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Everything you need to know about Production Scheduling within ERP Software

Production Scheduling within ERP Software
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Summary: People complain that they don’t get enough time to spend with their loved ones because of the amount of work they need to finish within tight deadlines. Long meetings, urgent tasks at odd hours, high-priority client calls are a few challenges employees face daily. Therefore planning and scheduling play an essential role for employees across each level in the hierarchy as it prioritizes critical jobs and assists in finishing them within the prescribed time frame. 

Production Scheduling

What is production scheduling?

Production and manufacturing run on a tight schedule in manufacturing firms. Manufacturers handle multiple orders simultaneously, so they must plan many steps ahead. This way, they can efficiently ensure that parts of the process are executed in an appropriate sequence. 

Production planning within ERP software ensures that manufacturing orders are completed with maximum efficiency without any delays, interruptions, or stress.

The three most vital objectives that production scheduling within ERP software helps manufacturing companies achieve are:

  • Balancing the demand and supply ratio.
  • Avoiding unnecessary inventory. 
  • Ensuring a sufficient quantity of products are available in the inventory at any time.

Other objectives include reducing production time and associated costs by controlling what and when to produce and designating which machine will manufacture the products. This process maximizes manufacturing efficiency, cuts operational costs, and ensures end users get products delivered within the set deadline. 

Production Scheduling within ERP Software

Why Production Scheduling within ERP software is essential in Process Manufacturing?

Production scheduling is the heart of a process manufacturing business.

Production Scheduling within ERP Software

For most manufacturing companies, the production scheduling software doesn’t function in an isolated way. Instead, it’s available as a module in the ERP (Enterprise Resource Planning) software. 

The importance of production scheduling within ERP software

Automated planning tools ensure a proper sequence of production activities is maintained. However, in their absence, manufacturing firms depend on manual and inefficient tools like pen & paper and Excel sheets to prepare the schedule for shop-floor activities. 

On the other hand, an ERP software’s planning and scheduling module has many more functions than mere production scheduling. It monitors and provides real-time visibility of each activity in the supply chain. This way, manufacturing companies can quickly adapt to the changing customer preferences, market demands, and delivery requirements. 

It also contains Master Production Scheduling (MPS) and Material Requirement Planning (MRP) modules that provide suggestions for material and production planning, ensuring:

  • Required quantity of material is always available in the inventory, ensuring that production activities go on without any halts.
  • Current manufacturing needs are always met.
  • Future manufacturing needs are correctly estimated.

Moreover, production scheduling within ERP software provides access to essential business data regarding:

  • Warehouse transfers
  • Sales forecasts
  • Inbounds
  • Deliveries
  • Inventory levels
  • Expired items

This data allows production managers to brainstorm an optimal schedule to meet the customer demands and accomplish lean business targets.

Production scheduling within ERP software also helps manufacturing businesses make optimum use of available resources (labor, material, and equipment), cut inventory costs, reduce wastage, significantly increase plant floor throughout, and meet customer demands on time.

The following list provides a detailed description of the various components of production scheduling within ERP software and their benefits.

1. Master Production Scheduling (MPS)

The MPS module enables process manufacturers to brainstorm an optimal manufacturing plan based on the cost, resources, and workforce required to achieve a specific demand threshold. This demand is based on several factors, including customer orders, sales forecasts, warehouse transfer requirements, and many more. 

The manufacturing plan ensures that the right products are manufactured and stored in the inventory, vital supply chain links are identified, lead times (Quality and Vendor) remain low, and products are ready to be shipped whenever the customer needs them. 

Shortly put, the MPS module allows manufacturing companies to schedule production and purchases within a set time frame. In addition, it provides a fair idea of the exact quantity of a product to meet the customer’s demands.

<<<Also Read: 3 Advantages of using MRP and MPS in ERP Systems to Meet Increased Demands>>>

2. Material Requirements Planning (MRP)

The MRP module generates a master plan that dictates the quantity of raw materials the manufacturing company must purchase to ensure future batch production jobs keep running at full speed. It also helps determine the required workforce and the number of machines required to manufacture a particular amount of products within a specific deadline. 

MPS calculates future batch orders based on which the MRP produces purchase order recommendations. After that, it changes these recommendations into raw material purchase orders that go hand-in-hand with the preferred suppliers’ expected delivery times and Economic Order Quantities (EOQ). 

MPS is the primary driving force behind MRP. It analyzes existing supply & demand data and also uses forecast data to generate accurate production plans. After competent authorities approve these plans, MRP begins generating purchase orders. The MPS production plan runs weekly based on a given period’s forecast and purchase order. On the other hand, MRP runs daily to accelerate finding the necessary parts to produce the plan. 

The other benefits of production scheduling within ERP software are:

  • An extended planning horizon allows process manufacturers to plan for the short- and long-term.
  • The flexible scheduling functionality enables real-time adjustments to unplanned events and ensures optimal throughput throughout the entire manufacturing plant. 
  • The built-in company calendar considers holidays, weekly offs, and labor schedules that help make accurate plans.
  • Real-time integration with the production module and order entry expedite the process by creating production or purchase orders with a single click.
  • Expedite reports offer suggestions describing what products will experience increasing demand in the near future. 
  • Production planning within ERP software has a visual dashboard that provides user-defined calendar views of planned purchase and production orders with perfect analysis, rescheduling capabilities, and grouping. 
  • The manufacturing ERP software sets accurate predictions by providing reliable data to customers based on resource availability. 
  • The new & improved “What if” capability enables process manufacturers to try schedule changes through drag and drop features.

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At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. You can also write to us at sales@sagesoftware.co.in.

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

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