The ERPSystem That More Than Pays for Itself

How to Get up to a 500% Annual Recurring Return with Global Shop Software

Designed to Streamline

Return on Investment

Real and Recurring ROI

The Global Shop analyses contained within this brochure were provided by Dusty Alexander, president, Dick Alexander, chairman, and the Global Shop Consulting Team. Their many years of working with manufacturers have equipped them with a wealth of ROI expertise that they will share with you in this brochure. What kind of tangible (hard dollar) return can you expect for investing in Global Shop software? The answer is: a lot more than you might expect! When considering an ERP software package, manufacturing companies must look at the price of the system. However, as our customers will tell you, its not how much it costs. Its how much of a return you receive on your investment. With Global Shop, many customers achieve an annual recurring return on investment of 500%. That means Global Shop software generates five times what you pay for it in cost reductions, increased sales or a combination of both. And Global Shop does this not just once, but year after year by generating dramatic improvements in every area of your business, including the front office. But dont take our word for it. Ask our customers. Theyll tell you that the cost of using Global Shop Solutions is a drop in the bucket compared to the returns they receive. Not just in hard dollars, but also in the ability to run their companies more efficiently, effectively and profitably. Theyll also tell you that not only does Global Shop cut costs and streamline operations, in many cases it literally transforms the culture of the organization into one of high performance and continuous improvement. We dont have to tell you how tough it is to compete in the manufacturing arena. And weve just come through one of the worst recessions in U.S. history. But with the economy finally starting to turn around, well-run manufacturing companies have an exciting opportunity to grow sales, expand market share and gain a real edge over their competitors. After reading this brochure, you can sit back and continue with business as usual. Or you can position your company to take advantage of the opportunity that lies ahead by investing in Global Shop Solutions the powerful business management tool that gives you a huge competitive advantage while paying for itself five times over year after year. The choice is yours.

Dusty Alexander President

Dick Alexander Chairman

www.GlobalShopSolutions.com

One System
ERP Solutions

The ERP Software Designed By and For Manufacturers

Global Shop Solutions delivers exceptional returns because it has been designed and built by people with years of practical manufacturing experience. Of course, we use highly trained software engineers to write the code and ensure the system works as it should. But every screen, feature, function and application has design participation from many individuals with shop, engineering, accounting and every aspect of manufacturing. Global Shops founder, Dick Alexander, worked as a controller of several major manufacturing companies, where he implemented performance measurement, inventory control and other large cost reductions using data processing systems. When he founded Global Shop in 1976, Dick hired people with exceptional manufacturing backgrounds to help him design and build the software. Some of these employees included: A software engineer and systems designer whose first job involved working in a machine shop at age 12. A former president of two machine shops with extensive quality experience, including six-sigma certification. The controller and production manager of an electronic defense contractor.

The son of a stamping shop owner who began working in his fathers company at age 12. The controller of an engineer-to-order, make-to-order oil field manufacturer. The production manager and president of a sheet metal company. A project manager and controller of a major engineer-to-order equipment builder. A triple-degree engineer with IT experience in multiple manufacturers.

Dusty Alexander (Dicks son and president) now has over 20 years with the company, and has visited or worked in a sales or implementation capacity with more than 2,000 companies. Erika Klein, Dicks daughter and executive vice president of research and development (R&D), has worked with hundreds of companies in installation, service and program development for nearly two decades. Other family members have substantial dayto-day responsibilities in marketing, finance, and human resources. Over the years, Global Shop has continued to focus on hiring the best and the brightest on the manufacturing and the IT side. Many of Global Shops senior consultants are former customers who used the software to make substantial improvements in their businesses. And our IT specialists include some of the smartest in their field. All have advanced degrees in computer science, with many earning summa cum laude and magna cum laude honors. This unique combination of talent, experience and brainpower keep Global Shop at the forefront of the manufacturing ERP software market.

800.364.5958

Return on Investment

Three Keys to a High ROI

Achieving a high return on investment with ERP software depends on three essential ingredients: Stable ownership Simple, easy ways to customize the software through built-in company options and software tools Building the software around the needs of the customer, not the developer At Global Shop, these ingredients lay the foundation for everything we do. Stable Ownership One of the keys to achieving a high return on investment with ERP software is having a stable vendor who will be there for you five, 10 or even 20 years down the road. As a second-generation family-owned business, Global Shop Solutions is here to stay. We have enjoyed the same ownership since 1976, a record in the industry. And with several secondgeneration family members assuming key positions in the company, Global Shop promises to have the same stable ownership for years to come. At Global Shop, we take pride in fostering a culture of profit sharing and employee participation. So its no surprise that we enjoy one of the lowest employee turnover rates in the industry. This stability at the ownership and employee level enables us to offer a stateof-the-art software product, unmatched customer service, and a high return on investment for Global Shop users. Designed to Fit YOUR Business Most ERP packages force you to conform to their idea of how to run a manufacturing company. At Global Shop, we believe that you know a lot more about your business than we do. So in order to meet the different needs of a wide variety of job shops, make-toorder, engineer-to-order, standard manufacturing and mixed mode environments, we purposefully designed the Global Shop system for easy customization. Global Shop makes all major customizations to our standard software available to all customers. That way, you can easily customize the software to fit your business by turning on or off the multitude of options that have been built in as a result of specific client needs. In addition, our patented Global Application Builder lets you customize screens or application functionality in virtually every area of the system without an outside consultant or software engineer. The result is a uniquely designed software system that fits your business like no other. Highest Success Rate in the Industry Unlike other ERP systems, Global Shop was developed by listening to customers and building the software based on their needs. Rather than attempt to copy existing MRP packages, we built Global Shop from the ground up based on the extensive manufacturing experience of the founder and experienced employees in the company. Since then, all ongoing development of the software has come from listening to customers in the field. What continues to set Global Shop apart from all the rest is our ongoing collaboration between customers, the service department and R&D. Everything our software engineers do is based on input from the consultants and service personnel who talk directly to our customers. At Global Shop, we listen to the people who use our software day in and day out and build a product that fits them. As a result, our customers enjoy the highest implementation success rate in the industry.

www.GlobalShopSolutions.com

One System
ERP Solutions

Its one thing to say that Global Shop customers achieve a recurring 500% annual return on investment. But we have the numbers to back it up. The following example represents a typical Global Shop customer, and is based on actual data culled from hundreds of satisfied customers. Company: $10 million precision manufacturer

Typical Annual Recurring Savings for manufacturers with $10 million in annual sales bolded. Direct and indirect shop labor and setup, including reduced overtime achieved through performance metrics and lean practices: $115,000 Improved quality (% of cost of goods sold) due to performance metrics and lean practices: $35,000

Indirect Hours Shop Labor Pricing

Material improvement in profits due to lower inventories, lean purchasing practices, streamlined purchasing procedures and reduction in inventory obsolescence: $80,000 Sales increase (2.5% x $10 million in sales) x (20% gross profit) from achieving 99%+ on-time delivery, impeccable quality and reduced expedite expenses: $50,000 Accuracy of pricing/forecasting and review of job/work order (% of sales): $25,000

Sales Quality Materials

How do Global Shop customers achieve these remarkable returns? By using the software to streamline processes and improve efficiencies as described in the following pages in this brochure.

