Plex Systems > Case Studies > Ralco Industries Achieves Operational Excellence with Plex Manufacturing Cloud Integration

Ralco Industries Achieves Operational Excellence with Plex Manufacturing Cloud Integration

Customer Company Size

Mid-size Company

Region

America

Country

United States

Product

Plex Manufacturing Cloud

Tech Stack

Web-based Interface
PLC Integration

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Productivity Improvements
Customer Satisfaction

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)
Platform as a Service (PaaS) - Connectivity Platforms

Applicable Industries

Automotive

Applicable Functions

Quality Assurance

Use Cases

Inventory Management
Predictive Maintenance
Process Control & Optimization

Services

Software Design & Engineering Services
System Integration

About The Customer

Ralco Industries, Inc., is an ISO/TS 16949-certified tier-one and -two automotive supplier specializing in precision welded assemblies, metal stamping, design, tooling, and prototyping. The company serves worldwide OEMs with exhaust, steering, chassis, suspension, seating, and HVAC parts and assemblies. Located in Auburn Hill, MI, Ralco Industries is a key player in the automotive industry, providing essential components to major original equipment manufacturers (OEMs) around the globe. The company prides itself on its ability to deliver high-quality products and services, maintaining a strong reputation in the competitive automotive sector. With a focus on innovation and efficiency, Ralco Industries continuously seeks to improve its operations and product offerings to meet the evolving needs of its clients.

The Challenge

Lacking a single system that included MRP, PLC integration, and shipping and receiving, Ralco Industries found that inventory accuracy was a major issue. This inaccuracy led to overstock to ensure there was enough material on hand for jobs. Setups were not consistent, resulting in excessive overtime and expedited shipments. These issues led Ralco Industries to Plex. Ralco Industries was looking for a system that could improve processes, efficiency, and insight. Operations began to suffer from inaccurate data and a lack of visibility. Given these and other challenges, Ralco’s goal was to find one system that could integrate all facets of its manufacturing business. Ralco wanted to move away from separate manufacturing resource planning (MRP) incapable of machine PLC integration. Ralco also wanted to avoid stand-alone software for shipping and receiving.

The Solution

After a detailed search, the company found that the Plex Manufacturing Cloud offered the most advantages over other solutions. The industry-leading manufacturing cloud solution is fully integrated with the PLCs for all shop floor and engineering equipment. The company noted that Plex could adapt to its unique business strategy and be customized to Ralco requirements. Says Piper, “Every other software company required us to adapt to their software.” After switching to Plex, Ralco Industries now cycles inventories. Because of improved accuracy in inventory, setups are faster, and inventory on hand has been reduced by 15 percent. Plex also has a ‘recipe’ system for setups, ensuring consistency and eliminating operator variation. The Plex Manufacturing Cloud uses a simple, web-based interface and places few requirements on the operator. Unlike software from other companies, Plex is accessed through a web browser, allowing Ralco to avoid the cost and hassle of buying, installing, and maintaining the software and server. Plex also supports and enhances the system, including all software upgrades, data backup, and professional system management, at its headquarters in Troy, Michigan.

Operational Impact

Ralco Industries experienced a significant reduction in scrap rates, with a decrease of more than 60%, leading to improved material utilization and cost savings.
The company achieved a drastic reduction in downtime and employee turnover, contributing to a more stable and efficient workforce.
Inventory levels were optimized, resulting in a 15% reduction in inventory on hand, which improved cash flow and reduced storage costs.
Setup times were reduced, enhancing production efficiency and allowing for quicker response to customer demands.
The implementation of the Plex Manufacturing Cloud led to easier paperwork and order tracking, streamlining administrative processes and improving overall operational efficiency.

Quantitative Benefit