What Is Production Management and How Does It Work?
Production management, often known as operations management, guarantees that your goods or services are manufactured and produced in a timely and efficient manner. Manufacturing is a complicated process, thus it’s critical to examine your production workflow on a regular basis. You can design a plan to improve efficiency and production by reviewing or evaluating your present workflow.
Similarly, enterprise resource planning (ERP) is the real-time administration of your business processes, usually through the use of software. The program can help with production planning, allowing you to scale and grow your output to new heights.
What will set you apart from your competition is the use of a powerful program that can keep up with demanding schedules and projects while also providing 3D visualization, collaboration, and analytics.
What Are the Benefits of Using Production Management Software?
- It’s time to upgrade to something devoted to manufacturing if you’re still manually sequencing and scheduling your manufacturing process. You’ll need something that can take you from design to fabrication, increasing output and efficiency in the process. A good software package can give you the quality control you need to expand your company. You need a program that handles the whole product lifecycle, from compliance initiatives through quality measurement and cost reduction.
- You can close the gap between planning and production with Management software, our cloud production management solution.
- Additionally, if you’re still reliant on your office computer, you should consider cloud computing. The world is evolving, and nowadays everyone works from different areas. Your team, on the other hand, can work from anywhere they have an internet connection with cloud computing.
Manufacturing Production Solutions: Who Needs Them?
- Digital production systems like Management software can help anyone who is planning or building a production process.
- Don’t make this roadmap with out-of-date approaches. To stay competitive in your sector, upgrade to a digital software package.
- You can enhance your production process while avoiding downtime with software like Management software. Management software will help enhance efficient output by assisting with scheduling, time tracking, and staying within time limitations.
Digital Manufacturing Programs’ Best Features
You’ll need a tool that can take complicated projects and break them down into easy-to-follow steps that everyone can understand.
Your manufacturing software program also has the following features and benefits:
- Real-time connectivity and production registration how and when to finish each step social collaboration prepares your work schedule informs employees what has to be done next real-time connectivity and production registration how and when to complete each step
- As you can see, digitizing your production management can provide you with a number of advantages in the production planning process. When you use a cloud-based software application specialized to the manufacturing process, growth is unavoidable, from your manufacturing sequence to your comprehensive framing information.
- A good manufacturing software package will provide you with detailed information about the entire manufacturing process. You can make smarter judgments and uncover the issues that are preventing you from increasing efficiency with real-time data.
- The appropriate program can help you raise your agility, lower your costs, boost your productivity, and simplify all of the administrative activities that take time away from your other responsibilities.
The Two delivery models of Manufacturing Software
Before we get into the many types of manufacturing software, let’s take a look at the software two distribution models: on-premise and cloud-based, as well as some of the benefits and drawbacks of each for manufacturing companies.
1: Manufacturing software that can be used on-site with its advantages and disadvantages
On-premise software is licensed and installed on servers that the user owns and operates. Internally, everything required to run the company’s IT infrastructure must be given. This was once the industry standard for software delivery.
Advantages: The Company has complete control over its software and IT security. The company’s software is very customizable, and it does not require an internet connection to function.
Disadvantages: The Company will have to invest a large amount of money up front to set up the IT system and servers. The owner is responsible for all operational and maintenance costs, as well as system and security improvements on a regular basis. An on-premise system may take days to come back up after a hardware failure. Overall, running an on-premise software system is time intensive and expensive.
2: cloud based manufacturing Software
Pay-as-you-go cloud-based manufacturing software is available to businesses via the internet. Other than supplying personal devices to utilize the program on, such as laptops, phones, or tablets, and an internet connection, a firm does not need to invest in and maintain its own IT infrastructure and hardware to run this software.
The largest market sector of cloud-based software is software as a service (SaaS), which is predicted to increase in 2021 and beyond.
Advantages: Manufacturers save money on infrastructure since they don’t have to buy, manage, or upgrade pricey software on a regular basis. Without further capital investment, the company may scale up and down to meet its demands. Data is safe in the event of flooding, fire, or theft because the software is backed up elsewhere.
Software updates and data security are the responsibility of the service provider. This eliminates the need for manufacturers to hire experienced personnel to deal with IT concerns.
Cloud-based SaaS software improves remote accessibility by storing data in the cloud and making it accessible from a variety of mobile devices. This makes it easier for employees to collaborate by allowing them to share data more easily. Importantly, when accessing vital software via the cloud, businesses are better able to operate despite lockdowns.
