Crye Onsite Notes part 1

Crye Onsite Notes part 1

Agenda

·        Doing gigantic orders that may require getting production input, but ideally want to get away from having to walk and inquire about what it will take

·        Wanting to take the guesswork out of the question for order entry

·        Want to have the system recommend what the lead times should be based on actuals

·        Project Plan has not been updated in a long time (current discrepancy between Sandbox and Production)

·        Have not been using the Implementation bundle (an update was done and all the items disappeared, so hasn’t been maintained since early on in the project)

·        Internally, they have tried many methods for managing Activities/To-Dos, but had no luck getting traction on a set of tools

·        Upcoming Projects

o   No known new projects are coming down the path

o   Can always assume something will be detracting people’s attention

o   Nobody really knows what the end state is, what their action items – really need to know what needs to be done so people can get behind the vision (end state is cloudy at best)

o   Jon will be tasked with helping to manage this

o   Gregg noted that only about five people outside of the attendee list for the agenda will interact with the system

o   Customer service and sales will be most impacted (half a dozen people who will need to know how to do things like Order Entry)

·        Will need to define responsibilities in systems (inputs, outputs, work done in between)

o   Sounds like it will be roughly 25 people using the system, some with very limited access in NetSuite (e.g. just order entry)

·        Crye team will produce an org chart to spell out who will be doing what

Project Review

·        Scott

o   At the very beginning, things looked quite different than now

o   WFX was a big part of the implementation (PLM)

o   Would be the start of all new product information

o   So strictly focused on apparel, other items didn’t work well

o   Any connection point, could only push data one way, not the other

o   Formatting information was a pain

o   WFX was good at showing what the apparel should look like, but was apparent it was for making the design and sourcing it to China

o   WFX had no concept of a Tech Pack

o   Gerber PLM would work for clothes, but has no concept of dealing with something like a helmet

o   WFX not being a part of it, was quickly apparent there was no way to deal with it

o   Purchased Unipoint was purchased for Quality Management

·        This is the first meeting to talk about how to go live with limited tools

·        Considering going live with basic tools, but need to have a map to get to phase 2, 3, etc.

·        Non-conforming reports, tests that could be done with incoming materials

o   Realized that they can’t even use it for that either

o   Might be useful for record keeping within a certain record set (e.g. shrinkage of fabric)

o   Can’t be used for the entirety for the entire incoming product

o   Might be good for keeping track of training records, etc.

·        Have found that Vinyl may work better as a duplication of their current system

o   They have purchased from them to design one specific function; if that goes well, will purchase the entire platform

o   Function being designed is the material requirement (when you want to specify a fabric/button/etc.; becomes a document with the vendor that they need to perform – basis for the ongoing inspection record)

o   When they find the non-conformance, baseline for the non-conformance report

o   Touches all the right departments with approvals (they had a good baseline system before, tried to replicate/improve that system)

o   Vinyl has evolved even further than what Fuuz has done, will show with Craig tomorrow to see if that will work

o   Important for each function to see what they need for each department

o   Linked into Misys currently to get them out of spreadsheets

·        Team found they had limited bandwidth of their team, then had a breach of their entire network/systems (took a long time to recover from)

·        A big part of the current distraction is a product that they are in the midst of developing (special relationships involved, doesn’t make sense to be developed in their traditional departments)

·        What they intend with the re-engagement is to get Scott out of it, get the department heads more involved in their respective areas (they need to grab the reins for their respective departments)

·        Sage, Misys and their websites will be all disappearing

·        Got screwed up when WFX dropped off, spent a lot of time exploring other systems

·        Subsidiaries

o   Vantage was used for a branch of revenue (firearms) they are no longer doing, but it still pays Crye Precision rent

o   Crye American is Payroll

o   Crye Precision is where the bulk of transactions will take place

·        Locations

o   Will be adding a location for the new build out

o   No concept of locations in Misys today, all run off tribal knowledge

·        Website was one of the largest drivers for switching to NetSuite

o   Was THE biggest driver for re-evaluating systems

·        Only 2% of their inventory is lot tracked

o   Only Ballistic

·        No ITAR compliance (yet)

o   Would be great if they could future proof for it

·        Light Implementation

o   Production Planning (even if it’s just re-order points/minimum order quantities)

