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Computerizing Materials Management

ESC Technologies Photo by Thomas Radcliffe
ESC Technologies needed to reduce lead time and operating costs in manufacturing its broad line of connector accessories in the wake of the defense industry downturn. Through 1994, half of the revenues of the 28-employee company came from military customers. The company chose to improve profits by operating more efficiently rather than undertaking a defense conversion. To help the company make the transition, the California Manufacturing Technology Center (CMTC) quickly identified a new computerized materials and inventory management system as one way to help ESC Technologies operate more efficiently. ESC Technologies makes 700 different products. Because of variances in size and color, the company offers 8,000 kinds of finished goods. Its inventory consists of 30,000 parts, 7,000 of which are kept in stock. All of these parts were tracked by hand and through hard paper copies kept in numerous files. The computerized materials management system has given ESC a valuable tool that more closely controls its inventory.
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