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While the Federal Work Opportunity Tax Credit (WOTC) program can deliver significant tax credits to eligible employers, many companies don’t take full advantage of a staggering number of additional tax credits and incentives beyond WOTC that may be available to them at the federal, state and local level. Over the next three weeks, we’ll review some important trends in tax credits in 2019. This week, check out these important employment incentives:

Three Important Incentives

There are federal employment-based programs that companies should pay attention to: The Federal Empowerment Zone Credit, Employer Credit for Paid Family and Medical Leave, and the Federal Indian Employment Credit.

The Employer Credit for Paid Family and Medical Leave tax credit applies to eligible employers that provided paid family and medical leave to their employees, beginning in 2018 and ending in 2019.

As of mid-2018, the Federal Empowerment Zone Credit and the Federal Indian Employment Credit expired, but companies may have the opportunity to claim applicable credits retroactively. At the same time, these types of federal programs are candidates for re-instatement, which speaks to the need for companies to continually monitor legislative changes that may impact tax credits and incentives.

Federal Empowerment Zone Credit (FED EZ)

Empowerment Zones are federally designated urban and rural communities that have high poverty and emigration levels. The FED EZ credit was extended by the Bipartisan Budget Act of 2018 (Pub. L. No. 115-123) to include qualified wages paid to qualified employees through December 31, 2017.

In order to stimulate activity in these areas the government has authorized a tax credit for providing employment to qualified individuals.

  • The credit is 20% of wages (up to $15,000) paid to qualified employees.
  • Maximum credit of $3,000 per employee per year of qualified employment.
  • Employers must account for the WOTC and FED EZ interaction.
  • The credit can be captured retroactively; 1 year carryback and 20 year carry forward.
Federal Indian Employment Credit (FED IEC)

The Indian Employment Credit (IEC) is a federal tax credit offered to employers who conduct business on tribal lands and employ registered native americans and spouses of registered native americans. The FED IEC was extended by the Bipartisan Budget Act of 2018 (Pub. L. No. 115-123) to include qualified wages paid to qualified employees through December 31, 2017.

  • The credit is 20% of wages and health insurance costs (up to $20,000) paid to qualified employees.
  • Maximum credit of $4,000 per employee per year of qualified employment.
  • Employers must account for the WOTC and FED IEC interaction when claiming both credits.
Employer Credit for Paid Family and Medical Leave

The Tax Cuts and Jobs Act of 2017 represents a new opportunity for companies to offset the costs associated with wages paid to employees on family or medical leave.

The Tax Cuts and Jobs Act of 2017 is available to eligible employers who continue to pay wages to qualifying employees during family and medical leave during the 2018 and 2019 tax years.

  • General business tax credit equal to 12.5% of wages paid to qualifying employees during paid family and medical leave if the rate of payment for leave is not less than 50% of the wages normally paid to an employee.
  • The credit is increased by 0.25 percentage points (but not above 25%) for each percentage point by which the rate of payment exceeds 50%.
  • The maximum amount of leave allowed to be taken into account for any employee for purposes of this tax credit is 12 weeks.

Dana Fox is the Vice President of Alliances with ADP. ADP has over 40 years of tax credit experience across national, state and local levels, ADP has helped its clients capture over $1 billion in tax credits in a single year. To learn more, visit  https://www.adpinfo.com/rd-tax-credit.

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Headquartered in Vermillion, SD, Masaba, Inc. manufactures a wide range of industrial material handling and conveying equipment for companies in the mining, aggregate, agricultural, industrial, power plant, pulp and paper, wood chips, and other industries.

The company’s unique skillsets include specialty machine design, engineering services, and in-field support, allowing them to create make-to-stock, make-to-order, and custom-design projects to suit each customer’s specific needs.

When Purchasing Manager Justin Sievers first joined Masaba, Global Shop Solutions ERP software was already in place. However, it was being woefully underused due to resistance from employees and a lack of support from senior management.

We’re now using Global Shop Solutions for everything from sourcing and inventory management through production and shipping/receiving. Everyone is on board with using the software, and we’re starting to see the results management expected when they purchased it.