§  Outside Manufacturing – will have different revisions for an outside processor than their own in-house production

·        Have a mix of BOMs with outside processing

·        Some where there is no outside processing cost in the BOM, a complete mix

·        Makes standard costing unreliable

·        Yields are for an estimate of a given item, but rather than changing that number constantly, want to feed scrap back in

·        They purchase the labor in their current system today, but never really gets relieved from their books

§  Drop management is an ongoing problem

·        Markers for a given job, will drive yields

·        They come up with good estimates, then they see estimates

·        Would go a very long way if they could maintain multiple revisions

o   Costing will be another big improvement

o   Beth is the number one person to really have improvements

o   Was based off my suggestion to piece this together at a small scale

o   SuiteCommerce is a big win theme

§  Limping along with current websites right now (some investments had to go into it that they were looking to avoid)

o   Need to get off Misys/Sage

§  A lot of functionality of Misys not used

·        BOMs are there, but not even revisions

·        Raw Materials

·        Manufacturing/Work Orders

§  Not using Master scheduling, production planning purposes

·        Didn’t start using them 15 years ago

·        Was never really a thing they did

o   Current Systems

§  Misys

·        Jean is the only person who creates items in any system

·        The handling of work orders – NetSuite looks more cumbersome than what they are doing now

·        Backflushing off pure quantities

·        Lot tracking done, but done manually

§  Gerber/Acumark

·        Onsite, sits on a few machines with a SQL server sitting on the backend

·        Wouldn’t trust it for much of the data (e.g. yields)

§  Process Shipper

·        Horrible system, no longer supported by Sage

§  Fedex Worldship

·        Not used much

§  Avalara

·        Will be used moving forward

§  CAD

·        Solidworks

§  Liquid Planner

§  Quality System

·        NS Quality could be decent for certain things like inline check

§  PDF Designer

·        Adobe tools to create the tech parts/artwork for marketing purposes

§  RingCentral

·        Customer Service keeps notes in a module in Sage

·        Looked at Sage CRM, but bailed on it

·        Customer service truly interested in seeing how they could use NetSuite’s tools for ongoing customer service

§  Sage

·        Expense management done there

·        Will be used for all their financials

·        Credit card reconciliation

·        Financial reporting is virtually non-existent (all put together manually)

·        Connection between Misys and Sage is real time

·        Labor Tracking is an entry against a COGs account, not factored into the production cost at all

·        Item numbers are linked (with sales item, triggered when a work order is completed in Misys)

·        Vendor bills once a receipt is done

·        Sage holds finished goods, Misys is raw materials/WIP

·        They know what is in WIP from a material issue standpoint, but not updated in real time where the inventory is

·        Going to be switching to Bank of America

o   Currently RBC & City National

§  ADP/Timeforce

·        Used for clocking in/out

§  Conlego

·        Credit card processor for the website

§  SiteFinity

·        Website they use

·        No current software/application footprint

·        SuitePeople not a requirement for phase 1, would be nice

o   Have original documents, haven’t filled out any of the requested employee info

o   Ian Augana (Consultant)

o   Janice Preston (PM)

·        SuiteCommerce

o   Cryeprecision.com is up and running in Sandbox, been delayed since December 2020

§  Matt knows he needs to update pricing for them to get this back on track

§  SuiteCommerce team waiting on ERP team solution

·        Current NetSuite Implementation

o   NetSuite CRM is not a big driver for them

§  Management of notes/feedback is more important to them

§  Would need to pare back the statuses/stages as they would never fill it all out

o   Manufacturing Cost Templates are relatively new concept to them

o   Don’t care about logistics costs for outside manufacturing

o   Project management with Stan is fine, don’t get all that much value out of the sessions