Savings in reduced office and shop indirect hours: $60,000 Total: Investment: $365,000 $70,000

Annual real and recurring return on investment: 521%

800.364.5958

Return on Investment

Increased Sales The Unexpected Dividend

Why are we talking about increased sales? Isnt ERP about cost reduction and streamlining operations? Stop and think about delivering a part or assembly with a 99+% on-time delivery with impeccable quality. Then think about how much time is freed up because quoting is more accurate and easily generated. Because it requires very little input to generate a sales order, work order, packing list or invoice. Because purchasing and scheduling are automated. Because shop floor control is easy to use with minimum input and very little, if any, paper. And much, much more. With Global Shop, the system will automatically run much of your business for you. Existing customers will want to give you more business. And you will have much more time to focus on new business. Choosing Global Shop will help you increase sales. Most Global Shop customers purchase our software thinking it will help them lower costs and streamline operations. (It does.) What surprises them is how much it helps to increase sales. Think about it. When youre constantly sitting in production meetings or putting out fires on the shop floor, you have no time to focus on growing the business. Youre so caught up in getting the product out the door on time that you cant slow down long enough to look at ways to bring new business in the door. Global Shop lets you quote faster and more accurately for improved closing ratios. It automates purchasing, inventory control, shipping, invoicing and other expensive, timeconsuming activities. And it dramatically improves quality and on-time delivery while giving you total control of the shop floor. How does this help to increase sales? When you deliver on time every time, word gets out in the marketplace. Existing customers tell others that youre a vendor they can count on. They start looking for ways to give you more business. And previously dissatisfied customers start coming back. Global Shop helps you close new business by showing potential customers how the software makes your production processes more predictable and reliable. How it makes you accessible to your customers 24/7. And how there will be no surprises when they place an order with you. Global Shop also helps you do a better job of customer selection. Unprofitable customers drain your time and resources and prevent you from going after profitable ones. Global Shops superb data tracking capabilities make it easy to discern which customers actually make you money and which ones dont. Most important, Global Shop frees up your time so that you can think about how to go after bigger and more profitable customers. So buy the software to reduce costs and streamline operations. But dont be surprised when it allows you to do what every business needs to do increase sales.

www.GlobalShopSolutions.com

One System
ERP Solutions

We do things smarter with Global Shop, and the software really provides us with a better way of managing our business. This is why we find it so important to utilize Global Shop in every part of what we do. In fact, because were more efficient, weve increased our sales considerably over the years without adding any more people. Kathy Morin, Eptam Plastics; Machining/Fabrication

As a powerful sales tool for me, the software has also given us a tremendous advantage in weathering the storm of globalization. Global Shop is simply an excellent business instrument for our company. Peter Zuckerwise, Liberty Brass Turnings, Inc.; Metal Fabrication

Weve doubled our revenue since weve gotten Global Shop, but have only added two workers to the operations, and thats the biggest statistic for us. George Pacheco, Pazmac Enterprises, Ltd.; Machine Shop

With Global Shop, were more orderly, our sales improved, and our production is more diversified. Charlie Miller, Panoramic, Inc.; Thermoform Packaging

800.364.5958

Return on Investment

Shop Labor: The Cost Reduction Tipping Point

Can ERP really improve shop labor performance, making a big difference on cost, quality and on-time delivery? Yes, a lot more than you think. Envision a shop where all clock (payroll) time is accounted for on a job, whether direct or indirect. And there is almost no input only biometric identification and selection of the job recommended on a touch screen. All documentation, including prints, quality instructions, setup sheets, are at your fingertips. Some companies experience a 25% improvement in labor costs, typically resulting in enhanced on-time delivery and improved quality. Here is where many Global Shop Solutions customers realize their quickest and biggest return on investment. How? By using Global Shop to accurately track shop labor, both direct and indirect, for the very first time. Without an ERP system, most companies dont track direct labor, or they do it very poorly. Global Shop makes it easy to track direct labor for every job on the shop floor. Employees simply log into the system when they start a job, log out when they finish, and Global Shop does the rest. The system automatically records direct labor time for every employee. It assigns any time not on a job to indirect labor. And it offers a variety of reporting options that allow you to make better labor allocation decisions. All of which improves labor efficiency in several important ways: Reduced labor costs. Global Shop improves direct and indirect labor costs by measuring how much time employees spend on a job. Direct labor is measured down to the minute. Indirect labor is meticulously accounted for and minimized, with all the documentation and scheduling performed online. Reduced overtime. When manufacturers perceive the need to work overtime, it usually means that too many employees work overtime. Global Shop dramatically reduces overtime costs by identifying the specific areas that need to work overtime and allowing you to schedule only those employees rather than an entire department. Less employee downtime. With Global Shop, people know exactly what they are supposed to be working on and when. There is no wasted time searching for lost job orders, fumbling through paperwork, waiting for materials to arrive, or standing around wondering what to do next. More accurate job costing. You cant determine the true cost of a job until you know all the labor time involved. Without an integrated system to track all labor and material expenses, this usually occurs one or two days after the job is completed. With Global Shop, you can close the work order on the same day the job is finished, with complete confidence that all costs are accounted for. More accurate estimating. Global Shop provides an effective check-and-balance system between estimating and actual results. By comparing the employees time on the job with the estimate, you can assess the accuracy of your estimator and/or determine whether employees are performing up to the estimators expectations. Increased accountability. Employees want to perform well, but without accurate feedback they have no real way of knowing how they are doing. When you measure their performance with Global Shop, areas that need improvement become apparent. Many Global Shop customers experience reductions in indirect time of 10% to 12% just by measuring alone.

