As well as maintaining safety and compliance across the plant, managers are leaned on to:. This expectation impacts on any continuous improvement, KPIs, quality, maintenance and production processes, as well as supply chain and staffing decisions across the business. To succeed today, managers need to find new and better ways of doing things with the resources they have. This means innovation is required to meet daily production demands and improve operations into the future.
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- Production Planning for Small Manufacturers
- 10 Steps To An Effective Manufacturing Operations Management Strategy
- 6 essential KPIs for world-class factory performance
- Why Some Factories Are More Productive Than Others
- Future Factory: How Technology Is Transforming Manufacturing
Eagle Group BlogVIDEO ON THE TOPIC: 7 Tips to Start Small Scale Manufacturing - Business Ideas for Product Makers
Planning is essential. During the past few decades, the concept of conducting business has changed dramatically. Previously unimaginable things are now essential parts of our everyday lives. For good or bad, changes come very rapidly, leaving the previously dominating things behind. People are not always able to change as quickly as times require.
For this reason, a lot of manufacturers still plan their production using the same methods used in the previous century. At that time, if you performed production planning, you must have had a massive business with lots of workers and a huge workflow.
Nowadays, the idea that only big manufacturers need or can afford management of their production planning is still very much alive. This mindset excludes the possibility of implementing it in small or medium productions and leads to losses in competition. No matter what kind of business you have, there are the same main principles of success. The product you are selling must be well-made, easy-to-use, of good quality, appealing, etc.
Your attitude towards clients must be caring. Delivery must be delivered in a promised time period, invoices must be correct, etc. With these two points, every client will be yours - and for a long time.
But maintaining this is not as easy as it looks. For example, suddenly you may have more items ordered than you usually have. A big order! You start contacting your supplier and other suppliers, but the earliest date your items will arrive is way past your deadline. Long story short, you failed, and this customer will never contact you again.
The importance of production planning is that it gives you knowledge i. It gives you full control over your manufacturing process, and this, in turn, provides you the power to stop wasting time, to avoid bottlenecks, to manage your crew effectively, and to make the process flow without stops and troubles.
Because it is. Production planning is your strategy for the whole manufacturing process. This map leads from nothing to the final product. Your manufacturing process will follow this map step-by-step. Production scheduling is the same as planning, but its process specific. It organizes separate parts of the whole production process and is adjusted depending on the real-time workflow.
Production control means that you always have an actual overview of your manufacturing, all information about your inventory is quickly accessible, you know everything about real-time workflow, and you are ready to immediately react in an unforeseeable situation. Without it, efficiency is unreachable. Great production control is a competitive advantage because it gives you great confidence in your manufacturing. Good production control is when you are sure that you have all the necessary raw materials, you know your capacity, and you know how much you can produce at any given time.
You need it even if you are a small make-to-order enterprise. You will feel confident in front of a client and will be able to quickly make accurate estimates. It will give the client a sense of safety and confidence in you. Right after getting the order you will quickly schedule everything needed, and it will become a part of your production plan. All manufacturing businesses - from a small bakery to factory production - have the same goal: to make quality goods with minimal time and resources.
Of course, you must have a full overview of the necessary materials and components for your product. Then you need to connect all the components into one product. With this information, it is possible to answer two key questions: when will the product be ready and what will it cost? And yes, answers to these questions are worth the time is taken to research them. If we know when the product will be ready, we can plan to start the manufacturing of the next product right after finishing the previous one.
It will make the process as fast as possible. Correctly calculating the cost of production will help to estimate the optimal price for the manufacturer and the client. That sounds great, but if we look at the sheer amount of this information with a pinch of realism, it will become clear that making all necessary calculations will take a huge amount of time and effort.
The scheduling will take more time than simply performing it. This is somewhat problematic, but worry not! You just have to use the right tool to do that for you. The human brain is 10 million times slower with calculations in comparison with a computer. So why not leave all the hard work for the computers? For some manufacturers, choosing the right production planning software is the hardest part of all the processes of optimization for their production.
Everyone who was forced to do something in Excel loves it and hates it. Unfortunately, Excel is not suitable for manufacturing planning and scheduling. Why use the multidisciplinary Excel program when there are systems made especially for manufacturers? Some manufacturers still use Excel because they believe that all production planning systems are the same giant monsters as SAP, and to implement it, you need a budget greater than the yearly budget of the USA.
You need only two things:. Usually, production software providers provide information on their homepage regarding who they deem as being suitable.