§  He has a few questions asked each week, all surface level

§  Has no interest in the nuances as to why they can’t do part numbers with say SuiteCommerce

§  Too generic for their tastes

o   SuiteCommerce

§  Those sessions went really well, helps Crye understand things

§  If they fire off a question, SuiteCommerce is on it

§  Cryeprecision site is up in Sandbox

·        Format of the new site would be about the same, just different products

§  Three sites, could kill the Atlas one if it’s still in there (currently operating on Spotify)

o   WMS

§  Bins has been the big topic of conversation, created an initial map, but has not been set in stone yet

§  May go down the RF Smart path

§  Work order picking was the core drawback, knew it would not work for them

·        Current Partners

o   Pacejet

§  The guy they worked with left, but no known issues, mostly because they haven’t tested orders in the system yet

§  International Shipping Paperwork

·        Don’t have now with Process Shipper, not sure if Pacejet can do the same type of work

·        Process Shipper does so little for them, even from a quoting perspective

·        Have their own pre-negotiated rates for Pacejet

o   Fedex, UPS

o   iPaaS

§  Shopify for a boutique

§  Atlas (is the one standard)

§  Crye Precision will also be a SuiteCommerce site

o   1099.com

§  Have some reps that need to be 1099

§  Curious to know if SuitePeople will cover the 1099 forms??

·        Out

o   Barcoding

o   WMS

o   Budgeting

·        Current Content

o   SuiteCommerce aspect is the biggest improvement

§  Customers can see their history, account info

§  Ongoing maintenance being relieved from them

§  Data entry improvement

o   Implementing basics for planning will be an improvement

§  MRP type asks keep coming up

DEPARTMENT STRUCTURE

·        Product Development (Stefan Rublowsky)

o   INPUTS

§  About 50ish products in development

§  Some are slight improvements, others are disruptive

§  Can be a solicitation (quick turnaround), or others can be their own roadmap

o   TOOLS

§  They work primarily with Gerber/Solidworks/AutoCad/Illustrator/Excel

§  Use MISys to pull part numbers for the Tech Pack

§  Liquid Planner (manages time entry, scenario driven)

o   OUTPUTS

§  They publish Tech Packs

§  Documentation related to product design

§  Some models of things for tooling/process

o   CHALLENGES

§  Tech pack holds the detail of length of cut on an item, but MISys aggregates all the individual pieces into one amount, not breaking out the detail

§  Marketing is not included in Liquid Planner (really only Stefan uses it)

·        Manufacturing Engineering (Sean Flaherty)

o   INPUTS

§  They define how things are made

§  Product Development provides Tech Pack

§  Production provides input on improvements from a Production perspective

o   TOOLS

§  Excel, some MISys to understand BOMs, but no data entry (would enter routers)

o   OUTPUTS

§  Routing Steps

·        No real data to drive the data (timings were not trustworthy, minimum stock quantities are incorrect)

§  Time studies are conducted for sample run for new products (what is used for cost and scheduling)

§  Items for various sizes and colors

o   CHALLENGES

§  Tech pack doesn’t fully specify all the items/sizes

§  Need to identify best tool to define steps for sample making, time study, shop floor layout, resource management (not currently tracked against after creation)

·        PRODUCTION (Peter Freire)

o   Jean reports to Peter, only person to develop items in any system

o   INPUTS

§  Time Studies from Manufacturing Engineering

§  Tech Pack from Production Development

§  Incoming Purchase Orders

§  New Item Requests from Production Development

§  Sales Orders/Quotes (presumed Sales Orders)

o   TOOLS

§  MISys (largely Peter and Jean, John and Doug also doing data entry)

§  Sage – all the sales stuff that drives making orders

o   OUTPUTS

§  Work Orders

·        Transfers to Sales

§  Mostly tribal knowledge (drop physical material)

§  MISys – update that a move occurred (Anthony or Jose, primarily Jose)

§  Item Numbers (raw materials and finished goods)

