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An Online Information
System for Forging Companies
By Robert Beatty,
President & CEO, Plexus
F
orging
companies use computer
software packages to help organize
and run their business. A variety of
different packages are used to handle
different areas: ERP, Shop Floor Control,
Accounting, Quality Management
and so on. The traditional approach
is to purchase software
packages and install them on servers
at the site. The forging company then
maintains these systems over time, including
backups, hardware upgrades,
new software versions, and all the
complexities and expenses associated
with managing computer systems.
But forging companies aren’t software
companies. They don’t normally
maintain the staff, resources, and focus
to implement information technology
effectively. The poor cost-effectiveness
of computer technology in
the industry has been exacerbated by
an industry-shortage of IT personnel,
skyrocketing salaries, and the tendency
for programmers to “jump”
from job to job. With all the time and
effort that goes into maintaining complex
software systems, sometimes it’s
hard to remember that we purchase
The Plexus Online information system, designed specifically
for forging companies, handles everything.
software to help us save money, not
spend it.
A new approach, called ASP, has
begun to sweep across the industry.
ASP stands for Application Service
Provider. An ASP provides software
through the Internet. With this approach,
the customer doesn’t purchase
and maintain the software and
servers. The ASP provides the application
to the customer directly
through their Web Browser. The ASP
manages a centralized Data Center,
taking on the cost and technical responsibilities
of maintaining, protecting
and upgrading the system over
time.
One of the advantages of the ASP
approach is that the customer avoids
the upfront capital expenditure for expensive
software and servers, and
avoids the often-unexpected cost of
upgrades and incompatibilities. The
software is paid for on a month-tomonth
subscription basis, which reduces
upfront risk and levels spending.
Best of all, the customer doesn’t
have to worry about the technical details
of keeping the software running.
This allows the forging company to focus
on what it does best: forging.
The IDC Research Group reports
that the ASP market
will be a $2 Billion
market by 2003.
Many industry experts
have suggested
that within a few
years ASP will replace
traditional software
almost completely,
especially for
enterprise-oriented
applications. Software
companies are
retooling their products
for ASP. Oracle,
SAP, and PeopleSoft
have all publicized
their new ASP solutions.
FasPac, a wellknown
package in the Fastener Industry,
has also announced its intentions
to shift to ASP.
An ASP for the Forging Industry
In the forging industry, a new application
service has arrived called
Plexus Online. The Plexus Online information
system has been designed
and built specifically for forging companies.
It handles everything from
Part Management and Bar-Coded Inventory
Tracking to Quality and Tool
Tracking. Customers subscribe to one
module or many, depending on what
they need. They select from standard
The Visual Part List, above,
and the submenu of partrelated
details, right.
capabilities or work
with Plexus to design
custom subsystems,
perhaps a specialized
Quote Tracking System
or Kanban-Style
Scheduling.
The user logs into
the system using a standard Web
Browser. Although it is a private system,
not a public website, Plexus Online
is accessed over the Internet or a
direct T1 line to Plexus Systems, located
in Clarkston, MI. After logging
in with a User ID and Password, the
Main Menu displays the various subsystems.
As with all ASPs, Plexus
maintains a high level of user-specific
18 FORGING JANUARY/FEBRUARY 2001 www.forgingmagazine.com

security, so the menu only
shows those options management
has authorized.
One of the advantages to
the ASP approach is that the
software looks and feels like
a web site. Because of the
overwhelming popularity of
the Internet, most users are
already familiar with how to
point and click through the
menus and use the system
without too much training.
Graphics are used extensively
to help guide the user.
The Visual Part List depicted
here stores the Part
Number, Description, Part Type, Production
Status, and Customer Part
Numbers. It also includes a photograph
of the part, which is uploaded
from an inexpensive digital camera.
Clicking on the underlined Part Number
pops up a submenu of part-related
details, such as the part’s Product
FMEA, Material Specifications, and
Current Inventory levels.
John Stokes & Sons Limited, a Tier
1 hot forging company in Birmingham,
England, has contracted Plexus
for a fully integrated system. Their
system includes Inventory Tracking,
Production Work Orders,
Shipping/Receiving, Preventive Maintenance
and many other aspects of the
company. Material is defined and ordered
through the system, including
steel chemistry and bar size. Forklift
drivers use handheld RF terminals to
receive the bar coded bundles of steel.
The steel mill’s Material Certification
is typed and/or
scanned into the system, then
compared against the Engineering
Specification.