www.GlobalShopSolutions.com

One System
ERP Solutions

For more than three decades, Global Shops expert consultants have collaborated with our customers to produce a set of software tools that are second to none in producing a lowcost quality part and/or assembly on time. These include: Easy-to-use time and attendance job tracking, including touch-screen data input and recall. Online documentation (including a vault) for prints, quality inspection steps, operating instructions and more. Direct labor performance measurement to improve productivity. Performance measurement by employee and department for daily and annual performance reviews. Shortening and consolidating of job setups through software and training. By providing real-time information on shop labor, Global Shop allows you to make adjustments on the shop floor while work is in progress rather than after the job is done. Global Shop also generates a daily employee productivity report that enables you to identify problem areas and trend variances. With Global Shop, you can sit at a desk anywhere in the world and know exactly what is happening on the shop floor at any time of day. In companies that dont track labor, up to 50% of every employees day gets lost to nonproductive time. Within the first month of using Global Shop, many customers see that number drop by half.

I love Global Shop. These past few months alone, through the information I get from the system, I have trimmed our labor by $5,000 per week. Thats over a quarter of a million dollars a year in savings! Peter Csaszar, Daltec Canadian Buffalo Manufacturing, Ltd.; Industrial Fans

Our indirect labor costs have come down considerably due to the daily balancing capability of Global Shop. This makes employees more accountable for their time on the clock. Tim Sullivan, Prompt Machine; Machine Shop

Citadel was able to achieve a 40% reduction in labor, streamlining from 1,000 to 600 hours per week. Concurrently, our company saw a 20% increase in sales revenue. Noel Sutton, Citadel Architectural Products, Inc.; Panel Systems

800.364.5958

Return on Investment

Inventory Control Made Easy

What if every time you saw an inventory quantity or dollar amount on the screen, you didnt just guess, but knew it was accurate? What if, when you take an order you can instantly see whether you have a quantity left over from a previous overrun, so that you can reduce run quantity on the new order? And what if your cycle time to process a part was significantly reduced, whether for parts or assemblies? These are the results you can expect when using Global Shop to manage inventory. With Global Shop, most inventory transactions require little, if any, input. Inventory management is very automated, which leads to even more savings through reduction in labor. Customizable options allow for the lot, serial and bin tracking required in many precision industries such as aerospace. Plus, you get the ability to cycle your inventory, keeping inventory accurate and dramatically reducing the costs of physical inventories. What does this mean in terms of real dollars? First you get a onetime gain in cash flow, with some companies experiencing as much as, or more than, $100,000 in inventory reduction. Then you get the annual recurring savings from the cost of carrying inventory, which includes interest, insurance, obsolescence, physical counting and warehousing. With carrying costs averaging 20% a year for most manufacturing companies, a $100,000 reduction in inventory translates into an additional savings of $20,000 a year that goes straight to your bottom line. Inventory control is one area where most manufacturing companies can achieve huge cost savings and productivity gains. Global Shops powerful Materials Solutions module offers wireless material and inventory monitoring with unsurpassed tracking detail. Specific features and functions include: Automated inventory control. Global Shop offers a variety of standard options for tracking parts and materials. The software allows easy customization so that you can categorize and track parts in a manner that best suits your unique business needs. It also eliminates the need for multiple data entry of the same information and increases efficiencies by tracking all data through one system. Improved inventory accuracy. Anyone who has worked in manufacturing knows that physical inventory counts are notoriously inaccurate. With Global Shops customizable cycle counting, barcoding and scanning capabilities, youll save time and money by dramatically reducing the need for annual manual inventory counts and improving accuracy to unprecedented levels. Automated work orders. Based on the data you input, Global Shop automatically identifies which work orders need to be created and lets you review and change those that have already been created. Powerful features such as Item Master, which lets you trace individual parts by lot, bin and serial number, provide exceptional tracking detail on all parts and materials from the time they arrive at your door until they leave the shop as part of the finished product. In addition to lower inventory costs, Global Shop Solutions provides huge efficiency gains by combining all the different inventory-related activities into one integrated system. Having one single point of data entry eliminates the mistakes that often occur with multiple data entry, and makes it quicker and easier to track data as it flows through the system. Global Shop also reduces the time and manpower needed to perform inventory control by automating most or all of the activities that are typically performed by hand. Youll make fewer inventory counts in less time, with less people, and with a higher degree of accuracy than you ever thought possible. From accounting to the shop floor, Global Shop can easily save five to 10 hours a day in staffing costs alone.

www.GlobalShopSolutions.com

One System
ERP Solutions

I get inventory in as I need it just in time. In the first three months of implementing Global Shop, we dropped our inventory six digits. James Martin, Martins Wood Products, Llc.; Furniture

The Global Shop software system is able to build efficiencies into manufacturing operations efficiencies that result in the saving of WIP time to meet customer delivery expectations. Eric Miller, Miller Welding and Machine Co.; Heavy Steel Fabrication

To me, the overall benefit of using Global Shop software is that of organization. We deal with complex machinery made up of literally thousands of parts, and it would be impossible to build the kind of machines we build without having a quality system like Global Shop Solutions. Ron Kleist, KPM Herkules Group; Engineer-to-Order, Large Machinery and Equipment