§  BOM outputs (revisions)

§  Supply Planning

o   CHALLENGES

§  New Jersey isn’t technically a sales location, but can’t complete the Transfer to Sales until after the Transfer happens

§  Some items are not sold, but are sub-assemblies (don’t get triggered on the To Sales button) – there is a status to show that material is reserved before it goes into WIP (affects Jean’s view of availability of materials); once a work order is reserved, the stock is removed from stock and put into reserve

§  Items get put into reserve as soon as the work order is created

§  Have times where the customer will provide just one line item of a specific size, then an actual order will come later breaking out the actual sizes needed

§  If you took out weird stuff and big contracts, would be huge to have a lead time determined based off historical output

o   NOTES

§  Does the production schedule once per week

§  If he sees something happens, will be proactive in planning/scheduling to prevent sales having to ping him for things they don’t have goods for

§  Plans out 32 weeks

§  Actual orders and quotes (anything forecasting is based off Sales History)

·        Big dimension is looking at past 9 months at G3 combat pant

·        Sometimes the numbers are not correct because of one large order that happened over that time horizon

§  Just requests Purchase Orders

§  Spends a lot of time updating work orders

§  Will make work orders to reserve time but won’t commit to WIP (would reserve materials for that work order)

§  Once work order goes to WIP, then he will check to see if the items have been received and cut

§  Will then work on the reconciling any loss of material that prevents the work order from being completed

§  Very controlled now based on his current process

o   In house/OM

§  Newer items will be manufactured in house

§  Labor costs determine it as well

§  Overall, the picture of how densely they are booked will determine if they outsource

§  First option is to build in house, but Peter will call his OMs to see if they can do it faster

§  Talks to the OMs every day (goes to OMs every day)

§  Jumps between facilities constantly

§  Peter does all the updating in the systems on the spot

§  Does not change the complete date on the work order

§  Probably 32 POs at 15/20 line items per PO, updated every single week

§  Ideally would like to have a planned date versus the actual completion date

o   NUMBERS

§  150 work orders being managed on any given day

·        Almost like a PO – their work orders can have multiple items on the same work order

§  A work order is going to have multiple line items

§  Style and color are primary ways of grouping items into a work order

§  They do this because they can all be cut at the same time, but they will be physically completed products at different times

§  Line items have their own expected completion dates (usually a week earlier than they have told Sales)

§  Has the OM working off the PO completed date, factors in two weeks of lead time

§  Does not currently have to toggle between BOM Revisions for items if they are going outsourced (they definitely would want to)

o   WORK ORDERS

§  Does not tie work orders to sales orders (currently don’t have a way of doing it)

§  Outsourced Manufacturing – consistent pricing, but different by item

·        SALES AND CUSTOMER SERVICE (Beth Rodriquez)

o   Lifetime Warranty

o   Beth is the gatekeeper (also heads up the warehouse)

§  Have people that report to Gregg that are largely remote, primarily just interfacing at the quote level (rely heavily on Beth to make things right)

§  Also works with accounting to make sure accounts are setup correctly

o   INPUTS

§  Sales Reps (quotes), e-Commerce (sales) – spends a lot of time tracking down lead times for either

§  Customer Returns

§  Customer Service Requests

o   TOOLS

§  Sage (Quotes/Sales Orders); record some notes on the quotes, but little else

§  Process Shipper (shipping)

§  Fedex Tool (shipping)

§  Sales Inquiry (Report)

§  Shared Google docs (customer service/shipping)

§  Phone (customers)

§  Email (internal communications)

o   OUTPUTS

§  Documentation for Outbound

§  Sales Orders

§  Quotes

§  RMAs

o   CHALLENGES

§  Beth wears a lot of hats, has to keep things flowing for warehouse, web sales, user rep sales

