Since you primarily deal with custom engineered products, providing accurate estimates, with reasonable and competitive prices, is vital to winning projects for your business. Encompix’s estimating abilities can eliminate a lot of the time it takes to produce detailed estimates, for what are typically labor intensive tasks. Estimating in Encompix is done in three separate ways:
Estimating by buckets of time or dollars - When an estimate involves the use of a large amount of labor and time, you can create an estimate using buckets. Encompix assigns labor hours or material dollars (buckets) to selling general and administrative expenses and markup percentages, you can derive a selling price. This can then be used to generate a formal customer quotation.
Estimating using detailed bill of material and routings - If you need a more detailed estimate than bucket estimating can provide, you can use a bill of materials to generate an estimate. To do this you copy estimates or standard items from previous jobs, then using the rolled up multi-level cost summary, you can project a desired selling price for up to five quantities of your one time custom-engineered products. Additionally, estimates are determined from determined costs plus your desired gross/net margin percentage.
Estimates using Microsoft Excel or Access-based estimating tools - If you already have custom-built applications that utilize spreadsheets or Microsoft Access to generate estimates, Encompix can interface with those applications to maintain your important estimate generation process. The benefits of integrating your outside generated estimates into Encompix, is that you can now monitor actual costs against the estimate; and monitor the job throughout completion.
Encompix gives you the flexibility and accuracy needed to construct true job costs for your ETO or MTO company. The software will collect actual material costs at the moment a purchase order receipt is vouchered; additionally actual labor costs are collected as reported to the system. Job costs can be viewed individually or collectively in the parent project. By defining jobs as projects, you have the ability to apply the actual costs to the COGS, with full Revenue Recognition accounting.
Revenue Recognition accounting is specifically useful to ETO and MTO companies because of the long-lead time associated with products. This feature allows revenues to be recognized as a percentage of actual expenses incurred, rather than against the shipment of the product produced. To do this, the system calculates the percentage completed of a project, and then uses that to come up with numbers based on the budgeted amount for the project.
Furthermore, Encompix allows you to bill for payment in a progressive manner. For instance, if you have a contractual agreement with a client that allows you to receive payment after certain milestones, Encompix can recognize when those milestones are completed and generate a bill; helping you to offset costs incurred during the production process.
The Purchasing system in Encompix supports the purchasing of direct and indirect materials, MRO and services. Users of your choice will be able to approve requisitions; and material requisitions can be consolidated into a request for quotation (RFQ) and then easily converted into a purchase order (PO) based on the approvers response. Purchase orders can be created by entering the manually; or they can be created from Dependant Demand planning (DDP) which suggests purchases on a time basis. PO’s can be created to replenish stock or applied directly to projects pending completion.
If applied to a project the material goes directly to Work-In-Progress (WIP), the cost is then posted to the project as WIP or COGS. The purchasing application in Encompix also ranks vendor performance based on delivery, quality, and price for you. You can choose to have a PO line item received directly into inspection for quality verification; and if necessary, returned to the vendor. If you purchase your materials directly to the job, you can avoid the constraints of an item based inventory system, which requires received items to go into inventory, and then out of inventory. Hence, one of the major benefits of Encompix is that you don’t need to assign an item number.
If you do elect to use the item master and assign an item number to a purchased part, you are able to define a standard description, long description, units of measure conversions, preferred vendors, cross references and many other fields. Lot and serial tracking is available for both stock and non-stock items, multiple inventory locations, multiple cost types, cycle counting and physical inventory are all supported.
To aid in your manufacturing processes Encompix has developed the Advanced Planning and Scheduling Module (APS). APS is based on the Theory of Constraints (TOC), eliminating the restrictions of other MRP-based scheduling systems. Whether you don’t have enough space required for assembly, or you don’t have enough operators to run the machines to complete the work; the multiple constraint management options in Encompix will enable you to employ a variety of scheduling options. Furthermore, Encompix allows you to plan your production based on your business policies (customer priority, least slack time, reduced set-ups, etc.). Taking into account constraints on capacity, materials, tooling and labor pool; Encompix will determined the best possible schedule. Various simulations can be run on scheduling to determine the effectiveness of different scenarios, before you commit your resources to one plan.