Justin Sievers, Purchasing Manager at Masaba, Inc.
$400K Reduction In Inventory Levels

One of the first areas Sievers tackled was inventory management, starting with switching from purchasing raw materials to the job to purchasing directly to inventory.

When materials were purchased to the job, they didn’t get accounted for in inventory. As a result, managers often didn’t know the part number or what they had in stock at the moment, which often inflated project costs. Now, Sievers operates with a first-in, first-out inventory system, completely managed within Global Shop Solutions ERP software, that has greatly reduced Masaba’s purchasing requirements, inventory stock levels and carrying costs.

The result: a $400,000 reduction in inventory levels and the ability to more accurately forecast on-hand requirements and hold inventory based on predicted usages.

Better Inventory = Better Job Costing

Tightening inventory management has led to more accurate job costing for Masaba. Previously, material costs were calculated using an Excel spreadsheet with many different people manually entering data. Now that purchased items are automatically received into stock at the current price and then issued to the project, managers know the real costs of components and consumables for each job.

Tracking direct labor costs has also improved by leaps and bounds. Instead of hand-written time cards, operators now log into the system by scanning their badges into the Shop Floor Data Collection screens of the shop floor.

Building Huge BOMs in Less Time

Masaba projects often require a bill of materials (BOM) containing upwards of 12,000 individual components. To simplify this previously manual process, Masaba uses a custom interface to build their BOMs and import them into Global Shop Solutions ERP software, saving hours of manual data entry.

The ability to create custom Crystal reports in Global Shop Solutions helps provide a check-and-balance process when building these huge BOMs. The report runs a list of the components that need to be purchased for large projects, based on the BOM requirements indicated in the custom interface. Managers then compare the report to the BOM and the work order in Global Shop Solutions to ensure the accuracy of the information.

Download Masaba’s case study to learn all the other ways ERP software has improved their business and the ROI they received from it.

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Walnut Creek Planing (WCP) is a leading manufacturer of hardwood parts and components. From its 80,000 square foot facility in the rolling hills of Holmes County, OH, WCP provides high-quality hardwood components and finished goods for the door, stair, furniture, and butcher block industries.

The sophisticated tools in WCP’s facilities allow them to control the manufacturing process from forest to final product. This enables them to cut costs and operate more efficiently while ensuring that every product has the highest level of quality and craftsmanship. But WCP also uses another state-of-the-art tool to control workflow, cut costs and simplify the business – Global Shop Solutions ERP software.

Improved Shop Floor Visibility

Implementing Global Shop Solutions ERP software produced several immediate benefits for WCP, including reduced inventory costs and the ability to track jobs at every point in the production process. In particular, the Advanced Planning and Scheduling (APS) application helped to simplify scheduling by allowing the dispatch list to be automatically deployed – a huge time saver for workstations running many different jobs every day.

APS lets us schedule every job down to the exact minute. With their workflow automatically organized, the team leader at each workcenter simply selects the job off the top of the dispatch list. This makes it easy to identify which jobs have the highest priority, and the team leader just goes down the list in order.

Chad Wengerd, Information Technology Manager at Walnut Creek Planing
Robust Manufacturing Inventory and Sales Tracking Capabilities

One of the best features of Global Shop Solutions ERP software is that it gives manufacturing companies the ability to track data in ways they always wanted to but were unable to do with their old systems. For WCP, this includes the ability to accurately track sales order history, customer quotes, and other key data.

In addition, Global Shop Solutions’ live inventory tracking has significantly simplified the movement of parts and materials throughout the busy warehouse.

“We used to have difficulty keeping track of where inventory was stored, especially in the middle of a demanding manufacturing process,” says Wengerd. “Our forklift drivers would go to pull a particular part only to find that it had already been used or moved to another location. This meant they had to spend time tracking it down in the warehouse or finding a material substitution that was not filling another requirement.”

Paperless Shop Floor

With the help of 18 Shop Floor Data Collection stations and GS Mobile, WCP has gone totally paperless on the shop floor.

The Shop Floor Data Collection stations allow operators to electronically log on and off jobs, which eliminates written time sheets. They automatically deliver work orders, routers and dispatch lists to each workstation. They provide critical job information by automatically linking drawings, job specs, and other documents through the Document Control application.