§  Manual nature of all the updating

§  Triage of order fulfillment is brutal

§  Weight/Box Type all have to be entered manually

o   NOTES

§  Manual nature for things even like web orders

§  Some parts are synced for the orders

§  Rest of the process steps, ship dates, etc. is all manual

§  Efficiency and consistency

§  Not a lot of it is reportable

§  Documents that are manually populating

§  Generally dealing with customer inquiry (general – what do you make, how to get it)

§  Quote process requires manually entering an account to classify them

§  What type of pricing do they get

§  Some quotes may get converted to an order, others do not

o   What they like

§  They can see what they have on order versus what they are making

§  Curious to know how ship dates are assigned

§  Ops Inquiry - any direct effect on assigning dates and priority, they can see what they have, what’s on order, what they’re making and when (really important to know)

§  Determining quoted time of delivery is hyper critical for them

·        Works only on a part number by part number

·        Doesn’t have a long pole in the tent to know what will make them late

§  The tool doesn’t increment/decrement for them

o   What they don’t like

§  Web store can mess with their schedule, requires a lot of time to figure out a ship date

§  Merchant won’t validate information, so they go through entire process before the final validation is done

§  Calculated there is 40 hours of work per week for declined orders (capture payment earlier)

§  Ship date is line by line, the shipping notification to the customer is a manual process (exporting from a shared drive, then emailing based off of a template)

§  Order triage takes brain work as well (does it from 2-4 PM EST with two individuals)

§  Every morning, John Nelson is running an order report by line item on every order to know what he can fulfill

·        First thing Beth does is updating everything that is late for things like a material being late

·        Update to the customer is also manual

·        Scheduling everything new

§  Peter and Beth communicate a lot during the week (if there are late orders and it’s not obvious, will work together to determine what the issue is)

§  Peter updates the work orders one by one, the goods usually arrived, but the goods failed inspection

§  B2B functions take a long time, even if it’s an existing account (no Customer Portal) – same with Purchase Orders (doing the same accounts over and over again)

§  Requires the manual application of the ship date, a shipping line item, all things that could be automated with defaults

§  No login for any customer account on their current web store (Beth and team fill that void – takes half the day to update the orders for things like a ship to address)

·        A lot of support is required for customers for lack of function

·        No real time availability or lead time, so spend a lot of time tracking down if they have something

§  A lot of credit notes get created – a lot of issues with just CC processing

o   NUMBERS

§  Shipping roughly 200 orders per day (web store and B2B)

§  Quotes/Orders – about 40 per day (fluctuates on time of year)

§  100 manual emails going out for general reasons (quote or order, responding to an inquiry)

§  Depending on the day, can vary from 30 – 80 phone calls for lead times/availability/web support/updating information to accounts

o   PROACTIVE

§  Biggest opportunity to really work with their existing base, offer training and more insight into their accounts

§  Don’t pay enough attention to the upkeep of good customers

§  Would be good to follow up with leads

§  Would like to be the initiator

o   CUSTOMER INVOICES

§  Collect the packing lists from Sage, enter into sage, then choose a template to email out to a customer

§  Challenge is, if an individual doesn’t choose the correct template, within 30 days, the money isn’t coming in

§  There are a few templates (due by invoice, international/domestic, net 30)

§  Steven currently sends out statements for past due, want to drive it automatically

§  Want automatic emailing of invoices

§  Automatic creation of invoices on fulfillment

§  Email invoice, pack packing slip

o   OPPS

§  Get rid of the declines – it’s the biggest waste of effort on the day

·        Would lead to more order fulfillment

·        Shipping/Customer paperwork has to be all shuffled, all with hand written notes

·        Order has to be pulled off the shelf into a secondary location, held for one business week (did that as a courtesy because the client may be out of service)

·        Shipping department maintains that for five days before putting it back on the shelf

·        Two customers go out for update (update payment type)

·        Three to five people that will touch a declined order for the week

§  Having a functioning web store

§  Having accurate ship dates

·        Ship by order date

·        Have priorities they where they will shuffle orders around to meet higher priority items

·        No way to signal that in the system other than to change the ship date manually

·        Not going to be obvious, so it’s a series of steps to get to the promise dates

§  Getting a login/password with their customers so the customer can look up on the website to get the latest information on dates/credit card processing/etc.