800.364.5958

10

Return on Investment

Buy Smarter (and Cheaper) with Automated Purchasing

How can you improve your bottom line with more effective purchasing practices? By buying faster, cheaper and smarter! Think about how often you use common parts and raw materials for different jobs. What if you could easily consolidate purchases of parts and materials, so that you could buy in larger quantities at lower prices? And what if you eliminated over-buying because work orders got lost or mixed up? Generating a request for quotes is all but automatic. And by using Global Shop to measure the purchasing department on improvement quarter-to-quarter and year-to-year, you get a very price-conscious department. With Global Shops Automated Purchasing, expect to pay 1% to 5% less for purchased items. Assuming your purchases total $3 million a year, an annual reduction in purchasing costs of 2% would save $60,000. At 5% it would save $150,000. Plus, you can expect to do all this in half your normal procurement time. How nice would an extra $60,000 look on your bottom line? Purchasing is another area where Global Shop yields unexpected returns. Most manufacturing companies have an employee responsible for the purchasing function. Their job is simplified for work orders and purchasing requests because Global Shop eliminates wasted time and effort by automating the purchasing process. With the click of a few buttons, Global Shop automatically reviews inventory and work orders and tells your buyer exactly what the company needs to buy. The system reviews all material supplies and tooling, and produces a purchase need report on a demand basis. Whether you have one or multiple buyers, the system usually reduces labor by 50%, thus freeing up time to search for better prices and quality. The entire process is automated on one simple screen. With Global Shops Automated Purchasing, you get: Better pricing. By consolidating all purchasing requirements into one central location, Global Shop allows you to buy in larger quantities at lower prices. Reduced inventory. With Global Shop, you no longer have to order parts ahead of time and hope that you have enough on hand. Instead, you order what you need when you need it, for significantly less inventory and lower carrying costs. Lower overhead. Global Shop reduces the number of staff needed to perform the purchasing function. Most companies require only one or a fraction of a person to perform the entire purchasing function. Many larger companies find they can cut their purchasing time in half. Huge cost savings. By automating the purchasing process, Global Shop frees up your personnel to focus on quality and cost. People have time to conduct the research necessary to support more efficient and cost-effective purchasing.

11

www.GlobalShopSolutions.com

One System
ERP Solutions

Before Global Shop, we used to have three buyers. Now we have one buyer doing three times what those buyers accomplished in the same amount of time. Eric Miller, Miller Welding and Machine Co.; Heavy Steel Fabrication

We build custom packages for our customers, and for those orders we buy to the order. However, we also have a stock line of food packages, and for those projects we buy to stock. Because of this dual nature of our operation, we find the Global Shop Auto Purchasing System a powerful tool for keeping track of our raw materials inventory. Charlie Miller, Panoramic, Inc.; Thermoform Packaging

We do a lot of inter-company sales, and for this our Global Shop system is the best weve ever seen. We use Global Shop to keep track of the information flow and inventory management. When the Gasket Division treats the Rubber Division as if it were a customer and a vendor, and vice versa, Global Shop makes it all quick and easy to manage. Scott Franklin, California Gasket and Rubber; Rubber Seals and Hoses

800.364.5958

12

Return on Investment

One-System ERP
Why is One-System ERP so important to your company? Because everyone gets on the same page. Data gets entered one time and one time only. Time is not wasted trying to find information. You see the whole picture so that you can spend your time improving the business and increasing sales. It starts with generating an estimate, which in most cases, only takes a few seconds. Then a customer quote with automatic multiple requests for vendor quotes. Upon receipt of the order, a sales order gets generated with a few keystrokes. From that, a production/ work order is scheduled, and labor input for both payroll and job costing/direct and indirect is tracked with minimal input via biometric and touch-screen input. Material and parts procurement and inventory transactions are automated. Invoicing and shipping documents are automated from sales orders and updated accounts receivable. Customer service is enhanced, with the status of all orders at yours or the customers fingertips. And the fully-integrated CRM helps with new sales opportunities. One-System ERP is specifically designed to streamline manufacturing operations and position your company for growth. You will achieve improved on-time delivery and quality, increased sales and reduced costs. What does One-System ERP mean? Many companies use a variety of disparate software, spreadsheets and data management tools to run the business. This results in costly inaccuracies, inconsistencies and inefficiencies in every area of the business. Global Shop puts all data collection into one centralized location. Everything you need to run your business from accounting to manufacturing to customer relationship management comes together in one integrated system. Global Shop serves as the central organizing hub for your entire business. It makes all the systems and processes more visible, and integrates every step of the manufacturing process so that employees can do their jobs more efficiently and management can make better-informed, realtime decisions. It enables lean processes, so that management can focus its time and attention on continuous improvement, sales and growth. The key word with Global Shop software is integrated. Many ERP companies purchase third-party software programs and then patch them together into one package. This often results in system incompatibilities or difficult workarounds. Global Shops core applications are all architected and written in-house from the ground up. Global Shop offers virtually unlimited capacity to manage customers, materials, inventory, sales, accounting and other critical data, all in one system. Lean manufacturing will become a way of life for your entire company, not just those on the shop floor.

13

www.GlobalShopSolutions.com

One System
ERP Solutions

With Global Shop Solutions ERP software as the shop floor controls, information flies through the ATD plant in one connected system that is easily accessible by everyone needing it. Where once ATD was employing dozens of spreadsheets and databases in multiple locations and ports of accessibility, we have seen the intense direct labor costs associated with information management reduced considerably since implementing Global Shop in 2002. Ray Almekinder, Allstate Tool Die, Inc. (ATD); Precision Machining

Global Shop has helped Calnetix become the business we are today because of the ease of use and flexibility of the software. We are a complex multi-entity shop, and Global Shop is the one company that has finally made it easy to track the operations of our affiliates. Ian Hart, Calnetix, Inc.; Manufacturing Conglomerate with Cutting-Edge Technology

We went into Global Shop looking for one system and one database to replace more than one system that had duplicity in recording keeping. We achieved this with Global Shops unified system. Now we cant live without it. Bud Hoffman, Lakeshore Fittings, Inc.; High Speed Brass Fittings

800.364.5958

14

Return on Investment
Sales Increase
5 4 3 2 1 0 6 12 18 24

Up To a 500% Annual Recurring

This Return On Investment is representative of a $10 million job shop, make-to-order, make-to-stock, engineer-to-order, standard manufacturer or mixed-mode and assumes a 30% cost in purchased materials, 40% in labor and other manufacturing costs, 22% in selling, general and administrative and 8% in profits. These numbers will vary depending on how lean your company is right now.
Sales Increase Office & Shop Indirect

Months

Reduction in Office and Shop Indirect

0 2 4 6 8 10 6 12 18 24

Months

Reduce Material and Supplies Purchase Price

0 1 2 3 4 5 3 6 9 12

Materials and Supplies Purchases

Inventory Carry Costs

Months Reduce Inventory Value (Material, Finished and WIP)

0 2 4 6 8 10 4 8 12 16

Initial Investment

Annual Recurring ROI

Months

15

www.GlobalShopSolutions.com

One System
ERP Solutions

Return On Investment (ROI)