Customizable ERP Software

As head of IT, Wengerd appreciates Global Shop Solutions’ robust database architecture and reliable performance. He also likes the fact that it can be easily customized to fit WCP’s operating environment. Using the Global Application Builder (GAB), Wengerd has created a number of custom scripts and programs to make small manual processes more efficient.

With some assistance from a Global Shop Solutions ERP Consultant, Wengerd created a wireless ticket script. When team leaders on the floor clock in on an order, the system gives them an opportunity to create a pick ticket for the material on that order. If they choose to create a pick ticket, it identifies the amount of material they will need, which workcenter is requiring the material, and where it is stored in inventory in the warehouse. The operator identifies the forklift responsible for their workcenter, hits the print button, and prints the ticket to the wireless label printer on that forklift. The forklift driver instantly has the ticket in hand, and can pull and deliver the material to the workstation in a matter of minutes.

“I can’t tell you how much the wireless pick ticket has streamlined our workflow,” says Wengerd. “It was a real home run for us!”

A Powerful Competitive Tool

At WCP, enthusiasm for Global Shop Solutions ERP software extends beyond the shop floor and into the administrative offices, where the Customer Relationship Management (CRM) application is a big hit with office personnel.

When a customer calls in, customer service reps can access the customer’s entire company information -including contact information, sales order history, work order history, and open work orders – with only a few keystrokes. They can instantly let customers know the status of their order(s), including up-to-the-minute estimates for completion and shipping.

Read Walnut Creek Planing’s case study to learn more about ERP software made a difference in their business.

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Becker Electronics, Inc. is an electronics manufacturer, specializing in custom cable assemblies, harnesses, and mechanical assembly services headquartered in Ronkonkoma, NY. They wanted to improve their on-time delivery, simplify their manufacturing scheduling capabilities and drive down labor costs.

Until recently, Becker Electronics managed production with an outdated ERP system that did not allow the company to maintain an organized and coherent production schedule. After a lengthy research process that involved close scrutiny of several different ERP vendors, senior management decided to upgrade to Global Shop Solutions.

We selected Global Shop Solutions for several reasons. The price fit our budget, and we liked the fact that we got a complete system rather than having to buy different applications and cobble them together.

David Sosnow, President of Becker Electronics, Inc.
Simplifying Manufacturing Scheduling

Sosnow’s first priority involved revamping the production scheduling process. To improve scheduling, Becker Electronics uses the powerful Advanced Planning and Scheduling (APS) application.

Planners use the reports available in APS to drive the scheduling process. The reports identify how much time is available for each workcenter and when jobs are due by the day, week and month. Instead of using an “up next” approach, schedulers use the data to determine when and where to schedule jobs. They also use APS to assign priority codes to each job, and create location and material flow codes that make it easier to track workflow through the shop floor.

“Prior to implementing Global Shop Solutions, we used to run behind schedule on almost every job,” says Sosnow. “Now we almost never fall behind. And if we do, we can look in APS and it will tell us why.”

50% Increase in On-Time Delivery

Thanks to Global Shop Solutions ERP software, Becker Electronics’ on-time delivery rate has nearly doubled – from an average of 50% to a consistent 99%. Sosnow attributes the remarkable increase to two key factors – the improvement in scheduling and production processes and the visibility of data throughout the system.

When he’s not managing production, Sosnow uses the software to keep tabs on the financial side of the business. Using the general ledger in the Financial application, he easily monitors cash flow, accounts payable and receivable, loan balances, and other key financial indicators.

Global Shop Solutions includes a complete accounting system that provides accurate data in real time. Having all the information at my fingertips makes closing the books at the end of the month a snap. I hit a couple of buttons and it’s done!

David Sosnow, President of Becker Electronics, Inc.
Hitting a Home Run with Production Control

Global Shop Solutions ERP software is even helping Becker Electronics reduce excess paper. The company recently added 28 Shop Floor Data Collection stations on the shop floor. As a result, production workers can now electronically access drawings, work instructions, and other job-related documents right at their workstations – saving time and eliminating the need for paper in many processes.