Once the bars are cut into
blanks and forged, inventory
containers filled with forged
parts are tracked with bar
coded WIP tags (shown
here). Synthetic labels are
used to protect the bar codes
from the heat and grime of
the forge shop environment.
As containers move to and
from various subcontractors
for heat treat and machining
operations, the system tracks
shipments, process yields,
and supplier performance.
The online Control Plan provide online inspection instructions.
The system maintains full heat/lot
traceability as material moves through
the process and ships to the customer.
The Plexus Online system also provides
a full suite of Quality Management
Tools, specially geared toward
forging companies and ISO/QS-9000.
MascoTech Forming Technologies,
with headquarters in Royal Oak, MI,
augments their quality program with
the Plexus Online Problem Control
System, which allows them to track,
graph, and resolve quality issues using
the industry-standard 8Ds approach.
Digital photographs of tool failures
and other problems are uploaded into
the system, attached to detailed problem
records, then automatically
emailed to key personnel in order to
maximize awareness and permanently
resolve issues.
In addition to being a requirement
of the new ISO-9001/2000 standard,
Material is ordered through the system. Forklift drivers use
handheld RF terminals to receive the bar coded bundles of steel.
the problem control methodology
represents a major
step forward in proactive
quality management and
systematized continuous
improvement.
Bavarian Precision Tool,
an automotive supplier in
South Carolina, recently
used the Plexus Online system
to attain their ISO-
9001 Certification in record
time, and had no nonconformities.
The foundation
of their quality program is
the Document Control System,
which stores online
versions of the Quality Manual, Level
2 Procedures, and other critical documents.
BPT has also implemented
FMEAs, Internal Auditing, Supplier
Quality Management, Feasibility
Checklists, and Gage Control.
BPT controls the lifecycle of the entire
job through Plexus Online. Starting
with the quoting and estimating
step, the system creates and tracks the
Customer Quote. Once the Quote has
been accepted, the system controls the
creation of the Process Routing and
detailed Bill of Materials. Using the
integrated Purchasing system, it automatically
orders raw material from the
BOM. From there it moves into Engineering
Specifications, Shop Floor
Control, Process Instructions and
real-time Job Tracking. At any point
in the process, management can determine
in real-time whether they’ve
made or lost money on a job.
Because BPT is a German-owned
company, and
has a sister company in
England, their system has
been set up to convert job
pricing to different foreign
currencies on the fly. With
this capability, various engineers
and managers can see
the quote and participate in
the decision making process,
regardless of what
country their in.
As this is a fully-integrated
system, changing the
Part Revision Level in the
Part List automatically updates
all associated documents
and sends electronic
email notification to ef-
20 FORGING JANUARY/FEBRUARY 2001 www.forgingmagazine.com

fected users. The online Control Plan
(p. 20) is designed to provide online
inspection instructions to machine operators,
including a list of dimensions
to measure, the gages to use, and the
sample plan. The Control Plan also
provides a pictorial measurement diagram
of the part.
The Forging Division of American
Axle & Manufacturing, with its headquarters
in Detroit, Michigan, has
worked with Plexus to design their
own Quote Tracking System for entering
RFQ’s and creating Customer
Quotes. Because it is Internet based,
salespeople can access the system
whether they’re in the office or on the
road.
CONSIDERING AN ASP
Although ASP (application service
provider) and its Web-based technology is
new, the basic concept of outsourcing is not.
Companies like ADP have been outsourcing
payroll services for years. In a way, ASP
shares some similarities with the old days
when we used to timeshare on mainframes.
Even so, the idea of hosting critical
databases offsite will worry some management
teams, especially those that aren’t keen
on outsourcing. But ASPs invest millions of
dollars in hardware, software, infrastructure,
and IT staff, which is something many forging
companies can’t afford to do. ASPs put
in redundant connections, security firewalls,
and many other measures to make sure their
systems are protected and always available.
Many experts believe that because of its centralization
scheme and economies of scale,
ASPs will be able to deliver information systems
that are more secure, more reliable,
and more effective than traditional internal
systems.
In the late 1800s when electricity was first
invented, only the rich could afford it. They
would hire an electrical engineer to setup a
generator in the backyard, and then retain
that costly engineer to nurse along the handbuilt
system. Today, we simply plug in to a
wall outlet. We don’t have a generator in the
backyard and we don’t even think about the
power plant from which our electricity
comes. Yes, occasionally we loose electrical
power, but far less than back in the old days
when it was a hand-built local generator. The
risk of occasional power outages doesn’t
stop us from using electricity. In the future,
or perhaps now, information services will be
MSP Industries, a Tier 1 automotive
forging company in Oxford, Michigan,
has used Plexus for years on the
traditional platform, and is now
preparing to implement a comprehensive
Advanced Quality Planning system
based on Plexus Online.
