"Case Study: Best Foam Fabricators"

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"What sets Global Shop Solutions apart from all other ERP software systems? Global Shop also offers a unique 16-point "Checklist for Success" to ensure that you receive the maximum return on your investment."
Source: Global Shop Solutions

Resources Related to Case Study: Best Foam Fabricators:

• Enterprise Resource Planning (ERP) (Wikipedia)

Case Study: Best Foam Fabricators

Simplicity in Action with Global Shop ERP

When Keith Hasty and his wife, Diane, graduated from college 27 years ago, they joined with other family members in starting Best Foam Fabricators. As a family affair, their simple hope was to have a small slice of the American pie, something that would support and sustain them over the years. Little did they know back then that nearly three decades later, Best Foam would grow into being a major parts supplier for the Detroit auto industry. Today, in their plant on the South Side of Chicago, just across from Chicago State University, the Hasty's oversee a foam fabrication operation that now includes two additional out-of-state satellite facilities. Another thing that has changed over the years is the way Best Foam takes care of their business operations. What once was, by their own accounts, a small business that was running at less than peak efficiency is now an ultra-lean manufacturing operation that is increasingly reducing costs. The key to this success? Global Shop Solutions enterprise resource planning(ERP) software.

"We have three locations now and we will be adding a forth location, and we see that with this number of remote locations the need for control becomes more and more important. A system that will allow us to control both the inventories and labor usage is critical for us, and will especially be so in the future. We see our relationship with Global Shop as an integral part of that plan," states Keith Hasty. Since their acquisition and implementation of Global Shop software in 2002, Best Foam has experienced the fortunes of having their business grow while their costs-both direct and indirect-have gone down. "Global Shop has made us a better company overall," Hasty adds, "It is a primary reason that we are who we are today."

Best Foam Fabricators President Keith Hasty shows finished foam insulation products destined for use in automobiles. For Hasty, on-time delivery to their customers in the automotive industries is paramount- both in terms of customer relations and in terms of profit. Global Shop's One-System ERP Solutions™ helps Best Foam Fabricators consistently meet these all-important delivery due-dates, as well as customer expectations of quality.

"Our on-time delivery has improved from the mid- 80's to 99%, and this is the rate that our customers really demand. This year we spent about $500 in expedited freight, while before Global Shop, we might have been spending $40,000 or $50,000 per year on expedited freight."
Keith Hasty
President Best Foam Fabricators

On-Time Delivery Demands Leave No Margin for Error

Being a vendor/supplier for the automotive industry requires a keen sense of time and timing. Because of the number of parts inherent in vehicles, and the strict production scheduling necessary for assembly, automotive customers require very narrow windows of delivery dates.

"When the customer truck arrives on your dock on the expected due date, your parts products had better be waiting there for loading. Otherwise, it will be up to you, and at your expense, to ensure the parts arrive in Detroit or any number of various subassembly plants before their expected need date. Otherwise, it is certain you will lose the customer very quickly," Hasty explains. For Best Foam, additional expedited shipping expenses due to missed delivery dates was something that was considered the cost of doing business, but still a substantial cost nonetheless.

"Getting our company on track in terms of on-time deliveries has been the greatest benefit of acquiring Global Shop," Hasty insists. "Our on-time delivery has improved from the mid-80's to 99%, and this is the rate that our customers really demand. This year we spent about $500 in expedited freight, while before Global Shop, we might have been spending $40,000 or $50,000 per year on expedited freight. For us, this is a substantial cost reduction through the use of Global Shop. Clearly, the big change has been in our ability to see problems in advance through Global Shop and not waiting until the last minute to see that we're going to miss a due date and then have to foot the shipping ourselves."

Advanced planning and scheduling, as well as the auto purchasing features of Global Shop, are the primary reasons for the on-time delivery performance turnaround at Best Foam. This is particularly true when it comes to receiving unique parts from their own vendors. According to Diane Hasty, vice president of finance and comptroller of Best Foam, " Some of our components are specialty foam items and our suppliers sometimes only run them every six weeks or so-they're not part of their normal run. So if we miss placing our purchase order for one of these specialty parts, it could be a very big problem. The Global Shop Auto Purchasing system is a great help in not allowing us to make this sort of oversight in materials inventory."