“The software has turned out to be everything we hoped it would be and more,” says Sosnow, “but we’ve only scratched the surface of all it can do. We know we can gain a lot more efficiencies by using more of the system. And we know the product and the company is large enough to grow with us. I predict it will be a long time before we hit any limits within the software.”

Download Becker Electronics’ case study to learn all the ways that ERP software made their business more efficient.

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Build it and they will come, it’s been said. Building an ERP strategy will bring together your teams on a level playing field with the knowledge and information to implement, use and succeed with enterprise resource planning (ERP) software. Before we can show you how to build one, we first need to define it.

What is an ERP Strategy?

An ERP strategy is the guide that manufacturing companies follow to influence and shape the implementation, application, and use of ERP software. The successful implementation of ERP software is the result of a calculated and well-planned ERP strategy.

As the manufacturing world modernizes, more and more companies are taking the plunge and making an investment in ERP software.

Manufacturers need software and technology to stay ahead of the curve, but choosing to implement an ERP software is not a decision that is made lightly. Even if organizations have achieved success and things are going well, there is always room to improve and create processes that are more efficient. ERP software is designed to take a deeper look into a company’s business processes and identify areas where improvements can be made. This is the value of ERP software.

A successful ERP implementation includes three important factors:
  • The right ERP software that fits your company’s needs
  • The participation and engagement of your company’s people
  • And processes that will minimize challenges and make for a smooth implementation
Key factors for a successful ERP strategy

Couple that with a well thought out ERP strategy, and you’re primed to begin your journey into simplified manufacturing. So exactly how do you create an ERP strategy that works for your business?

How To Create An ERP Strategy

Learn the 6 steps on creating a successful ERP strategy. We recommend you do these six things prior to or at the start of your ERP software vendor search.

  1. Identify and address IT issues: The IT system currently in place must be able to support the installation of an ERP software that will improve productivity and efficiency and generate more revenue. You will likely need updated hardware installed. Work with your internal IT team or consult with outside IT professionals to identify what you need.
  2. Set a budget: An ERP implementation often includes upfront costs to deliver positive results, and it is not uncommon for an ERP implementation to exceed initial budgets. It is wise for companies to earmark appropriate funds to support the entire implementation, including a contingency budget should any costs overrun.
  3. Plan for integration challenges: If you have a legacy software programs you use such as Nesting or CAD software, there might be times when the new ERP system won’t be able to effectively communicate. You will need to adjust business processes or get customizable ERP software that will allow the two systems to communicate with one another.
  4. Create a change management plan: ERP software is only as effective as the people engaging with it on a day-to-day basis. Training is an important part of the ERP implementation process and getting staff members to understand how to use and embrace the new platform can be a challenge. Remind them that is a great opportunity and to remain open-minded. A change management plan is needed to reinforce the importance of the software and the need to be able to use it correctly.
  5. Conduct a risk assessment: ERP software has a huge value. However, there is still potential for things to go wrong during implementation. Decision-makers should identify any areas where snags might occur and address them before the installation begins. Plan to be proactive rather than reactive.
  6. Outline an ERP roadmap: Before you commit to an ERP vendor, it’s a good idea to outline a roadmap to ensure a smooth implementation. Define clear roles and responsibilities, define a set of objectives, identify milestones, and determine if you have sufficient resources. Use the below chart of critical success factors to help you build your roadmap.
Critical Success Factors: every ERP strategy needs a roadmap.

ERP software can take your manufacturing from good to great. But it begins with building an ERP strategy. To learn more about how ERP software can benefit your business or to read stories of others’ successes, download one of our many manufacturing whitepapers or case studies.

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Corilam Fabricating Co., Inc. manufactures wood furniture products for education and healthcare facilities. With a growing necessity for an all-inclusive ERP system, Corilam looked at a variety of software options until they found Global Shop Solutions.

According to Brad Robins, the President of Corilam Fabricating Company, it was quickly apparent during the demo of Global Shop Solutions that it was exactly what they were looking for.