0

Reduction in Direct Labor Costs % 1

2 1 2 3 4

Months Reduction in Indirect Labor (Direct Labor Employees)

0 2 4 6 8 10 1 2 3 4

$115,000 $50,000 $60,000 $35,000 $60,000

Shop Labor
0 5

Months Reduction in Setup Time

% 10

Quality

15 20 3 6 9 12

Months

$20,000
0

Reduction in Quality Costs as a Percent of Cost of Goods Sold

$25,000 $365,000

Pricing/Costing

% 1
2 3 6 9 12

Months

$70,000
Improvement in Margins from Accurate Pricing/Costing

521%

% 1/4
1/2 3 6 9 12

Months

800.364.5958

16

Return on Investment

ISO-Compliant Quality at Your Fingertips

Is it possible to get a complete, fully integrated ERP software package where the whole process is ISO and QS-9000 compliant? You can with Global Shop Solutions. ISO certification requires documenting what you do and proving that you do what you document. Global Shop has complete traceability including lot, heat and serial number for a real edge on quality audits. You can also catch non-performance before it really starts on designated screens in realtime or on each days early morning reports. Impeccable quality enhances your value to the customer and often means added sales. Scrap costs are reduced through realtime employee reporting, as well as vendor, part and other analysis. With Global Shop, expect more! With Global Shop, quality means a lot more than just finding and fixing bad parts. It means easy ISO and QS-9000 certification. And, it means lower quality costs from accountability by employee, vendor and other defect originations. Our software makes it easy to qualify for and maintain ISO and QS-9000 certifications by automatically documenting everything you do on the shop floor. The system provides precise, highly accurate data trails. It makes ISO audits easier and more efficient. And it allows you to be fully compliant, giving your company a distinct edge in the market. Global Shop also provides complete traceability of every part or material that comes through your door. Suppose a vendor notifies you of a problem with a part they shipped, putting your customers at risk. You can enter the heat number into the system and instantly know every part, work order and customer on which the part was used. More important, you can instantly determine the status of all work orders involving the part, allowing you to stop work in progress, postpone shipment, or notify customers that there may be an issue. Of course, Global Shop does help you find and fix non-conforming parts, with powerful features such as: Non-conforming alerts. When an operator on the shop floor records a non-conforming part, Global Shop instantly notifies the shop foreman, in-process inspector and other selected personnel. One click of the mouse then tells you everything you need to know about the part work order, number of pieces, work station, employee and customer. It also tells you the value of the part so you can determine the cost of the non-conformance and take appropriate action. Customizable reporting. Need to know your biggest reported defect type? Or the most costly? Global Shops Non-Conforming Part Report automatically lists all reported defects, sorted by part number, machine number, operator, defect code or other criteria of your choosing, including dollar amount. In addition, the Non-Conforming Material Report tracks when and why vendor materials fail to meet your specifications. With a wide variety of customizable reports at your fingertips, quality control has never been easier. Multiple tracking options. With Global Shop, you can track by lot, bin or heat number for total control over every part that comes in your front door and goes out the back. If a customer work order requires serialization, the system automatically applies it to every document that goes through the shop, from initial work order through final invoice. It also gives you instant access to every transaction involving that product throughout the entire plant. Statistical analysis tools. Global Shops built-in statistical analysis tools allow you to make better management decisions. Suppose the Non-Conforming Parts Report identifies 50 parts with a hole in the wrong location. When you run the report by dollar value, it shows the 50 parts with a total value of $150. The report also lists a defect with only three pieces, but those pieces are valued at $1,200 each. Which job do you think would get your immediate attention?

17

www.GlobalShopSolutions.com

One System
ERP Solutions

With Global Shop, youll save time and money by identifying and correcting quality issues in realtime rather than after the fact. Youll develop the discipline and oversight needed to qualify for ISO and QS-9000 certification. And youll make better parts with fewer errors. Why settle for merely fixing bad parts? With Global Shop, quality and ISO certification is a way of life.

Over time weve seen that when people are forced to put scrap into the computer using Global Shop, and we can account for whats supposed to be there and whats lost in production, its amazing how much less scrap they make! Michael Martens, M&H Engineering; Medical, Space, General Machinery

Global Shop has helped our quality documentation. Were big users of the Quality and Engineering Change Control modules. With the electronic documentation they produce, we dont have to worry about the file drawers getting over-filled. And when the auditor comes in and wants to see our cause and corrective actions, we simply pull up our Global Shop system and all of the information is right there. Ray Almekinder, Allstate Tool Die, Inc. (ATD); Precision Machining

When the ISO auditors show up, they say that Humanetics is one of the easiest ISO audits they do. This is because everything is inside one integrated package. The auditors dont have to worry about the usual multiple software packages to find what they need because its all easy to find and use. No matter which of our plants they go to, we have the same ISO registrar in all of our locations. So the auditors can go to any plant and its all done the same way. ISO is pretty easy to pull off in Global Shop. James Hux, Humanetics, Inc.; Sheet Metal

Since implementing Global Shop Solutions, we have a near-perfect quality rating. Tom Lewis,Wilshire Precision; Aerospace and Defense

Two months after implementing the Global Shop module at one of our companies, we saw a double-digit improvement. After a solid year of tracking our defects, they show as a speck on the business chart rather than a glaring problem. This is now one of our core daily measurements at every facility. Brian McMillan V.P., Tech Investments, Llc; Precision Manufacturing

800.364.5958

18

Return on Investment

Realtime Cost Accounting

Costs can be evaluated in summary or detail in seconds. Single-click capability results in quicker analysis from shop to market. With Global Shop, you will know your costs, resulting in continuous process improvement and the winning of more business. How many jobs have you lost to competitors because you couldnt get an estimate out in time? How many have you lost money on because your bid was based on inaccurate job costing? In todays economy, accurate job costing is essential. If you cant measure your true costs in a timely and efficient manner, youll lose jobs, customers and money. Yet for many manufacturing companies, job costing is done with gut feel rather than hard data. Time, labor and materials records are scattered throughout dozens of spreadsheets and paper files. Information gets entered incorrectly. Key data gets lost or misplaced. By the time you finally track down the information you need, it can be weeks or even months out of date. Global Shop takes the guesswork out of cost accounting by automatically tracking every aspect of a job from start to finish. More important, it tracks the data in realtime, so that youre constantly working with the most accurate, up-to-date information. When you know down to the penny how much a job costs, you can bid jobs, schedule labor, allocate materials and price your products accordingly. With Global Shop, job costing is: Faster. Depending on the size and complexity of the job, researching historical data using spreadsheets and paperwork can take days or even weeks. Global Shop dramatically reduces (and in many cases eliminates) research time by instantly putting all the data you need at your fingertips. More accurate. Manual data entry is a frequent source of job costing errors. Global Shop eliminates manual errors by automatically recording all labor time, material issuance and work order information. Realtime. With most companies, job costing happens after the fact. With Global Shop, job costing occurs while the work is in progress. As soon as each job closes, you know how much it costs and why. Global Shop lowers overhead costs by automating most of the processes involved in the cost accounting function. It improves estimating by allowing you to accurately track and compare estimated time and costs against actual. And it enables you to make business decisions on a moments notice. Why wait two days or more to know how much a job costs? With Global Shop, you can know today, with more accuracy than you ever thought possible.