Reduced Labor Costs

Another cost reduction benefit Best Foam has found in using Global Shop has been in the area of labor costs. Through the lean efficiencies offered by the real-time integration of system-wide data, Global Shop is able to reduce labor overhead through both cost accounting of each job performance, as well as the front office administration of functions such as payroll and purchasing. According to Keith Hasty, "We had three times as many employees in our Chicago facility as we do now before we installed the Global Shop system. With Global Shop, we've been able to re-engineer our labor tasking and, therefore, our labor costs. In other words, we've been able to streamline our operations-Global Shop, in the engineering area, has made us focus on processes. We're looking at the processes, making sure we understand where the excess labor was in a job, and in this, Global Shop has eliminated a lot of that excess labor."

Once Best Foam is able to eliminate excess labor, they can then go back through the tracking in Global Shop to see the profitability of a job. In these reviews, crucial decisions are made with regards to the bottom line. Often, it will be apparent that labor costs cannot be reduced enough to make certain jobs profitable, and so these jobs are considered for elimination. "Before Global Shop, we didn't have a good handle on knowing, first, what the labor should be, and second, what our labor costs actually were," adds Keith Hasty.

Diane Hasty agrees, observing that, "With Global Shop we've been able to get our various processes organized and run in different matters with our engineering BOM's. We've been able to reduce our labor from about 150 people before Global Shop to about 110 people today in the plant after the installation of Global Shop."

Labor tasking has been streamlined through Best Foam Fabricators' implementation of Global Shop Solutions robust ERP software. Here, lean shop floor production utilizes computerized precision foam cutting and finished goods packing all in a single-flow system guided by Global Shop Solutions.

"Often, it will be apparent that labor costs cannot be reduced enough to make certain jobs profitable, and so these jobs are considered for elimination.
"Before Global Shop, we didn't have a good handle on knowing, first, what the labor should be, and second, what our labor costs actually were."
Keith Hasty
President Best Foam Fabricators

The Benefits Keep Coming from Global Shop Solutions

Of course, the best ERP software should be, by its very nature and purpose, a flexible and simple to use tool in the manufacturing operation. However, far too many ERP packages prove to be unwieldy in scope and complex in function. This was the situation Best Foam found themselves in with their first ERP software purchase. In time, as the IT administrative and maintenance costs for the software continued to rise, Best Foam started to look around for something better. "The bottom line for us," states Keith Hasty, "was that we were looking for diversity in functions as well as ease of use in an ERP software package. And, after several site visits to other manufacturers using Global Shop, we knew we had found the one that would best fit in with our own production environment. Now we use Global Shop for everything we do-accounting, purchasing,  inventory control, production. And, what really got us going was the jump-start we received with the Global Shop training services."

It is Global Shop's strong belief in quality customer service that is appealing to Best Foam. All too often in today's manufacturing world, customer relationships are something of an after-thought or, even worse, not considered at all-leaving the customer to fend for themselves after the ERP software sale is made. It is simply not so at Global Shop Solutions.

It's the Global Shop People

"The people at Global Shop have been very, very helpful." states Diane Hasty. "And, they're not the kind of people who say 'at five o'clock I'm done.' They've gotten back to us on weekends, in the evening-it doesn't seem to matter. I think this comes from the fact that Global Shop, like Best Foam, is still a family-run business. This is a key difference that we have found between Global Shop and their competitors. The responsiveness of vendors and suppliers is critical in our business, and Global Shop people go way beyond the nine-to-five."

"Global Shop has made us a better company overall," Keith adds, "It is a primary reason that we are who we are today…Global Shop people go beyond the nine-to-five." Keith Hasty
President Best Foam Fabricators

For Keith Hasty, 27 years in business has taught him much about the way customers should be treated. In Global Shop, he sees this treatment in action as responsiveness, follow-through, and the many intangibles that add value to the everyday service they receive. As he concludes, "The people who work for Global Shop-they have been, for us, the best part of Global Shop. Not only do we get excellent software training for the system, but I feel we also received a lot of excellent business training from the consultants who work there. The knowledge base of how you run different parts of the operation from the manufacturing perspective - we would've never gotten that from any other company."

Best Foam Fabricators President Keith Hasty monitors the use of raw materials in production. Global Shop Solutions Auto Purchasing system allows Best Foam to not miss important raw material purchase dates, in turn enhancing their on-time delivery for specialized parts made from hard-to-find specialized materials.