It only means that their software was made with the thought of their target group manufacturers and their respective needs, which may differ from your needs. The best way to understand whether this solution is suitable for you is to try it! Nowadays, the vast majority of SaaS Software as a Service companies have free trials.
Right now you have an overview of why production planning is crucial, and you are willing to optimize your production process with some good manufacturing software. As a rule, very often manufacturing starts from customer orders. So, the information about the customers and their orders should be stored somehow.
This is the task of the CRM part of the software system. CRM abbreviation from Customer Relationship Management not only stores the above-mentioned information. Its main functions are:.
It is not possible to produce goods from thin air. So, raw materials and needed components should be ordered prior to production. There are three departments responsible for that. Often, they are supplemented with drawings. The BOM is the list of materials and components needed for producing the final product, with their quantities generally being per single unit, or per some minimum producing quantity. Routing is the list of manufacturing operations with the required equipment, working time, and labor resources are also often needed too.
Which materials and components are available in stock? How many of them are free? How many of them are booked already for previous orders? The important functionality of a Stock module is the ability to clearly distinguish between inventory currently on hand, and the inventory expected to arrive. Also, it helps you to reduce manufacturing costs by optimizing inventory and avoiding overstocking.
If there are not enough parts and materials for manufacturing the product, they should be procured. It allows a purchasing order to be created quickly, and for planned delivery dates to be entered before the goods will physically arrive in stock.
So, all these aforementioned components of a manufacturing ERP system participate in effective production planning. An important functionality of such a system is the easy rescheduling of work orders, so a system with dynamic possibilities drag and drop at the monitor screen has an advantage. Seamless management of production, stock, customers, purchases, finances, and the team.
Accurate automatic planning and realistic production schedule. Reschedule dynamically by just dragging and dropping manufacturing orders and operations in the calendar or Gantt chart.
Inventory management, stock movements, batch and serial number tracking. Set and optimize stock levels and avoid stock-outs. Have a clear history of your stock operations. Just a few clicks to calculate the product cost and the best delivery time. Send quotations and invoices, prepare shipments. Send confirmed customer order to production. Track the sales process all the way from quotation right down to delivery using a simple pipeline view.
Simple environment for line workers to follow tasks on desktop or mobile device. Real-time shop floor reporting. Real-time overview of the need and availability of human resources. Manage purchases and raise pre-filled purchase orders with a single click. Manage your supply chain with the help of accurate statistics. Forecast your procurement needs. Enjoy clear visibility to your business performance.
Understand the profitability of the business, and more. MRPeasy gives us the ability to track all of our manufacturing lot costs right down to the individual serial number of our products.
Overcoming the challenges of making company-wide manufacturing operations more customer driven needs to start with a clear definition of what success looks like. Defining the strategic goal of having all production centers contributing to a series of company-wide lean manufacturing, supply chain, quality, and production, service and customer satisfaction goals galvanize diverse production locations together. Instead of having to rely on many different, disconnected systems to manage diverse production locations to a common set of goals, manufacturers are adopting company-wide Manufacturing Execution Management MES systems. Planning and scheduling, quality management, inventory optimization, tooling management, preventative and predictive maintenance, and Manufacturing Intelligence are the core functional areas included in an MES today.
Posted by Tammy Borden. After years of sluggish growth and in several cases decline , many areas of the country are experiencing a thriving manufacturing sector. Today, 6 out of 10 open skilled production positions are unfilled. While automation and robotics may help fill the labor gap, skilled workers will still be needed to apply problem-solving capabilities, perform analysis and manage production. One reason manufacturers are finding it difficult to fill positions, both skilled and unskilled, is the lack of trade school opportunities for young men and women. To solve for this problem, many manufacturers are developing robust training programs to teach candidates everything from die making and welding to robotics programming and sheet rolling. The more effective way to connect, especially with millennials, is through social media.
Production Planning for Small Manufacturers
River Publishers Empik. Ovidiu Vermesan , Peter Friess. Today, we see the integration of Industrial, Business, and Consumer Internet. In this way, it forms the backbone of the digital economy and digital society and the foundation for the future knowledge and innovation-based economy in supporting solutions for the emerging challenges of public health, aging population, environmental protection and climate change, the conservation of energy and scarce materials, enhancements to safety and security, and the continuation and growth of economic prosperity. Penetration of smartphones and advances in machine to machine M2M and wireless communication technology will be the main drivers for Internet of Things IoT development. The IoT contribution is in the increased value of information created by the number of interconnections and the transformation of the processed information into knowledge shared in the Internet of Everything. The connected devices are part of ecosystems connecting people, processes, data, and things which are communicating in the cloud, using the increased storage and computing power and pushing for standardization of communication and metadata.
