This document provides an overview of a webinar hosted by Ultra Consultants on lean processes in mixed-mode manufacturing. The webinar covered Ultra Consultants' "Lean Office" methodology for improving business processes from quote to cash, procure to pay, plan to produce, and record to report. It included a discussion of current and future states, recommendations for improvement areas, and ERP best practices. The webinar was moderated by Kristen Renda and featured a presentation by Andrew Johnson from Epicor on their ERP solutions.

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Lean Out Processes in
Mixed-Mode Manufacturing
W E B I N A R S E R I E S
T E A M W I T H T O D R I V E
B U S I N E S S P E R F O R M A N C E I M P R O V E M E N T S

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Presentation Guidelines
 Phones are muted.
 Q&A at end, last 5-10 minutes
 Please ask questions through WebEx Q&A.
 Other communications through WebEx Chat.
 Use ‘Raise Hand’ if you’d like to ask a question directly.
 Look to the right of your screen for a grey box with + or – to
maximize or minimize your screen.

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T O D AY ’ S M O D E R AT O R
We l c o m e
KRISTEN RENDA
M A R K E T I N G
P R O G R A M M A N A G E R
T O D AY ’ S A G E N D A
 Ultra Introduction
 Quote to Cash “Lean Office” Methodology
 Current State
 Future State
 Recommended Areas for Improvement
 Quote to Cash (customer orders)
 Procure to Pay (purchase orders)
 Plan to Produce (manufacturing orders)
 Record to Report (finance)
 Epicor Presentation
 Question & Answer

4. ULTRA CONSULTANTS
AN OVERVIEW OF
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O ver 3 0 0 S u c c essfu l Projec ts
100% Focused on Manufacturing and
Distrib u tion
Head q u artered in Ch icago with Clients
Th rou g h ou t North A merica
Ultra’s Focus as a Valued Partner
Industrial
Equipment
20%
Other
19%
Consumer
Goods
12%
Industrial
Supplies
12%
Food &
Beverage
8%
Automotive
7%
Chemical
7%
Distribution
5%
Electronics
5%
Medical
5%
Clients by Industr y
Fou n d ed in 1 9 9 4
Under $50M
35%
$50M-$200M
33%
Over $200M
32%
Clients by S ize

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Areas of Expertise
Business Process
Improvement
Technology
Selection
Solution
Implementation
Business
Transformation
BEST PRACTICES BUSINESS TRANSFORMATION LIFECYCLE

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Your Independent Guide Through
the ERP Landscape
1 0 0 % Ven d or In d ep en d ent
4 0 + Ven d or Relation sh ips
2 0 + Ven d ors S elec ted & Man aged
?

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GEORGE TRUDELL
 15 years in Industry
 ERP Implementation
Management
 Corp Director of Supply Chain
 Divisional Planning Manager
 Strategic Planning
 Master Scheduler
 15+ years in Consulting
 Brought BPI to Ultra
 ERP Selection &
Implementation = 100’s
Companies
 Cloud ERP
TO D AY ’ S H O S T
George Trudell has OVER 30 YEARS OF SUPPLY CHAIN AND TECHNOLOGY EXPERIENCE
helping mid-sized to fortune 500, manufacturing and distribution companies,
improve their businesses. He has assisted well over 100 clients with BPI,
Selection, Negotiations, and Implementation of ERP systems, leading ERP
projects from both perspectives (industry and consulting).

9. ULTRA’S ‘LEAN OFFICE’
METHODOLOGY
QUOTE TO CASH
w w w . u l t r a c o n s u l t a n t s . c o m

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Assemble Team,
Agree on Project
Approach,
Establish Buy-In,
Project Kick-Off
Document &
Review Current
State Processes,
Business
Requirements,
Systems &
Interfaces, Master
Data Files
Industry Best
Practices, ERP
Education
Workshops,
Organizational
Design, Change
Management,
Implementation
Expectations
Define Future
State Possibilities
& Requirements,
Draft Systems
Architecture &
Project Charter,
Create Business
Scenario Scripts
Quantify &
Prioritize
Opportunities,
Create Business
Case For Change,
Compose
Transformation
Roadmap
Ultra Proven Methodology
Phase-1: Business Process Improvement
Organize
Current State
Education
Future State
Opportunity
Ultra Service Value Tracks