Disadvantages: Cloud-based manufacturing software requires an internet connection. Businesses can’t utilize the program if their internet connection isn’t stable or if their coverage is spotty.
3: Manufacturing software (ERP)
Manufacturers might use enterprise resource planning (ERP) software to manage their operations. Inventory management, supply chain operations, procurement, project management, financial management, risk management, and compliance are all examples of these.
Advantages: ERP benefits include information centralization and increased overall operational efficiency. It improves inventory management by providing real-time visibility and accuracy. Diverse business units within a firm might use the same data collection to manage worldwide finances and operations.
Disadvantages: ERP software systems are sophisticated technologies that are both costly and difficult to implement. As a result, they are better suited to larger corporations and are a waste of money for SMEs.
Who is ERP most beneficial to? Construction, manufacturing, education, healthcare, hospitality, retail, and waste management all have larger, more complicated operations.
4: Manufacturing CMMS software
To guarantee that maintenance work is completed efficiently, a computerized maintenance management system (CMMS) is used. This program centralizes maintenance data, streamlines operations, and automates some tasks.
A computerized maintenance management system (CMMS) gives technicians access to the data they need to perform preventive maintenance. This includes step-by-step instructions as well as itemized listings of required spare parts and tools.
Advantages: CMMS software ensures that physical assets such as machinery, vehicles, and plant infrastructure are used and available to the maximum extent possible. This increases productivity while lowering costs.
Disadvantages: Setting up and maintaining an on-premise CMMS system can be costly and time-consuming. Some cloud-based CMMS systems, on the other side, are expensive to customize and may not connect effectively with other platforms.
Who is the best candidate for a CMMS? Businesses in practically any industry that must maintain physical assets. A CMMS is used by facility and maintenance management, asset planners, and maintenance teams.
6: Software for computer-assisted manufacturing
To automate the manufacturing process, computer-aided manufacturing (CAM) uses software and computer-controlled hardware (3D printers, laser cutters, milling machines). CAM allows producers to create things straight from a computer design, rather than manually setting up and operating their machinery.
For CAM to work, it needs three things:
- Software that generates toolpaths for machines based on your designs and data
- Post-processing software that translates your toolpaths so that your machines can understand them
Advantages: For fast and accurate manufacturing, CAM can operate continuously on repeated operations.
Disadvantages: CAM is costly to set up and requires a qualified engineering personnel.
Who is the best candidate for CAM?
CAM software is beneficial to electrical, mechanical, and aeronautical engineering, as well as refrigeration and air-conditioning businesses.
6: Manufacturing computer-aided design software
To produce 2D and 3D technical designs for items, computer-aided design (CAD) software is employed. CAD software boosts design productivity by:
- enhancing design quality
- providing detailed documentation
- Creating a database for manufacturing operations design
Advantages: CAD software promotes rapid invention by allowing concepts to be brought to life quickly and accurately. Communication is also improved and processes are streamlined with CAD systems. Engineers can use computer-aided design (CAD) to better understand the production process and produce improved designs.
Disadvantages: CAD systems can be expensive to buy. Staff training in a CAD system can be time-consuming and expensive. Hacking and computer viruses pose a threat to design.
Who is the best candidate for CAD? The aerospace and aviation industries, civil and structural manufacturing, consumer goods, medical equipment, and oil and gas sectors are all examples of industries.
7: Manufacturing EHS software
Environmental, health, and safety (EHS) software provides a wide range of features to assist businesses in complying with EHS standards. Manufacturers can use this software to track and analyze safety-related activities as well as standardize their safety practices. Companies can use an EHS system to better manage and report on environmental performance criteria as well as any operational risks they face.
Advantages: EHS software helps businesses to make real-time choices about the environment or safety. The company’s health and safety culture will improve as a result of this.
Disadvantages: The social contact and interpersonal engagement required to develop trust are not included in EHS software. It does not provide opportunity for hands-on learning.
Who is the best candidate for EHS?
EHS requirements apply to any company that keeps track of and reports on environmental, health, and safety issues. Manufacturers have a unique set of challenges when it comes to safety.
8: Manufacturing software from ETO
Engineer-to-order (ETO) software enables manufacturers to generate precise quotations for custom goods that fit their clients’ exact specifications. The software can then generate a bill of materials from a customer order.