19

www.GlobalShopSolutions.com

One System
ERP Solutions

Fast, Accurate Estimating & Quoting

For many companies, estimating and quoting is a frustrating and time-consuming process because they dont have good data tracking capabilities. People struggle to find the data because it gets scattered throughout the company in many different spreadsheets and files. By the time they finally get around to collecting the data, it may well be out of date. Without accurate historical information, estimators must make pricing decisions based on intuition rather than hard data. The result is a hit-or-miss estimating process where the company ends up hoping (rather than knowing) they will make money on the job. Global Shop takes much of the guesswork out of the process by making it easy to access important information from other parts of the business. With Global Shop you know exactly how much previous jobs of a similar nature cost. You know the direct and indirect labor costs involved. You know the materials and parts costs. And you know how long it took to complete the job all from one simple screen. In addition, Global Shop automatically updates the system as changes occur on the shop floor. You always have the most up-to-date information at your fingertips, and can avoid the mistakes and underbidding that often results from having to work with obsolete data. In the manufacturing world, the more jobs you quote and the more accurate those quotes, the more jobs you win. Global Shop enables you to handle estimating and quoting with greater speed, accuracy and efficiency. Not only do you win more jobs, you win them with full confidence that they will be profitable. Global Shop estimating not only considers all costs, it also takes into consideration many nuances of accurate costing such as quantity discounts on purchased materials and parts. It facilitates easy competitive vendor bids then it generates a quote automatically, which generates a sales order and tracks won/loss on quotes. Youll win more business with Global Shop because youll quote more with smarter pricing and costing.

With the time-clocking capability of our Global Shop system, as well as the wireless connections in the tool room, were now charging those disposal goods to the jobs themselves. So, we have now what is really a true cost, rather than a more arbitrary overhead cost. Derek Hivnor, H&R Manufacturing & Supply, Inc.; Workholding Tools

800.364.5958

20

Return on Investment

Scheduling for 99% On-Time Delivery

What are the costs of not having a good ERP scheduling system like Global Shop Solutions? A lot more than you think! Can you give realistic promise dates to instill customer confidence? Do you ever have to pull a job before it is complete in reaction to another order? This requires added setup. Are you able to practice lean, such as consolidating setups? The difficulty in scheduling lies in the fact that so many variables go into each decision: the number of machines, part attributes, employee availability, employee skill set, the capacity of each machines, the work order, the due date, the number of jobs currently on the floor and on and on. Being on time 99+% of the time, which many of our customers experience, not only means lower costs and reduced cycle time, but increased sales for many companies. Improving on-time delivery is critical from both a competitive and cost-reduction standpoint. If you cant deliver the product on time, there are plenty of competitors out there who will. And expedite fees are expensive. Global Shop enables you to achieve on-time delivery rates of 99+% by providing the ability to manage your capacity and constraints with remarkable accuracy and ease. With Global Shop, theres no need to shoot from the hip when customers ask about a delivery schedule. Instead, you can give realistic dates based on real data rather than guesswork, and have full confidence that you will deliver on time. On-time delivery doesnt just reduce costs. It also enhances your reputation as a reliable vendor. It improves customer retention by building customer loyalty. And it helps you get more business from existing accounts. When customers trust that you will follow through on your promises, it gives them the confidence needed to send additional business your way. Running a lean shop floor requires efficient scheduling. Global Shops Advanced Planning and Scheduling (APS) module contributes to a high ROI in these important ways. Streamlined operations. By providing real-time information about what work in progress is on the shop floor, Global Shop enables you to schedule workflow more efficiently and effectively. Managers can monitor the status of every job in progress, and the system automatically tells you which job you should be working on next. Improved on-time delivery. Because Global Shop APS tracks what youre making, how youre making it, how many youre making, and work in progress at any given moment, the system allows you to say exactly when the job will be done. With APS, safe dates are a thing of the past, as you can tell customers an exact due date. On the sales side, this accuracy also allows for precise promise-date generation. Flexible scheduling options. The scheduling module offers a wide array of options that enable you to schedule workflow for maximum productivity. The system takes into account key factors such as work center capacity, employee availability and skill level, and any special customer needs. It allows you to make changes when priorities shift due to customer requests or conditions on the shop floor. And it enables you to estimate costs and capacity more accurately. Automated scheduling eliminates employees standing around wondering what to do next. It reduces indirect labor and improves direct labor percentages. It gives managers the freedom to focus on other areas of the business. And it contributes to improved on-time delivery, which translates into lower shipping costs and happier customers.