§  Quotes – they won’t do the heavy lifting, Peter will track it for 30 days

·        Peter will put together a placeholder for quotes – will make a work order to set the wheels in motion to order product

·        Doesn’t happen often where quotes simply won’t materialize

§  Can be up to sixty/seventy orders they are modifying on any given day if a material is going to be late and adjust their timing

§  Do partial shipments (have some items that have very long lead times)

·        Line items have ship dates independent of the order header

§  International is tricky because they don’t take CCs, only wires

·        Makes order fulfillment a challenge

§  Shipping

·        Special requirements (consent of search, country of origin)

·        Will get requests for special documentation (they have templates for all this, but it’s all manual)

·        CoC

·        BOL

·        Commercial Invoice

·        Customs Docs

·        EAI – for all items that are over $2500 per item

o   Customer Returns

§  Manual, there is a form on the website that a customer can download and fill out, then send to Crye

§  The form then needs to be manually entered into their system

§  In order to enter the RMA, the rep has to understand the cause, they need to update whether it’s a refund/exchange

§  No shipping label is provided to the customer

§  Shipping department will verify items in the package, will then give to Quality for an inspection – if it’s an open item, goes back to packaging, then goes back to shipping department to be put on the shelf

§  The RMA will then be marked complete, which gets email

§  Manual checking of the order, refund, etc. is all manual

§  Customer Service will setup the exchange and refund

§  Hard to know when they should update an RMA (issue refund, application, timing, etc.)

·        Timing for all the transactions is always off

·        Beth runs a report to make sure all the elements are in line from an accounting perspective

o   Case Management

§  Beth was in some meetings last year to talk about some of it

§  Has a basic knowledge of NetSuite, has been playing with the system a little bit

§  No end to end walkthrough yet

o   User Reps

§  Generally receiving forwards from reps

§  Only time sending things to them is testing/evaluation (general inquiries)

o   Avalara

§  All manual to denote orders that have exemptions

§  Resale certificates

·        Requires manual application in their Sage program now

·        Have to go back to all orders that are impacted by new sales tax – update one at a time

·        MARKETING (Ernesto Rodriguez)

o   Will be using campaigns in NetSuite, maintaining websites

·        QUALITY (Michael Liu)

o   INPUTS

§  Incoming Goods (raw materials) – unreceived until inspection completed

§  Finished Goods (in house or subcontract) – all unpackaged garments

§  Samples

§  Tech Pack – guides inspection for finished goods

o   TOOLS

§  Excel

§  Maintain a library of the production items (first time use based off sample)

o   OUTPUTS

§  Packaging Inspections

§  Quality Tests

§  In Process Inspections

o   CHALLENGES

§  Unipoint and NS will not be able to handle the complicated nature of their inbound inspections

§  Notifications to take action (how do they know they are needed)

·        In-line, Incoming, Outbound – believe NS QMS could help them identify it

Lead to Quote (Beth lead/Peter support)

·        Beth is really wanting to improve her department

·        Kitting

o   Does a kitting date and a ship date (kitting date is only used internally)

o   Treated as a new item that is put together

Order to Cash (Beth lead, Steven will be on-call)

·        Currencies

o   Pounds

o   Euros

o   CAD

o   USD

·        Government Contracts

o   Can be tied to another distributor that wins the contract, they fulfill it

o   Australia, Europe, Middle East, Canada

Call to Resolution (Beth lead, Steven will be on-call)

·        Didn’t discuss in much detail outside of

Design to Build (up in the air)

·        Items, BOMs, Manufacturing (Jean, Peter, Sean)

o   Tech Pack creation is all done with manual manipulation

·        Production Planning/Scheduling (Peter)

·        Cycle counting is an issue for them today, don’t have functionality to do it today

·        Tech Pack may serve as the starting point for Item creation

Procure to Pay (Jean)


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