The demo of the software specifically addressed the business organizational challenges we were having, and how we could use the Global Shop Solutions system to overcome them. Since the day we implemented, it’s given us the ability to see everything that’s going on in the company.

Brad Robins, President of Corilam Fabricating Company
Maximum Shop Floor Control

In manufacturing, there are two perspectives from which to view the market landscape – the long view of sales orders and supply chains, and the nearer view with job costing and production management. For operations such as Corilam, dealing with both seasonal influxes and just-in-time material management, the melding of long and short views are needed in order to facilitate the day-to-day functions of lean cell production techniques.

Corilam uses Shop Floor Data Collection on their shop floor for the efficient management of both direct and indirect costs. In fact, Corilam takes advantage of every aspect of Global Shop Solutions functionality to keep maximum control of their shop floor. It’s a notion appreciated by Robins and the rest of the Corilam management every day.

Peak Efficiency at All Times

Corilam is able to achieve the sort of efficiencies that contribute to increasing profitability for their products. Along with orders placed from their product catalog, Corilam also produces custom parts and assemblies through a variety of job types. The rapid flexibility of functionality is, perhaps, the greatest attribute Global Shop Solutions brings to the Corilam operation.

In terms of cost accounting, Global Shop Solutions ERP software gives Corilam a framework to review everything and to better understand their cost structure. To purchase to both inventory and to the job, and with the variety of product types they deal with every day, they use Global Shop Solutions to easily track all of their orders through a single system.

Corilam uses the ERP software in alliance with 3D design and CAD programs to design products. In addition, they’re capable of producing short-run and one-off projects, all the while working with shorter lead times and rapid turnarounds. This requires a strong scheduling and purchasing system, such as Global Shop Solutions, that can reliably gather and assess shop-wide, real-time data.

Building the Better Product

Corilam depends on Global Shop Solutions for the foundation of their production control – both on the shop floor and in the front office. Daily balancing enhances cost-effectiveness, and the complete Global Shop Solutions package is used for front office management. Order entry, payroll, and other administrative tasks are handled more efficiently using Global Shop Solutions ERP software.

According to Robins, Corilam uses “every aspect of Global Shop Solutions for the front office, with the result that our staff size has held constant while we’ve grown over the years in using the software. We’re able to do more business with the same amount of staff, and that’s been a big help and bottom line improvement for us.”

Download Corilam’s full case study to learn all the ways that ERP software made their business more efficient.

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Why do we read the latest industry articles? Why do we trust industry statistics? Why do we consume the news?

Because we have a thirst. That thirst could be to confirm what we’re already thinking. It could be to be ‘in the know.’ It could be to learn. Or it could be one of a hundred other reasons.

If you’ve ever asked yourself “why do manufacturers need software and technology” – we’ve got 10 reasons for you that thousands of our customers have identified as their ‘why.’

These reasons push them to use ERP software to modernize their shop and master their manufacturing.

  • To move parts through the shop faster
  • To be able to schedule and deliver on time
  • To achieve 99% quality ratings
  • To grow their sales
  • To intimately know job costs
  • To maintain accurate inventory
  • To control their labor costs
  • To continually give great customer service
  • To gain a competitive edge and easy customization
  • To have all their company data in one system; always accurate

We know one, if not more, of these reasons struck you as a reason why you need to take another look at ERP software. Read the 10 Reasons Manufacturers Need Software & Technology whitepaper to find out exactly how our customers enjoy 100% increases in efficiency, quality or sales.

Then reach out to our team – we can give you the tools to help you master your reasons why.

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It takes a lot of expertise and know-how to keep U.S. military airplanes up and running, and Thomas Instrument has been providing both for more than 30 years. Thomas Instrument provides engineering, manufacturing, and repair/overhaul services to the U.S. Department of Defense.

Saving Time with Auto Move Tickets

In the air defense industry, on-time delivery is critical. But with 300 to 400 assembly and component work orders on Thomas Instrument’s shop floor at any given time, jobs can sometimes get out of sequence, causing unnecessary delays. Global Shop Solutions ERP software helped to reduce these errors by simplifying the move ticket process and ensuring that jobs in progress go to the correct sequence after completion at each workstation.

