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How Fodens' new computer will help operators

25th May 1973, Page 86
25th May 1973
Page 86
Page 87
Page 86, 25th May 1973 — How Fodens' new computer will help operators
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Which of the following most accurately describes the problem?

by John Darker

A NEW IBM computer recently introduced by Fodens will transform the company's production and marketing strategies. More vehicles will be produced more efficiently and customers will be able to anticipate delivery schedules with considerable assurance, thus facilitating forward planning of their operations and budgetary plans.

The IBM 370/145 system employs Real Time — which means that all major departments within the factory and stores at Sandbach will be "on line" to the computer thanks to the VDUs — Visual Display Units — situated throughout the works and offices. Orders on Fodens' suppliers will be routed through the same computer, providing Fodens with a closely integrated control system which should be popular with Foden operators.

Wide range Fodens have for many years offered a wide range of non-standard vehicles. Operators have appreciated the availability of high-performance lorries built largely to an individual specification but many difficulties have arisen in practice for the manufacturers. Even if all components were produced at Sandbach the production of a wide range of variable-specification vehicles would necessitate the holding of many costly spare parts — some of them seldom called for. In practice, because over 50 per cent of Foden components are "bought out", longterm planning of production at Sandbach must be dovetailed into the production control systems of suppliers of raw materials and component parts. The days have long passed when a manufacturer could telephone a supplier of specialist parts and order a batch for immediate delivery.

In the past, Fodens' forward planning of production extended over a 9-month period. The managing directors decided in advance what basic models would be built, tailoring specifications so far as possible to known customer demand, thus maximizing the production "run" of each model.

Versatility costs money Because road transport is a constantly changing industry, no amount of forward planning can ensure that no late changes of specification are demanded. It was one of the great strengths of ' Fodens_ that, over the years, customers were able to order special-purpose vehicles, but such versatility costs money and must now be reconciled with the practicalities. There are about 56,000 individual parts, each separately numbered, held on the Foden inventory and it is sensible for supplies of parts, whether produced by the manufacturers or bought out, to be ordered in the largest practicable batch sizes, with programmed deliveries.

As many operators will know, Foden customer requirements have sometimes led to delivery delays. The new Real Time computer system is designed to put the whole selling and production process on a much more disciplined basis. As departments are progressively switched over — the crucial shop floor control system is due to go "on-line" in 1974 — Foden customers should see a marked improvement in delivery performance.

Fodens' long-term programme for standard or very basic models will in future extend over a 21-month period in advance of completed vehicle delivery date. Such a lengthy period is necessary to enable outside suppliers of materials and components to formulate their production. plans.

Foden dealers are now required to work to the sales order "bible" which separates out standard from nonstandard variants. Detailed customer requirements are specified by dealers using a standard order code. Sometimes the "order" may be in the form of an enquiry; an operator may want confirmation that a vehicle, or batch of vehicles, with a complex specification, can be provided by a given date.

Because all production data is controlled by the computer the effect of new orders on production resources will be known very rapidly. A visual display unit in the sales department, with access to the information stored in the computer, will enable the Sandbach works to confirm to the dealer promptly — and hence the operator of the vehicles — the likely delivery date(s). The information passed to the dealer is given a code number and can be retrieved at any time if necessary.

The coded information supplied by dealers to Fodens on enquiry or order forms • is translated into language when the confirmation order is returned to the dealer. A duplicate form is used and one copy is returned to Fodens, duly signed, after the dealer has checked for accuracy.

Phased programme A similar procedure is followed to cater for customer modifications. To ensure that the production programme is kept properly phased, necessary modifications must be specified some 20 weeks prior to the planned delivery date. If a dealer has not tied up all loose ends in the final specification desired by the operator, and returned the documentation to Fodens 18 weeks prior to delivery, there is a risk that the order will be cancelled and the basic vehicle either built for stock or re-allocated.

Should modification forms be sent in after week 18 they will be dealt with according to the feasibility of the request — at this stage in the game untold problems arise, with conceivable shortages of materials and labour.

Fodens' new computer installation will enable the company to forecast spares demands much more accurately than hitherto. Stock holdings at Sandbach, Knottingley (Yorks), Carlisle, London and Glasgow will be controlled centrally by Foden production control staff. Each spares depot at some time in the future will be on line to the computer so that stores managers will be aware of the make-up of stocks held throughout the system. Ultimately, there is no reason why stocks at dealers' premises should not be controlled in the same way; a huge capital saving is possible with enhanced service to operators if spares holdings are rationalized.

It is impossible in a short article to list all the advantages of a modern computer installation. Fodens have eight years' experience of an earlier computer model and the new IBM equipment makes any first-generation computer seem as antiquated as a model T Ford. Management services manager, Mr Terry Bullock, is quietly confident that the on-line equipment will greatly improve production and marketing efficiency. There will be some inevitable difficulties during the changeover period as staff and dealers and operators get acclimatized to the new disciplines but the future pay-off well justifies the heavy investment in equipment and organizing skill committed by Fodens'.

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