Case Study Visibility and Control at Vesta…

1. Case Study Visibility and Control at Vesta… Headquartered in Franklin, Wisconsin Manufacture silicone medical tubing, components and devices since 1973 Low and High volumes of production Two manufacturing sites with 275 employees Strict FDA compliance means quality

2. Case Study Visibility and Control at Vesta… 250 to 300 SKU’s 80% repeat orders with 6 weeks lead times Repetitive but prefer Work Order system Order quantities are 10,000 – 200,000 units Wide variety of process steps.

3. Case Study Visibility and Control at Vesta… Using a Lean approach is the perfect remedy for a medical product company

4. Case Study Visibility and Control at Vesta… Parts or Molded or Extruded Heat treated and cut to size Additional secondary operations as needed Such as de-flash and trim

5. Case Study Visibility and Control at Vesta… Dave Poellmann (CFO) been with Vesta since 2000 Large scale expansion forced better… Inventory Control Supplier Management Since storage space and warehousing at a premium

6. Case Study Visibility and Control at Vesta… Also the silicone is highly erratic So accurate and smooth running schedule is central to avoiding loss Plants need visibility at all levels… To see how the actual comes to the projected plan… In other words, make sure we have a realistic production schedule that is tied to the floor

7. Case Study Visibility and Control at Vesta… Plus… Compliance with FDA Regulations - CFR 21 part 11 Recording the who, what, when and where

8. Case Study Visibility and Control at Vesta… Prior to QAD and FACTIVITY… “I think it’s fair to say we didn’t control production, it controlled us.” Bottlenecks happen on the floor and would require constant fire fighting The responses were educated guess with the effect unknown on other orders No time or ability to do “what-if’ scenarios

9. In early 2000 Vesta investigate JDE, SAP, MAPICS and Fourth Shift but… Chose QAD with FACTIVITY… Low Cost and High Integration with QAD… “We looked at several high end MES systems costing many times more but It was clear that FACTIVITY could do everything we wanted and Could integrate very tightly with QAD.” Easy to install and easy to use… “Within a week, people who’d never used a computer before were happily using the FACTIVITY system…”

10. Case Study Visibility and Control at Vesta… Benefits realized immediately… Real-time visibility Accuracy made for better productivity Take the floor information to the people in the shop And together work through, for example, production bottlenecks And discover reasons behind these slow downs.

11. Case Study Visibility and Control at Vesta… Moving from production visibility to PRODUCTION CONTROL… Production schedules were manually entered into Excel Had data errors Orders (small) got pushed back continually or lost

12. Case Study Visibility and Control at Vesta… Chose the FACTIVITY APS Advanced Planning and Scheduling Module… Receives information from QAD (new) and FACTIVITY Realistic build schedule for each day Horizon of 3 – 4 weeks Scheduled monitored against actual production Problems seen real-time Tight synchronicity between planned and actual production

13. Case Study- Benefits Visibility and Control at Vesta… 20% - 25% productivity gain Better material requirements forecasting allows 30% reduction in raw materials stock WIP down by 25% Lead times down from 8 weeks to 6 week.

14. Case Study- Benefits Visibility and Control at Vesta… “To be honest I expected a steep learning curve…What happened was phenomenal…with in weeks people who never used a computer before were happily using the system because the intuitive way FACTIVITY works.”

15. Case Study- Benefits Visibility and Control at Vesta… • WIP down by 25% • 20% - 25% productivity gain • Lead times down from 8 weeks to 6 week • Better material requirements forecasting allows 30% reduction in raw materials stock