Oxley Developments

How military logistics solution steered Oxley Group to new generation ERP.

Oxley Systems has invented an innovative e-tag contact memory device which enables military logistics personnel to identify equipment and record its operational status. Specified initially for the inter-services ‘Bowman’ secure radio and tactical data communications system, the devices are expected to become a common feature in future military logistics support.

The Bowman application was developed in conjunction with IFS Defence, a sub contractor for the Bowman Logistics Information System (BLIS).This association has led subsequently to the selection by the Oxley Group of IFS Applications to provide a new generation business management computer system.

Based on two new Dell servers installed at the company’s headquarters in Ulverston, Cumbria, the first phase of the 100 seat implementation went live in July 2004, less than eight months after selection and placing the order.

The programme was managed by Technical Director, Richard Norrie, a senior executive responsible for the introduction of the group’s previous system which had served the company for some 18 years.

Explains Richard Norrie. "At various stages we had looked at replacing this legacy system but decided to stay with the one that we knew while it continued to serve our immediate requirements."

Growing business

But standing still was never going to be a viable option. Oxley operates in a highly competitive commodity sector where best delivery performance gives a positive competitive advantage. Good governance also requires that the company’s managers make best use of working capital by minimising stock and work-in-progress levels. To do this effectively requires improved business performance visibility.

The business was also growing and by 2002, the balance of cost to benefits tipped finally in favour of an upgrade to a new generation system. Having made the decision to upgrade a steering committee was formed, representing all the key business departments (production, quality, purchasing sales, accounts). Four ERP software vendors were then short listed for a detailed evaluation.

IFS was included because of Oxley’s involvement with the Bowman project. The decision to select IFS however, followed a thorough assessment covering all of the key areas of functionality. Another important factor was the publication of an independent report by Benchmark Research Ltd into the implementation of ERP systems in which IFS was scored highest for midsized enterprises. Oxley has three production units in the UK and employs a total of 240 people of which around 100 are design and administration and about 140 are in production operations.

The selection of IFS was also endorsed by the company’s IT manager Colin Helliwell who recognised the benefits of the component based solution for enabling a progressive implementation. Says Richard Norrie, "Being based on the Oracle database we knew that the system would offer better flexibility, more access to the database itself, and reduced administrative tasks once it was implemented."

The order was placed in December 2003. Implementation was split into two phases; the first covering sales, purchasing, accounts and initial elements of the production control system. The wages system was also fast tracked in order to meet the March 2004 deadline for the end of the tax year. Document management, Project Management and CRM followed during the Spring 2005.

Keep it simple

The guiding principle for implementation was to keep it simple and this meant avoiding any unnecessary modification to the basic IFS applications software. Apart from some minor changes on the printing of forms and report output, the company therefore adopted the vanilla approach as far as possible.

This strategy also avoided unnecessary complications in the transfer of data from the legacy system. The company was able to maintain continuity with the output of data that personnel were used to having from the previous system. Another advantage was that it also allowed visibility of the company’s historical data.

Dealing with manufacturing complexity

Oxley Developments’ products cover a wide range of capabilities from electronic components, to radio frequency identification tagging and night vision compatible lighting for military applications. Manufacturing involves both discrete engineering and chemical process type work. Activities include the precision machining of turned parts and the production of ceramic electronic components from ceramic raw materials. Other process type work includes optical coating technology. There is also the bench assembly of parts and materials in batch manufacturing.

Customer requirements vary from relatively small quantities of customised products to large commodity type contracts that are virtually continuous manufacture. A lot of components are manufactured to stock up to different stages, based on historical data and forecasts.

Production is managed through a traditional make-to-stock MRP model. During implementation Oxley were able to transfer bills of materials and stock balances into the new system and get shop floor orders up and running relatively quickly.

Benefits

"Whilst the IFS Applications manufacturing module caters for all these different requirements, we are making changes to some MRP procedures," says Richard Norrie. "It is the first time that we have really had a system that is capable of dealing with our wide variety of production work and we are developing our production planning expertise to take full advantage of this additional resource.

As part of this programme Oxley has developed performance indicators to highlight turnaround of shop floor orders, stock levels, procurement performance and overall delivery performance to the customer.

"Although this involves more training together with support from IFS,we have seen enough to recognise the potential benefits of the new generation software. Examples include a definite improvement in the reduction in overdue shop orders in some areas and reduction of shortages on the shop floor. In a number of areas we are using IFS to establish new best practice procedures which should then make it a lot easier to measure our manufacturing performance efficiency."

Adds Richard Norrie: "In my opinion the most significant improvement is the on-line reporting of operational status through the query screens. Our managers and production people can now access the data directly, whereas before we relied on weekly and monthly print-outs. We have virtually eliminated monthly print-outs. Everything is reported through screens or it is captured onto spreadsheets which are available over the network."

"The biggest reduction in workload has been for the IT department in terms of producing data and reports. Now we have a bigger network to support, the roles of our three IT personnel have changed to helping people to access the system and fully exploit its potential."

For additional information, contact:

Christine Murphy, Marketing Manager
Telephone: +44 (0)1494 428900
Fax: +44 (0)1494 428907
E-mail: christine.murphy@ifs.co.uk