21

www.GlobalShopSolutions.com

One System
ERP Solutions

Since implementing Global Shop, we have a 99.4% on-time delivery rate. Tom Lewis, Wilshire Precision; Aerospace and Defense

Global Shop Solutions has helped us bring our on-time delivery to 99%, and this in turn has helped us tremendously in terms of customer relations. In fact, our on-time delivery is what saves our business so often. On-time delivery is keyits really at the top of our list. Ted Stout, Impressions Marketing Group; Store Fixtures

Global Shops Advanced Planning and Scheduling module is the best in the business. Incredibly powerful! Ray Almekinder, Allstate Tool Die, Inc. (ATD); Precision Machining

Global Shops Advanced Planning and Scheduling module is a must. It gives us an incredible array of options in terms of how to schedule our shop that not only deals with work center capacity, but also employee availability and skill level. I have never seen anything like it! Dan Tweed Jr., Carnes-Miller Gear Co., Inc.; Custom Gears and Gears Assemblies

With the implementation of the Global Shop system, Iowa State Industries has averaged 98.7% on-time deliveries over the past three years. Sales, customer satisfaction, and profits have all increased during that time. Roger L. Baysden, Iowa Prison Industries; Variety of Manufactured Products

800.364.5958

22

Return on Investment

Built-In Customization
With a click of the mouse, you determine what type of shop you are, how you will schedule and cost your business, and how you will manage all the mission-critical processes in your manufacturing environment. Intuitive and easy to use, Global Shops powerful customization features ensure that the software adapts to the way you do business rather than forcing you to adapt to it. The return on investment generated by ERP software is directly related to how well the system fits your business. Global Shop offers the highest degree of customization without requiring any vendor modifications to the software. This provides the freedom and flexibility you need to adapt the software to your unique business processes without having to rely on expensive software engineers or outside consultants. With Global Shop you can: Select from multiple pre-set options that allow you to customize the system to your industry. You can also store, retrieve, manipulate and report on the data in a variety of formats. Create custom database queries that allow you to view, analyze and save the data in the format most conducive to your business processes. Use Global Shops patented Global Application Builder (GAB), a full-featured software development tool that allows virtually unlimited customization, to create special screens, reports, pop-up boxes and other features to fit your unique production needs. Create custom reports in Crystal Reports, Microsoft Access, Microsoft Excel and other OBDC products. With most ERP packages, customizing the software makes it difficult and costly to upgrade to newer versions. Global Shop allows you to make virtually unlimited customizations to the software and still keep up with all upgrades, updates and new technologies. You never have to worry about becoming obsolete and running an outdated version of the software.

23

www.GlobalShopSolutions.com

One System
ERP Solutions

Easy to Use
Global Shop makes it easy to find, access and manage the information you need to run your business with single-screen simplicity. From one basic screen, employees can access everything they need to know about a job, part, customer or sales order. From there, they can drill down to acquire as much detail as needed with just a few clicks of the mouse. Examples of Global Shops single-screen simplicity include: Shipping screen. In many companies, shipping involves several people and a pile of paperwork trying to determine what needs to be shipped. With Global Shops Select and Print Packing List, all you do is launch the screen and the system automatically identifies what needs to be shipped and when. Supply and Demand screen. By entering a part number, you can see work order history, purchasing history, sales history and usage. From one screen you can track any part and know exactly where it is in the production process. Time Clock screen. Employees click on the work center they operate and get a prioritized list of jobs to work on. They can then click on a link and see drawings, work instructions, setup guidelines or anything else you want them to see out on the shop floor. With the click of a button, employees know what to work on and in what order so that managers dont have to direct their every move. Customer Relationship Management (CRM) screen. From this one screen employees can access everything they need to know about a customer, including quotes, estimates, work in progress and items shipped. Employees can also drill down to review sales orders in process, reprint invoices, double-check shipment dates and find the answers to any question customers may have about their work orders. Designed with the user in mind, Global Shop Solutions offers advanced features and menu options that are intuitive and easy to use. It has well-designed screens that make it easy to navigate through the system. And each screen allows users to make custom modifications that fit the unique needs of their area of responsibility. Best of all, with Global Shops powerful single-entry feature, you enter the data one time and one time only! Any changes to the data are automatically updated throughout the entire system. You dont have to be an IT expert or computer geek to use Global Shop software. In fact, many Global Shop customers dont even have an IT staff. Global Shop is designed by and for people who manufacture parts. If your people can use email or create a document on a PC, they can easily learn Global Shop software.

Being a manufacturer, theres always a lot of pressure on us to contain costs. Global Shop allows us to do more with the same number of people. We do things smarter with Global Shop, and the software really provides us with a better way of managing our business. This is why we find it so important to utilize Global Shop in every part of what we do. Kathy Morin, Eptam Plastics; Machining/Fabrication

800.364.5958

24

Return on Investment

Leaning the Office and Other Indirect Costs

This system has been built by listening to the customer through three decades of the same ownership, and low turnover in talented Global Shop personnel.Our consultants and customers have scrutinized every step and every keystroke. The result for our customers is their ability to maintain very lean offices and shop indirect staffs. Global Shop Solutions One-System ERP manufacturing software will help you dramatically reduce the sheer volume of paper and the number of indirect steps in producing a part or assembly. Some of the inherent efficiencies include: No job folder. No need for hard paper copy of prints. No need to print quality instructions. No need to print routing instructions of the part. No need to print set-up instructions. No filing or look-up in files for prints, quality instructions, etc. Vendor order receipt and invoice automatically matched with greatly reduced time in purchasing (usually 50% or more through the use of Automated Purchasing). Very little, if any, physical inventory time. Inventory transactions are automated. Wireless bar-coded inventory transfer. Minimal input time to estimate quote. Practically no time needed to generate a sales order and schedule work order. Shopping, printing labels, invoicing and updating receivables are very automated. Job tracking for customer service requires minimal time and can be done online by customer. Many shipping efficiencies, including shipping multiple orders on one transaction. All these efficiencies result in improved quality and on-time delivery, as well as reduced costs and increased sales.

25

www.GlobalShopSolutions.com

One System
ERP Solutions

From my perspective, one of the biggest gains in using Global Shop is that we are starting to run out of activities for the administrative staff to actually do in the office. This is because there is much less paper moving through the office now than before Global Shop. Carl Strohmaier, Milcut, Inc.; Foam Fabrication

With Global Shop, weve been able to trim back our front office administration staff by 70% from 10 people handling lots of paper, down to only three who work much more efficiently and cost effectively. And were able to close our books in less than one day at the end of each month. Charlie Miller, Panoramic, Inc.; Thermoform Packaging

Our business has grown 50% in the past three years, but our indirect costs are exactly the same. Its amazing what Global Shop has done for us. Jeff Hollinger, Eptam Plastics; Machining/Fabrication

Running lean with continuous improvement is key to competing in todays manufacturing economy. Were very, very lean as a company, and we are lean because of Global Shop. David Zuckerwise, Liberty Brass Turning Company; Metal Fabrication

