software assists in keeping these components within budget and on time.

One of Phase Technologies’ primary challenges was maintaining enough inventory to meet lead times of three-to-10 business days. “I spend a lot of time in the Inventory Control module monitoring parts on hand, on order and reorder points,” stated Glenn Bailey, production manager at Phase Technologies. “In the past, we couldn’t tell how many of a certain part we used in a year because we didn’t have the data. Now it’s there with just a few clicks of the mouse.”

Bailey uses many different modules to perform a variety of shop tasks, including Shop Floor Control, where he generates work orders to get jobs started and helps issue materials when needed. He also assists with estimating, routing and building BOMs, closing operational steps, and WIPing assemblies to finished goods.

The ERP software has also improved a process critical to every manufacturing business – tracking the true costs of making each product. “Our business keeps growing, but there’s a difference between growth and profitable growth,” Bailey said. “Thanks to the software, we definitely have a better understanding of our true costs.”

www.globalshopsolutions.com