The scale of the challenge becomes apparent when you consider that EGL produces in excess of 1.25 million retail selling units a week, where each unit can range from 1 bath sponge to 20 sponge scourers. This requires a continual flow of 15 to 20 truckloads a day and the utilisation of the most advanced manufacturing machinery in Europe.  "If the scale of production isn't daunting in itself" comments Dearlove, "we are also currently working to targeted service levels in excess of 98.5%."

Before: the requirement...

This very demanding service regime necessitates that the entire production process runs as efficiently as possible. The problems are no different to those faced by many manufacturers:- late delivery of raw materials, human and machine resource planning and scheduling problems, movement of Work in Progress (WIP) through the factory etc. Dearlove points out another very obvious difficulty. "The problem with the majority of our goods is that they are high bulk, low-value products, which can impact disproportionately on any element of storage and distribution."

Other specific problems came hand-in-hand with the increased growth that EGL was experiencing. The higher manufacturing levels put greater strain on the company's IT control systems with key weaknesses such as lack of plant visibility and works order progress becoming increasingly evident. Dearlove doesn't pull his punches when it comes to identifying the reason. "In essence, we were trying to run a manufacturing company with an accounts package. Our system simply wasn't up to our growing need for accurate stock control, replenishment plans, and general workflow planning. It couldn't provide any of the visibility that we needed."

External consultant input confirmed the opinion held by senior management, namely that EGL urgently needed a manufacturing IT solution that would (i) be able to meet the growing challenges of the company's stock control requirements; (ii) provide a Materials Resource Planning (MRP) methodology without any of the superfluous elements of many MRP systems; and (iii) allow a strategic focus on production planning.

...and after: implementation and usage

Dearlove summarises why SSL WinMan was the clear winner: "What impressed us the most was the sheer ease of use of the system. This was essential for us because at the time we had a relatively low level of IT literacy in the company. The Windows format made it something everyone could immediately identify with and feel comfortable with."

The WinMan system provided us with levels of data analysis and visibility of our business processes in a way we hadn't envisaged. Consequently, we had to do a lot of unplanned work simply to collate the data the new system would require. By doing so, however, we were able to streamline a number of the ways we could operate as a company."

The cultural change did prove to be the biggest difficulty when the system went live in February 2002, for the very reasons which had been anticipated. It soon became clear that the system was indeed highlighting inefficiencies across the company. "Fortunately, most people recognised that this actually was a way to help the company as a whole because it truly showed how everyone's actions impacted on everyone else," explains Dearlove. 

For example, prior to WinMan, there was so little trust in the stock figures that even if the system said there were 2 items left in stock, employees would manually spend up to an hour trying to physically locate the actual stock. "With WinMan, people began to take the information at face value which had a considerable impact on their actual fulfilment in doing their job," explains Dearlove. He continues: "This had further benefits because people increasingly began taking responsibility for what they did due to their increased confidence."

Additional benefits

Other benefits have included greater accuracy of data, greater planning and operational visibility on a day-to-day basis, and a much greater efficiency across the entire manufacturing operation. This increase in visibility and efficiency has also helped EGL to become more agile in responding to changing customer requirements. This is because different "what-if" scenarios can be contemplated to determine the best course of action.

Dearlove is adamant about the value that the SSL WinMan system has brought to EGL: "Without it, we would have exploded and simply been unable to expand in the way we have. Furthermore, the system has been a positive selling tool for our customers because we are now able to demonstrate a highly efficient manufacturing control system, and our customers have responded warmly to this."

ROI

With regard to Return on Investment (ROI), Dearlove interestingly states that for EGL: "the real ROI is evident all around us, in everything we do. It's impossible to quantify the difference it's made." Would Dearlove make the same buying decision again? "Definitely, and that's more important than ROI!"

Continued . . .