The battle for attention is over. The time for banging drums is long past. Everyone now understands that manufacturing provides an essential source of competitive leverage. It is […]. It is now time for concrete action on a practical level: action to change facilities, update processing technologies, adjust work-force practices, and perfect information and management systems. But when managers turn to these tasks, they quickly run up against a stumbling block. Namely, they do not have adequate measures for judging factory-level performance or for comparing overall performance from one facility to the next.
10 Steps To An Effective Manufacturing Operations Management Strategy
Manufacturing has a long history in the U. That will likely continue to be the case, but post recession American manufacturing is otherwise characterized by slow growth and lots of change. So what can we expect from our recovering patient? The Good: Compared to previous years, manufacturing in America has been getting undeniably stronger.
Planning is essential. During the past few decades, the concept of conducting business has changed dramatically. Previously unimaginable things are now essential parts of our everyday lives. For good or bad, changes come very rapidly, leaving the previously dominating things behind. People are not always able to change as quickly as times require. For this reason, a lot of manufacturers still plan their production using the same methods used in the previous century. At that time, if you performed production planning, you must have had a massive business with lots of workers and a huge workflow. Nowadays, the idea that only big manufacturers need or can afford management of their production planning is still very much alive. This mindset excludes the possibility of implementing it in small or medium productions and leads to losses in competition. No matter what kind of business you have, there are the same main principles of success. The product you are selling must be well-made, easy-to-use, of good quality, appealing, etc.
6 essential KPIs for world-class factory performance
While this may sound like science fiction, these kinds of factories have been a reality for more than 15 years. To imagine a world where robots do all the physical work, one simply needs to look at the most ambitious and technology-laden factories of today. In June , the Chinese e-commerce giant JD. Without robots, it would take as many as workers to fully staff this 40K square foot warehouse — instead, the factory requires only five technicians to service the machines and keep them working. To answer this, we took a deep dive into 8 different steps of the manufacturing process, to see how they are starting to change:. Despite representing The timelines and technologies will vary by sector, but most steps in nearly every vertical will see improvement. From drug production to industrial design, the planning stage is crucial for mass-production.
Why Some Factories Are More Productive Than Others
OEE is a much talked about KPI and shows how manufacturing assets perform relative to their theoretical maximum potential. Businesses that invest heavily in plant will find that OEE measurement is an essential metric to track. OEE measures performance against an arbitrary benchmark, or standard. Your plant will have constraints that are very different to other businesses, so what matters is not the absolute OEE value, but the ongoing measurement and continuous improvement from your starting point. Labour effectiveness is probably the most under-utilised manufacturing metric. Where OEE quantifies how your machine assets are performing, OLE does the same for your most important assets: your people. Labour costs make up a large proportion of the costs of manufacture for most businesses. To be able to improve labour effectiveness, you need to be able to measure and track it in detail by product, team, shift, operator, activity, and several other variables. Unfortunately, most manufacturing teams only have the ability to produce an aggregated OLE for the entire organisation. This approach is not helpful in explaining who, why or when specific teams or operators are underperforming.
Future Factory: How Technology Is Transforming Manufacturing
Manufacturing is a great place to work. Manufacturing employs 8. Manufacturing spans some of the most interesting high-tech industries, such as aerospace, food technology, machine monitoring, and pharmaceuticals.
The smart factory represents a leap forward from more traditional automation to a fully connected and flexible system—one that can use a constant stream of data from connected operations and production systems to learn and adapt to new demands. Connectivity within the manufacturing process is not new. Yet recent trends such as the rise of the fourth industrial revolution, Industry 4. Shifting from linear, sequential supply chain operations to an interconnected, open system of supply operations—known as the digital supply network —could lay the foundation for how companies compete in the future.
A factory, manufacturing plant or a production plant is an industrial site, usually consisting of buildings and machinery, or more commonly a complex having several buildings, where workers manufacture goods or operate machines processing one product into another. Factories arose with the introduction of machinery during the Industrial Revolution when the capital and space requirements became too great for cottage industry or workshops.
By: Steve Wright on November 8th, Manufacturing Blog Posts. As the old adage goes, time is money. The more production you can squeeze out in a period of time, the more money you make, right?