The APQP Checklist system automatically
sets up a detailed checklist
for each new part, electronically coordinating
the massive effort of many
departments and individuals to launch
a new product. The checklist establishes
a detailed and standardize plan.
As the Product Team reviews the
checklist, it assigns tasks and due
dates to specific individuals. The system
automatically sends the person
provided and paid for as a basic utility. Think
of it as an information system on tap.
If the need for a new or upgraded software
package is on your company’s horizon,
the ASP approach warrants consideration.
It’s important to select an ASP that makes
sense for your situation. Here are several
factors to consider:
* The most important factor in selecting
an ASP is the quality and capability of their
software. Whether its delivered via a T1 circuit
or hosted locally doesn’t change
whether the software fits your needs and
helps you improve your operation. Beware:
many ASP’s simply rehash their existing
software, or purchase someone else’s standard
package, then pipe it to you.
* Make sure the ASP is reputable, trustworthy,
and responsive to its customer’s
needs. You can’t ascertain that from a brochure.
Ask for a customer list and call as
many as you can. Talk to them. Listen to
their stories. You’ll soon determine whether
this is the right ASP for you. If an ASP can’t
provide a customer list, then don’t bother.
* Finally, make sure the ASP has experience
in your field. There are all sorts of
ASP’s, offering a vast range of different services,
and the number is growing exponentially.
A company that sells retail systems,
Internet services, or just hosts your hardware
probably won’t have the background
necessary to fulfill your company’s needs.
For general information on ASP’s, visit
www.aspnews.com, www.aspindustry.org,
and www.searchasp.com. For further information
on Plexus Online, contact Plexus
Systems at 248-922-9690 or visit
www.plex-sys.com.
email and puts the task on their personal
“Activity Manager”, a sort of
online Task Management System. As
the various tasks are completed, they
are electronically checked off the list.
Although MSP’s APQP Checklist has
been setup using the standard Checklist
Module within the Plexus Online
platform, the customized end result
facilitates MSP’s unique design and
development process.
One of the advantages of an ASP
solution is that an organization’s internal
information system can be easily
integrated with e-based Business-To-
Business communication. For example,
some of Plexus’ forging customers
are using Plexus Online to improve
communication with suppliers. Key
suppliers are issued a restricted User
ID that allows them to see only the information
the customer wants them to
see. Instead of receiving paper Releases,
the supplier reviews the online
“Shipment Schedule”.
The online communication system
replaces the need for expensive and
problematic EDI. Using a standard
Web Browser, the supplier sees the releases
in real-time and commits to the
specified date. When the supplier
ships the product, the system is used to
print a bar code and close the release.
The customer scans the bar code when
the product is received, which automatically
identifies the product, marks
it as received, transfers it into inventory,
and sets up payment in the AP
module. The system is also used to
publish an online supplier handbook,
technical specifications and supplier
performance reports.
Plexus Online as an ASP is dedicated
to the forging industry. By
working closely with its forging customers
over the years, Plexus Online
has been designed by and for forging
companies. Several of Plexus’ key
management personnel, including its
founder, come from forging companies.
Plexus has stated an intention to
involve all American forging companies
in its online information system,
thereby leveraging its forging experience
and gaining advantages from
centralization and economies of scale.
Their goal is to provide an online information
system to forging companies
that is both capability-rich and
cost-effective at the same time.
22 FORGING JANUARY/FEBRUARY 2001 www.forgingmagazine.com

Throw Away Your Modem
and Get High-Speed Internet Access
Premise: In order to conduct business
over the Internet, small businesses
should seriously consider
discarding low-speed dial-up access
for one of a number of high-speed Internet
access choices.
Prediction: If available, businesses
will generally find broadband cable
and DSL the best choices. But ISDN
and satellite serve specific needs.
When it comes to high-speed Internet
services, small businesses have
more choices than ever, including cable
(Broadband), DSL (Digital Subscriber
Line), ISDN (Integrated Services
Digital Network) and satellite.
Each high-speed technology has pros
and cons, however, and not all services
are available in every area. When
looking for services, there are two important
factors to consider: What options
are available, and how much
speed does my business require?
