WHY AEROGLIDE REPLACED 18 RACKS OF INVENTORY WITH ONE RACK From the desk of: Brett Cimato, Production Control Manager at Buhler Aeroglide. Brett explains how doing the MATH inspired Aeroglide to purchase PEP Technology’s Machine Scheduling and Inventory software. Today, after implementing PEP it is abundantly clear that the software is paying back their investment every 30 days, AND they did not have to build a 3 rd building. Aeroglide Monthly Inventory Savings $80,000.00 reduction in on-hand monthly inventory. The only material on hand at Buhler Aeroglide is the material needed for the next 36 hours. 7.5% increase in manufacturing space, removing 18 material racks, 10 levels each, 14 ft. tall has freed up 15,000 sq. ft. of floor space for two new manufacturing work cells in building #2. 15,000 sq. ft. of non-productive floor space now generates real profits. 1 man working 4 hours has replaced 2 men working 10 hours a day pulling material. 16 hours of labor saved daily! Front office daily tracking and reporting on inventory has been eliminated. Ordering of material has changed from an estimated amount to the actual amount needed. The PEP nests cut so well that the exact material required is ordered with no extra material added. The taxable material inventory was reduced to $0. After going to the single automated rack, deliveries are now done outside on a dock where the material is loaded at dock level onto a single rack and then automatically moved inside and stored. 30 to 60 minutes of laser cutting given back to production. Delivery of material no longer halts production. When inventory was kept on racks, receiving material was a major disturbance which resulted in the lasers being shut down for 30 to 60 minutes. Stopping the laser was necessary because the delivery trucks and fork lifts moving about with heavy loads affected the laser cut quality and increased the risk of damaging the machines. $10,000.00 racks were sold for $5,000.00/rack, half the racks were scrapped. $180,000.00 invested in racks were sold off at $5,000.00 per rack when they could get it, those that had been repaired were put in the scrap bin. Their $180k in racks returned $50k.