Inventory data is managed by ETO software, which also handles scheduling and production monitoring. It estimates costs and lead times based on current and historical data. It can help with crucial procedures like make-or-buy decisions by providing information on whether producing components is cheaper (or faster) than buying them.
Advantages: ETO provides for higher precision in a variety of operations, such as quoting and scheduling production. It also saves time for employees by automating tasks such as planning and acquiring resources.
Disadvantages: Because ETO systems rely on current data, such as inventory levels, pricing, and lead times, this information must be reliably documented. The majority of ETO software is installed on-premise, which necessitates an initial IT investment, continuing maintenance, regular upgrades, and the risk of hardware failure. There are a few cloud-based ETO systems available.
Who is the best candidate for ETO?
Specialty equipment manufacturers, such as industrial cranes, commercial HVAC equipment, and fire engines.
9: Manufacturing industry inventory management software
Inventory management is important to the success of any company. To improve inventory control, the finest inventory management software incorporates barcodes, point-of-sale software (or eCommerce interfaces), and warehouse tracking.
Businesses can save time and money by using SaaS inventory management services. They are simple to integrate with other software systems and are updated automatically by the service provider.
Advantages: Inventory management software gives real-time inventory data that is clear. It automates inventory tracking and reordering, lowering storage costs, increasing profits, and improving customer happiness by eliminating stockouts.
Advanced capabilities for production and operations management will be available in some systems, which will improve forecasting, strategic planning, and decision-making.
Disadvantages: Even with inventory management software, a physical stock take is still required on a regular basis to identify loss due to spoilage, waste, theft, or even system manipulation – and reconcile the real-world condition with the digital record.
Who is the best candidate for inventory management software? Any manufacturing company looking to improve efficiency by lowering inventory expenses, stockouts, and waste. Inventory management software is frequently used by accountants and advisers to monitor and optimize their clients’ enterprises.
10: Manufacturing accounting software
Manufacturing accounting software aids in the management of financial transactions and business operations. Accounting procedures such as accounts payable, accounts receivable, general ledger, and payroll are aided by this software. This software is frequently sold as part of a larger ERP suite that can manage a company’s full operations.
Advantages: Manufacturing accounting software allows numerous users to view financial data and client information in real time. It automates reordering and simplifies procedures. Through defined protocols and agreed file formats, it ensures consistency in reporting.
Disadvantages: This software is dependent on precise data entry. For smaller SMEs, it is not necessarily a cost-effective choice.
Who is the greatest candidate for manufacturing accounting software?
Professional bookkeepers and accountants. Large corporations have in-house accounting departments.
- Software for calculating manufacturing costs
Managers can use cost estimation software to cost and estimate hundreds of production processes. To enable uniform and accurate pricing, this program simplifies and streamlines the estimation process.
Advantages: This program automates the process of cost estimation. It increases the precision with which raw resources, purchased items, and external services are priced. It entails a faster turnaround of quotes, which could lead to a higher win rate.
Disadvantages: Cost estimation software, like other production systems, can be expensive to establish and requires staff training. Prices may fluctuate as a result of market fluctuations, and these will need to be updated on a regular basis.
Who is the greatest candidate for manufacturing cost estimate software?
Manufacturers of aerospace, civil construction, engineering, facility maintenance, and mining.
12: Software for the food and beverage industry
Food and beverage manufacturing software keeps track of raw materials, production batches, perishable inventory, and expiration dates. Processes and workflows are consolidated and automated. This makes jobs easier to complete and increases productivity. It delivers corporate insights so that reliable data may be used to make decisions.
Advantages: Inventory, quality assurance, recipes, and batch scaling can all be managed using this software. It can aid in seasonal demand forecasting and supply chain management process optimization. To improve food safety, it may track suppliers, batches, and expiration dates. This assures adherence to food rules and the avoidance of costly mistakes, such as delivering food with ingredients that have passed their use-by date.
Disadvantages: Many of these software systems are still on-premise, which means upfront installation and maintenance fees. There are cloud-based choices that can help you save money. Staff training and data migration are required for both types of software.
Who is the greatest candidate for food and beverage manufacturing software?
Manufacturers of food and beverages, as well as hospitality and fast-moving consumer goods.