With Global Shop, were getting good information in, therefore our costing is more in tune with the reality of our production costs. We just had a price decrease, and the only way we could achieve that was by having the Global Shop system in place and managing every detail and getting more costs out of the product. Its an integrated system, and weve gone to the wireless service in our tool crib. I can safely say that the Global Shop Wireless system has taken my costs down by about a third of what they were before we integrated. Its cut my tooling and other direct costs way down, and so Ive been able to get my pricing down as well. Derek Hivnor, H&R Manufacturing & Supply, Inc.; Workholding Tools

800.364.5958

26

Return on Investment

Performance Measurement
Since its inception in 1976 and under the same ownership, Global Shops only focus has been on manufacturing. The emphasis on performance accountability throughout the enterprise began on day one. And this singlemindedness has helped Global Shop achieve the most successful customer base in the industry. Performance Measurement is generally considered the biggest payback from ERP systems. The Global Shop One-System ERP solution is rich with performance measurement features, and includes measurement of: Direct labor Indirect labor Setup On-time delivery performance Quality performance by employee, vendor and much more Material purchases and usage Inventory accuracy Estimate vs. actual by part/job Office and other indirect manufacturing Sales Gross profit Quoting Tooling usage And much more! Global Shop helps you run lean with continuous improvement, which comes in many forms and combinations. In terms of Performance Measurements, estimate versus actual (standard) is a key measure in all parts of the Global Shop system.

27

www.GlobalShopSolutions.com

One System
ERP Solutions

The software has been very helpful in making us more aware of where our direct and indirect costs are, and it gives us a sense of how better to control these. Once the job comes out, were able to see right away if that job was profitable for us, how profitable it was (or wasnt), and if any adjustments in quoting need to be made in the future. In short, were always looking in the Global Shop Estimate vs. Actual Report to get a complete picture of how well we came out of a job. Brian Rieble, Concise Fabricators, Inc.; Sheet Metal Fabrication

For every work order and every machine, we use the Project Management tool and estimate entire projects through Global Shop. We track the project from start to finish, and in the end we evaluate the estimate versus actual to determine how well we did on a job. The next time that job, or a similar job comes around, we can tweak our router estimates and build more realistic work orders. Ron Kleist, KPM Herkules Group; Engineer-to-Order, Large Machinery and Equipment

The products the research department at Global Shop comes up with are great products, designed specifically for manufacturers, and theyre actually useful for us. Its not like the other software guys that come up with a bunch of glitz on the screen. We use everything in the software we buy from Global Shop. Michael Martens, M&H Engineering; Medical, Space, General Machinery

800.364.5958

28

Return on Investment

Lowest Total Cost of Ownership

An integral part of Global Shops high return on investment is its low total cost of ownership, which is the lowest in the industry. In addition to streamlined procedures and cost reductions in every area of the business, Global Shop offers: Minimal maintenance. Global Shops SQL database is extremely reliable and does not require an IT department. Other ERP systems typically require one or two full time employees just to run the system. Low training costs. Global Shop training costs rank among the lowest in the industry. Easy customization. Global Shop software provides a high degree of customization without the additional expense of writing new code. No additional fees. Global Shops acquisition and annual retainer fees include all enhancements, updates, telephone support and initial training. A complete software package. With the largest array of features and functionalities on the market, Global Shop does not require expensive add-ons or third-party plug-ins. Global Shop also costs less to own in terms of soft dollars. The software enhances teamwork by making every process in the system more visible. As people begin to see how all the different processes are interconnected, they become more open to sharing information and working together to resolve problems and improve processes. Global Shop improves morale by lessening the frustration employees experience when forced to work with outdated and inefficient processes. Users feel more competent and professional, and gain a real sense of accomplishment from learning new skills. When people feel good about themselves and the work they perform, they do better on the job. Ultimately, Global Shop creates a real cultural shift that will fundamentally change the way you do business. And not just change it, but improve it. Global Shop develops the disciplines necessary to run a lean manufacturing environment. It brings out the best in people by measuring their performance in all areas of the business. And it instills the good business practices necessary to support the continued growth and prosperity of your company. Global Shop can make a real difference in your bottom line by generating up to a 500% return on investment year in and year out. How many other business tools can make that claim?

29

www.GlobalShopSolutions.com

One System
ERP Solutions

Unsurpassed Customer Service

In achieving your ROI, it is important to have an excellent customer service team behind you. You need a company with talented people who care about helping you solve your problems. Thats Global Shop. And we have one of the lowest turnover rates in the software industry. Following are some comments posted on our service website in one week:

Julie has been excellent at attending to our needs with the GAB tool boss interface. Dynaventure Corp.

Fast and Effective! M. A. Ford Manufacturing Co., Inc.

Jialing is awesome! Im grateful you have her to help us out. Ceramic Decorating Co.

Really appreciated the after-hours support! West Troy Tool and Machine, Inc. George was great at fixing our problem. Maryland Thermoform

Theyve got more support dedicated to us than weve got time or need to use thats just what it boils down to, and we know that when we do need them theyre ready to help. With so much of our business being rush work, theres no such thing as a routine schedule. Often a job comes in and its out in less than a month, a week or some of it less than two or three days. So staying on top of all of the scheduling and all of the costs is the most important use of our Global Shop system because the software helps us keep track of everything. I can see which jobs are ongoing and whos working them, as well as whos on the clock but not on a job. When I combine this with advanced scheduling, I can also see where my hot sports are and what my capacity looks like. Were not a tremendously big corporation, but we feel were pushing a lot of product and Global Shop helps us tie everything together in our shop. I really dont know how I would operate without our Global Shop ERP software. Turbo Components & Engineering

As usual, your support is fast to respond, courteous and professional. Kathy took care of my problem immediately. Thomas Instrument

Thank you so much, Delores, for getting us back on track. Demaree Inflatable Boats, Inc.

Addressed the issue completely! Fabricating Specialties, Inc. Very quick response from Langley with exactly what I needed. Matech (Machining Technologies, Inc.) Its nice to know you have people like Ricardo to help people like me it relieves the stress. Thank you! American Gear & Supply Co., Inc. Mandy is always so helpful. I am always glad to hear her voice as I know my problem will be solved effortlessly. D. R. Tech, Inc. Brady took the extra steps to make sure our concerns were satisfied. Bradhart Products, Inc.

800.364.5958

Global Shop Solutions 975 Evergreen Circle The Woodlands, Texas 77380 (800) 364-5958 www.globalshopsolutions.com

Designed to Streamline