Case OR group – Flexibility and transparency for production
Company and challenge
Behind the OR group, the following brand names are the companies belonging to the Olavi Räsänen group: Olavi Räsänen Oy, Parla Floor Oy, Parlatuote Oy and Savopak Oy. These companies focus on the industrial production of wood work and highly processed wood products. In 2011, turnover was 47,1 million euro and the companies in total employ around 300 people.
Growing business, expanding product selection and changing economic trends have set new requirements for the management of purchases, production and stocks. The goal was to create a systematic operations model, which decreases the stock value, brings transparency for the production chain and specifies the production range management. The aim was to develop the supply chain management in its entirety, so every production phase would have the right amount of raw ingredients, semi-finished products and end products.
“Expak Delivery has been a great project. We are content.”
Mikko Mannila, Development Manager, OR group
OR Group’s goal was to find a tool, which would be compatible with their Dynamics AX ERP system, and which could be used to reduce the amount of capital tied to stocks. It was the hope that the solution was going to be simple to use and flexible. The tool should be able to ensure the availability, recognise exceptions and problem products throughout the daily tasks. The EXPAK Inventory management system was first used for end product stock management of Parla-Floor products. In addition to steering values, each production phase was set goal levels and follow-up indicators, which were hoped to assist in making permanent changes in company operations. After this, the EXPAK Inventory management was used in other production phases. In addition, EXPAK Reporting was installed. It automates reports for the needs of sales and production, thus reducing the need of manual labour done in Excel.
- Transparency and indicators to supply chain
The sales and separate phases of supply chain can now be carefully monitored. Measures can be taken under control straight away, features have been optimised and new operational methods created.
- The end product stock value decreased by 25%
The development of end product stock has met our goals during the first year. The aim of the project is to create similar benefits for other production phases as well.
- Reducing manual labour
By reducing manual labour the automated reports of Expak have reduced the time needed for manual labour in Excel. More time has been created for sales and production with automated, browser-based reports.
- New operational methods
Despite the lack of resources, new operational methods have been successfully executed. The development is a process which requires patience, and the execution of new methods continues.
OR group chose Expak as its partner
- “It was a positive thing that at the beginning of the partnership we were able to test the EXPAK Inventory management system with our own data. This way we could see the strengths of Expak straight away. The programme was easy to use and the information that was needed was found easily. Expak is reliable to use.” Mannila describes the start of the project.
“The delivery has enabled us to react quicker and more flexibly.”
Mikko Mannila, Development Manager, OR group
Positive, active and flexible delivery
EXPAK Delivery was executed within the given time frame, and there was a positive attitude at all times. EXPAK Delivery has been a great project and we have been satisfied with Expak’s delivery method and the positive and proactive attitude of their staff. We started thinking of concrete measures to reduce the size of our end stock straight away. The project progressed in a flexible manner and the availability was consistant at all times. The project was executed before deadline and according to plans, says Mannila with content.
Executing new operational methods
“Expak has made the everyday work easier at OR Group. Thanks to Expak, when things come up, they can be chosen for closer inspection, and overall, they can be spotted more easily. No tool drops the stocks. Some change to our methods must take place so that we can aim for better results. Now that we have a tool, results going in the right direction and new operational methods, although some of these have not yet been executed due to lack of our own resources. We have however, come up with new methods which will be executed in the coming year. The most important thing is that we are confident that the development will continue towards the right direction.” says Mannila about the situation of development.
Profitable cooperation is growing even bigger
“Expak has helped us to achieve reliable results. The total amount of our end product stock has considerably decreased. When raw ingredient stock has been observed together with the person buying the raw ingredients, its amount decreased a great deal as well and at the same time, we have increased the amount of semi-finished products. This has enabled us to react to changing situations quicker and more flexibly.” Mannila lists the results.
- “At the moment EXPAK Inventory management is part of goal setting, operation planning and monitoring in all of our meetings. In addition to stocks, we are able to check sales and exceptions. Expak works really well for us, and it will be used in the future and in other units as well.”, summarises Mannila.