13: Manufacturing preventive maintenance software
Preventive maintenance software is an important part of a CMMS since it focuses on preventive maintenance rather than corrective or future repair. The scheduling of routine maintenance is made easier using preventive maintenance software. It enables a company to categorize the tasks required to ensure that industrial facilities and equipment run smoothly.
Advantages: Preventive maintenance lowers the likelihood of plant and equipment failure. As a result, repair costs are reduced. It aids in the optimization of manufacturing resources, the reduction of downtime, and the overall cost of asset maintenance. The lifespan of equipment and machinery is longer.
Disadvantages: The system can be expensive to set up. Preventive maintenance costs money in terms of labor and parts. There’s a danger of over-maintenance that doesn’t bring value.
The oil and gas, energy, food and beverage, manufacturing, and IT industries are the best candidates for preventive maintenance software.
14: Software for managing manufacturing processes
Manufacturing process management software collects and organizes data on how items are made in order to improve the efficiency and responsiveness of production operations. The software is intended to automate manufacturing processes such as production planning, stock availability, inventory tracking, resource allocation, and work delegation.
Advantages: Lower labor expenses, increased efficiency, and increased revenues are all benefits of manufacturing process management software. Automation decreases human error by standardizing industrial processes. The software streamlines cost allocation and displays inventory stock levels in real time.
Disadvantages: Data migration from manual systems takes a long time. Poor communication might emerge from separating workflows and processes.
Who is the best candidate for manufacturing process management software?
Manufacturers who mass-produce standardised things in large quantities. Construction and healthcare are two businesses with a lot of overlap.
15: Workshop management software for manufacturers
Make-to-order manufacturers can utilize job shop management software to manage their operations, and smaller manufacturers can use it to manage production processes without having to invest in more expensive ERP systems.
Advantages: Production scheduling, inventory management, sales and purchasing, as well as shop floor task control are all supported by job shop management software.
Job shop software enables firms to establish BOMs (bills of materials), allocate workflow tasks to employees, manage inventories, and track production costs.
Disadvantages: The program may not always offer customer relationship management and finance functionality, necessitating interface with CRM and accounting software.
Who is the greatest candidate for workshop management software?
SMEs and machine shop operators wishing to manage their production processes, as well as make-to-order manufacturers.
- Manufacturing industry project management software
Manufacturers can use project management software to plan projects, assign resources, track processes, collaborate more effectively, and organize paperwork. This ensures that every project’s resources are used to their full potential.
Advantages: This program is typically straightforward to use and install. Budgeting, cost control, forecasting, reporting, and risk management are all features available. It also enhances team communication by facilitating document sharing and providing a picture of project dependencies and responsibilities.
Disadvantages: This software is expensive, difficult to use, and has a low return on investment – especially for small enterprises. If the improper system is employed, project management software can make even simple projects more difficult.
Who is the best candidate for project management software?
The aerospace, architectural, automotive, defense, and energy industries are among the small, mid-size, and major firms.
17: Developing time study software
Motion and time analysis are used by manufacturing time study software to assist minimize production and labor expenses. This software analyses each phase of the production process and calculates the average time for each. This enables the organization to develop enhanced work processes that eliminate superfluous steps and increase manufacturing efficiency.
Advantages This program enables firms to swiftly gather data and execute efficient work practices. It enables businesses to standardize their processes. You can make video instructions with the help of some time study software.
Disadvantages: This software is difficult to implement and expensive, making it unsuitable for small-scale businesses.
Who is the greatest candidate for manufacturing time study software?
Manufacturers who manufacture large quantities of items, particularly those who follow the lean manufacturing strategy, such as those in the electronics and automotive industries.
Operations management software (OMS) aids in the planning, monitoring, and coordination of production or service operations, as well as the digitization of daily workflows of involved employees (e.g., operations managers, planners, supervisors, and project managers).
It also aids in the identification and mitigation of operational process bottlenecks. Instead of 3-5 distinct apps that require difficult integration procedures, OMS easily manages all operational aspects with a single system.
Production Operations Management Software’s Advantages
Increased operational reliability as a result of analytics-based capacity planning and monitoring of production KPIs.Because of standardized operational processes, the quality and regulatory compliance of production outputs has improved, as has quality control and insight into operational workflows.