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Business Process Phase
Step 2: Current State
 Current State Reviews
 Process Owners and Teams
 Process Review Workshops
 Document Current State
 Level 0: Business Model & Value Streams
 Level 1: Business Process Inventory
 Level 2: Functional Process Flows
Sales/Customer Service Quality Purchasing/Sourcing
Warehouse Product Data Management Logistics
Supply Chain Accounting Order Fulfillment
Production Data, Forms, Reports Inventory Management
Finance/Accounting Master Data Management Manufacturing
Quality Assurance Picking/Packing Scheduling
Scope
11

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Business Model & Value Streams (Level 0)
OPERATIONAL VALUE STREAM PROCESSES
DistributionNetwork
ManufacturingReps
&Distributors
PurchasingSales and
Marketing
SUPPORTING PROCESSES
Quality/
Compliance
Human
Resources
Finance/
Accounting
Information
Technology
MANAGEMENT & REPORTING
Inventory
Management)
Operations/
Production
Recycle
Processing
Used Material
Collection
Plant
Management
Customer
Service
Recycle
Sales
Shipping
Revenue Stream 4
Raw Material
Management
Recycle/Reclaim or Sell Other Recycling
Pre-Orders
Revenue Stream 3
Revenue Stream 2
Field
Usage
Product
Engineering
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Level 1 (Business Process Inventory-Sample)
Functional Process Areas

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Scenario Matrix (Sample)

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Level 2 (Business Process Detail)
Current State Flow
Current State – Create PO
InputPROCESSOUTPUT
Force
Look for new
items Catalog
Flagged by
Assistant Buyer
Contracts
& Test
Approved?
No
Create Forecast
based on
circulation.
Buy BreakEven
Qty or MOQ
(Spreadsheet?)
Create PO (Ship
to, Delivery date,
and FOB)
PO in AccPac
Contact Supplier
(Email or Call)
Supplier
Confirmation
(Email or Call)
Holiday?Yes No
Look at similar
items, factor %
increase, deduct
Amazon and
backorders.
Yes
Consider Match
back and size/
placement
Review
Spreadsheet with
Exec Team
Repeat Items
Catalog
Flagged by
Assistant Buyer
Holiday?
Look at HISTORY
factor % increase,
deduct Amazon
and backorders.
Yes
Create Forecast
based on past
history
No
Net On Hand and
determine
quantity.
Net On Hand and
determine
quantity.
Drop ship items for the Holiday catalog are
included in this process.
Drop ship items, non holiday are not
provided a forecast because it is so small.
However, if the vendor asks a forecast will
be provided (e.g., new vendors.)
New Web Only
Review the list
from the web
team
Email List for New
Web Only
Existing Web Only
Weekly Review
Sales History and
Buy Accordingly
Determine small
quantity to buy
Holiday Forecast
Spreadsheet
Would like dynamic
reporting
* On hand.
* Ytd sales
* Netting
Difficult to keep track of
what is on order.
New Item Non
Holiday Catalog
Spreadsheet
Daily Sales
Reporting
Move PO PDF to
the Send to IML
folder 1. Move the POinto the
new POfolder.
2. Move the POinto the
approved POfolder.
3. Move the POinto the IML
sent folder.
May need to
negotiate freight
at this time

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Opportunity Matrix (Sample)

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Improvement Tracks (Sample)

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Summarizing Step 2: Fully document your current state
 Assess and organize
 Look at your current state
1. Set a baseline
2. Current state reviews
3. Document current state
4. Process maps
5. ID waste

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Business Process Phase
Step 4: Future State
 Cross Function Workshops
 Create Future State Business Processes
 Context Diagram
 Scenario Matrix and Opportunity
 Process Maps (Integrated Flows)
 Critical Requirements & Priorities
 Basis for Organization Buy-In

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Future State Map (Level 1.5-Sample)
Cross Functional Flow
Future State – Order to Cash (Page 1)
INPUTInternalSales(4)OUTPUTProduction
Accounts
Receivable
WORD
New ERP
Google Docs SS
Other Software
Excel SS
Manual / Offline
DicksonData
Order (1)
DicksonOne
Order (2)
Calibration
Order (3)
Order posted to
IS Sales Order
queue
IS rep calls customer
to verify order &
provide consultative
services
SO released to
production
Web order
Phone,
Email/Other
Enter SO in ERP
Phone
Email/ Other
Website
Order
SO automatically
generated by ERP
Process JO Ship order
ASN emailed to
customer
Invoice sent to
customer via
email
Credit Card
information
added to file
Job Order (JO)
created
Can JO ship
immediately?
eTrigger created
based on JO
JO added to
Shipping queue
Items pulled/
packedYES
NO
CC payment
posted to SO