Within Thomas Instruments ERP software, the process is mostly automated. All the Shop Floor Data Collection stations on the shop floor are equipped with a move ticket printer. When a machinist logs out of a sequence, Shop Floor Data Collection automatically prints a move ticket and electronically sends a duplicate copy to production control. The machinist takes the move ticket from the printer and attaches it to the pallet. Production control uses its copy to locate the parts and move them to the next sequence in the workflow.

“With Global Shop Solutions, move tickets are faster and more accurate than the traditional barcoded work order,” says Mike Slamen, IT Manager for Thomas Instrument

Seamless Integration with Other Programs

In every business, managers like to see the data a certain way. At Thomas Instrument, Global Shop Solutions’ ability to seamlessly integrate with other programs – such as Excel and Crystal reports – allows managers to see
the data exactly how they want it. This includes creating a number of custom Dashboards that provide high-level overviews of each department.

“The shop manufacturing dashboard provides a detailed look at the whole shop floor. We can see detailed information from the work orders, where they’re at, and where problems might be occurring. One of the real benefits of Global Shop Solutions is its ability to work with other programs. We create the Dashboards in Excel, connected directly to the database.”

Mike Slamen, IT Manager for Thomas Instrument
Precise Capture of Labor Time

When machinists finish running the first part in a batch, the part must go to quality control for inspection – a process that can take up to two hours. Once the part is approved, machinists can finish the rest of their parts. During the inspection, however, they remain logged into the job, which doesn’t accurately reflect the amount of time it takes to run the parts.

To address this issue, Thomas Instrument created a Visual Basic “FA Login” program. Machinists log into the program to select their name and sequence from the list. From that point, the inspection time gets charged to
quality control rather than the machinists. When QC finishes the inspection, the time tracking reverts back to the technicians as they finish making the rest of the parts.

“We also created a custom Crystal Report that continuously tracks the inspection process on a large TV screen so everyone can see it,” says Slamen.

Managing Change Orders with Advanced Planning & Scheduling

The robust Advanced Planning & Scheduling (APS) application has dramatically improved scheduling efficiency and workflow through the shop floor. In particular, switching from infinite to finite scheduling has helped Thomas Instrument reduce the manual effort required to move work orders around.

Government contractors like Thomas Instrument depend on their ability to submit competitive bids to win their contracts. Global Shop Solutions helps with this process in several different ways:

  • helping to keep costs down;
  • providing accurate historical information on previous jobs to help with estimating and quoting;
  • and of course, helping to get the product out the door on time by simplifying the production process.

Download Thomas Instrument’s full case study to see all the ways that ERP software has helped them improve their business.

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Tilo Industries is a family-owned business located in Lewisburg, Pennsylvania. Tilo creates natural hardwood architectural millwork, mouldings, furniture, and cabinet components for home builders, contractors, and other manufacturers.

During its early years, Tilo used separate accounting and database software programs to manage the business. However, as the company grew, it quickly outstripped the capabilities of its patchwork system. Upon the recommendation of a customer, Tilo arranged demos of ERP software and quickly choose Global Shop Solutions. And the impact to their business was immediate.

32% Increase in Shop Floor Efficiency

Tilo uses many different species of wood of varying thicknesses and lengths to make their parts. The ability to group raw materials using op codes in Global Shop Solutions had an immediate and significant impact on Tilo’s shop floor efficiencies. Rather than cutting the wood individually for each job, saw operators use the op codes to group jobs that use woods of the same species, thickness, and length. They bring in a pack of lumber, cut all the orders that require that raw specific material, and then use move tickets to assign them to the appropriate jobs. They use the same process when milling like-profile pieces through the molder.

And in the increased predictability of scheduling available through Global Shop Solutions, Tim Yoder, Owner of Tilo Industries, estimates a 32% improvement in shop floor efficiency.

“Prior to implementing the software, scheduling was all done on paper, requiring us to manually sort through all the jobs and due dates and try to pull it all together. Now that we do flex scheduling with everything driven by due dates in the system, our workflow has dramatically improved.”