Inventory expenses are reduced as a result of accurate inventory planning, inventory tracking (using barcode/RFID technology), and automatic replenishment warnings.Operations monitoring and tools to notify on operational concerns (e.g., delays, defective products) and then collaborate on their solutions reduced operational risks.Due to automated gathering and analysis of operational data, reporting latency has been reduced.
Automated request and order routing (production and purchase order requests, maintenance requests, etc.) and communication technologies have improved the productivity and collaboration of staff involved in operations.
Production Operations Management Software’s Key Features
The features of custom production operations management software are listed below as an example. However, because each real-world use case for such software is different, functionality and features should be expanded and matched to the needs of the organization. So, for the key functionalities are mentioned below.
Production scheduling
- Setup and monitoring of production KPIs (e.g., production volume and costs).
- Planning for material requirements.
- Scheduling of production
- Automated adjustments to the production schedule (e.g., in case of incoming make-to-order requests or production delays).
Optimization of operations
- Artificial intelligence (AI) recommendations for improving output (based on historical production data).
- Optimisation of multi-plant production (balancing production load across several plants).
- Cross-comparison and modeling of what-if manufacturing scenarios (to generate different options of a production schedule and choose the best one).
- Inventory optimization across multiple locations (calculating optimal inventory levels across warehouses based on multiple factors, from sales data to weather conditions).
Management of production orders
- Creating production orders (with auto-attachment of BOMs, e.g., via an integration with PLM software).
- Costs and capacity requirements for production orders are automatically estimated (based on product specifications).
- Material reservation for a production order that is automated.
- Production order routing and status tracking (defining the sequence of operations for producing a product and integrating an order into the production schedule).
- A receipt for a production order is generated automatically (with the final calculation of production costs based on the recorded material, machine and workforce usage).
Inventory control is important.
- Inventory levels are being monitored.
- Configuration of inventory reorder points and automated buy order triggers.
- Low-level inventory alerts
- Inventory transfer orders are created, routed, and tracked.
Management of the warehouse
- Inventory location tracking (using barcode/RFID technology) that is automated.
- Tracking expiration and shelf-life (e.g., for raw materials).
- Suggestions for inventory storage based on AI (optimal inventory location indicated based on its storage requirements, expiration date, etc.).
- Routing for order picking (the system suggests the quickest route to pick up an order for a warehouse worker).
- Packing advice based on AI (the system automatically defines the type and amount of packing required for an order).
Management of sales orders
- Creating and tracking sales orders.
- Invoice production and approval routing are both automated.
- Purchase and/or production orders can be generated automatically from a sales order.
- Inventory reservation for a sales order that is automated.
Management of purchase orders
- Creation of purchase order requests and automatic approval routing.
- Creating and tracking purchase orders.
- Establishing preferred suppliers for specific inventory groups.
- Establishing spending limitations for each user/department (on purchase orders).
Management of the workforce
- Workforce planning (production and maintenance workers, etc.).
- Reports on the performance of the workforce.
- Messages sent instantly (for easy communication between planners and operations managers and the shop-floor personnel and vice versa).
Quality assurance in the manufacturing process
- Quality control charts can be created quickly using a form.
- Quality check scheduling and assignment (with auto-attachment of quality control charts).
- Escalation of alerts for problematic products (to production supervisors).
Management of machinery and equipment maintenance
- Scheduling machine maintenance (for regular maintenance activities coordinated with a production schedule).
- Creation of maintenance requests and automated approval routing (for on-demand activities, e.g., in case of machine malfunction or irregular performance).
- Assigning maintenance orders and tracking their progress.
- Predictive equipment maintenance.
Reporting and analytics
- Forecasting product demand.
- A comparison of product demand and production capacity.
- Forecasting workforce demand.
- Impact analysis for modifications to the production schedule (to see how current production orders will be affected by the changes).
- Reports on capacity use (on machine and workforce utilization).
- Production reports (on the outputs of a certain period, such as a day or week).
- Analysis and monitoring of production expenses.
- A cost-of-carrying-inventory analysis.
- Purchase reports for inventory (with historical costs trends).
Final Thought
The art of production management is ensuring that your goods or services flow smoothly throughout the manufacturing process. It’s an important feature, especially for things that must be made.
This software evolves with data input and content production – these are just a few activities for which you might be looking for an outsourced specialist with a solid history who can assist you in carrying out key business obligations. We have several professionals with experience in each of these sectors that may potentially take over some positions or even start a new department within your organization!