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Summarizing Step 4: Clearly map your future state
 Review current state
 Re-design each business process
 Future state
process maps
 Processes that can be eliminated?
 External processes?
 Value adds?
 Communicate to your company
Future State Flow Forecast and PO Creation
Input/OutputForecastingPlanning/PurchasingMerchandising?
Monthly/ Weekly
SalesHistory
Review Sales
History
Alter Sales History
(Bulk or Out of
Stock or Amazon)
Generate Forecast
Adjust for
Circulation and
Promotions
ERPSales
HistoryUpdates
Forecast
Generated
Forecasted?
Yes
Review Sales
Historyvs. Safety
Stock Levels and
Make Adjustments
No
Adjusted Safe
Stock Levels or
Min/ Max
Run PlanningNet
Requirements
DRPPlan
Review Inventory
Plan (and Change
Parameters)
Review POsby
Supplier by
whatever.
Create / release
POs
POinSystem
Advise Supplier of
PO
NewItemsSetup in
ERP
Setup Min/ Max, SS
or Initial Forecast
Workflow
NewItem in
ERP
Review and
Approve (Team
Event)
NewItems
CopyHistoryfrom
Compor Similar
Forecast
Approved
Auto Email to
Supplier

22. ERP BEST PRACTICES TO
CONSIDER & ‘DELIVER VALUE’

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Best Practices: Quote to Cash with Ecommerce
 Tracking Prospects and Opportunities?
 Electronically Convert a Quote to an Order?
 Available to Promise?
 Pricing Logic ERP & Ecommerce?
 “Amazon Like” ecommerce Experience?
 Is there paper in the warehouse? Use Automation e.g.
pick to voice, carousels, etc?
 Zone Picking (for larger warehouses)?
 Automated Bank Reconciliation?
People
Quote to
Cash
Process
Tech
Info
Value

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Best Practices: Procure to Pay
 Sourcing Database in Excel?
 Demand Forecasting?
 Sales and Operations Planning?
 Supply Chain Inventory Plans across Multiple Locations?
 Vendor Portals and Vendor Performance?
 Advanced Shipping Notifications?
 Quality at shipment and or at receipt?
 3 Way Match?
People
Quote to
Cash
Process
Procure to
Pay
Tech
Info
Value

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Best Practices: Plan to Produce
 Complete traceability from raw materials to
finished goods in the system?
 Quality Tests in System to Order# & Lot#?
 Reporting on the Shop Floor Production via
touch screen tablets?
 Finite Scheduling?
 Integration of Shop Floor Equipment with
Systems reporting production and downtime
information (MES)?
People
Quote to
Cash
Process
Procure to
Pay
Tech
Plan to
Produce
Info
Value

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Best Practices: Record to Report (Finance)
 Close the Books in Two Days?
 Consolidation in One System?
 Automated Journal Entries?
 Balance Sheet and Income Statement in
One System?
 Forecasting: Daily Cash Needs or
Availability?
People
Quote to
Cash
Process
Procure to
Pay
Tech
Plan to
Produce
Info
Value
Record to
Report

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A n d r e w J o h n s o n
Andrew Johnson is Principal Solutions Engineer at
Epicor Software Corp. He started at Epicor in 2006,
with a focus on mid-market mix-mode, CTO, ETO and
project centric manufacturing vertical focus in Capital
Equipment, Electronics, Medical Device, and
Aerospace & Defense.

28. ADDITIONAL RESOURCES
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Lean, Six Sigma, and ERP
ultraconsultants.com/erp-education/white-papers/

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Additional Resources – Ultra Education
UPCOMING EVENTS ultraconsultants.com//events/
Cloud Webinar Series
 October 24th – 26th Daily at 1pm CDT
Digital Transformation with SME
 October 17th at 1pm CDT
5 Steps to Getting Organizational Buy-In for Your Enterprise Software Project
 October 31st at 1pm CDT
EXPERT INSIGHTS ultraconsultants.com/erp-education/

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Thank You!
W E B I N A R S E R I E S
T E A M W I T H T O D R I V E
B U S I N E S S P E R F O R M A N C E I M P R O V E M E N T S