Encompix also provides your managers with immediate feedback on shop floor control. Encompix allows you to implement anything from bar code readers and data collection devices, to online employee time cards with concurrent job allocations; all in the interest of providing you with better and more immediate feedback. Shop floor tracking collects information on labor, material and scrap. By receiving information from the shop floor in a more timely manner, you as a manager can respond to, and implement corrective measures, to any changes that may arise.
Encompix gives your top management unrivaled visibility and oversight into the entire operations of your company. The advantages of installing an all encompassing solution like Encompix, is that by making every staff member use the same tool, you can truly see what every staff member is doing; and what the overall company is doing (since all actions are made within the system). Encompix provides a series of standard reports designed to meet the needs of ETO companies. These reports are all viewable in excel; allowing you to provide graphical analyses.
After you’ve won a bid for a project you now face the challenge of executing a project; and making sure that profit is still profitable. Work is organized into groups of tasks and scheduling is done so your resources are used incredibly efficiently. Encompix offers you unlimited flexibility in planning your projects. Most companies involved in custom-engineering purchase materials as needed, to reduce the needs for material planning. If this is the case for your company; Encompix is your complete solution because it matches changing production and customer requirements by providing better visibility throughout the project completion process.
Encompix ERP is made directly for your specialized operations; allowing scheduling to be done in several ways. You can either schedule on a first come, first serve, simplified basis; or either forward by start date or backward by due date (both in finite or infinite modes). You can also add the Advanced Planning and Scheduling module to complete truly finite scheduling using a rules based or user-defined conditions. Any rescheduling produces a performance metric and a customer scorecard to analyze effects and determine the best schedule. With the Plan application you will be able to watch your projects progress, while being given the ability to constantly manage and view your costs on a job-by-job or total project basis.
If you already use Microsoft Project to setup your initial scheduling structure and measure schedule progress, Encompix can adapt to your processes. Any routings created in MS Project can be imported into Encompix; and furthermore any changes or production updates recorded in Encompix are exported and posted back into MS project, so that both systems are always coordinated.
Since your company manufactures highly complex machinery, oftentimes installation can be just as challenging as manufacturing. Encompix however, has a feature that was developed specifically to help you manage installation of your complex parts and machinery. Structuring an installation job that has many different tasks, poses no problems to Encompix. Once you disassemble a completed machine, you can set up steps for reassembly and installation within the Encompix software. The software with then report progress and labor against what was budgeted. If you structure the installation job as part of the overall project, the costs and revenues from the installation are rolled up to the parent project.
Encompix Workflow allows you to greatly simplify your production processes. This application within Encompix is designed around the tasks, that are typically unique to MTO or ETO companies. By assigning security clearances to your employees, you can dictate who has the ability to see and do which tasks. For example, once a bill of materials is constructed for a job, engineers have the option of releasing the bill of materials to purchasing. This then allows your buyers to immediately place purchase orders for the parts. The goods once received are diverted to inspection; and your inspector gets notification of his new pending task, when he logs on to Encompix. Many alerts within Encompix can be set by a user, providing more versatility and potential for the uses of the system.
Your involvement in Engineered-to-order production, requires you to have consistent interactions with your clients, throughout every stage of the production and implementation of products. From the first stages of providing and estimate and a quote, through manufacturing and installation, and ending with services and repairs; you are required and expected to be in contact with your clients. Encompix’s CRM is specifically made to address the needs of your ETO company; allowing you to deal with sales that have long lead times, and a high value, in ways other CRM packages cannot. This package allows sales reps, sales administrators, and engineers to maintain a common history of all customer activities. All activities related to customer communication are stored in a customer service history record. Finally a detailed contact management system allows you to store several contacts for each customer; and hence provide a better service experience.
Encompix gives you the ability to track machines or products during shipment, and during their warranty period. When a customer needs servicing of their equipment, service calls are entered which in-turn create service tickets that are distributed to your service staff. Encompix then applies all labor and material costs due to servicing to the total project cost if you so desire. Encompix also gives you the ability to store, manage and sell spare parts.