Philadelphian analog tech manufacturer Oat Foundry implemented MRP software and improved material planning, profitability, and overall visibility within their operation.
Split Flap Display Manufacturer Improves Cost Control with MRP Software
Case Study from | MRPeasy
Bringing analog technology back to the modern world
Oat Foundry from Philadelphia manufactures custom split flap displays much like those traditionally used in airports or train stations. Aside from nostalgia, split flap displays have several advantages over LED displays or TVs: visibility from more angles, virtually no power consumption while static, and a distinct flapping sound whenever information changes.
The company was founded in 2013 by six engineering college graduates. They were hired by a local restaurant to prototype a split flap solution for displaying order numbers. The team fell in love with the idea and decided to make the split flap display their signature product.
Today, Oat Foundry is a 17-person team that has sold hundreds of displays to all corners of the world.
Comparing different solutions
Being on top of everything from product development and design to purchasing, production, and shipping is not an easy task. At first, Oat Foundry tried to do it all with spreadsheets, which worked just fine when the company was still young. However, as the company expanded, the spreadsheets started exhibiting serious limitations.
“We needed a more integrated system for managing the business,” Rossiter says. “I wanted to be able to see our costs and margins job-by-job, tie all of the production costs to an invoice, see what’s outstanding, what our cash flow is going to be like – to have everything connected.”
Rossiter started to look for a dedicated manufacturing management software. He found that most solutions on the market were either expensive and too complex, or affordable but too simplistic. Finally, he found a product that was precisely in the sweet spot of functionality, price, and user-friendliness.
“There were a bunch of products that I looked into and trialed,” he says. “But nothing was comparable to MRPeasy.”
The software put everything in one place
The implementation started in October 2022 and by the end of December, the new software was live. Although they had limited previous experience with MRP/ ERP software, their engineering mindset helped them figure everything out by themselves.
“We first set up subassemblies and used them to build the final, top-level assembly while also figuring out how to customize these parts,” Rossiter recalls. “Now we can copy a bill of materials from our engineering documentation and simply change the quantities in MRPeasy whenever an order comes in.”
The new system was well-received throughout the operation. While assembly staff needed to track more things than before, the system connected all the departments and made vital data instantly accessible to all the parties.
“MRPeasy put everything in one place, which I think plenty of people appreciate,” Rossiter says. “It allows us to generate reports that are really informative and that we can share across our leadership team. Plus, it makes invoicing much easier as invoices can be automatically populated with the necessary information.”
Efficiency and profitability have increased
In addition to the software’s reporting and invoicing capabilities, Rossiter highlights its forecasting functionality which enables the team to quickly calculate their material requirements and make sure that critical materials would always be available for production.
“We can enter what we need to build and instantly see what we’re going to need for it,” Rossiter says.
Efficiency improvements have also found their way to the shop floor. Recording operation times enables managers to identify bottlenecks in the production process and eliminate them. Finally, MRPeasy’s excellent cost analysis tools help management analyze profitability per job and improve their bottom line.
“The financial analysis capabilities of the software are hugely beneficial,” Rossiter states.
Finally, the traceability provided by the new system helps in identifying root causes of issues.
“Customers receive a product that is easily traceable,” Rossiter says. “Knowing which lot a part came from makes it much easier to fix issues on the rare occasion something comes up.”
To other small manufacturers, Rossiter wholeheartedly recommends checking out MRP software. According to him, collecting and using accurate data regarding the costs, production efficiency, and profitability of the operation is crucial for the success of any company.
To those concerned about costs, he says: “MRPeasy is not a massive investment by any means, we only pay about $2,000 a year for it”.
The content & opinions in this article are the author’s and do not necessarily represent the views of ManufacturingTomorrow
MRPeasy
MRPeasy is a seriously powerful and easy to use ERP software for small manufacturers that gives you everything you need to manage your manufacturing and distribution processes. Integrating sales, procurement, inventory, production, finances, and your team, it provides you with an accurate real-time overview of your operations. MRPeasy is trusted by 1400+ small manufacturers worldwide, 500+ of which are based in the US and Canada. Our users report a 54% average improvement in the overall performance of their business and a 42% increase in on-time deliveries. Try for free, no credit card needed.
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