Tim Yoder, Owner of Tilo Industries
Precision Job Costing – On Every Job

With Tilo’s old system, job costing tended to be a hit-or-miss process, with workers usually clocking in just for the day rather than logging on or off jobs. As a result, supervisors struggled to calculate overhead and labor costs for each job. Using Global Shop Solutions to accurately capture operational time and material usage on jobs and sequences has significantly improved costing accuracy.

Near Perfect On-Time Delivery

The ability to track every job step by step – in real time – has enabled Tilo to improve on-time delivery from a pedestrian 75% to the current high of 98%.

As long as the job information is properly entered into the system, Global Shop Solutions provides the visibility of data needed to keep jobs on track.

“Every job has time and materials estimates,” explains Tilo Industries’ Plant Operations Manager, Linus Yoder. “As we enter new jobs into the system, we can see ahead of time if we will encounter any constraints, overbook any workcenters, or do anything else that might cause a job to be late.”

Poised for Robust Growth

Growing a business requires accurate, trustworthy data that leads to intelligent business decisions. Tim gathers data from the Business Intelligence application to make decisions that impact the long-term growth of the business.

Armed with this data, management can now discern what type of customers and market segments are driving Tilo’s growth, allowing them to position the company to focus on value-added rather than commodity markets.

Download the full case study to read about all the ways that Tilo Industries has improved their business with ERP software.

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Frederick’s Machine and Tool is a second-generation, family-owned business that manufactures and repairs a variety of parts for the oil and gas industry.  Founded in 1965, Frederick’s Machine operates four separate divisions – job shop, sub-sea machining and fabrication, waterjet cutting, and wireline tools. 

Headquartered in New Iberia, Louisiana, Frederick’s Machine makes everything from packer parts and downhole tools to hydraulic cylinders and shafts. The sub-sea division specializes in pipe clamps, mud mat assemblies, tanks, baskets, and other below-water drilling parts.

When Controller Ovide Mercure joined Frederick’s Machine several years ago, the company was already using Global Shop Solutions ERP software, but only to create work orders and process inventory. Recognizing the system’s unutilized potential, he brought in a senior Global Shop Solutions consultant for several weeks of on-site training. Since then, Frederick’s Machine has evolved into a lean, efficient manufacturer with complete visibility of data throughout the business.

“To say that Global Shop Solutions transformed our company would be an understatement. Going from a clunky DOS-based program to a fully integrated system with accurate accounting, time management, job costing, quoting, scheduling, inventory management and all the rest changed the way we do just about everything on and off the shop floor.”


Daniel Dore, Co-Owner of Frederick’s Machine and Tool
Getting the True Cost of Every Job

After the onsite training, Mercure installed barcode stations and scanners on the shop floor to capture labor time more accurately. This enabled the company to eliminate their manual time cards by having operators electronically log into workcenters. For the first time, managers could see exactly how much time people had on each job and whether the quote aligned with actual performance.

WIPing Inventory Into Shape

Previously, Frederick’s Machine managed all inventories by hand, using various spreadsheets. When people took material out of inventory, they relayed the information by word of mouth, and the material was removed from the appropriate spreadsheet.

“The spreadsheets were always tough to keep up to date,” Mercure recalls. “People would forget to mark down what they took out of the yard, so we were always chasing down shortages. Now we issue material directly to the work order, which automatically keeps us up to date. We also use Global Shop Solutions to assign WIP numbers, which makes it easy to manage finished goods inventory. Between the WIP report and issuing material directly to the job, I know we have accurate inventory counts.”

From Darkness Into Light

Ask Mercure to identify where Global Shop Solutions has made the biggest difference and he ticks off a long list of improvements:

  • Knowing the exact cost for every part as soon as it’s finished.
  • Accurately computing WIP to ensure inventory accuracy.
  • The ability to track jobs in real time from anywhere in the plant.
  • Electronic processing of engineering change requests for improved quality.

“I like to say that we used to be in the dark ages, and Global Shop Solutions brought us into the light,” says Mercure, “In my estimation, it offers the best value in ERP systems on the market.”

Download the full case study to discover all the ways that ERP software has helped Frederick’s Machine improve their business.

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