TV Cable (Broadband): Fast but
Shared—A cable connection is fast
and inexpensive. Using coaxial television
cable and a special modem, you
can reach speeds as fast as 10 Mbps for
downloads and two to three Mbps for
uploads. However, because you must
share that 10 Mbps with hundreds of
other broadband users, your performance
can be dragged down to analog-modem
speeds during peak usage
periods, usually late afternoon and
early evening. Cable service costs between
$30 and $60 per month, but because
cable wiring is not usually installed
in office buildings, expect some
installation fees if you’re in a commercial
structure. The downside of cable
is that it is not available in all locations.
And because most providers
have geographic monopolies, if you
don’t get good service, you may have
to select another access technology.
DSL: Over Your Phone Line—
Running over ordinary phone lines at
speeds as fast as six Mbps for downloads
and one Mbps for uploads, DSL
promises speed without sharing. But
potential speed depends on the distance
your business is from your local
phone company’s central office. After
about three miles (16,000 feet), the
signal degrades too much to be usable.
The most common flavor of DSL is
Asymmetrical DSL (ADSL), which
features fast download speeds but
slow upload speeds.
Slow uploads make ADSL impractical
for high-volume Web serving.
But all DSL services run over your existing
analog phone line without interference,
meaning you can surf and talk
on the same phone line at the same.
You choose a DSL carrier from your
CLEC (competitive local exchange
carrier or your local telephone service
provider) and then choose an ISP (Internet
service provider, which may be
affiliated with the CLEC or not).
ADSL costs $40 to $200 per month
(depending upon the speed). If you
expect to frequently upload data to a
remote server, consider paying more
for Symmetrical DSL (SDSL), which
has equal upload and download
speeds. In some places, you’ll pay two
to three times the monthly cost of
ADSL. Many providers, such as Pacific
Bell Internet, also offer custom
telecommuting and branch-office services
that let customers use DSL to
connect remote users with your office
local area network (LAN) for an extra
charge. The downside of DSL is its
availability based upon location.
ISDN: The Dependable One—
ISDN is the slowest Internet option,
with a top speed of 128 Kbps and requires
the use of a special digital phone
line from your local phone company.
But the service is available almost everywhere.
Unlike other high-speed options,
ISDN isn’t always on, but connecting
with ISDN doesn’t take long,
usually less than a second, compared
with almost a minute for analog
modems. Unfortunately, the connection
drops after a minute or two of inactivity,
so you can’t easily use it for
Web serving. You buy ISDN from your
local telephone carrier and choose an
ISP to dial-up to. The ISDN line itself
typically costs about twice as much as
an ordinary phone line: from $25 to $50
per month. Internet service is another
$25 to $50, which brings the total to between
$50 and $100 in monthly
charges. These numbers don’t include
one-time fees, such as $100 to $300 in
installation charges, and one- or twocent
usage charges—per channel, per
minute—whenever you’re connected
to your ISP. (ISDN provides two 64
Kbps paths that can be used for data,
voice, or a combination of both.) Fortunately,
because ISDN is a dial-up service,
you have a great deal of choice
among providers. Its chief disadvantages
are slow speed and higher costs.
Satellite: High Speed in the Boondocks—If
you can’t get cable, you’re
out of range for DSL, and you don’t
want ISDN charges, Internet by satellite
may be the only answer. Promising
satellite download speeds as fast as 400
Kbps, it only enables uploading through
a modem (a 33 Kbps upload speed is the
limit of a 56 Kbps modem.). Satellite
prices are competitive with cable, but is
very complex to install.
Professionals will do the job for
$200 to $300. Beyond slow uploads
and costly installs, satellite services
such as DirectPC do not support Macintosh
USB or Windows emulation.
To connect Macs to the Internet, you
have to use a Windows 95 PC as an intermediary,
running third-party proxy
software to share the connection with
your Macs via Ethernet.
The Last Word—If you’re serious
about conducting business over the Internet,
it’s a good time to jump into
the speed-surfing arena. Cable is the
most convenient choice, with the highest
potential speed and lowest price
(generally). DSL is the second-fastest
option, but it often costs more, and
speed depends heavily on your distance
from your local phone company.
If you’re really in the hinterlands, a
satellite feed may be your only option
for high-speed access.
By Peter Lopes, vice president of
marketing, apps4biz.com. This presentation
was adapted from the January
issue of Small Biz Apps, a monthly
e-newsletter on small business application
trends published by apps4biz.com.
To join the free distribution list for the
newsletter, please email
editor@apps4biz.com with your name
and company name, and mention that
you read about the newsletter in Forging,
January-February 2001 issue.